• Journal of Intelligence and Information Systems
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• v.28 no.4
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• pp.365-385
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• 2022

The easy payment service is a payment and remittance service that uses a simple authentication method. As online transactions have increased due to COVID-19, the use of an easy payment service is increasing. At the same time, electronic financial industries such as Naver Pay, Kakao Pay, and Toss are diversifying the competition structure of the easy payment market; meanwhile overseas fintech companies PayPal and Alibaba have a unique market share in their own countries, while competition is intensifying in the domestic easy payment market, as there is no unique market share. In this study, the participants in the easy payment market were classified as electronic financial companies, mobile phone manufacturers, and financial companies, and a SWOT analysis was conducted on the representative services in each industry. The analysis examined the user reviews of Google Play Store via a topic modeling analysis, and it employed positive topics as strengths and negative topics as weaknesses. In addition, topic modeling was conducted by dividing news articles into political, economic, social, and technology (PEST) articles to derive the opportunities and threats to easy payment services. Through this research, we intend to confirm the service capabilities of easy payment companies and propose a service activation strategy that allows gaining the upper hand in the market.

• Journal of Distribution Science
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• v.13 no.9
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• pp.37-45
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• 2015

Purpose - This paper's aim is to investigate whether or not gross profitability explains the cross-sectional variation of the stock returns in the Korean stock market. Gross profitability is an alternative profitability measure proposed by Novy-Marx in 2013 to predict cross-sectional variation of stock returns in the US. He shows that the gross profitability adds explanatory power to the Fama-French 3 factor model. Interestingly, gross profitability is negatively correlated with the book-to-market ratio. By confirming the gross profitability premium in the Korean stock market, we may provide some implications regarding the well-known value premium. In addition, our empirical results may provide opportunities for the fund distribution industry to promote brand new styles of funds. Research design, data, and methodology - For our empirical analysis, we collect monthly market prices of all the companies listed on the Korea Composite Stock Price Index (KOSPI) of the Korea Exchanges (KRX). Our sample period covers July1994 to December2014. The data from the company financial statementsare provided by the financial information company WISEfn. First, using Fama-Macbeth cross-sectional regression, we investigate the relation between gross profitability and stock return performance. For robustness in analyzing the performance of the gross profitability strategy, we consider value weighted portfolio returns as well as equally weighted portfolio returns. Next, using Fama-French 3 factor models, we examine whether or not the gross profitability strategy generates excess returns when firmsize and the book-to-market ratio are controlled. Finally, we analyze the effect of firm size and the book-to-market ratio on the gross profitability strategy. Results - First, through the Fama-MacBeth cross-sectional regression, we show that gross profitability has almost the same explanatory power as the book-to-market ratio in explaining the cross-sectional variation of the Korean stock market. Second, we find evidence that gross profitability is a statistically significant variable for explaining cross-sectional stock returns when the size and the value effect are controlled. Third, we show that gross profitability, which is positively correlated with stock returns and firm size, is negatively correlated with the book-to-market ratio. From the perspective of portfolio management, our results imply that since the gross profitability strategy is a distinctive growth strategy, value strategies can be improved by hedging with the gross profitability strategy. Conclusions - Our empirical results confirm the existence of a gross profitability premium in the Korean stock market. From the perspective of the fund distribution industry, the gross profitability portfolio is worthy of attention. Since the value strategy portfolio returns are negatively correlated with the gross profitability strategy portfolio returns, by mixing both portfolios, investors could be better off without additional risk. However, the profitable firms are dissimilar from the value firms (high book-to-market ratio firms); therefore, an alternative factor model including gross profitability may help us understand the economic implications of the well-known anomalies such as value premium, momentum, and low volatility. We reserve these topics for future research.

• The Korean Journal of Financial Management
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• v.8 no.1
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• pp.123-137
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• 1991

This paper developes a multiperiod trading model of securities price formation which extends the notion of market created risk introduced by Kraus and Smith [1989]. It is shown that stock price volalitility can depend on combinations of market parameters known to the market participants only imperfectly. Resulting portfolio rebalancing equilibria generate self-justifying price movements while market fundamental remain unchanged.

• Korean journal of communication and information
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• v.52
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• pp.27-47
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• 2010

This study analyzes the latest statistics for 3 years based on the traits of market environment, internal organization characteristics(the size and distribution of workforce), and financial structure, and then, investigates the interactivity traits and drawbacks between organization and market environment, among the local broadcast stations, and, among the type of work in the internal organization, by interviewing with broadcasters working at the local stations. Major findings of this studies are : at first, statistically, the conditions of local market environment, the size of local station workforce, financial structure are very poor. And, the interactivity among the local broadcast stations have so many difficulties because of a conflict of interest. So, for getting over a difficult situation at the local stations, in addition to planning to support local stations with various policies, government and local stations should seek for solution to overcome the conflict of interest jointly.

