• Environmental and Resource Economics Review
• /
• v.31 no.1
• /
• pp.51-83
• /
• 2022

Renewable Portfolio Standards (RPS), one of the most commonly adopted regulation for renewable energy expansion since 2012, has the obvious advantage of inducing competition in power generation source and alleviating the government's financial burden. However, the abuse of credit multipliers and the use of national Renewable Energy Credits (RECs) have resulted in the distortion of RPS as a quantitative control policy. Just as no face value 10 years ago can hold its real value, this paper highlights for the first time that 27.8% of total renewable obligations over the total RPS period were not actually met due to REC inflation and the consequent decline in the value of renewable energy generation. In addition, the distortion of face/real value of REC causes problems in interoperability with other government policies such as RE100 and Emission Trading System.

• Korean Management Science Review
• /
• v.28 no.2
• /
• pp.1-16
• /
• 2011

In this study we suggested two optimization models to answer a question from an investor standpoint : how many convertible bonds should one convert, and how many keep? One model minimizes certain risk to the minimum required expected return, the other maximizes the expected return subject to the maximum acceptable risk. In comparison with Markowitz portfolio models, which use the variance of return, our models used Conditional Value-at-Risk(CVaR) for risk measurement. As a coherent measurement, CVaR overcomes the shortcomings of Value-at-Risk(VaR). But there are still difficulties in solving CVaR including optimization models. For this reason, we adopted Rockafellar and Uryasev's[18, 19] approach. Then we could approximate the models as linear programming problems with scenarios. We also suggested to extend the models with credit risk, and applied examples of our models to Hynix 207CB, a convertible bond issued by the global semiconductor company Hynix.

• Journal of Industrial Convergence
• /
• v.21 no.11
• /
• pp.13-27
• /
• 2023

This study aims to contribute to the reduction of the failure rate and social costs resulting from business failures by analyzing factors that affect the insolvency of social enterprises, as the role of social enterprises is increasing in our economy. The data used in this study were classified as normal and insolvent companies among social enterprises (including prospective social enterprises) that were established between 2009 and 2018 and received credit guarantees from credit guarantee institutions as of the end of June 2022. Among the collected data, 439 social enterprises with available financial information were targeted; 406 (92.5%) were normal enterprises, and 33 (7.5%) were insolvent enterprises. Through a literature review, eight non-financial factors commonly used for insolvency prediction were selected. The cross-analysis results showed that four of these factors were significant. Logistic regression analysis revealed that two variables, including corporate credit rating and the personal credit rating of the representative, were significant. Financial factors such as debt ratio, sales operating profit rate, and total asset turnover were used as control variables. The empirical analysis confirmed that the two independent variables maintained their influence even after controlling for financial factors. Given that government-led support and development policies have limitations, there is a need to shift policy direction so that various companies aspiring to create social value can enter the social enterprise sector through private and regional initiatives. This would enable the social economy to create an environment where local residents can collaborate to realize social value, and the government should actively support this.

• Journal of the Korea Society of Computer and Information
• /
• v.15 no.11
• /
• pp.225-231
• /
• 2010

Transaction value of business-to-business(B2B) is composed of various factors for groups and time series. In this paper, we use the panel data for finding various variables and using this we analyse the factors that is major influence to transaction value of business-to-business. For analysis we looked at transaction value of business-to-business of 7 groups such as manufacturing industry, electric, gas and piped water industry, construction industry, retail & wholesale trade, traffic industry, publish, image; broad-casting & telecommunication and information service industry, etc. In our analysis we looked at the transaction value of business-to-business during the period from 2005.01 to 2009.12. We examined the data in relation to the transaction value of cyber shopping mall, company bond, composite stock price index, transaction value of credit card, loaned rate of interest in deposit bank, rate of exchange looking at the factors which determine the transaction value of business-to-business, evidence was produced supporting the hypothesis that there is a significant positive relationship between the transaction value of cyber shopping mall, composite stock price index and loaned rate of interest in deposit bank, rate of exchange. The company bond is negative relationship, transaction value of credit card is positive relationship and they are not significant variables in terms of the transaction value of business-to-business.

