As Korean banks had little if any access to long-term foreign currency funding, they entered funding contracts with maturity of 3 or more years but with early reimbursement clauses, so that in practice the maturity was much shorter (1 year or so).9 This allowed them to borrow at relatively cheap rates, formally complying with the regulation but de facto eluding it.
My second remark is that elusion is more likely to occur during cyclical upturns. Consider again one of the above examples: lenders know well that the credit risk of lending to an entrepreneur is the same as that of lending to his/her firm. When optimism prevails and risk aversion is low, they will be more willing to overlook prudency.