The Rise of “Fund Capitalism” in Japan, Korea and China

The Rise of “Fund Capitalism” in Japan, Korea and China

  • 25 June 2008

This lecture dealt with the issue of fund capitalism in Korea,
Japan and China, which rose quite substantially during
2007 and 2008. The speaker explored the fundamental
change in the major economies of East Asia, explaining that
in the postwar period, Japan had set a model of economic
development based on export-oriented manufacturing.
This model has been adopted in Korea and China. As such,
these three countries have become strong players in the
global markets. One corollary to this development model
was the preponderance of industry over finance. The
banking and securities firms in these countries have long
performed the role of “channeling funds to manufacturing
firms,” while asset management for institutional and
individuals investors has been put on the back burner.
However, this paradigm of socio-economic
development has been changing dramatically lately. Even
though manufacturing is still the main source of national
wealth creation, the relative importance of service and
financial industries has been looming larger. The investors,
both institutional and individual, are increasingly aware of
their opportunities to enlarge their assets and properties
in the new borderless, IT-led, diversified financial markets
around the world.
New awareness is not unique to investors. The central
governments of Japan, Korea and China have adopted
a new stance of persuading their citizens to shift “from
saving to investment” in their financial behavior. All the
more, stimulated by the success of “sovereign wealth funds
(SWFs),” especially of the GCC countries. They are in the
course of forming and strengthening their own SWFs.

Share

LECTURER

Wednesday 25 June 2008

-

Wednesday 25 June 2008

-