• International Commerce and Information Review
• /
• v.11 no.1
• /
• pp.157-176
• /
• 2009

This study analyzed the information factors which determine cash liquidity in Korean export-oriented companies. In this paper, cash liquidity means the ratio of the value of cash or cash equivalent to the asset value subtracted marketable securities value from total asset value. The empirical test shows that main information factors are the size of company, the growth opportunity of company, the volatility of operating cash flows and free cash flows, the credit yield spread of company, the debt ratio, the turnover ratio of cash flows and free cash flows, and the estimate of bankruptcy that amounts to the inverse number of Z score. In summary, the size of company, debt ratio, turnover ratio of cash flows and free cash flows, and Z-score have negative influence on the cash liquidity of Korean export-oriented companies. but the volatility of operating cash flows affect the cash liquidity positively.

• Knowledge Management Research
• /
• v.10 no.3
• /
• pp.115-132
• /
• 2009

This paper makes an analysis of economic spillover effects of credit guarantee by linking the remainder of guarantee according to industries from 2003 to 2006 in this study. Specifically, total remainder of guarantee in 2006 is approximately 3922 billion and 600 million won on the basis of unchangeable price in 2003, and each funds becomes the input of the last demand in 27 industries over the cow1try and, thereby, induces production, added value, and the effect of employment. The last demand according to industries shows that a lot of funds have been supported to the manufacturing industry for about 1200 billion won, the wholesale and retail for about 1299 billion and 500 million won, food and lodging industry for about 144 billion and 100 million won, education and health care industry for about 132 billion and 600 million won, and social and other service industry for about 339 billion and 300 million won. The spillover effect about the remainder of guarantee in 2006 classified by industries over the country on the basis of production shows the high effects on the manufacturing industry for 37.8%, 2625 billion and 90 million won, the wholesale and retail for 20.7%, 1439 billion and 290 million won, food and lodging industry for 9.4%, 654 billion and 570 million won, real estate and business service industry for 9.2%, 637 billion and 310 million won, social and other service industry for 5.3%, 369 billion and 90 million won, and education and health care industry for 2.9%, 199 billion and 300 million won of the effect causing production over the country, 6945 billion won in order. The effect causing added value shows high spillover effect on the wholesale and retail for 36.7%, 1186 billion and 830 million won, the manufacturing industry for 25.8%, 831 billion and 500 million won, food and lodging industry for 14.9%, 480 billion and 980 million won, social and other service industry for 9.3%. 300 billion and 160 million won, and real estate and business service industry for 4.2%, 135 billion and 36 million won of the effect causing added value over the country in order. Finally, the effect causing employment shows a lot of employment have occurred in the wholesale and retail for 37.4%, 23,060 people, the manufacturing industry for 18.9%, 11,637 people, food and lodging industry for 13.7%, 8,429 people, social and other service industry for 7.9%, 4,866 people, and real estate and business service industry for 5.6%, 3,429 people of 61,617 people in order.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.58
• /
• pp.237-263
• /
• 2013

Traditionally, a L/C (letter of credit) has been known as a relatively low risk method of payment. This is why L/C has been used in international trade. However, L/C has a number of weak points such as high cost, long processing time, and complicated documents. Using an electronic L/C is one way to solve those weak points. In Korea, there are two types of electronic L/C. One is the EDI (Electronic Data Interchange) based L/C and the other one is the XML (Extensible Markup Language) based L/C. The former, established in 1990's, is sent from banks to the beneficiary solely through VAN (Value Added Network, KTNET) operators. On the other hand the latter, started in 2005, is sent from banks to KFTC (Korea Financial Telecommunications & Clearings Institute) for management of the L/C balance, as well as to KTNET. So far, paper L/C and EDI based L/C have been used overwhelmingly instead of XML based L/C in spite of the aforesaid disadvantages. In this paper, the authors examined empirically why the users of electronic L/C were reluctant to use XML based L/C. The results are as follows. First, the users of paper L/C were more dissatisfied than the users of electronic L/C due to many factors such as cost, the time required, and information reuse. Second, the users who have more experience with XML based L/C wanted to adopt integrated management with EDI based L/C more than the users who had not experienced XML based L/C. Third, the users who had used more than one form of L/C wanted to adopt integrated management to EDI and XML based L/C more than the users who had only used one form of L/C. Therefore, the authority for electronic L/C should consider a change of the policy from the XML based electronic L/C oriented to integrated management of the various types of L/C.

