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Extra info for Asia and Europe: Services Liberalisation
0 GDP Growth Rate Source: The Bank of Korea. 52 Recovery of the sovereign credit rating. The financial sector reform deserves credit for helping here. International credit rating agencies have acknowledged Korea’s financial reform efforts. Net foreign portfolio investment has increased and the spreads on the foreign exchange stabilisation fund bond have dropped significantly. All major international credit rating agencies have upgraded Korea’s sovereign rating since 1999 (Table 11), even in the presence of increasing credit risk in emerging economies.
The second group, on the other hand, includes supermarkets, department stores, hypermarkets, discount stores and convenience stores. They usually run efficient and orderly business operations with modern technologies, such as supply-monitoring systems, warehouse management and modern administrative systems. Sensitivity exists because the traditional retail shops often form an integral part of the social community. These grass-roots businesses have a considerable share of the country’s employment and serve as an important source of supplementary income for many households.
There are currently at least eight major complaints of malpractice by these stores at the expense of suppliers. The regulatory and supervisory regime must be strengthened to pre-empt and prevent exploitation and abuse of monopolistic and monopsonistic behaviours and their side effects. — Liberalisation of this sector has both costs and benefits. It is difficult to measure whether costs outweigh benefits or vice versa. Clearly, liberalisation was not introduced as a result of systematic planning, nor was it accompanied by cautious measures to prevent or minimise adverse effects on the related players.