• Agribusiness and Information Management
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• v.4 no.1
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• pp.24-31
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• 2012

This case study investigates the KIKO currency option that has been a social issue in recent years among developing countries, especially Korea, where the financial derivatives market is in a state of rapid growth. The forward transaction which becomes a basis of derivatives is intended to hedge risks that may be caused by a future change in asset prices. Although it originates from a simple form of agricultural transactions, there currently exists a variety of derivatives in more sophisticated forms. In the Korean agricultural industry, the need to use such derivatives is great, as there is a huge risk of price fluctuation in agricultural products due to frequent adverse weather. In addition, many developing countries with export-led industrial structures similar to Korea's, of necessity must resort to currency hedging as a method of reducing relevant risk. However, in most cases, the lack of understanding about financial derivatives results in an inappropriate application of these derivatives. The KIKO in this study represents such cases. Since 2007, KIKO has been sold in Korea to many small- and medium-sized export companies for the purpose of currency hedging when the exchange rate between the Korean won and the U.S. dollar was in a downward spiral. The main focus of this study is a case which is most representative of KIKO. As inflation rapidly increased during the financial crisis in the U.S. at the end of 2007, derivatives became a hot issue in the courts rather than in the financial markets. This case study investigates what KIKO and the fierce legal debates over it imply, from the perspective of the option of value evaluation in order to suggest not only a direction in which companies can utilize financial derivatives, but also a roadmap for the future derivatives market.

• Journal of Information Processing Systems
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• v.15 no.6
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• pp.1306-1325
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• 2019

As the world is moving towards digitization, data is generated from various sources at a faster rate. It is getting humungous and is termed as big data. The financial sector is one domain which needs to leverage the big data being generated to identify financial risks, fraudulent activities, and so on. The design of predictive models for such financial big data is imperative for maintaining the health of the country's economics. Financial data has many features such as transaction history, repayment data, purchase data, investment data, and so on. The main problem in predictive algorithm is finding the right subset of representative features from which the predictive model can be constructed for a particular task. This paper proposes a correlation-based method using submodular optimization for selecting the optimum number of features and thereby, reducing the dimensions of the data for faster and better prediction. The important proposition is that the optimal feature subset should contain features having high correlation with the class label, but should not correlate with each other in the subset. Experiments are conducted to understand the effect of the various subsets on different classification algorithms for loan data. The IBM Bluemix BigData platform is used for experimentation along with the Spark notebook. The results indicate that the proposed approach achieves considerable accuracy with optimal subsets in significantly less execution time. The algorithm is also compared with the existing feature selection and extraction algorithms.

• Korea Journal of Hospital Management
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• v.4 no.2
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• pp.106-130
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• 1999

The main objective of this paper is to perform an empirical analysis on the relationship between various marketing activities and financial performance of Korean hospitals. A survey was conducted through structured questionnaire for 495 hospitals, and data from 218 hospitals were utilized in the final anaylsis.(response rate: 44%) Survey items include general characteristics of the hospitals(size, type, location), degree of competition, financial performance. marketing organization! budget, and level of various marketing activities in service development, access improvement, promotion, and pricing. We examine descriptive statistics of the response scores on marketing activities to evaluate the current status of marketing management of Korean hospitals, compare the results across hospital size, type and location, and perform regression analysis to investigate the relaionship between marketing and financial performance. Major findings are as follows: 1) About 46% of the responding hospitals have marketing departments although they are named as 'planning' or 'PR' departments, and the marketing budget on average represents 1.74% of the total expenditures. 2) Average level of marketing activities is calculated to be about 3.32 on 5-point scale, meaning that Korean hospitals implement their marketing programs 'somewhat actively'; however, the scores on the areas of marketing plannning and strategy are relatively low. 3) Large hospitals tend to be more active in marketing than small hospitals, and public hospitals' activities in marketing are not lower compared to private hospitals. 4) Level of overall marketing activities is positively related with financial performance measured by various finacial indicators except for profitability, implying that marketing is successful in revenue generation but needs to be more cost-effective. Also, when the marketing variables are separately included in the regression, no significant relationship is found, which means that various marketing activities are more effective when they are collectively implemented.

