• Title/Summary/Keyword: Export Financial

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A Study on the Practices for Forfaiting in Foreign Exchange Bank in Korea and Recommendations for Improvement (국내 외국환은행의 포페이팅 취급행태와 개선점에 관한 연구)

  • Kim, Chang-Sun
    • Korea Trade Review
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    • v.42 no.3
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    • pp.25-47
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    • 2017
  • Forfaiting is a trade finance facility whereby financial institution purchases accounts receivable from exporters, on a without recourse basis. After the adoption of K-IFRS in 2011, accounting for simple borrowing as usual negotiation increases debt ratio which in turn, worsens financial soundness of a company. Hence, exporting companies have their interest in forfaiting that enables book-off in order to decrease the borrowing. Along with the execution of URF 800 at ICC and increasing the interest of exporting companies into forfaiting, foreign exchange banks in Korea expand the development of products related to forfaiting. Upon surveying all these national banks of this matter, this paper identified an appropriate solution for the forfaiting practice.

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The Prediction of Export Credit Guarantee Accident using Machine Learning (기계학습을 이용한 수출신용보증 사고예측)

  • Cho, Jaeyoung;Joo, Jihwan;Han, Ingoo
    • Journal of Intelligence and Information Systems
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    • v.27 no.1
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    • pp.83-102
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    • 2021
  • The government recently announced various policies for developing big-data and artificial intelligence fields to provide a great opportunity to the public with respect to disclosure of high-quality data within public institutions. KSURE(Korea Trade Insurance Corporation) is a major public institution for financial policy in Korea, and thus the company is strongly committed to backing export companies with various systems. Nevertheless, there are still fewer cases of realized business model based on big-data analyses. In this situation, this paper aims to develop a new business model which can be applied to an ex-ante prediction for the likelihood of the insurance accident of credit guarantee. We utilize internal data from KSURE which supports export companies in Korea and apply machine learning models. Then, we conduct performance comparison among the predictive models including Logistic Regression, Random Forest, XGBoost, LightGBM, and DNN(Deep Neural Network). For decades, many researchers have tried to find better models which can help to predict bankruptcy since the ex-ante prediction is crucial for corporate managers, investors, creditors, and other stakeholders. The development of the prediction for financial distress or bankruptcy was originated from Smith(1930), Fitzpatrick(1932), or Merwin(1942). One of the most famous models is the Altman's Z-score model(Altman, 1968) which was based on the multiple discriminant analysis. This model is widely used in both research and practice by this time. The author suggests the score model that utilizes five key financial ratios to predict the probability of bankruptcy in the next two years. Ohlson(1980) introduces logit model to complement some limitations of previous models. Furthermore, Elmer and Borowski(1988) develop and examine a rule-based, automated system which conducts the financial analysis of savings and loans. Since the 1980s, researchers in Korea have started to examine analyses on the prediction of financial distress or bankruptcy. Kim(1987) analyzes financial ratios and develops the prediction model. Also, Han et al.(1995, 1996, 1997, 2003, 2005, 2006) construct the prediction model using various techniques including artificial neural network. Yang(1996) introduces multiple discriminant analysis and logit model. Besides, Kim and Kim(2001) utilize artificial neural network techniques for ex-ante prediction of insolvent enterprises. After that, many scholars have been trying to predict financial distress or bankruptcy more precisely based on diverse models such as Random Forest or SVM. One major distinction of our research from the previous research is that we focus on examining the predicted probability of default for each sample case, not only on investigating the classification accuracy of each model for the entire sample. Most predictive models in this paper show that the level of the accuracy of classification is about 70% based on the entire sample. To be specific, LightGBM model shows the highest accuracy of 71.1% and Logit model indicates the lowest accuracy of 69%. However, we confirm that there are open to multiple interpretations. In the context of the business, we have to put more emphasis on efforts to minimize type 2 error which causes more harmful operating losses for the guaranty company. Thus, we also compare the classification accuracy by splitting predicted probability of the default into ten equal intervals. When we examine the classification accuracy for each interval, Logit model has the highest accuracy of 100% for 0~10% of the predicted probability of the default, however, Logit model has a relatively lower accuracy of 61.5% for 90~100% of the predicted probability of the default. On the other hand, Random Forest, XGBoost, LightGBM, and DNN indicate more desirable results since they indicate a higher level of accuracy for both 0~10% and 90~100% of the predicted probability of the default but have a lower level of accuracy around 50% of the predicted probability of the default. When it comes to the distribution of samples for each predicted probability of the default, both LightGBM and XGBoost models have a relatively large number of samples for both 0~10% and 90~100% of the predicted probability of the default. Although Random Forest model has an advantage with regard to the perspective of classification accuracy with small number of cases, LightGBM or XGBoost could become a more desirable model since they classify large number of cases into the two extreme intervals of the predicted probability of the default, even allowing for their relatively low classification accuracy. Considering the importance of type 2 error and total prediction accuracy, XGBoost and DNN show superior performance. Next, Random Forest and LightGBM show good results, but logistic regression shows the worst performance. However, each predictive model has a comparative advantage in terms of various evaluation standards. For instance, Random Forest model shows almost 100% accuracy for samples which are expected to have a high level of the probability of default. Collectively, we can construct more comprehensive ensemble models which contain multiple classification machine learning models and conduct majority voting for maximizing its overall performance.

