• Korea Trade Review
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• v.46 no.5
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• pp.173-194
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• 2021

This study aims to derive precaution points for issuing banks in refusing payment under L/C through literature review and examination of court cases and official opinions of ICC Banking Commission with regard to the provisions of article 16 of UCP 600 that stipulates obligations of issuing banks in refusing payment. If the issuing bank fails to act in accordance with this article, it shall be precluded from claiming that the documents do not constitute a complying presentation. Therefore, it is crucial that issuing banks should be well informed of this article. When discrepant documents are presented, however, issuing banks seldom refuse payment because, in most cases, the applicants waive the discrepancies. For this reason, issuing banks have few chances to deal with payment refusal in practice and thus they occasionally end up failing to observe the provisions of the article. Such court cases include Kookmin Bank and Korean Exchange Bank (currently Hana Bank) that failed to indicate discrepancies in the refusal notice losing the lawsuits. It should be noted that if issuing banks disregard the provisions of article 16 of UCP 600 and thus fail to indicate discrepancies in the refusal notice, they may face fatal situations in which they must make payment against discrepant documents.

• Korea Trade Review
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• v.42 no.2
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• pp.205-225
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• 2017

The study attempts to verify the case related to the notice of payment refusal by issuing bank regarding discrepancy in transport document under L/C(Letter of Credit) transaction. Considering the high portion of trade between Korea and China, Korean companies and banks in L/C transaction should be careful about many unpredictable situations. The case of this study is that Chinese seller(beneficiary) initiated a civil suit against Industrial Bank of Korea to Chinese court and Chinese courts in the first and second trials judged that the notice of payment refusal by Industrial bank of Korea doesn't satisfy Article 16, (c) (ii) (iii) in UCP 600. However, Industrial Bank of Korea implements the judgement even though the judgement is highly biased to Chinese seller. Considering the judgement by Chinese courts, the study suggests some countermeasures to Korean companies and banks which opened L/C. First, the issuing bank should describe the contents of discrepancy specifically based on Article 16, (c) in UCP 600. Second, it is necessary to insert a clause regarding governing law in the L/C contract like sales contract. Third, considering the biased judgement by Chinese court and difficulty in execution of foreign judgement in China, it is recommended to using arbitration as a method of dispute resolution such as ICLOCA and DOCDEX Rules which are international system operated by international instruments because it has legal effects to parties in L/C contracts if the issuing bank inserts arbitration clause in L/C.

• Journal of Arbitration Studies
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• v.16 no.2
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• pp.213-238
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• 2006

Deferred payment letter of credit is the L/C that makes the issuing bank to pay a beneficiary at maturity stipulated in the credit. In this deferred payment letter of credit transaction, is it possible that a confirming or nominating bank payor negotiate before maturity? and the confirming or nominating bank have legal protection when paid or negotiated before maturity? These problems are raised in argument. By the way, Korea, Switzerland, Germany, and Italy are positive on the above question, but France, United Kingdom, and Singapore are negative. Therefore, when using deferred payment letter of credit, it is required to keep in mind that the understanding of maturity stipulated in the credit is different among countries, legal principles of each nations, and researchers. And other problems are raised also as follows; the application of Fraud Rule and principle of independence and abstraction as nature of credit, when to pay credit amount to beneficiary, and refusal of payment due to poor quality. Finally, it is required to use deferred payment letter of credit, after full understanding of deferred payment letter of credit pointed out in this paper.

• Journal of Arbitration Studies
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• v.22 no.3
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• pp.119-139
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• 2012

In the case of Banque Paribas V. Banco Santander in England for the reimbursement request of deferred payment credit by the nominated bank, the L/C-issuing bank refused to pay the proceeds at maturity because of a fraudulent transaction. The reason of refusal was that the nominated bank, Banco Santander, had no right of payment in deferred credit before its maturity if it made payment of proceeds without notice to the issuing bank, that is, payment not based upon a credit transaction but on its own account. However, in the case of ADIB V. Fortis Bank in America, the New York court made the decision that the deferred payment bank could not refuse to reimburse to the nominated bank, Fortis Bank, because of fraud. Its decision was based on the UCP600. We have analyzed and investigated the above two cases-one was an English court's decision and the other an American's. The English court's decision was made under UCP500, but the American court's was made under UCP600, which was revised in 2007. As a result, we can expect that from now on in deferred payment credit transactions, the power of the nominated bank will be greater than before, but the issuing bank will bear the risk of the beneficiary's fraud, so the issuing bank will be hesitant to issue deferred payment credit. Notwithstanding, we thought that the New York court decision would come into effect in the activation of deferred payment credit in practical trade transactions.

• Journal of the Korean Home Economics Association
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• v.42 no.3
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• pp.119-130
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• 2004

The purpose of this study is to estimate the rate of credit card payment for private education. The results of study can be used to improve credit card handling problems of private educational institutes, leading toward improvements in income transparency, increase in tax burden equity and long-term economic welfare improvement for individual households. 424 households out of 586 household that were surveyed in September of 2002 had 1,700 cases private extracurricular education. 67 of the 1,700 cases that did not have expenditure records were removed from the analysis. Only 3.67％ out of 1,633 cases were paid by a credit cards and the amount of credit card payment were only 5.65％ of the total amount spent for private education. The average fee of private educational institutes that allow credit card payment was higher than the fees of private institutes which don't allow a credit card payment or those of private institutes where consumers don't know whether a credit card payment was allowed. The average fee of private education paid by credit cards was 34,465.46 won higher than that paid by cash. Credit card payments to private educational institutions is an important social issue with respect to fair tax collection and tax burden equity since most private educational services operate in fairly small sizes and are offered by the self-employed, and the expense of private education is a fairly large proportion of the household income. It is also important for consumers if credit card acceptance expands alternatives that consumers can choose in private education. Therefore, credit card payment should be encouraged in private extracurricular education. To do this, private education providers should be forced to join a credit card payment service by the National Tax Service. A regulation that prohibits the refusal of credit card payments should be required, and credit card service charges of private education providers should be incrementally decreased. Also, consumer education and public promotions for credit card use instead of cash in paying for private education fees are recommended.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.58
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• pp.149-177
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• 2013