• Journal of Korea Trade
• /
• v.27 no.2
• /
• pp.1-21
• /
• 2023

Purpose - The bank payment obligation is a transaction method that combines the certainty of L/C transactions with the speed of remittance payments, so the main purpose of this study is to highlight the superiority of bank payment obligation, noting the difference between bank payment obligation and L/C transactions. In addition, we would like to examine how bank payment obligations can actually be applied to support various valuable proposals such as post-shipment and post-shipment finance according to the payment process.. Design/methodology - This study focused on literature based on data from ICC and SWIFT along with previous domestic and international studies. In terms of a research method, a literature review was adopted with electronic trade-related books and journals and policy-related reports from international trade-related agencies. Findings - Unlike L/C transaction, BPO transaction verify the data inquiry process based only on the combination result of the established baseline and dataset. Accordingly, it is superior to L/C transaction in that there is no confrontation between the parties over the results of the inquiry, and clear transactions are possible according to the principle of proof after prepayment. In addition, unlike credit transactions, data inconsistency acceptance procedures confirm payment obligations in consideration of importers' intentions. As a result, as long as trade documents are in the hands of exporting countries, flexible document disposition is possible in response to the situation after payment, which is more advantageous than L/C transaction. Originality/value - Specifically, from the importer's point of view, BPO transactions have the advantage of reducing the manpower required to prepare and review trade documents and processing transaction negotiations with exporters advantageously due to the strength of payment obligations. From the perspective of the exporter, it has the advantage of enabling rapid recovery of trade payments and reducing the risk of importer's cancellation of transactions or content change. From the perspective of participating banks, it is possible to strengthen relations with importer and obtain high commission income by increasing the role of bank reduced by reducing L/C transaction.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.19 no.9
• /
• pp.446-453
• /
• 2018

This study analyzed the effect of related party transactions on the corporate value of Korean firms using panel data regression analysis. We tested the efficient transaction hypothesis and conflict of interests hypothesis which concern related party transactions. Five types of related party transactions were considered, including long term supply contracts, assets and business transfers, affiliate loans, equity investment, and credit offerings. If related party transactions were conducted for the purpose of enhancing corporate efficiency, results would have a positive effect on firm value. If related party transactions were conducted for the purpose of private profits of the controlling shareholders, the results would show a negative effect on firm value. Results were as follows. Firstly, it is confirmed that affiliate loans, equity investment, and credit offerings had negative effects on firm value. This implies that these types of related party transactions used by controlling shareholders for the purpose of their private profit, which supports the conflict of interests hypothesis. Secondly, it was found that long term supply contracts and assets and business transfers had no effect on firm value.

• Communications for Statistical Applications and Methods
• /
• v.16 no.2
• /
• pp.239-347
• /
• 2009

This paper presents Kolmogorov-Smirnov, mean difference, AUROC and AR, four well known statistics that have been widely used for evaluating the discriminatory power of credit rating models. Criteria for these statistics are determined by the value of mean difference under the assumption of normality and equal standard deviation. Alternative criteria are proposed through the simulations according to various sample sizes, type II error rates, and the ratio of bads, also we suggest the meaning of statistic on the basis of discriminatory power. Finally we make a comparative study of the currently used guidelines and simulated results.