• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.60
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• pp.109-139
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• 2013

This paper is to review the Uniform Rules for Bank Payment Obligations(URBPO 750E) which were developed by the Banking Commission of the International Chamber of Commerce and to present the implications. The rules were unanimously adopted during Lisbon meeting of the ICC Banking Commission on April 17th, 2013 and taken effect as of July 1, 2013. A BPO is an irrevocable undertaking given by an Obligor bank to a Recipient bank to pay a specified amount under the condition of a successful electronic matching of data or acceptance of mismatches. It is an alternative instrument for trade settlement, designed to complement existing solution and not to replace them(ICC,750E). The BPO enables banks to provide sellers and buyers with advanced risk mitigations and enhanced financing services. The BPO will improve trade processing efficiency such as increased transaction times, reduced handling cost, and others. It is believed that the BPO will have an important role to play in supporting the development of Supply Chain Finance in international Trade. So, This study will review the provisions and application of the URBPO 750E based on documentary materials including swift com and icc.org and so on.

• The Journal of Information Technology
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• v.3 no.3
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• pp.39-55
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• 2000

Internet Trade is the new type of business transaction, which sells and advertises the product and services by using the Internet, which is spreaded rapidly to the world. Under these circumstance, our country should discuss the proper position and role as the center in the trade amount in the world trade market, and face the irresistible changes of trade environment. First, in the institution and legal aspect. Second, the price payment system of the internet trade. Third, the so-called infra construction, the physical sector for activating the internet trade, the comprehensive plan of super-highway information communication net work by the government authorities is expected to be promoted. There is no perfect solution that internet trade could be completely done in front of monitor and will be solved one by one along with the development of electronic commerce. At last, the government's and industry's joint positive concern and participation in the rapidly changing new world trade trends of internet trade is expected fit for our position in the world.

• International Commerce and Information Review
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• v.2 no.2
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• pp.171-188
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• 2000

지속적으로 변화하는 무역관습의 흐름은 결제관습에 있어서도 새로운 변화를 초래하고 있는데 최근의 국제결제시스템중 가장 두드러진 변화는 전자적 방법에 의한 결제시스템의 대두이다. TradeCard는 이러한 전자결제시스템으로서 가장 대표적인 예로서 1994년 처음 사업이 시작된 이후 10년도 되지 않아 새로운 무역결제관습으로 정착되기 위한 상업적 활동에 나서고 있다. 본 논문은 이러한 TradeCard의 상업적 활동이 과연 순조롭게 추진되어 신용장을 비롯한 기존의 무역결제시스템에 추가 또는 대체되는 새로운 무역관습이 탄생할 수 있을지를 검토하고 있다. 이를 위해 본 논문은 먼저 TradeCard가 갖고 있는 특징을 몇 가지로 분류하여 살펴보았다. 즉, 무역절차의 전자화 과정에서 기능적 접근방법을 채택하였다는 점, 타 기관이나 조직과의 활발한 제휴, 비용과 시간을 절감시킬 수 있는 방법의 제시 등이 그것이다. 이러한 특징을 통해 TradeCard는 새로운 무역관습으로 자리잡을 수 있는 충분한 가능성을 갖고 있다는 것이 논자의 생각이다. 그러나 다음의 몇 가지 문제점 역시 갖고 있기 때문에 이를 해결하는 것이 그러한 가능성의 전제조건이 된다. 첫째, TradeCard를 통한 거래의 법적 안정성 확보이다. 이는 모든 전자거래가 공통으로 갖는 문제점이지만 TradeCard의 경우 거래조건의 이행여부에 대한 전자적 판단이라는 요소를 지니고 있어 이를 어떻게 법적으로 수용할 것인가의 문제가 제기된다. 둘째, TradeCard를 통한 거래에서 발생되는 피해에 대한 구제방법의 제시이다. 이는 아마도 보험을 통해서 해결할 수 있으리라 생각되지만 현재 TradeCard는 이부분에 대한 명확한 입장이 명시되지 않은 것 같다. 셋째, 국제적 전자거래를 안전하게 할 수 있는 방안으로 전자서명의 활용이 절실한데 이에 대한 상호인정의 해결이 필요하다는 점이다. 물론 이는 TradeCard의 역할이라기 보다는 우리 정부를 비롯한 각국의 정부당국의 몫이다. 그러나 이러한 모든 문제는 결국 얼마나 빨리 많은 사용자를 확보하여 시장의 힘을 통해 국제상관습으로 정착시킬 수 있는가의 문제로 귀착된다고 본다. 따라서 TradeCard는 처렴한 요금체계 및 사용자에 대한 인센티브의 제공 등을 통해 조기에 다수 사용자를 확보하는 것이 시급한 것으로 생각한다.