• Journal of the Korea Society of Computer and Information
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• v.26 no.1
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• pp.259-264
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• 2021

SNS has recently reached the level of providing financial services to customers through a mobile payment system that goes beyond the existing payment system using Fintech, which is a fusion of financial industry and information technology. These mobile payment systems are increasing in scale as time goes by, and their functions are reaching the same level as general financial services. This study is an empirical study to examine what is the most important factor in Internet banking by targeting users who use WeChat Pay among Chinese Internet bank users with the highest Fintech Adoption rate. SNS has recently reached the level of providing financial services to customers through a mobile payment system that goes beyond the existing payment system using Fintech, which is a fusion of financial industry and information technology. As a results, 2 factors positive influence on Acceptance intention and Customer satisfaction. These mobile payment systems are increasing in scale as time goes by, and their functions are reaching the same level as general financial services.

• The Journal of Korean Society for School & Community Health Education
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• v.22 no.2
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• pp.1-14
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• 2021

Objectives: The study aimed to analyze the effects of household financial difficulties caused by COVID-19 (2019 coronavirus disease) on suicidal tendencies of adolescents. Methods: We selected 54,948 middle and high school students who were surveyed based on the Korean Youth Risk Behavior Web-based Survey 2020. To analyze the data, we used the STATA 16.0 program to conduct propensity score matching (PSM). Results: After controlling for selection effects by using PSM, the household financial difficulties caused by COVID-19 maintained a significant predictive effect on increasing suicidal ideation, suicide attempts, and decreasing tendency in hospital-treated after suicide attempts. However, depressive symptoms and suicide plan did not show a significant correlation with household financial difficulties associated with COVID-19. Conclusions: It was found that the rate of suicidal ideation and suicide attempts among adolescents who experienced a household financial difficulties due to COVID-19. Therefore, It can provide empirical evidence for estimating the impact of COVID-19 on adolescent suicide rates.

• Journal of Information Technology Applications and Management
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• v.28 no.6
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• pp.97-116
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• 2021

Due to the decrease in the school-age population and government regulations, universities have made great efforts to secure their own competitiveness. In particular, the selection of universities with financial support based on the recent evaluation of the Ministry of Education has become a major concern enough to affect the existence of the university itself. This paper extracts three-year data from 124 major private universities nationwide, and quantitatively analyzes the variables of major universities selected as self-improvement universities, competency reinforcement universities, and universities with limited financial support. As a result of estimating the selection of self-powered universities using the ordered logit model by hierarchically inputting 12 variables, student competitiveness in the metropolitan area (1.318^**), Educational Restitution Rate (4.078^***), University operation expenditure index rate (1.088^***) values were found. Significant positive coefficient values were found in the admission enrollment rate (45.98^***) and the enrollment rate (13.25^***). As a result of analyzing the marginal effects, the increase in the rate of reduction of education costs has always been positive in the selection of self-powered universities, but it was observed that the rate of increase decreases in areas of increase of 150% or more. On the contrary, the probability of becoming a Em-powered university was negative in all sectors, but on the contrary, it was analyzed that marginal effects increased at the same time point. On the other hand, the employment rate of graduates was not able to find direct significance with the result of the selection of Self powered universities. Through this paper, it is expected that each university will analyze the possibility and shortcomings of the selection of Self powered universities in policy making, and in particular, the risk of dropout of selection for the vulnerable field can be predicted using marginal effects. It can be used as major research data for both university evaluators, university officials and students.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.52
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• pp.25-44
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• 2011

