• Journal of the Korean Home Economics Association
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• v.38 no.11
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• pp.1-12
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• 2000

The purposes of the study were to investigate the effects of the debt burden which was measured objectively, the types of debts and socio-economic characteristics on the subjective debt burden of households. The questionaires for 457 households who hold some debts were analyzed using t-test, ANOVA and Duncan’s multiple range teat. The major finding are summarized as follows: (1) the objective debt burdens which were measured by three variables, that is monthly debt repayment, the ratio of debt repayment to household income and total debt amount, affected the subjective debt burden. The households in which the monthly debt repayment was over 200 thousand won, the debt repayment was over 20% of the household income and the total debt amount was over 15 minion won felt higher debt burden. (2) the types of debts, which were classified into four groups such as debts from financial institutes, debts from private sources, credit card debts and debt from retailers, influenced differently the subjective debt burden. Holding debts from financial institutes and debts from private sources increased the subjective debt burden whereas holding credit card debts and debt from retailers did not. (3) the level of subjective debt burden were different according to household income, change in income due to IMF crisis, financial assets, home ownership, residence, householder’s age, job and educational levee. Based on the results, criterion for household’s debt management were suggested.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2014.05a
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• pp.273-276
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• 2014

In 2014, the leakage of personal information from 3 credit card companies resulted in divulging approximately 10,000 customers' personal information. Although the credit card companies concluded that there was no secondary loss due to the leakage of personal information, secondary financial losses resulting from the leakage of personal information currently occur. In particular, hackers who employ smishing masquerade acquaintances by using the divulged personal information to ask payment for Ms. Kim's Sochi Olympics legal processing or exposed traffic violations. The hackers cause secondary financial losses through smartphones. This study aims to conduct a forensic analysis of smishing incidents in smartphones through the leakage of personal information, and to make a forensic analysis of financial losses due to the smishing incidents.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.40 no.4
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• pp.154-163
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• 2017

Collaborative filtering, one of the most widely used techniques to build recommender systems, is based on the idea that users with similar preferences can help one another find useful items. Credit card user behavior analytics show that most customers hold three or less credit cards without duplicates. This behavior is one of the most influential factors to data sparsity. The 'cold-start' problem caused by data sparsity prevents recommender system from providing recommendation properly in the personalized credit card recommendation scenario. We propose a personalized credit card recommender system to address the cold-start problem, using multiple user profiles. The proposed system consists of a training process and an application process using five user profiles. In the training process, the five user profiles are transformed to five user networks based on the cosine similarity, and an integrated user network is derived by weighted sum of each user network. The application process selects k-nearest neighbors (users) from the integrated user network derived in the training process, and recommends three of the most frequently used credit card by the k-nearest neighbors. In order to demonstrate the performance of the proposed system, we conducted experiments with real credit card user data and calculated the F1 Values. The F1 value of the proposed system was compared with that of the existing recommendation techniques. The results show that the proposed system provides better recommendation than the existing techniques. This paper not only contributes to solving the cold start problem that may occur in the personalized credit card recommendation scenario, but also is expected for financial companies to improve customer satisfactions and increase corporate profits by providing recommendation properly.

• Journal of the Korea Institute of Information Security & Cryptology
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• v.28 no.3
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• pp.579-590
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• 2018

In May 2014, AppCard(Which is a smartphone application designed to register and use a credit card in a mobile phone by credit card company.) was attacked by smshing and a vulnerability which could not obtainable phone number. After that, credit card companies have supplemented and operated by introducing additional authentication methods to supplement the vulnerability. However, The analysis of the authentication environments, purposes and methods is not enough to lower the level of vulnerability and risk from existing accidents. This study analyzes the authentication process of the AppCard in the electronic financial service by applying the NIST's authentication guidelines, identifies the problems and suggests improvement directions. The method analyzed in this study can be applied to the analysis of the authentication method in addition to the application card, so that it will be highly utilized.

