• International Commerce and Information Review
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• v.15 no.2
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• pp.429-455
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• 2013

This paper investigates the extent and scope of electronization of Letter of Credit and examines the obstacles in the course of electronization of Letter of Credit. For this purpose, this paper adopts two track methodologies. First, we study the electronization of Letter of Credit in the macro perspective. It means that we analyze the scope and the extent of electronization of electronic Letter of Credit in the national economy as a whole. Second, we utilize the case study approach to examine the electronization of Letter of Credit in micro perspective. In other words we examine individual commercial banks in Korea. For this purpose, we analyze the data from two commercial banks out of four largest domestic banks in Korea. For example, we select two commercial banks in Korea and ask current status of electronization of Letter of Credit, i.e, the utilization of EDI L/C, e-L/C, and e-B/L. A major finding of our study is that the extent of electronization is not negligible in micro perspective as well as in macro perspective. In micro perspective, two commercial banks utilize EDI letter of credit in a critical sense. On the other hand, they seldom uses e-L/C and e-B/L in international transaction. This study shows that major bottlenecks for the electronization of Letter of Credit are pessimistic perception of SME entrepreneurs toward the electronization of Letter of Credit and the high costs of system building. We conclude that unlike superficial perception, there is a considerable progress toward the electronization of Letter of Credit in micro perspective.

• International Commerce and Information Review
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• v.11 no.2
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• pp.233-257
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• 2009

The 21st century is witnessing the explosive increase in the usage of internet and international electronic transactions. Due to the unique characteristics of the electronic information, substantial part of such transaction can and do take the form of cross-border transactions. However, there have not been settled appropriate set of rules applicable to the international electronic transactions. Currently, in respect to e-L/C transactions in international trade, there are laws such as Electronic Transaction Basic Act in our country, E-Trade Promotion Act, E-Signature Law, Act on Promotion of Information and Communication Network Utilization and Information Protection and Marine Charter 5 in the Commercial Law. Nevertheless, a complete legislation, that is a uniform rule for e L/C which could support e L/C transactions fully hasn't been established yet. Accordingly, those laws concerned need to improve to regulate e-L/C transactions. The purpose of this paper is to look into the national status for law readjustment to prepare for a new electronic environment and to use appropriately the e-L/C issued by electronic means, and to conduct a comparative analysis on the related regulations to introduce a pertinent laws and propose related regulations to contribute to the making of effective laws to regulate e-L/C.

• International Commerce and Information Review
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• v.7 no.1
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• pp.213-233
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• 2005

A letter of credit is the best settlement among various means of payments until now. A letter of credit plays very important roles in rational and smooth international trade. Letter of credit is usually used in international trade. But many people have to prepare a lot of transport documents in order to transact with L/C. Therefore, the transactions will be happened to delay in international trade very often. Owing to the EDI, international trade will be materialized with electronic business of E-commerce. If we transact with the electronic documents, it will be reduced the time very much in international trade. Generally speaking, all relating parties transact with L/C complying with UCP, but there are no ruling articles about electronic documents in UCP. If all parties want to transact with electronic documents in global business, UCP has to contain the electronic provisions. So, ICC published eUCP on 2002. The purpose of the study was to analyze original electronic papers and provisions through foreign precedents in UCP and eUCP. If we want to exchange the electronic document, the UCP provisions about electronic documents would be revised as follows: UCP provision 20(b) would be revised, “Unless otherwise stipulated in the credit, banks have to accept as an original documents, a documents produced or appearing to have been produced: (i)by reprographic, automated or computerized systems (ii)as carbon copies,; provided that it is marked as original and, where necessary, appears to be signed. A document may be signed by handwriting, by facsimile signature, by perforated signature by symbol, or by any other mechanical or electronic method of authentication."

