Japan and Korea: moral hazard lives on

News that both Korea and Japan are committing to more bailout packages, hasnÆt exactly been greeted with enthusiasm in the financial markets.

Long lives moral hazard. That's the perception one can't avoid when both Korea and Japan announce yet more bailout packages to prop up their local financial markets and economy. These efforts alone are unlikely to sustain a turnaround for the markets.

In the case of Korea, investors are losing patience in the reform process. As for Japan, the latest package raises more questions than answers. If both countries are still in denial, their stock and currency markets will likely remain weak until determined reform resolve emerges.

The common excuse

Korea's Ministry of Finance recently decided to put another W3 trillion $2.4 billion of the country's W65 trillion pension money into the ailing...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222