This paper explains the background and recent history of the exchange rate regime in Korea and discusses the policy implications for its capital market liberalization.

The Korean government had been adopted the single currency peg (SCP) system since 1964. It has pursued a series of currency stabilization measures by introducing a floating exchange rate in March 1980.
It was expected that unlike the fixed rate system, the floating rate regime should reflect accurately the relative price of a country's currency accurately and prevent sustained severe imbalances between current accounts of different countries.

However, this simple system neither correctly nor flexibly reflected the changes according to economic situation. In particular Korea's trade surplus with the US exploded from in 1966 to in 1989 and resulted in trade dispute.

Accordingly, the Korean government has put into effect the market average exchange rate (MAR) system in 1990. Under this system, the basic won-dollar rate was the market average rate of the previous day, determined by the weighted average of the market exchange rate, where the weights were the volumes of each transaction.

I. 서론

II. 자본자유화의 이론적 배경
1. 자본자유화의 거시경제적 효과
2. 자본자유화와 거시경제정책 운용의 제약
3. 정책개입의 이론적 기반과 방안

III. 자본시장 개방과 환율변동
1. 자본자유화와 자본유입의 묹
2. 주식시장 개방과 환율

IV. 자본자유화와 환율 및 통화관리
1. 자본자유화와 환율정책
2. 자본자유화와 통화관리

V. 외국의 자본자유화 경험과 환율운용 사례연구
1. 자본자유화와 거시경제운용 문제
2. 자본자유화 부 대응책
3. 외국사례로부터의 교훈

VI. 정책적 시사와 시언
1. 우리나라의 자본시장의 개방과
2. 자본자유화와 정책시언