• Journal of Arbitration Studies
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• v.18 no.2
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• pp.173-199
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• 2008

A letter of credit transaction of the preexistence have been raising one's head fraud charge problem as a result of abusing the principles of independence and abstraction. Every society has certain rules and conventions which it regards as important and most of people in any society. The paper document means a document in a traditional paper form. The eUCP credit must specify the formats in which electronic records are to be presented. In these present times, the issuance of documentary credit are performed by the SWIFT(Society for Worldwide Inter bank Financial Telecommunication) system. The eUCP have been written to allow for presentation completely electronically or for a mixture of paper documents and electronic presentation. Presentation is deemed not to have been made if the Beneficiary's notice is not received. An electronic record that cannot be authenticated is deemed not to have been presented. The e-UCP is the supplement of current existing UCP but is superior to UCP under some circumstances. The document shall include an electronic record. The place for presentation of electronic records means an electronic address. The current e-UCP is not clear on this matter. We have to note followings in case of presenting the documents electronically and applying the e-UCP. There are three principles in the letter of credit transaction, that is to say, independence and abstraction, document dealing, strict compliance. IN the electronic letter of credit, these principles are called as independence and abstraction, electronic document dealing, strict compliance.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.68
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• pp.1-21
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• 2015

The purpose of this study is to propose a new mechanism for the global transmission of electronic trade documents and to promote them using it. Trade settlement methods are changed from L/C bases to non-L/C bases and in particular, the telegraphic transfer is dramatically increased since mid 1990. But the status of transmission of electronic trade documents still rely on the letter of credit and bill of lading. So it need to change the process of transmission of electronic trade documents utilizing non-negotiable sea waybill instead of bill of lading. In this study, I pointed out two problems as obstacle factors in global transmission of electronic trade documents. First is the system connection problem between domestic and foreign banks and second is the electronic right transfer problem in the bill of lading. Electronic bill of lading has already been made, but are not used and e-Nego has also not been activated under the above issues. Therefore, it should be solved previously the above problems for the global transmission of electronic trade documents under the letters of credit. However, in transactions of transfer, it does not need the inter-bank connection and also does not occur the electronic right transfer problem of bill of lading if using the non-negotiable seaway bill instead of bill of lading. In this paper, I recommend the global transmission strategies of e-trade documents using the non-negotiable sea waybill in transactions of transfer. Hopefully, I expect the activation of global transmission of e-trade documents through the utilization of electronic non-negotiable sea waybill as suggested by this study.

• Korea Trade Review
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• v.42 no.5
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• pp.213-232
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• 2017

A Bank Payment Obligation is now in operation as payment instruments in the business of Supply Chain Finance since 2013. The BPO is an irrevocable undertaking of the Obligor Bank subject to the successful electronic matching of all required Data Sets with the established Baseline in the TMA. Although the BPO should be regarded as similar to a Letter of Credit, it is a new payment solution based on a technology and data-driven mechanisms. The BPO is different from the letter of credit in their structure such as a bank to bank obligation, an automated matching engine, a transfer and confirmation of the Credit, etc. The BPO can also be used more effectively on a stand-alone solution as an electronic alternative to the traditional instruments. it will provide a new range of solutions to meet the ever-changing needs of the trade customers. However, the BPO could be raised several issues including an assurance of payment between recipient banks and sellers because the BPO is a bank-to-bank obligation. The URBPO do not applies to the relationships between banks and their business clients. So, the primary objective of this paper is to promote the institutional understanding and present the implications by reviewing the majn issues in the BPO as comparision with the Letter of Credit from the institutional point of view. This research was also based on documentary research focusing on the preceding research and the materials of ICC and SWIFT.

