Almost all Korean banks have become profitable the last two years.

What, you might ask, were Korean banks doing buying bonds from countries halfway around the world?

As an industry, Korean banks turned a profit in 2001 for the first time in five years.

In order to protect the won, the Korean central bank raised short term interest rate to over 12 percent.

Evaluating the credit of each big Korean bank, and acting on that basis, is a good way to start.

Many Korean banks would fail, including some that could survive if given time.

It also has its sights on a stake in a South Korean bank.

South Korean banks and companies, however, certainly do seem to need cash quickly.

The Korean bank effectively would lend them the money for a few weeks until the buyer's cash was received.

"No bank can make money under those circumstances, and if that kind of thing happened again, it would hurt the Korean banks seriously."