An Empirical Study on Employment during Crises in Korea (금융위기의 고용파급효과에 대한 실증분석)

  • Shin, Sukha;Cho, Dongchul
    • KDI Journal of Economic Policy
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    • v.34 no.4
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    • pp.91-116
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    • 2012
  • This paper analyzes how the adverse impacts of the global financial crisis on Korea's employment could be mitigated in comparison with the Asian crisis period. The results from error-correction models suggest that the less severe impacts during the global financial crisis could be attributed to (i) smaller GDP reduction, (ii) better maintenance of domestic demand despite a sharp fall of export, (iii) less serious over-employment during the run-up to the crisis, and (iv) less severe credit crunch. Analyses of OECD cross-country data provide corroborating evidence. In order to mitigate adverse impacts on employment, therefore, priority should be given to expansionary macroeconomic policies to keep aggregate domestic demand from collapsing once a crisis is triggered. Also crucial, however, is to maintain sound economic structures such as flexible labor market and adequately supervised financial market.

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Impact of Debt ratio on Earnings Management after Global Financial Crisis - Comparative Study of Korea and Japan - (글로벌 금융위기 이후 기업의 부채비율이 이익조정에 미치는 영향 - 한·일 비교연구 -)

  • Noh, Gil-Kwan
    • Journal of the Korea Convergence Society
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    • v.10 no.12
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    • pp.299-305
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    • 2019
  • This study analyzed the relationship between the debt ratios of Korean and Japanese manufacturing firms with accruals and actual earnings managements after the global financial crisis. This study was conducted on Korean and Japanese firms from 2008 to 2015. As a result, the Korean firms, the higher (lower) debt ratio is, more up(down)side earnings management using discretionary accruals and operating cash flow. In contrast, the Japanese firms found that the higher(lower) the debt ratio is, more up(down)side through its actual activities (operating cash flows, manufacturing costs, discretionary costs) rather than accruals. This study establishes the academic basis for the decision-making of Korean-Japanese firmss by using the sample of each country to check what kind of decision-makers are making earnings managements at the present time when the relationship between Korea and Japan has suffered due to export restrictions. It is meaningful in that it was.