• International Area Studies Review
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• v.16 no.3
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• pp.239-266
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• 2012

The purpose of this paper is to suggest desirable improvement for KRX derivatives market plagued with many problems in spite of its world level of quantitative growth. In order to try to find desirable improvement for KRX derivatives market which has many problems like that, I suggest various ways of improvement for regulatory system in the future in terms of behavioral regulation for investor protection. First of all, in order to relieve speculative tendency of trading, KOSPI200 option market with ATM-oriented option trading needs to be induced from the market in which OTM-oriented option is now trading. So discount or exemption of brokerage fee for ATM trading and the introduction of market-maker for ATM type can be considered. For the protection of individual investors, we suggest feasible plans such as differential regulation between professional and individual investors, consolidation of basic deposit management, and enlargement of opportunities for risk management education & simulation trading.

• KDI Journal of Economic Policy
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• v.32 no.4
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• pp.153-195
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• 2010

The recent global financial crisis has been the outcome of, among other things, the mismatch between institutions and the reality of the market in the current global financial system. The International financial institutions (IFIs) that were designed more than 60 years ago can no longer effectively meet the challenges posed by the current global economy. While the global financial market has become integrated like a single market, there is no international lender of last resort or global regulatory body. There also has been a rapid shift in the weight of economic power. The share of the Group of 7 (G7) countries in global gross domestic product (GDP) fell and the share of emerging market economies increased rapidly. Therefore, the tasks facing us today are: (i) to reform the IFIs -mandate, resources, management, and governance structure; (ii) to reform the system such as the international monetary system (IMS), and regulatory framework of the global financial system; and (iii) to reform global economic governance. The main focus of this paper will be the IMS reform and the role of the Group of Twenty (G20) summit meetings. The current IMS problems can be summarized as follows. First, the demand for foreign reserve accumulation has been increasing despite the movement from fixed exchange rate regimes to floating rate regimes some 40 years ago. Second, this increasing demand for foreign reserves has been concentrated in US dollar assets, especially public securities. Third, as the IMS relies too heavily on the supply of currency issued by a center country (the US), it gives an exorbitant privilege to this country, which can issue Treasury bills at the lowest possible interest rate in the international capital market. Fourth, as a related problem, the global financial system depends too heavily on the center country's ability to maintain the stability of the value of its currency and strength of its own financial system. Fifth, international capital flows have been distorted in the current IMS, from EMEs and developing countries where the productivity of capital investment is higher, to advanced economies, especially the US, where the return to capital investment is lower. Given these problems, there have been various proposals to reform the current IMS. They can be grouped into two: demand-side and supply-side reform. The key in the former is how to reduce the widespread strong demand for foreign reserve holdings among EMEs. There have been several proposals to reduce the self-insurance motivation. They include third-party insurance and the expansion of the opportunity to borrow from a global and regional reserve pool, or access to global lender of last resort (or something similar). However, the first option would be too costly. That leads us to the second option - building a stronger globalfinancial safety net. Discussions on supply-side reform of the IMS focus on how to diversify the supply of international reserve currency. The proposals include moving to a multiple currency system; increased allocation and wider use of special drawing rights (SDR); and creating a new global reserve currency. A key question is whether diversification should be encouraged among suitable existing currencies, or if it should be sought more with global reserve assets, acting as a complement or even substitute to existing ones. Each proposal has its pros and cons; they also face trade-offs between desirability and political feasibility. The transition would require close collaboration among the major players. This should include efforts at the least to strengthen policy coordination and collaboration among the major economies, and to reform the IMF to make it a more effective institution for bilateral and multilateral surveillance and as an international lender of last resort. The success on both fronts depends heavily on global economic governance reform and the role of the G20. The challenge is how to make the G20 effective. Without institutional innovations within the G20, there is a high risk that its summits will follow the path of previous summit meetings, such as G7/G8.

