• Land and Housing Review
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• v.4 no.1
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• pp.107-117
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• 2013

This study aimed to assess the rental housing ABS in Korea, and to suggest ways of improving the structure of existing rental housing ABS. Thus, the three major assessment for existing public rental housing ABS case can be summarized as follows : First, when viewed in terms of the accounting treatment, rental housing ABS which use the future receivables as underlying asset, can not enjoy off-balance-sheet effect. Second, when viewed from the point of financing costs, the rental housing ABS interest rate being higher than unsecure bond is very unreasonable nevertheless the ABS being off-balanced. Third, when viewed from the liquidity effect, the originator (LH) use the ABS as a means of diversifying funding in a serious liquidity crisis situation. The Improvement of rental housing ABS based on the evaluation results can be summarized into two broad. First, it is a plan to handle the off-balance-sheet effect in a way of changing the accounting treatment of rental payment. Second, it is a plan to reducing the structuring cost and interest rate in ways of multi-asset securitization structure, self-trust structure, and adopting legal CB structure.

• KDI Journal of Economic Policy
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• v.32 no.4
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• pp.153-195
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• 2010

The recent global financial crisis has been the outcome of, among other things, the mismatch between institutions and the reality of the market in the current global financial system. The International financial institutions (IFIs) that were designed more than 60 years ago can no longer effectively meet the challenges posed by the current global economy. While the global financial market has become integrated like a single market, there is no international lender of last resort or global regulatory body. There also has been a rapid shift in the weight of economic power. The share of the Group of 7 (G7) countries in global gross domestic product (GDP) fell and the share of emerging market economies increased rapidly. Therefore, the tasks facing us today are: (i) to reform the IFIs -mandate, resources, management, and governance structure; (ii) to reform the system such as the international monetary system (IMS), and regulatory framework of the global financial system; and (iii) to reform global economic governance. The main focus of this paper will be the IMS reform and the role of the Group of Twenty (G20) summit meetings. The current IMS problems can be summarized as follows. First, the demand for foreign reserve accumulation has been increasing despite the movement from fixed exchange rate regimes to floating rate regimes some 40 years ago. Second, this increasing demand for foreign reserves has been concentrated in US dollar assets, especially public securities. Third, as the IMS relies too heavily on the supply of currency issued by a center country (the US), it gives an exorbitant privilege to this country, which can issue Treasury bills at the lowest possible interest rate in the international capital market. Fourth, as a related problem, the global financial system depends too heavily on the center country's ability to maintain the stability of the value of its currency and strength of its own financial system. Fifth, international capital flows have been distorted in the current IMS, from EMEs and developing countries where the productivity of capital investment is higher, to advanced economies, especially the US, where the return to capital investment is lower. Given these problems, there have been various proposals to reform the current IMS. They can be grouped into two: demand-side and supply-side reform. The key in the former is how to reduce the widespread strong demand for foreign reserve holdings among EMEs. There have been several proposals to reduce the self-insurance motivation. They include third-party insurance and the expansion of the opportunity to borrow from a global and regional reserve pool, or access to global lender of last resort (or something similar). However, the first option would be too costly. That leads us to the second option - building a stronger globalfinancial safety net. Discussions on supply-side reform of the IMS focus on how to diversify the supply of international reserve currency. The proposals include moving to a multiple currency system; increased allocation and wider use of special drawing rights (SDR); and creating a new global reserve currency. A key question is whether diversification should be encouraged among suitable existing currencies, or if it should be sought more with global reserve assets, acting as a complement or even substitute to existing ones. Each proposal has its pros and cons; they also face trade-offs between desirability and political feasibility. The transition would require close collaboration among the major players. This should include efforts at the least to strengthen policy coordination and collaboration among the major economies, and to reform the IMF to make it a more effective institution for bilateral and multilateral surveillance and as an international lender of last resort. The success on both fronts depends heavily on global economic governance reform and the role of the G20. The challenge is how to make the G20 effective. Without institutional innovations within the G20, there is a high risk that its summits will follow the path of previous summit meetings, such as G7/G8.

