The paper examines recent Korean financial and exchange rate reforms, including the role of U.S. political pressure. It undertakes some statistical tests of the extent to which Korean interest rates have become more closely tied to world interest rates, and of the extent to which the value of the won may have become less closely tied to the value of the dollar under the MAR system. One important theme is the possibility that Korea is becoming more closely tied to Japan financially. We find, however, little evidence that the nature of the relationship between the Korean won and the U.S. dollar has changed since the purported change in regime in 1990.