• 무역상무연구
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• 제39권
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• pp.143-175
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• 2008

The documentary letter of credit is the most preferred and frequently used method in International Payment System in Korea, as it has less possibility of occurring credit risks in export than any other payment system. That's because the exporter can get payment from the issuing bank(confirming bank) by delivering the goods and presenting documents following the required procedure under the letter of credit, as the payment is affirmed by the issuing bank(including the confirming bank in case of the confirmed letter of credit) regardless of the buyer's payment. However, the pattern of payment methods used in international trade of Korea is changing dramatically like the importance of the credit is decreasing continuously among the payment methods while the remittance is increasing. The increase of remittance has a positive aspect that International Payment System are changing into those of advanced countries, but the decrease of the credit also has a negative aspect that the exporter might have a greater credit risks. Therefore, we need a systematic device to deal with this. Exporters in Korea usually have used the export credit insurance to deal with the credit risks However, the export credit insurance also have a limitation as the policy finance due to the limitation based on the credit status of the business and the limitation of acceptance from the lack of financial resources of the government, etc. Korea, which is the 11th export power in the world, has a basic limitation to deal with the credit risks by depending on the export credit insurance only. So, in this thesis, I have studied on the international factoring, forfaiting, which are advanced export finances and widely used in advanced countries, as substitutes to deal with the credit risks. the international factoring is an trade financing in which a factor offers full services such as credit cover, offering prepayment, collection, account receivables, management, etc, instead of the exporter on the account receivables occurred by the exporter's delivering goods to the importer. This international factoring has a high possibility of using as a means to deal with the credit risks, because it offers prepayment without recourse. the forfaiting is another export financing in which a forfaiter purchases the draft, the promissory note and other negotiable instruments issued from the international trade, with fixed interest rate without recourse from the exporter or previous holder. By using this method, they can avoid foreign exchange risks, contingency risks as well as credit risks, as the conveyances like the promissory note, etc are issued with the note warranty so-called 'per aval' in business practice. These trade financing are good substitutes to deal with the credit risks in export, but they are not widely used in Korea. Though it can be explained with various reasons, the common reasons are the lack of understanding on the use of advanced export finance, the lack of experts to manage the advanced trade finance, the conservative way of thinking of domestic organizations related to trade financing, the lack of organizations supporting the trade financing, etc.

• The Journal of Asian Finance, Economics and Business
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• 제7권7호
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• pp.59-72
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• 2020

This paper examines whether lending structure can lower credit risk by employing econometric techniques of panel data for the Vietnamese banking system at the bank level used by economic sectors from 2011 to 2016. New light is being shed on assessing the impact of each industry's debt outstanding on credit risk. Adopting findings from previous studies, we assess credit risk from two different sources, including loan loss provision and non-performing loan. Moreover, we also focus on observing lending structure in many different aspects, from concentrative levels to the short-term and long-term stability levels of lending structure. The Generalized Method of Moments (GMM) estimator was applied to analyze the relationship between concentration and banking risks. In general, the results show that lending concentration may decrease credit risk. It is interesting to observe that the Vietnamese commercial bank lending portfolios have, on average, higher levels of diversity across different sectors. In particular, the increase in hotel and restaurant lending contributes to decrease credit risk while the lending portfolios of banks in agriculture, electricity, gas and water increase credit risk. This study suggests the need for further analysis and research about portfolio risks in lending activities for maintaining efficiency and stability in the commercial banking system.

• 한국의류학회지
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• 제33권11호
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• pp.1707-1718
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• 2009

This study examines the effects of perceived risks on purchase decision behavior among Internet fashion consumers. The study survey used a self-administered questionnaire and a total data of 244 responses were used for analysis. The results of this study are as follows: First, the perceived risks consist of 6 factors, quality risk, counterfeit product risk, credit dealing risk, social/psychological risk, size and appearance risk, and delivery risk. The purchase decision behavior consist of 3 factors, delay of purchase decision, website switching, and offline conversion behavior. Second, purchase time positively affected the quality risk and credit dealing risk. Purchase frequency negatively affected the quality risk and credit dealing risk. Third, the quality risk, size and appearance risk, counterfeit product risk, and credit dealing risk positively affected the delay of purchase decisions. Quality risk and counterfeit product risk positively affected website switching. In addition, quality risk, social/psychological risk, and credit dealing risk positively affected the offline conversion behavior. Fourth, credit dealing risk negatively affected a short term purchase intention and the delivery risk negatively affected a long term purchase intention. The social/psychological risk and credit dealing risk negatively affected the repurchase intention.

• 국제학술발표논문집
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• The 6th International Conference on Construction Engineering and Project Management
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• pp.122-126
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• 2015

Credit enhancement is absolutely essential for financing Independent Power Producer (IPP) projects in Asia particularly for countries whose sovereign credit rating is on non-investment grade and foreign investment is difficult to achieve. Due to nexus of agreements among varies parties in IPP project, it is hard to clearly visualize the roles of these agreements. Examples are: What credit enhancement factors are most influential to minimize the associated risks of IPP projects? Why are they powerful? What are their roles? Who are less powerful and what are the obstacles that causes them less powerful? A research is conducted to identify the credit enhancement factors for IPP projects in Asia. IPP professionals validated 27 out of 28 identified credit enhancement factors, and five factor groupings were made through factor analysis. Afterwards, network theory is applied to find the unanswered questions, which by graphical and mathematical representations show that the host government's credit enhancement, MDBs, ECAs and other parties' credit enhancement are prominent and of great importance to handle the associated risks of IPP projects in Asia

