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Box 56055 Tel Aviv 61560 DOMINICAN REPUBLIC Editora Taller. C por A. ) Ltd. O. O. Box 101. Kwangwhsmun Seoul MALAYSIA Univesity of Malaya Cooperative Bookshop. O. Box 1127,jalan Panti Ban 59700 Kual Luznpur MEXICO INFOTEC Apartado Postal 224-60 14060 Mlalpan. O Box 202 7480 AE Haaksbegen NEWZEALAND EBSCONZ Ltd.

World Bank. Nam, S. W. 1990. " Mimeo. Seoul: Korea DevelopmentInstitute Nam, S. W. 1991. "Mimeo. Seoul: Korea DevelopmentInstitute. Nelson, Richard R. 1990. S. Seattle: Universityof WashingtonPress. Organizationfor Economic Cooperationand Development(OECD). 1986. Economic Surveys: Germany. Paris. Organizationfor Economic Cooperationand Development(OECD). 1989a. Economic Surveys:France. Paris. - 40 - Organization for Economic Cooperation and Development (OECD). 1989b. Economic Surveys: Germany.

It is hard to see how a government could improve on the results of these mechanisms, and in both countries the governmenthas essentiallywithdrawnfrom influencingthe allocation of credit. As the Korean financial sector developsinto a stronger, independententity, it may well generate German- or Japanese-style relationships between financial institutions and their industrial clients. If the independence of the financial sector is achieved under present restrictions(effectivelyenforced)on maximum-shareownership, the result will approximatethe German model, with powerful, independentbanks playing the lead role in the finance-industry relationship.

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