• Journal of the Korean Society of Systems Engineering
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• v.15 no.1
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• pp.25-33
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• 2019

In the plant industry, the share of equipment accounts for 45 ~ 75%, which is very high. It is a traditional plant centered on processes and reactions like petroleum and chemical plants. Renewable energy generation plants such as wind power generation and solar power generation are equipment-centric plants. Equipment-centric plants are very important not only in the EPC phase but also in the operation and management phase. The procurement of equipment for plant operation and management can be divided into make and buy. Make is a method of producing equipment itself, and buy is a method of procuring equipment from the outside. The procurement method of the equipment directly affects the plant operation and management cost. In this study, the decision making of equipment procurement method for plant operation and management is defined as 4 phase. Each phase is selection of procurement decision-making objects, technology strategy perspective, finance perspective, and production perspective. In detail, we defined selection process of procurement decision-making objects and technology strategy perspective process. We will contribute to the enhancement of the competitiveness of the plant operation and management area by carrying out researches on the process and application examples of financial and production perspectives in the future.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.15 no.6
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• pp.135-154
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• 2020

This paper analyzes the 5,521 samples of the small and medium-sized businesses(SMBs) obtained from the Korea Credit Guarantee Fund. From January 2014 to September 2019, 85% of the SMBs have 5 or fewer full-time employees. The proportion of SMBs is overwhelmed by the elderly men, and most founders are the CEO. Also, about 87% of the workplace types are rented, while 64% of the CEO's residence types are owner-occupation. 47% of the financial grade score is less than 10 points out of 100 and 80% of SMBs have less than 200 million won of the loan guarantee. In particular, the total guarantee loan amount or the days of net guarantee have significantly positive relations with the working period of the CEO in the same industry, the number of employees, the operation period of SMBs, and the corporate business type. In the case of the financial grading score which has the highest weight in overall credit rating gets higher with the higher number of employees, the longer the operation period, and the corporate business type. However, the quantified non-financial grading score has no significant relationship with other explanatory variables, except for the corporate business type. This implies that a non-financial grade score is measured by other determinants that are not observed by the Korea credit guarantee fund. The pure non-financial grade score has positive relations with the working period of the CEO. Overall, this paper would help Korean SMBs upgrade their credit ratings and expand the money supply when there is no standardized credit rating model or no publicly available evaluation criteria for SMBs. We expect this paper provides important insights for further research and policy-makers for SMBs. In particular, to address the financial needs of thin-filers such as SMBs, technology-based financial services (TechFin) would use alternative data to evaluate the financial capabilities of thin-filers and to develop new financial services.

• Journal of Intelligence and Information Systems
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• v.28 no.3
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• pp.259-278
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• 2022

With the spread of Artificial Intelligence (AI), various AI-based services are expanding in the financial sector such as service recommendation, automated customer response, fraud detection system(FDS), credit scoring services, etc. At the same time, problems related to reliability and unexpected social controversy are also occurring due to the nature of data-based machine learning. The need Based on this background, this study aimed to contribute to improving trust in AI-based financial services by proposing a checklist to secure fairness in AI-based credit scoring services which directly affects consumers' financial life. Among the key elements of trustworthy AI like transparency, safety, accountability, and fairness, fairness was selected as the subject of the study so that everyone could enjoy the benefits of automated algorithms from the perspective of inclusive finance without social discrimination. We divided the entire fairness related operation process into three areas like data, algorithms, and user areas through literature research. For each area, we constructed four detailed considerations for evaluation resulting in 12 checklists. The relative importance and priority of the categories were evaluated through the analytic hierarchy process (AHP). We use three different groups: financial field workers, artificial intelligence field workers, and general users which represent entire financial stakeholders. According to the importance of each stakeholder, three groups were classified and analyzed, and from a practical perspective, specific checks such as feasibility verification for using learning data and non-financial information and monitoring new inflow data were identified. Moreover, financial consumers in general were found to be highly considerate of the accuracy of result analysis and bias checks. We expect this result could contribute to the design and operation of fair AI-based financial services.

• The Pure and Applied Mathematics
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• v.22 no.2
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• pp.159-168
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• 2015

Abstract. We propose a fast and robust finite difference method for Merton's jump diffusion model, which is a partial integro-differential equation. To speed up a computational time, we compute a matrix so that we can calculate the non-local integral term fast by a simple matrix-vector operation. Also, we use non-uniform grids to increase efficiency. We present numerical experiments such as evaluation of the option prices and Greeks to demonstrate a performance of the proposed numerical method. The computational results are in good agreements with the exact solutions of the jump-diffusion model.