• Journal of Information Processing Systems
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• v.8 no.3
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• pp.495-520
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• 2012

A secure Electronic Payment System (EPS) is essential for the booming online shopping market. A successful EPS supports the transfer of electronic money and sensitive information with security, accuracy, and integrity between the seller and buyer over the Internet. SET, CyberCash, Paypal, and iKP are the most popular Credit Card-Based EPSs (CCBEPSs). Some CCBEPSs only use SSL to provide a secure communication channel. Hence, they only prevent "Man in the Middle" fraud but do not protect the sensitive cardholder information such as the credit card number from being passed onto the merchant, who may be unscrupulous. Other CCBEPSs use complex mechanisms such as cryptography, certificate authorities, etc. to fulfill the security schemes. However, factors such as ease of use for the cardholder and the implementation costs for each party are frequently overlooked. In this paper, we propose a Web service based new payment system, based on ANSI X9.59-2006 with extra features added on top of this standard. X9.59 is an Account Based Digital Signature (ABDS) and consumer-oriented payment system. It utilizes the existing financial network and financial messages to complete the payment process. However, there are a number of limitations in this standard. This research provides a solution to solve the limitations of X9.59 by adding a merchant authentication feature during the payment cycle without any addenda records to be added in the existing financial messages. We have conducted performance testing on the proposed system via a comparison with SET and X9.59 using simulation to analyze their levels of performance and security.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.205-218
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• 2020

This study aims to analyze the influence of financial inclusion on micro-, small-, and medium-sized enterprises' (MSMEs) performance and examine the mediation role of financial intermediation and access to capital. The object of this study is MSMEs in Malang, Indonesia. The sample consists of 100 MSME actors in Malang City, which is determined using Roscoes theory. The data is collected using Simple Random Sampling method, by distributing questionnaire measured with Likert scales. The hypotheses proposed in this study are examined using Partial Least Square (PLS) model. The results of this study show that financial inclusion influences MSMEs' performance both directly and indirectly through mediation from financial intermediation and access to capital. The direct influence means that the efforts to increase access to financial services, especially access to credit financing for MSMEs, will be able to increase market share, number of workers, sales, as well as profit of the MSMEs. Increased financial inclusion has a major impact on improving MSMEs' performance through financial intermediation compared to access to capital. This means that the increase of financial access for MSMEs followed by an increase in financial intermediation in the form of a financial service approach to MSMEs will improve MSMEs' performance.

• KDI Journal of Economic Policy
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• v.44 no.3
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• pp.49-74
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• 2022

This paper empirically examines how fiscal instability affects financial instability. According to an IMF forecast (2021a), the fiscal space in Korea will be steadily reduced in the future. The theoretical literature predicts that if fiscal stability is undermined, financial stability will also be in danger given that government guarantees on banks are weakened and/or sovereign bonds held in banks become riskier. This paper empirically finds the existence of this negative impact of fiscal instability on financial instability. I also find that the intensity of this fiscal-financial relationship is greater in a country where (i) its currency is not a reserve currency such as the US dollar or euro, (ii) its banking sector is large relative to government sector, and/or (iii) its private credit to GDP is high. Korea has all of these three characteristics and hence needs to put more effort into maintaining fiscal stability.

• Journal of Intelligence and Information Systems
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• v.25 no.2
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• pp.1-23
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• 2019

