Social and Behavioral Sciences Commons^™

Korea: Bank Recapitalization Fund, Lily S. Engbith

Journal of Financial Crises

Following the collapse of Lehman Brothers on September 15, 2008, a number of foreign governments enacted stabilization measures to protect their domestic economies in the wake of the global credit crunch. The Bank Recapitalization Fund (the Fund), announced by the South Korean government on December 18, 2008, and implemented on February 15, 2009, was one such intervention intended to assist Korean commercial banks in strengthening their capital bases and thus restore normal lending practices between banks and nonfinancial institutions. Invoking its authority under Article 65, Section 3 (“Emergency Credit to Financial Institutions”), of Chapter IV of the Bank of Korea …

The Impact Of Corporate Tax On Investment In South Korea, Hyoungchul Lee

MPA/MPP/MPFM Capstone Projects

The President of the Republic of Korea, Moon Jae-in reformed corporate tax, which is the new establishment of the highest bracket affecting on only companies with 300 billion won or more of sales. However, it caused a great controversy in Korea. The conservative argues that lowering corporate tax rate will improve corporate competitiveness while the progressive says that corporate taxes are neutral in corporate investment decisions.

According to an economic model, the amount of an entity's investment is determined by costs and returns when an additional unit of capital is used. Assuming taxes are raised with depreciation and deductions, it …