내부자본시장의 기능과 경제적 효과

This paper provides a synthesis on ICM research based on logical sequence, historical development of theories, and grouping of subjects. The internal capital market (ICM) refers to the one that operates among business units or affiliates within conglomerates or business groups. Differently from external capital market where the price mechanism plays a central role in resource allocation, the ICM allocates resources by a hierarchical structure and a control of corporate headquarters. If the external capital market works properly, the price mechanism efficiently distributes resources in the economy achieving optimal allocation of scarce resources. If the external capital market does not function properly and is underdeveloped, however, the ICM can substitute the external capital market and allocate resources more efficiently. On the other hand, the ICM can also distort resource allocation due to such problems as agency costs and information asymmetries. Specifically, this article covers issues such as the existence of ICM, positive and negative aspects of ICM, influence on other corporate variables, ICM of business groups, ICM of financial business groups, ICM of Korean conglomerates and business groups and the ways to reduce negative aspects of ICM. Finally, this paper discusses less studied subjects and proposes future research agenda.