• International Commerce and Information Review
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• v.14 no.3
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• pp.585-610
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• 2012

There have been various attempt to offer commercial service of electronic payment. Actually, however, there has been few electronic payment model that are being used commercial service. Among them, it is estimated that only TSU(Trade Service Utility) of SWIFT will be succeed in providing commercial service possibility. In Korea e-L/C Distribution & Management System was constructed and become the first e-L/C service on a global basis via e-Trade Facilitation 3 Years Project and then started offering the world first e-L/C service. Some scholars have insisted the opinion that SWIFT L/C means e-L/C, but such opinion may be wrong because SWIFT L/C means the L/C advised by SWIFT(Society for Worldwid Interbank Financial Telecommunication) under the condition that a series of procedure from the issuance of L/C to the advice is done by SWIFT system. Because perfect e-L/C should be organically connected by SWIFT network and also, the e-L/C business between overseas banks and their customers should be organically linked with each other. The purpose of this paper is contribute to the commercialization of e-L/C distribution system by studying the current status of infrastructure concerned with domestic and overseas electronic payment and future e-payment infrastructure, seeking to be introduced internationally by doing things.

• The Journal of Information Technology
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• v.5 no.3
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• pp.197-214
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• 2002

Electronic Commerce has already existed for over 20 years. The Bolero project initially had the support of TEDIS, and now is jointly financed by SWIFT(Society for World International Financial Telecommunications) which handles most of the electronic funds transfer for banks, and the Through Transport Mutual Assurance Association(the TT Club), a mutual insurance association most of whose members are drawn from the Multimodal transport industry or transport intermediaries. Bolero's mission is to provide guaranteed and secure delivery, in electronic form, of trade documentation, globally, based on a binding legal environment and common procedures, Bolero will also provide a platform for provision of neutral cross-industry services. TradeCard is a payment and settlement system that is an alternative to letters of credit. That is, TradeCard is a business-to-business e-commerce infrastructure that enables buyers and sellers to conduct and settle international trade transactions securely over the Internet. Paperless, payment-guaranteed international trade transactions - which eliminate the traditional letters of credit with electronic certifications - are widely considered the most difficult B2B transactions to conduct.

• International Commerce and Information Review
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• v.9 no.1
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• pp.149-168
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• 2007

e-Trade Payment system has been transformed by quickly and effectively. The e-trade Payment system such as TradeCard System, Bolero Surf, Identrus Eleanor and e-Escrow and e-letter of Credit issued by SWIFT System enable partly sellers, buyers and service providers. This paper studies for SWIFT, Surf, TradeCard, Eleanor, e-Escrow as international trade payment, As reason following : The First, Bolero is a neutral secure platform enabling paperless trading between exporter, importer, and their logistics service and bank partners, insurance company. The Second, TradeCard is to manage procurement-to-payment worldwide, that is exporter, importer and connected partners, paperless platform. The Third, Identrus is the global leader in trusted identity solutions, recognized by global financial institutions, commercial organizations and bank partners around the world. The Forth, Escrow payment have effect to L/C issue and enter into electronic contracts in internet bank. Trader practice use Escrow Bank as the same bank that rules to Issuing Bank and Advising Bank and payment, acceptance. This paper of these electronic payment have studies new international trade payment to approach such as eUCP rules and TradeCard System, Surf of bolero, eleanor of Identrus, SWIFT.

• Korea Trade Review
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• v.41 no.5
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• pp.235-254
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• 2016

Recently, enterprise information management activities have been applied to promote electronic trade, while changing the paradigm of cross-border trade and overall trade business processes. L/C, which facilitates payment from the trade transaction in a company, has been able to eliminate the high cost and inefficient element of the trade process by utilizing the electronic letter of credit (e-L/C). This study examines the influential relationship among the e-trade utilizing factor (such as the perceived ease of use and the volition of CEO), the e-L/C and corporate performance, and the study aimed to verify the moderating effect of customer service level by organizations utilizing e-trade. For the purpose of the research, we conducted a survey implementing the e-L/C and analyzed the 338 data collected. The results of this research are as follows. First, the perceived ease of use and volition of CEO have positive impact on the e-L/C. Second, the e-L/C has positive impact on the business performance. Third, a moderating effect shows on the customer expectation level. The main implication of this study is that the perceived ease of use is to be considered preferentially than the volition of CEO in order to utilize electronic trading, and the volition of CEO shows synergy effect with customer service level by organization utilizing e-trade.