Big data refers to data that is difficult to store, manage, and analyze by existing software. As the lifestyle changes of consumers increase the size and types of needs that consumers desire, they are investing a lot of time and money to understand the needs of consumers. Companies in various industries utilize Big Data to improve their products and services to meet their needs, analyze unstructured data, and respond to real-time responses to products and services. The financial industry operates a decision support system that uses financial data to develop financial products and manage customer risks. The use of big data by financial institutions can effectively create added value of the value chain, and it is possible to develop a more advanced customer relationship management strategy. Financial institutions can utilize the purchase data and unstructured data generated by the credit card, and it becomes possible to confirm and satisfy the customer's desire. CRM has a granular process that can be measured in real time as it grows with information knowledge systems. With the development of information service and CRM, the platform has change and it has become possible to meet consumer needs in various environments. Recently, as the needs of consumers have diversified, more companies are providing systematic marketing services using data mining and advanced CRM (Customer Relationship Management) techniques. KB Kookmin Card, which started as a credit card business in 1980, introduced early stabilization of processes and computer systems, and actively participated in introducing new technologies and systems. In 2011, the bank and credit card companies separated, leading the 'Hye-dam Card' and 'One Card' markets, which were deviated from the existing concept. In 2017, the total use of domestic credit cards and check cards grew by 5.6% year-on-year to 886 trillion won. In 2018, we received a long-term rating of AA + as a result of our credit card evaluation. We confirmed that our credit rating was at the top of the list through effective marketing strategies and services. At present, Kookmin Card emphasizes strategies to meet the individual needs of customers and to maximize the lifetime value of consumers by utilizing payment data of customers. KB Kookmin Card combines internal and external big data and conducts marketing in real time or builds a system for monitoring. KB Kookmin Card has built a marketing system that detects realtime behavior using big data such as visiting the homepage and purchasing history by using the customer card information. It is designed to enable customers to capture action events in real time and execute marketing by utilizing the stores, locations, amounts, usage pattern, etc. of the card transactions. We have created more than 280 different scenarios based on the customer's life cycle and are conducting marketing plans to accommodate various customer groups in real time. We operate a smart offering system, which is a highly efficient marketing management system that detects customers' card usage, customer behavior, and location information in real time, and provides further refinement services by combining with various apps. This study aims to identify the traditional CRM to the current CRM strategy through the process of changing the CRM strategy. Finally, I will confirm the current CRM strategy through KB Kookmin card's big data utilization strategy and marketing activities and propose a marketing plan for KB Kookmin card's future CRM strategy. KB Kookmin Card should invest in securing ICT technology and human resources, which are becoming more sophisticated for the success and continuous growth of smart offering system. It is necessary to establish a strategy for securing profit from a long-term perspective and systematically proceed. Especially, in the current situation where privacy violation and personal information leakage issues are being addressed, efforts should be made to induce customers' recognition of marketing using customer information and to form corporate image emphasizing security.

• Korean Journal of Human Ecology
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• v.14 no.1
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• pp.95-105
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• 2005

This study examined the factors affecting college students' money management behaviors according to credit card usage. The data were collected from 481 college students in Busan and Gyeongnam areas by a self-administered questionnaire. Frequencies, Cronbach's Alpha, factor analyses, t-test, Pearson's correlation analysis, and regression analyses were conducted by SPSS WINDOWS. The results from this study were as follows. First, there were significant differences between credit card usage group and non-usage group in the means for future preparation, stingy attitude, and planned expenditure. However, there was no significant difference in the mean of money management behaviors. Second, for the credit card usage group, the significant variables affecting money management behaviors included sex, grade, experience of consumer education, father's occupation, monthly household income, future preparation, stingy attitude, methods of emotional change, planned expenditure, and negative recognition. On the other hand, for the non-usage group, grade, experience of consumer education, father's occupation, way of success, future preparation, stingy attitude, planned expenditure, and conditional permission were significant. These results imply that financial management education including values about money and consumption patterns should be conducted.

• The Journal of Asian Finance, Economics and Business
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• v.5 no.2
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• pp.35-42
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• 2018

In recent decades, financial crises in various countries have often been preceded by the rise in non-performing loans (NPLs) in the banks' asset portfolios. The increase in NPLs is proven to have adverse impact on the banking sector so that understanding the determinant of NPLs is immensely crucial to ensure the efficiency and soundness of the overall economy. This study aims to shed light on bank-specific factors that affect loan default problems in developing countries whose banking sectors play a major role in the overall economy. This study analyzes panel data sets of 36 commercial banks listed in the Indonesian Stock Exchange during the period 2008-2015. Applying fixed-effects panel regression model reveals that Indonesian banks' profitability and credit growth negatively influence the number of NPLs. Moreover, banks with higher profitability are proven to have lower NPLs because they can afford adequate credit management practices. Likewise, banks with higher credit growth evidently have lower NPLs in the sense that they demonstrate more specialized lending activity and thus have better credit management systems. These findings imply that, in order to lower loan defaults that can deteriorate banks' asset quality, banks should maintain their level of profitability and increase, rather than decrease, their credit supply to debtors.