Financial liberalization in Korea fails to boost growth and stability, worsens income inequality.
Financial liberalization in Korea since the 1980s has not led to significant economic growth or stability. Despite efforts to open up financial markets, the country faced crises in 2003, 2008, 2011, and during the COVID-19 pandemic. The study shows that financial liberalization has not helped the economy and has worsened income inequality. There is a need to make Korean financial institutions and markets more efficient and stable.