Change in World Credit Rating Industry After Global Financial Crisis and Suggested Policy Issues in Korea

Oh, Se Kyung; Hwang, In Deok

Korean Journal of Financial Studies 2012;41(1):1-39.
Published online February 28, 2012.

Se Kyung Oh, In Deok Hwang

글로벌 금융위기 이후 신용평가산업의 환경변화 고찰과 주요 현안에 대한 정책제안

오세경, 황인덕

Abstract

Although the role of Credit Rating Agencies (CRAs) is considered very important, there arose many blames on their negative functions after the recent global financial crisis. CRAs were even pinpointed as one of many culprits of the crisis. Under theses circumstances, G20 countries including US and European Union were strengthening the regulations on the credit rating industry. The paper analyzes the problems of global CRAs and new global regulations to tightly control them. After we illustrate current circumstances and major issues of Korean credit rating industry, we claim that Korean CRAs confront different problems and issues from those of global players and our regulatory authority should act differently from other countries. The paper provides policy suggestions on major issues of Korean credit rating industry: how to change credit information act, how to solve ``rating shopping`` and ``rating inflation`` problems, whether we should abolish the compulsory multiple rating system or not, and whether we should boost the competitions in the industry or not.

Key Words: 등급쇼핑,등급인플레,복수평가제,수수료지급모델,신용평가기관,Credit Rating Agencies,Investors-Pay Model,Multiple Ratings System,Rating Inflation,Rating Shopping