• Cross-Cultural Studies
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• v.41
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• pp.199-227
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• 2015

In the twenty-first century, one of the most controversial issues concerns neoliberal policies and its results. In particular, since the mid-1980s, the United States and international financial institutions have imposed their programs on Latin American countries. The result is a deepening social inequality in Latin America that puts an emphasis on financial stability instead of social security. Consequently, social inequality is worsened and an imbalance in income distribution took place. Because of the flexibility of labor, the middle class is destroyed. For the poor person deprived of the opportunity to rise, violence is a common occurrence in daily life. Thus, in this context, Eduardo Galeano raises the necessity of a critique concerning the values that neoliberalism regards as important. Furthermore, Galeano is also wary of the "militarization of neoliberalism." This is because the neoliberal multinationals motivate a war without borders under the guise of peace. Neo-liberal policies also contribute to environmental pollution. However, environmental vandalism, which happens in partnership with large and international organizations, is not readily apparent to the public because those perpetrators wore a "green mask." Hence, Galeano assiduously endeavors to undercover the false consciousness hiding behind the green mask. Thus, in brief summary, Galeano represents in his works a depiction about Latin America where violence often happens in daily life.

• International Area Studies Review
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• v.22 no.2
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• pp.41-59
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• 2018

After global financial crisis, policy makers in major countries tried to find a new bank recovery and resolution policy. The new policy intends to normalize the market not by bail-out approach in which public funds should be provided bankrupt banks, but by market discipline approach in which unsecured creditors take part in liquidation process. Bail-in system is a new and dominant financial policy after crisis period in resolution regimes led by the government administration. This study tries to analyze the relationship between bail-in system and pro-cyclicality. Empirical analysis has been done by taking the basis of the 8 year data from 2008 to 2015, which is selected from financial statistics information system of Korea Financial Supervisory Service. Accounting and financial data are collected from the dataguide 5.0 between 2008 and 2015. Through the analysis, the effect of bail-out system and bail-in system on pro-cyclicality of total loans did not show the statistically significant relationship. However the effect of bail-out system on pro-cyclicality of SME loans showed the statistically significant relationship, meanwhile the effect of bail-in system on pro-cyclicality of SME loans did not show the statistically significant relationship. In conclusion, bail-in system can be useful policy which improves the support and promotion of SMEs.

• Analyses & Alternatives
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• v.7 no.2
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• pp.147-178
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• 2023

While most of countries today are opposing the issuance of private-led cryptocurrency, nevertheless they are actively jumping into the issuance of government-led digital currency such as CBDC. This article aims to find an answer to this dual attitude of countries. To achieve the purpose, this article finds out the characteristics of political power and economic interest that digital currency has and applies it to the international dimension of the Bretton Woods II System. Then come up to the conclusion that the answer can be found in the fact that the current dual attitude of countries is closely related to the crisis of the international monetary order. The Bretton Woods II System, which led the world economy through reckless monetary expansion based on credit currency, exposed its limitations through the 2008 global financial crisis and put countries into difficulties. In this situation, the cryptocurrency, which appeared by raising the issue of the monopoly power of the central authority in issuing currency, had no choice but to act as an opportunity to drive countries further and further into a corner. This article views CBDC as a national response to address these issues. In other words, countries maintain their monetary power by absorbing the challenge of private digital currency at the government level through CBDC, and use this as a stepping stone to reorganize the international monetary order in crisis with the intention to use it as a means to their advantage. That is what this article is trying to argue.

• International Commerce and Information Review
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• v.13 no.1
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• pp.123-144
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• 2011

This study used a non-parametric linear program, Data Envelopment Analysis(DEA) to compare the efficiency of Korean and global container shipping companies from 2005 to 2009. The sample shipping companies were 7 Korean container shipping companies and 11 global container shipping companies. The main objective of our research is to compare their efficiency, as well as the changes in efficiency periodically according to the types of the container shipping companies. According to the periodical analysis, both Korean and Global container shipping companies showed a steady decrease in efficiency. The study showed that Korean container shipping companies have greater efficiency than their global rivals.

