In this case study, the strong linkages between financial liberalisation and financial crises in South Korea as well as the important role played by external actors (particularly the IMF and the OECD) in pushing unbridled financial liberalisation are documented. Key developments in the Korean banking sector before and after the 1997 financial crisis are analysed. It also provides a critical understanding of the interplay between state, big business and foreign financial investors (including foreign banks) in shaping the landscape of Korean financial system.