• International Commerce and Information Review
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• v.15 no.3
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• pp.245-262
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• 2013

The transaction size between South Korea and the European Union (EU) had increased by more than two times among 2003 to 2008. With rapid growth of transaction, the EU was becoming important transaction object of South Korea gradually. EU has used the Antidumping policy as a trade protection tool against Korean products due to reduce the deficit of trade balance of payment, boost the economic growth and protect its weak industries. This paper investigates whether there is a connection between the EU's macroeconomic activity and pressures for protection to Korean products under antidumping measures with using the current data that come from the WTO, World Bank for 2004 to 2012. The result suggests that pressures for protection under Antidumping measure against exporting of Korean products to EU have increased during periods of macroeconomic weakness of low GDP growth, larger deficit of trade balance, however, has not significantly affected during periods of high unemployment.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.22
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• pp.173-197
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• 2004

Letter of Credit between buyer and seller in International Trade Transaction is the means of payment which makes International Trade operate smoothly by guaranteeing an exporter against non-payment and an importer against non-delivery. Therefore, the parties to a sale apply UCP500 established by the International Chamber of Commerce, in accordance with principle of the freedom of contract among the parties concerned, to look to their own legal stability. However, we may recognize some cases to have been applied principle of faith and trust, one of the dominant principles of the civil law, by the Korean Supreme Court and other cases to have not been applied that principle by the Korean Supreme Court. The Court shall apply UCP500 strictly as long as the parties concerned adopt UCP500 in view of the legal stability. In other words, in case that the Court applies principle of faith and trust to the case related to L/C, this rule - principle of faith and trust - should apply to the subject matter which have not stipulated in UCP500 under certain restriction. We suggest keeping in mind points to korean companies as follows; First, the parties to a sale shall understand L/C basis transaction and principles related to L/C deeply. Second, the exporter shall prepare documents in compliance with L/C and fulfil his or her obligation according to UCP500 and L/C related to the contract. Third, as buyer or importer, when he or she receive the shipping documents with discrepancies from the notifying bank, he or she makes him or herself clear to all the parties concerned. Fourth, as bank, she shall examine all the documents according to UCP500 and L/C related to the contract, and if any document with discrepancies, the bank, by all means, shall approach applicant first, and then decide whether to pay the credit amount to beneficiary or not to.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.39
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• pp.87-103
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• 2008

Two kinds of security devices such as independent guarantees and standby letters of credit have been widely used in the international transactions. These devices design to protect one of the parties from a breach by its counter-party. Main uses of these guarantees and standby letters of credit are as follows : bid guarantee, performance guarantee, advance payment guarantee, payment guarantee, retention guarantee, etc. The standby letters of credit were first invented in the U.S.A. and have been widely used in the international and domestic contracts in the U.S.A. But the practical use of these credits is very unsatisfactory in Korea. The purpose of this study is to serve the increase of practical use of the standby letters of credit in Korea through the comparison study on the practical use of the credits between Korea and the U.S.A. Both devices are very similar in function, but they are very different in forms. The one has the form of letter of credits but the other has the form of guarantee. The letter of credit has the stability of governing rule, the legal certainty, and the preference in the field of the trade community comparing to the guarantee. I recommend to use standby letter of credit instead of bank guarantee in international transactions because of the merits of the credit aforesaid.

• International Journal of Computer Science & Network Security
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• v.22 no.10
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• pp.347-351
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• 2022

The article is devoted to the formation of approaches to improving the system of administration of customs payments in modern conditions. It is established that important components of the administration of customs payments are customs expertise, customs value assessment, and control over the declaration of goods to ensure the completeness and timeliness of customs duties payments to the budget. It is found that the practice of customs administration shifts the emphasis of foreign trade regulation to the use of the principles of work implying the use of the latest technologies for the preliminary electronic exchange of information, remote customs clearance of goods without the physical presence of an official, and consistent application of risk management. It is established that an important place in the structure of the state authorities regulating the foreign economic activity is given to the customs service. Furthermore, the existing problems in the implementation of international trade operations necessitate the improvement of approaches to the customs regulation of export-import activities of enterprises.