• International Journal of Human Ecology
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• v.7 no.2
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• pp.53-62
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• 2006

The purpose of this study is to examine the changes in financial structure of the self-employed brought on the economic crisis in Korea.. We use financial ratio analysis, such as income to expenditure ratio, liquidity ratio, debt ratio, and capital accumulation ratio to analyze financial well-being of self-employed households. This study used a 1997 and 1998 Korean Household Panel Study collected by Daewoo Economic Research Institute. The average amount of holding of each type of asset showed that the investment of self-employed households decreased in the banking industry and the stock market in 1998 compared to 1997. On the other hand, asset allocation in bond and real estate increased, which implied preference for a stable type of asset with the increase in uncertainty of the future and economic instability. Devaluation of real estate allowed households to easily obtain real estate and increase preference for asset allocation in real estate after the crisis. The changes in financial ratio for the year 1998 shows that such ratios as income to expenditure, liquidity, and capital accumulation, decreased compared to the year 1997. Among those ratios, the income to expenditure ratio showed the biggest decline because of reduced income of self employed households. The results implied that the income structure of the self-employed is unstable, thus the self-employed were likely to be greatly affected during the economic downturn. Earners have more average income and net assets than the self-employed. However, using financial ratios, it was found that self-employed households were more stable than employees. The results shows that the financial ratio analysis is better tool to estimate households financial status. Implications for financial educators, counselors, and planners are offered. The results will provide implications for policy makers to establish appropriate policies for the self-employed and help them financially survive.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.6
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• pp.47-64
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• 2014

Considering the network externality and spill-over effects, this paper constructs the theoretical model for analyzing the financial policies focusing on the credit guarantee system for Creative Economy, which has been set as the new policy paradigm for the Korean Economy. The analytical results show that it is as much as important to improve the efficiency of the financial markets and construct the infrastructure for reducing the information asymmetry problem which would be more serious in the creative finance. Although it is important to fill the gap due to the market failure it is also crucial to construct the appropriate financial schemes for the various stages of the innovative firms growth. Without these, the impacts of current public funding policies may crowd out the amount of private market funds for the innovative firms or reduce the possibility of commercialization of new technologies in these firms. Based on the evaluation of current related public policies from the perspectives of creative finance, we imply that the current financial policies appear to be quantity oriented not the quality based. Although the policy goals would be appropriately set for vitalizing the Creative Economy in Korea, they appear to be still unsuccessful to address the information asymmetry issue which is the major concern in vitalizing the creative economy. Thus we emphasize the market friendly policies, risk-sharing between the various market participants, revitalizing the relationship banking and efficient management of credit guarantee system in Korea based on the analytical model as well as the evaluation of related policies regarding the creative economy.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.4
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• pp.446-453
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• 2018

The study examines corporate research & development (R&D) expenditure in modern finance. Firms may face one of the essential issues to maintain their optimal levels of R&D expenditures in order to increase corporate profit. Accordingly, financial determinants that may influence R&D spending are statistically tested for firms listed on the KOSPI stock market during the period from 2010 to 2015. Financial determinants which may discriminate between firms in high-growth and low-growth industries are examined on a relative basis. Explanatory variables including one-period lagged R&D expenses (Lag_RD), cross-product term between the Lag_RD and type of industry (as a dummy variable), and advertising expenses (ADVERTISE) significantly influenced corporate R&D intensity. Moreover, high-growth firms in domestic capital markets showed higher Lag_RD, profitability (PROF) and foreign equity ownership (FOS) than their counterparts in low-growth sectors, whereas low-growth firms had higher market-value based leverage (MLEVER) and ADVERTISE. Overall, these results are expected to influence decision-making of firms concerning the optimal level of R&D expenditure, which may in turn enhance shareholder wealth.

• Korean Journal of Social Welfare Studies
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• v.47 no.3
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• pp.5-33
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• 2016

This study investigates the current features of social service provision system focusing on the core institutional traits of the system and community environment. Specifically, the study analyzes the differences in the contents and characteristics of social service provision, according to the community types, such as metropolitan area, medium size cities, and rural area. Also, the study explores the relationships among the three major subsystems in the social service provision system based on the types of financial provisions. Furthermore, the interaction effects between the community factors and financial traits on the relationships among sub- components in the service provision system are investigated. In this study other organizations, service users and public sector are regarded as three major sub-components in the provision system. The study utilizes the raw data from '2015 Social Service Demand and Provision Survey', which interviewed 4,100 social service organizations. Results from analyses show that the gap among metropolitan area, medium cites, and rural area is not so much bigger in the diverse provision features(e.g. the competition level, the major focus on the users, and policy demands on public sector) of provider-provision-organizations than in those of both of user-provision-organization and of market-way-organizations. User-provision organizations show the distinct differences in terms of the focus points on the users, while marketed organizations do in terms of the policy demands to the public sector. In rural area, user-provision organizations act like provider-provision-organizations whereas they do market-way-organizations in the urban area. Research findings show that the social service provision types utilizing market mechanism(such as user-provision, and market-way) are not so well fit into the characteristics of rural area.