The Effects of Government Environmental Subsidies and Corporate Environmental Expenditure for Globalization on the Profitability of Chinese Firms (글로벌 기업에 대한 환경보조금과 환경투자지출이 중국 기업의 수익성에 미치는 영향)

  • Li, Wen-Xi;Huang, Yi;Kim, Sung-Hwan
    • Asia-Pacific Journal of Business
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    • v.12 no.3
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    • pp.175-192
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    • 2021
  • Purpose - In this study, we investigate the effects of government environmental subsidies and the globalization Chinese firms on their profitability using return on assets (ROA). Design/methodology/approach - In this study, a merged data including accounting, financial market, subsidization of the Chinese governments, local and the central, and export activities of 19,563 year-firms, for those listed on Shanghai Stock and Shenzhen Stock Exchange for 11 years from 2008 to 2018 is used. We collect subsidy data from RESSET database and financial data from CSMAR database. Then, we empirically test the test hypotheses using fixed effects models (FEM) separately and in a simultaneous equation model (SEM). Findings - Firstly, the globalization of Chinese firms has a negative impact on their profitability for some years after the year. Secondly, environmental subsidies just like other subsidies have ameliorating effects on financial performance for global firms. Such effects have lasted some years. Thirdly, environmental investments have a mostly negative impact on short- and long-term profitability for global firms. Lastly, the government's environmental subsidies in China have a positive effect on their profitability for both global and domestic firms. Research implications or Originality - We can infer that environmental investments with the help of the governmental subsidies can help Chinese firms deploy global strategies to expand markets to surpass competitors in the long run despite worsening profitability in global markets in the short run.

The Effects of Entrepreneurial Self-Efficacy on Perceived Firm-Efficacy, Policy Satisfaction, and Managerial Performance in SMEs and Startups: Focusing on Government Support Policies for SMEs and Startups

  • Jong-Han Lee;Myung-Soo Kang;Jeong-Hoon Lee
    • Journal of Information Technology Applications and Management
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    • v.30 no.6
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    • pp.31-52
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    • 2023
  • The government's various support policies have helped Korea's SMEs and startups to grow from the beginning to the end, from domestic companies to exporters. In particular, direct business support policies such as financial support, R&D projects, and export support have been effective in helping a large number of entrepreneurs and startup companies to establish themselves in the market and have achieved tangible results every year since the establishment of the Ministry of SMEs and Startups. As such, the government is making significant efforts to create and promote various types of support policies and to help companies utilize them in their business. However, this study aims to analyze the factors that affect the satisfaction of government policies and the achievement of managerial performance from the companies' perspective and to suggest the purpose of government support policies and the direction companies should take. Specifically, this study categorizes entrepreneurial self-efficacy into marketing, innovation, management, risk-taking, and financial management, using the relationship model of self-efficacy and collective efficacy to ultimately lead to practical results for SMEs and startups support policies. It uses perceived firm efficacy as a variable to reveal the influence relationship. In addition, the direct and mediating effects of entrepreneurial self-efficacy and policy satisfaction on managerial performance were analyzed to determine what SMEs and startups support policies should do. The results showed that, first, among the five components of entrepreneurial self-efficacy, innovation, and risk-taking efficacy positively affected perceived firm efficacy. Second, the specific components of entrepreneurial self-efficacy, marketing, and financial management efficacy positively influenced policy satisfaction. Third, we found that perceived firm efficacy positively influenced policy satisfaction and managerial performance, which are factors of SMEs and startups' policy performance. Specifically, perceived firm efficacy positively influenced policy satisfaction managerial performance. Fourth, we found that policy satisfaction positively influenced managerial performance.

An Analysis on Awareness of Logistics Security in Korea Exporting Company (한국수출업체의 물류보안 인식에 관한 실태분석)

  • Choi, Hyuk-Jun;Choi, Mun-Sung
    • International Commerce and Information Review
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    • v.12 no.1
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    • pp.375-400
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    • 2010
  • The recent financial crisis is not yet solved. Although economic conditions are improving, the real-economy is still frozen, and considering Korea's reality of relying heavily on external trade, hardships in the global economy fall entirely upon us. In particular, since developed nations like United States and the EU have intensified logistics security since the terror attacks on September 11, 2001 and can use it as a tool for protective trade, Korea with a high dependency rate on foreign trade needs to actively cope with changes to the trade paradigm in logistics security. This paper uses DAGMAR(Defining Goals for Measured Advertising Results), a model developed by the Association of National Advertisers(ANA) to measure the results of a communication campaign as its basic model, after partially modifying it to fit the paper's objective of conducting a more systematic analysis of awareness levels in Korean export enterprise regarding logistics security.