• International Journal of Human Ecology
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• 제8권1호
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• pp.79-94
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• 2007

Previous studies showed that traditional attitudes toward consumer credit and the accumulation of debtare declining, especially among younger life stage groups. The social stigma of high debt levels has largely gone. However, only a few researchers have studied and changes in consumers' attitudes toward credit and its determinants. This study investigates factors related to the probability of respondents having favorable or unfavorable attitudes using the 1992-2004 U.S. Surveys of Consumer Finances. A logistic analysis was used since the dependent variables were binary. All other things equal, respondents in 1995, 1998, 2001 and 2004 were significantly less likely to have favorable or unfavorable attitudes toward credit than otherwise similar respondents in 1992, but the patterns did not correspond well to the changes in the bankruptcy rate. Black and Hispanic respondents were more likely to have favorable attitudes and less likely to have unfavorable attitudes than were otherwise similar white respondents, but those in the Other group, mostly Asians, were not significantly different from whites. Respondents with college degrees were less likely to have a positive attitude and more likely to have a negative attitude than those without a college degree. Respondents who took risks with investments were more likely to have a positive attitude and less likely to have a negative attitude than those unwilling to take risks. Implications for understanding of credit use are discussed. This publication was made possible by a generous grant from the NASD Investor Education Foundation.

• 무역상무연구
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• 제61권
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• pp.273-302
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• 2014

Project finance ("PF") is a method of raising long-term debt financing based on lending against the cash flow generated by the project alone. Project finance is a nonrecourse or limited recourse financing structure against the sponsors(or the investors). The debt terms in a project finance are not based on the creditor's credit support or on the value of the assets of the project. Lenders rely on the future cash flow to be generated by the project for debt repayment and interest, rather than the value of the project or the credit ratings of the sponsors. The non-recourse or limited recourse financing usually prompt potential project finance lenders to assess carefully all possible risks that might arise in a project to ensure that those risks are mitigated and controlled. In this respect, project finance is a opposite financing method of corporate finance. Project finance has rapidly grown over the last 20 years due to the worldwide process of privatization of public sector and development of natural resources. Global project finance volume reached the record USD 406.5 billion in 2011. In 2012, however, Global project finance volume dropped 6% to USD 382.3 billion. Infrastructure overtook Energy to lead all sectors with USD 113.6 billion. It is generally recognized that there are more and higher risks in project finance compared with corporate finance. Project finance is exposed to commercial risks as well as political risks. The main commercial risks are completion risks, environmental risks, operating risks, input supply risks, revenue risks, etc, and the main political risks are currency convertibility and transfer risks, expropriation risks, war and civil disturbance risks, risks of breach of government concession agreement, etc. Completion risks include permits risks, risks relating to the EPC Contractor, construction cost overrun, delay in completion, inadequate performance on completion, etc.

• Journal of the Korean Data and Information Science Society
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• 제19권4호
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• pp.1027-1036
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• 2008

Value at Risk(VaR) is a fundamental tool for managing market risks. It measures the worst loss to be expected of a portfolio over a given time horizon under normal market conditions at a given confidence level. Calculation of VaR frequently involves estimating the volatility of return processes and quantiles of standardized returns. In this paper, we introduced and applied the CreditMetrics model to estimate the credit VaR of Korean Property and Casuality insurers.

• 통상정보연구
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• 제10권4호
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• pp.533-551
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• 2008

Export Credit Agency(ECA) plays a role of importance in international trade and investment flows. The first ECA, the Export Credits Guarantee Department(ECGD) of the United kingdom, was established in 1919. Its original purpose was to encourage and support exports that would not otherwise have taken. Similar motivations led to the establishment, most of those in operation today. Their traditional role is to support and encourage exports and outward investment by insuring international trade and investment transactions, and in some cases by providing trade finance directly. ECA come in all shapes and sizes, and there in no such thing as a typical ECA model. Most of them insure both political and commercial risks on exports and until the last decade. They operated as government entities or on the account of their government, and many of them have changed and are still changing. This study focuses and analyzes the changes of those four major countries' ECAs, which are the U.S.A.(EXIM), France(COFACE), Japan(JBIC), and Canada(EDC).

• Asia pacific journal of information systems
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• 제10권2호
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• pp.149-176
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• 2000

As companies become more dependent upon information systems(IS), the potential losses of IS resources become critical. IS management must assume the increasing responsibility for protection of IS resources as the IS and business environments become more vulnerable to various threats. The major issues facing management, when attempting to manage risks, include the assessment of the impact of risks on business objectives and the design of security safeguards to reduce the unacceptable risks to an acceptable level. This paper provides a case study of the risk management for IS. A Korean credit card company which has the high sensitivity for customers security was selected as a case. The risk management procedure using a powerful tool, CRAMM(the Central Computer and Telecommunications Agencys Risk Analysis and Management Method) was applied for this company.

• 아태비즈니스연구
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• 제2권2호
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• pp.61-78
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• 2011

Credit derivative is one kind of arrangement which allows one party to transfer, for a premium, the defined credit risk, computed with reference to a notional value, of a reference asset which may or may not owned by one or more other parties. Credit Default Swaps(CDS) have existed since the early 1990s, but its use has become increasingly popular over time. CDS is the fastest growing segment of the privately negotiated derivatives business as many firms depend on it to efficiently manage the financial market risks inherent in economic activities. The diversification function is especially important for active CDS market participants as banks. CDS banks can achieve their loan portfolio diversification which provides them with increased capacity to expand their lending.