• Journal of Korea Trade
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• v.24 no.4
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• pp.49-70
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• 2020

Purpose - The UCP is recognized as the governing law for L/C transactions, but it covers only the general details of the transaction and does not cover all complex practices. In view of this limitation, this paper examines a negotiation transaction which is most actively utilized in L/C transactions via a thorough review of the UCP provisions, analyzes the problems of the negotiation clause in the UCP, and suggests appropriate countermeasures to deal with unnecessary litigation costs. By doing so, the parties involved in the negotiation transaction would be able to avoid financial costs such as having to pay for lawsuits. Design/methodology - The present study first differentiates the general types of L/Cs (e.g., sight payment L/C, deferred payment L/C, acceptance L/C, and negotiation L/C), explains and the Article 2 and Article 12(b) of the UCP 600 where the term 'negotiation' is used, digs into the drawbacks of 'negotiation' occurring under the UCP 600, and discusses solutions to the problems found by analyzing the drawbacks descriptively. Findings - After a review of the UCP provisions on negotiation in detail, several possible problems which may occur in practice were discovered. First, as the UCP stipulates, the negotiating bank will want to delay payment to the maximum extent possible and make payment on the banking day on which the issuing bank reimburses the amount. This may lead the beneficiary towards bankruptcy or put it in financial crisis. Second, when a fraudulent transaction occurs, the negotiating bank can neither request the issuing bank to reimburse nor can it exercise its recourse right against the beneficiary because it has obtained all the rights of the beneficiary by purchasing the documents. Third, there is a practice in which the beneficiary sells the documents to its transaction bank which is not the nominated bank if the nominated bank specified in the credit is located in a third country or the exporter has no relationship with the nominated bank in the credit. In this case, whether to accept this and reimburse the non-nominated negotiating bank entirely depends on the issuing bank's decision even though such practice frequently occurs in Korea. Originality/value - There has been little research effort pertaining to negotiation transactions in detail even though negotiation L/C transactions account for around 70% in world trade notwithstanding deferred payment L/Cs and acceptance L/Cs that are also negotiated in practice. Thus, if the negotiations clause under the UCP 600 provisions were reviewed and the drawbacks of the negotiation transactions most actively used in L/C transactions were identified and examined, specific countermeasures could ultimately help smoothen the operation of L/C transactions and prevent financial losses.

• Korea Trade Review
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• v.47 no.5
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• pp.59-74
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• 2022

The exemption clause of recurring shipments refers to the insurer's exemption in Short-term Export Credit Insurance for the additional shipment which was shipped on board while any foregoing shipment was unpaid beyond its due date over 30 days. The recurring shipments are constituted with two factors: the due date of the foregoing shipment and the shipment date of the additional export. The exemption clause of recurring shipments has been eased by extending the grace period for payment up to 60 days from 30 days for the transactions between exporters and importers having the history of payments which were made customarily in delay. This research argues that the current grace period is for the buyers who customarily delay their payments, and that the insurer introduce a grace period for shipment in favor of exporters for the additional shipment which was delayed in on-boarding due to reasons beyond the control of exporters. In consideration of the waiting time and the on-boarding time at ports for container freight, shipments are frequently delayed, which entails those shipments to be indemnified by the exemption clause of recurring shipments. Roll-overs and Blank Sailings also cause the container freight to be delayed in on-boarding. This research is expected to contribute to further development of Short-term Export Credit Insurance in K-SURE.

• Journal of Korea Trade
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• v.24 no.7
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• pp.73-92
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• 2020

Purpose - The letter of credit has been playing a major role to diminish overall risks which exist among concerned parties even though there are differences such as language, culture, law, and distance. This paper reviews essence of the letter of credit and its transaction principles, as well as overall practical questions based on the L/C transaction principle. It also investigates the risk of fraud occurrences in L/C transactions and the importance of fraud prevention and preventive measures in international L/C transactions, including the Fraud Rule, which is a major topic to consider in business transactions. Design/methodology - It is considered that an importing country's concerned parties and an exporting country's concerned parties face different situations. This study employs the existing framework to identify liability, responsibility, and obligation for all concerned parties across countries. Using a quite direct measurement of principles in the letter of credit, such as principle of independence, principle of abstraction, and principle of strictness and coincidence, we studied these differences. Findings - Our main findings can be summarized as follow. The paper enhances the efficiency of the L/C payment method to provide fraud generated from L/C transactions, presentation of a theoretical framework about fraud and fraud prevention, which international trading companies should acknowledge in a material way based on fraud risk resulting from taking advantage of L/C transaction principles. Originality/value - Existing studies focus on fraud accidents in L/C transactions by taking bad advantage of the characteristics of the letter of credit without suggesting risks of fraud. This paper attempts to evaluate and provide preventive measures as a solution for fraud and risky international business in a letter of credit transaction. This area of trade studies is underexplored, both empirically and theoretically, although the issue has long been important to Korean and world community foreign trade.