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Permission of Costal Carriage of Import-Export Containers by Ocean Liner Carriers and Growth Plan of Costal Shipping Industry (외항선사(外航船社)의 수출입(輸出入) 컨테이너 내항운송(內航運送) 허용(許容)에 따른 문제점(問題點)과 내항해운(內航海運)의 육성방안(育成方案))

  • Ha, Yeong-Seok;Chung, Keun-Jon
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.19
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    • pp.96-118
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    • 2003
  • Government tries to revise the article 25 in Korea Maritime Transport Act which describes subject of coastal carriage for exported-imported container cargoes. The subject of coastal carriage will be replaced coastal carrier by ocean liner carrier according to the revised article 25. By adopting the revised article, coastal shipping industry will be deteriorated in terms of returns on investment, sales and etc. Even though the revision is inevitable to harmonize the flow of exported-imported container cargo movement, coastal shipping industry should be developed and restructured to get competitive power and to set up an efficient international logistics system. To enhance competitive power of coastal shipping companies successfully, government must realize the importance of coastal shipping, and aid the industry through various methods such as arrangement of law and regulation, indirected financial assistance, decrease of tax rate, etc.

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A Study on Obligation and Right of the Parties of International Factoring (국제팩토링계약의 당사자의 권리와 의무에 관한 연구)

  • Park, Se-Hun;Han, Ki-Moon
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.43
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    • pp.143-168
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    • 2009
  • International Factoring transaction in Korea is different from that of financially advanced countries in terms of legal system and commercial and financial practices. As for the domestic factoring, Korean factors are only involved in advances often on a with recourse basis. With regard to the international factoring, Korean factors do not accommodate whole account receivables from clients (suppliers) but handle on a selective basis. Among Korean banks, KEXIM (Export and Import Bank of Korea) is sole factor for international transactions. Currently KEXIM and several foreign banks handle factoring provide factoring services with limitation to invoice discounting which is largely extended to large corporate names. Therefore this is far different from factoring in Europe and Americas designed for small exporters with non recourse advances. In respect of legal environment, receivable assignment is subject to debtor' acknowledge or approval of such assignment according to Civil Law Act. To remove the legal obstacles, Korean government have prepared new law which allows factor's own notification of assignment (and thereby reimbursement right) to debtor with some evidences.

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Central Eastern Europe's Pattern of Industrial Development and Regional Structure in Market Distribution

  • Seo, Dae-Sung
    • Journal of Distribution Science
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    • v.13 no.6
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    • pp.17-23
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    • 2015
  • Purpose - Transnational corporations (TNCs) have influenced drastic changes (financial services, manufacturing, labor, technology transfer) in Central Eastern Europe (CEE). This paper examines the indirect changes in the CEE pattern of industrial development and market distribution. Research design, data, and methodology - Over 25 years, neighboring (or rival) countries competed to attract TNCs as a double-edged strategy for privatization and debt reduction. Through their experience attracting foreign direct investment (FDI), many countries started to reflect aspects of national capitalism. Countries also began to realize in 2010 that TNCs sought to enter markets with more favorable conditions for export-oriented manufacturing. Results - The analysis reveals that TNC investment strategies were aimed at eliminating local competition to acquire industrial "brown fields" to convert into "green fields." CEE countries have since strengthened their national systems and the support of large-scale state-owned enterprises and small and medium-sized start-up enterprises. Conclusions - CEE has changed based on industrial development and a regional structure of TNC market distribution and associated government policies. The pattern toward flexible markets gives countries the ability to further their economies.