South Korea initiated major financial reforms from 1998 to 2000. Taiwan also enacted similar reforms from 2000 to 2006, but the effects were vastly different. In short, the reforms of South Korea were comprehensive and effective compared to the reforms made in Taiwan. Why were the results so different? The key is whether the political leaders of each country obtained stable support from a congressional majority as they endeavored to implement policies. Obtaining stable support in congress is essential for effective policy implementation, and such support is conditioned by political institutions in these two countries. Kim Dae-jung successfully applied the characteristics of the political institutions in Korea to construct a majority coalition in congress to support his policies. The financial reforms in Korea thus thrived. On the other hand, Chen Shui-bian in Taiwan was forced to form a minority government by way of the political institutions in Taiwan. Without a majority of the congress to support his policies, financial reforms in Taiwan were ineffective.