Abstracts » Business, international

Silver lining

Article Abstract:

Korea Exchange Bank head, Lee Kap Hyun, has resigned, though the bank may move into profit in 2000. The bank has been affected by regulations which mean that securities have to be valued at market prices, and that potential defaulters have to be included in figures on bad debts. South Korea's economic recovery should ease the bad debt problem The banks need to diversify revenues and deal with labor union opposition to mergers. Labor unions succeeded in persuading Korea Exchange Bank's head to resign.

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Back to the barricades

Article Abstract:

Labor unrest among South Korean white collar workers includes action by bank employees against government plans for bank mergers.

Labor relations

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Victims of success

Article Abstract:

The banking industry in South Korea has been affected by government intervention. Three banks are state-owned of the 17 largest commercial banks. Banks have had to buy bonds as a result of government policy, and they could face losses when rates of interest are raised. The banks lack adequate information technology investment as well as skills to use such equipment. Non-performaning loans of commercial banks are increasing since they are lending more to small companies as larger firms reduce their borrowing.

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