• International Area Studies Review
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• v.14 no.1
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• pp.203-219
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• 2010

Nowadays an instability of the exchange rate on accounts of global finance crisis brings on a lot of an economic damage such as recession, decreasing of total trade and so on. However some countries which belong to be membership of the eurozone could escape economic slump shortly and easier than others. The reason for this is that they share with the Euro as a their own currency which is the second vehicle currency all of the world. This paper analyzes the correlation of joining the Euro zone and trade with pooled OLS, random effect estimation, and fixed effect estimation. A membership of the Euro zone are able to increase trade 11.3% ~ 25.3% one another on average since some country belongs to the Euro zone. It is very important for some countries which have a plan to affiliate the Euro zone sooner or later to realize economic effect because of a protection of the Euro zone as well as political power.

• The Journal of the Korea Contents Association
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• v.17 no.6
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• pp.504-513
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• 2017

This study investigated one of the controversial issues on debate or even controversial between policy makers at the government and corporate levels: To examine any financial determinants on the cash holdings of the firms in the advanced and emerging capital markets. Futhermore, it focused on the large representative firms headquartered in the U.S. and the Republic of Korea, taking into account scarcity of the previous literature concentrated on the comparative studies on this particular subject. Several legitimate, but robust econometric estimations such as static and dynamic panel data models and Tobit regression, were applied to investigate possible financial factors ono the cash liquidity. Given the continued debates or arguments on the excess cash reserves between interest partied at the government and corporate levels in the advanced and/or emerging capital markets, and more accelerated capital transfers among associated nations by engaging in the arrangements of the FTAs, the results of the study may provide a vision to search for the optimal level of corporate cash holdings for firms in the two nations.

• Current Industrial and Technological Trends in Aerospace
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• v.8 no.1
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• pp.12-22
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• 2010

The great recession which caused by financial crisis made steep rise of oil price and the serious problems of the aircraft industry. High oil price increases operating cost and the recession decreases air traffic. After a period of high book order and delivery from global economic recovery, the aircraft order fell down suddenly. Also the Aircraft price and lease rate deceased and the MRO market is reduced, too. But, the air cargo and passenger increase again since late of 2009. So, it is difficult to predict the market movement, most of the forecasters agreed that the air traffic and aircraft demand will grow gradually in long term with the growth of emerging markets like China, India and Africa. And more efficient, safe and clean aircraft is needed and will need in the market.

• Journal of Korea Port Economic Association
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• v.36 no.4
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• pp.93-106
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• 2020

Trade is an important economic activity. In particular, since the establishment of the World Trade Organization (WTO), the scope of trade has been expanding due to events such as the entry of China into the WTO in 2001, the establishment of a multilateral trading system, mitigation and integration of trade barriers, and the establishment of the free trade agreement (FTA). Despite the expansion of the trade market, however, extreme events such as the 2008 global financial crisis, the 2016 Brexit, and the 2018 US-China trade war have had a direct negative impact on the trade market. Therefore, the present this study analyzed the dependence structure between the international shipping freight rate index, a variable representing trade activities, and the trade uncertainty between the US and China. The following is a summary of the analysis results. First, the US-Chinese trade policy uncertainty and international shipping freight rate index presented a Frank copula and rotated Clayton copula 270° distribution, respectively, showing the same distribution structure for each country. Second, the Kendall's tau correlation revealed a negative dependence between the international shipping freight rate index and US-Chinese trade policy uncertainty. The degree of dependence was greater in the combination of uncertainty in China's trade policy and international shipping freight rates. In other words, the dependence of global demand and trade policy uncertainty confirmed that China was stronger than the US. Finally, the tail dependence results revealed that the US-Chinese trade policy uncertainty and international shipping freight rates were independent of each other. This means that extreme events related to the trade policy uncertainty or international shipping rate index were not affected by each other.