• Journal of Korea Multimedia Society
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• v.18 no.11
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• pp.1367-1374
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• 2015

In this paper, we propose a model which can prioritize the performance improvement work by analyzing the major risks and their influence, which can cause performance degradation in the system and show an example of a performance improvement using this model. In presentation-tier, as a result of log data analysis before and after the performance improvement of key processes which handle financial transactions, this model brought the CPU utilization and memory enhancement in the performance improvement work of the financial system which was carried out by applying the proposed model. It has been confirmed that the entire end-user can be accommodated. In the web-tier, the available memory increased by 200MB and we were able to improve the server restart(Recycling) that was sustained in the existing system. In the business logic-tier, we have been able to see better figures after performance improvements through the graph which analyzes the log collected with the key performance counters such as CPU%, Batch Requests/sec. In the data-tier, it has been confirmed that CPU usage and standby operation were reduced and the throughput was found to increase.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.33
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• pp.247-275
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• 2007

This paper is to propose the Direction for the institutional improvement of Financial Supply Chain Management(FSCM) Solution which are currently coming into operation under Global e-Trading Platform. The Financial Supply Chain compromise the entire trade processes and information that manage a trader's cash, Accounts payable and receivable, Risk, working capital, and so on in international trade transaction. From a buyer's perspective, this involves the full procurement-to-payment process. For the seller, it is the order-to-cash cycle. Bolero provides the party concerned a e-trade platform which conformed to these fundamental pre-requisites to underpin fully electronic trade. But this FSCM solution have failed to provide the efficient platform to effectively manage the process of Global e-Trade because it does not correspond with e-Trade environment. Therefore, present FSCM system need the institutional improvement as follows: AA) Strengthening the role of the correspondent Bank under e-Trade System, BB) Extending the function of e-Trade intermediary institution, CC) The introduction of Trade Insurance System, etc. So, by streamlining and automating these processes on an open and flexible platform, The party concerned can optimize their trade transaction and maintain better relations with their business partners

• Journal of Distribution Science
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• v.18 no.9
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• pp.5-11
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• 2020

Purpose: We sought to investigate the operation status of internal accounting control systems in the distribution and service industries and verify whether investing in internal accounting personnel significantly influences the quality of the companies' financial reporting. Research design, data and methodology: We identified descriptive statistics and performed a univariate analysis. Furthermore, a regression analysis verified the impact of investing in internal accounting personnel on the absolute value of discretionary accruals, a proxy for financial reporting quality. Results: Distribution and service companies allocated a significantly higher number of accountants to their internal accounting control systems than companies in other industries. We also confirmed that the absolute value of discretionary accruals significantly decreased as the average working experience of internal accounting personnel in distribution and service companies, in months, increased. Conclusions: In this study, we confirmed that distribution and service companies are devoting efforts to establishing internal accounting control systems and found that financial reporting quality is more effectively controlled as companies allocate more experienced personnel in their internal accounting control system.

• Korea Trade Review
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• v.44 no.6
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• pp.39-54
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• 2019

Trade finance promotes export performance, and every small- and medium-sized export business has the right to use policy finance. The credit line is also stipulated by relevant laws and regulations. However, trade finance has repeatedly been misused, so these matters can lead to substantial financial loss and damage to the related financial institutions. The lack of expertise of K-SURE and the backwardness of banks represent even bigger problems in the follow-up management. The existing trade finance system should be improved in the following ways from the institutional and legal perspectives. Firstly, follow-up management of beneficiary companies should be reinforced and systematized through examining business tendencies, financial status, and other important factors. There is also a need for advancement of following up management. An effective and streamlined financing system must be established by abolishing the Korea Trade Insurance Corporation. This study presents improvements and their implications by looking into the main issues under the current trade finance system. This study is based on documentary research and practical cases.

• International conference on construction engineering and project management
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• 2007.03a
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• pp.509-519
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• 2007

Private financing is playing an increasing role in public infrastructure construction projects worldwide. However, private investors/operators are exposed to the financial risk of low profitability due to the inaccurate estimation of facility demand, operation income, maintenance costs, etc. From the operator's perspective, a sound and thorough financial feasibility study is required to establish the appropriate capital structure of a project. Operators tend to reduce the equity amount to minimize the level of risk exposure, while creditors persist to raise it, in an attempt to secure a sufficient level of financial involvement from the operators. Therefore, it is important for creditors and operators to reach an agreement for a balanced capital structure that synthetically considers both profitability and repayment capacity. This paper presents an optimal capital structure model for successful private infrastructure investment. This model finds the optimized point where the profitability is balanced with the repayment capacity, with the use of the concept of utility function and multi-objective GA (Generic Algorithm)-based optimization. A case study is presented to show the validity of the model and its verification. The research conclusions provide a proper capital structure for privately-financed infrastructure projects through a proposed multi-objective model.

• Journal of environmental and Sanitary engineering
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• v.14 no.3
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• pp.39-53
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• 1999

This thesis is to analyze and assess a new refuse collection system that was based on the term of discharge based quantity and collection of refuse from the beginning on January 1, 1995.In the case study for the refuse collection policy of metropolitan Taegu city based on the year of operation, ie, before 1994, after 1995 and as of 1998, the refuse collection policy analyzed from current position and actual condition. The results of analysis as follows. In case of discharged refuse quantity was show 20.4% reduction than the operation was begun and more 5.8% reduction as of 1998.Under the operation of the refuse collection system, therefore, management of refuse and garbage, the reduction of discharged refuse, activation of refuse collection, Recycling and expansion of financial self-reliance increased efficiency of refuse collection system. In the conclusion, more perfect refuse collection system should be developed of implemented in the near future.