Possibility of credit risk, foreign exchange risk and interest rate risk of exporter increases in the recent international Commercial transactions, due to financial crisis of Europe and liberalization of Middle East. Under this circumstance, Forfaiting is trade finance that forfaiter purchase negotiable debt instrument without recourse from exporter, which occurred related with international commercial transactions, and credit risk, contingency risk, foreign exchange risk and interest rate risk of exporter can be transferred to forfaiter. Forfaiting is typically medium-term finance(three to five years) concluded at fixed interest rate, although it can also arranged on a floating interest-bearing basis for periods from six months to ten years or more. But Forfaiting service of Korea has limitation as follows. First, forfaiting in Korea deals with unrestricted irrevocable documentary credit as debt instruments. Period that forfaiting is provided is short and amount of money is limited, compared with advanced forfaiting. But forfaiting provided in advanced countries deals with various methods such as guarantee for bill, payment guarantee, and can be resold in financial market. Recently importance of forfaiting is increasing in international commercial transactions. Therefore profound study on forfaiting is required. The study will examine the risk that happens to the concerned parties in forfaiting, and its management measures. The study adopted literature review method such as local and foreign books and papers about trade finance, internet information about forfaiting, and professional journal related with international finance.

• The Journal of Asian Finance, Economics and Business
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• v.5 no.3
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• pp.7-17
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• 2018

This paper examines short-run and long-run dynamic relationships between selected macroeconomic variables and stock prices in the Korea Stock Exchange. The data is restricted to the period for which monthly data are available from January 1986 to October 2016 (370 observations) retrieved from the Economic Statistics System database sponsored by the Bank of Korea. The study employs unit root test, cointegration test, vector error correction estimates, impulse response test, and structural break test. The results of the Johansen cointegration test indicate at least three cointegrating equations exist at the 0.05 level in the model, confirming that there is a long-run equilibrium relationship between stock prices and macroeconomic variables in Korea. The results of vector error correction model (VECM) estimates indicate that money supply and short-term interest rate are not related to stock prices in the short-run. However, exchange rate is positively related to stock prices while the industrial production index and inflation are negatively related to stock prices in the short-run. Furthermore, the VECM estimates indicate that the external shock, such as regional and global financial crisis shocks, neither affects changes in the endogenous variables nor causes instability in the cointegrating vector. This study finds that the endogenous variables are determined by their own dynamics in the model.

• The Journal of Asian Finance, Economics and Business
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• v.5 no.2
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• pp.15-24
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• 2018

The study examines the magnitude of economic spillover and the impact of foreign direct investment (FDI) inflows on the efficiency of the bank industry in China. This study employs unit root tests, cointegration tests and cointegrating regression analysis, including fully modified ordinary least squares (FMOLS), canonical cointegrating regression (CCR) and dynamic OLS (DOLS) to test the proposed hypotheses. The sample is restricted to the period of time in which monthly data is available and comparable among variables for the period from January 2002 to October 2013 (142 observations). All of the time series data was collected and retrieved from the People's Bank of China, China Monthly Statistics from the National Bureau of Statistics of China, and International Financial Statistics database from International Monetary Fund. The results of the Johansen cointegration test suggest that there is a long-run equilibrium relationship between FDI inflows, foreign exchange rate and banks performance in China. The results of cointegrating regression analysis using FMOLS, CCR and DOLS suggest that M2 supply and FDI inflows are significant at the 0.01 level. The results confirm that FDI inflows in the banking sector are positively related to the increase of banks productivity and performance and short-term loans in China. However, the results suggest that Chinese Yuan currency exchange rate to U.S. dollar is not significant in the banking and financial industry of China.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.689-698
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• 2020

The aim of this article is to determine the influence of factors on the capital structure of construction companies listed on the Hanoi Stock Exchange. The data of the article were collected and calculated from the financial statements of 54 construction companies listed on Hanoi Stock Exchange from 2012 to 2019. With the application of E-view software in quantitative analysis to build panel data regression model (panel data), the article has built a regression model to determine the relationship of intrinsic factors affecting the capital structure of construction companies listed on Hanoi Stock Exchange. In the study, dependent variable is capital structure, determined by the debt-to-equity ratio. Profitability, coefficient of solvency, size, loan interest rate, structure of tangible assets, and growth are independent variables. The results showed that the two factors of growth and firm size positively affect the capital structure, the profitability factor has the opposite effect on capital structure. Factors of short-term debt solvency, average loan interest rate and tangible asset structure have no correlation with capital structure. The findings of this article are useful for business administrators, helping business managers make the right financial decisions to make capital structure decisions in their own conditions.