The Impact of Informatization on the Financial Industry in Korea

The purpose of this paper is to analyze the impact of informatization on the financial industry and suggest development strategies for Korean financial industry. To this end, this paper examines the characteristics of informatization and its meaning for the financial industry. Informatization is a phenomenon where social activities are reoriented by utilizing IT. This informatization has been spread in the whole society, which means that the financial industry could find opportunities to informatize the inner parts of the industry and, on the other hand, create financing market from the informatized society.The informatization of the financial industry is called ‘financial informatization’ which has been passing through several phases. These phases are involved in ICT elements and their development. The development of ICT has been accomplished, based on the interactions among communication networks, contents and applications, and ICT support policies. The other impact of informatization comes from the outside of the financial industry. Informatized society has offered too many opportunities for new financial markets which need transaction or payments associated with ICT supply and demand. In this paper, I consider these direct and indirect directions by analyzing the impacts of informatization on the financial industry.This paper consists of three main parts. The first part is about the meaning of informatization in the financing industry, where I introduce the concept of financial informatization and its development trends in Korea, based on the role of the informatization in the industry. In the second part, I analyze the impact paths of informatization for the development of the financing industry from which it draws the policy implications for Korea