This article introduces and briefly examines the Uniform Rules for Forfaiting (URF)(ICC Publication No. 800), which were prepared by a joint project of the Banking Commission of the International Chamber of Commerce (ICC) and the International Forfaiting Association (IFA), and became effective on January 1, 2013. Forfaiting is a kind of trade financing technic performed by way of a sale and purchase of payment claim between its seller and its buyer, the forfaiter, on a without recourse basis. URF is designed to facilitate global trade finance and embraces all the international payment instruments which are currently used and will be newly developed in the future. URF is expected to be a set of standardized terms and conditions for both the primary and secondary forfaiting markets. In this context, this article first looks into the concept of the forfaiting and certain features and structure of forfaiting transactions. Then this article moves to discussing URF itself. For this it examines (i) the nature and scope of URF and some important definitions provided in URF, (ii) some provisions of URF that apply to the delivery of documents to the forfaiter, the examination, and the acceptance or refusal, of such documents by the forfaiter, and (iii) the payment of purchase price by the forfaiter to its seller, including the matter of "payment under reserve" and repurchase by the seller from the forfaiter. Finally, this article examines liabilities of the parties concerned, before conclusion.

• Journal of the Architectural Institute of Korea Planning & Design
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• v.36 no.3
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• pp.13-20
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• 2020

The purpose of this study is to analyze the fuzzy pattern that is reflected on the inside of the value evaluator in measuring the economic value of architectural aesthetic using the fuzzy-contingent valuation method. The main results of analyzing the relationship between architectural aesthetic and fuzzy patterns by typing 307 fuzzy patterns collected from visitors at Dongdaemun Design Plaza are as follows: First, low levels of architectural aesthetic can be a primary cause of extreme refusal of payment. However, it was confirmed that the extreme refusal of payment could partially involve mentality of free-ride on public goods or mentality that would not give value to past events that are not future. Second, if the architectural aesthetic score is 77.5, the most perfect form of fuzzy pattern is formed. It is confirmed that the fuzzy form, which is the standard in the relationship between architectural aesthetic and money value, is made at 77.5 points. This means that it is most efficient to have 77.5 points of architectural aesthetic to secure balanced data by membership in the study of architectural aesthetic value measurement through fuzzy pattern. Third, according to the architectural aesthetic score, respondents can be interpreted as follows: no monetary willingness arises before or after 52.4, starts to respond to the amount before and after 65.6, severe conflict over payments around 70.6~71.7, stronger willingness to pay around 77.6, want to pay for sure around 80.0.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.39
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• pp.251-280
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• 2008

A party to the charter will not be able to rely upon the doctrine of frustration if an event which makes further performance impossible has been caused by his breach of the charter. Strictly speaking, this is not a situation of frustration at all but rather a case of discharge of the contract by breach. In the Sea Angel case, the defendant entered into a Lloyd's Standard Form of Salvage Agreement with owners of the casualty on the LOF 2000 form, incorporating the SCOPIC clause. The time charter was on the terms of the Shelltime 4 form. This case the trial of the action brought by the claimants owners of the vessel Sea Angel claiming outstanding hire from the defendant charterers. This Case was issued whether charterparty frustrated by refusal of port authorities to issue "No Demand Certificate" allowing port clearance pending payment of oil spillage clean-up costs. The court concluded that no attempt had yet been made to invoke the assistance of the Pakistani court to obtain the release of the vessel. There was not so radical or fundamental a change in the obligation assumed by defendant as to establish frustration. The purpose of this study aims to analyse frustration and time charter in the Sea Angel case.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.33
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• pp.63-89
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• 2007

The UCP is an authoritative compilation of the customs and practice of letters of credit observed by most of the participants in the transaction. It remains the most successful set of private rules for trade ever developed. First issued in 1933, the UCP has been through five revisions, the latest being the present UCP 500, which came into force in 1994. Since 1994, new developments in transport, insurance, electronic commerce and banking industry have spurred the current revision of the rules. The ICC Banking Commission approved UCP 600 on October 25, 2006 by a unanimous vote of 91 to 0. The revision, which will come into effect on July 1, 2007, incorporates a number of changes from UCP 500 as follows : UCP 600 has a leaner set of rules, with 39 articles rather than 49 articles of UCP 500; New sections on "definitions" and "interpretations" have been added to clarify the meaning of ambiguous terms; The phrase "reasonable time" for acceptance or refusal of documents has been replaced by a firm period of five banking days; UCP 600 allows for the discounting of deferred payment credits. However, UCP 600 has two main problems such as the inconsistency with insurance industry and the banking community-oriented rules. We have some months before the commencement of UCP 600. From today to the commencement of UCP 600, we should study the full contents of UCP 600 and the influences on the trade industry.

• Korea Journal of Hospital Management
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• v.22 no.4
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• pp.50-60
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• 2017

Purposes: The purpose of this study was to identify the preferred types of the hospital reservation cancellation management to help reduce the reservation cancellations. Methodology: This study sampled 327 outpatients or their guardians who had reserved a university hospital and a general hospital located in the southwestern part of Seoul, and the responses from 300 of them were used for the final analysis. The subjects' preferences of reservation cancellation management types were analyzed in reference to their demographic variables. The timing and frequency of pre-notification preferred by the subjects were examined. A multidimensional scaling methods and correspondence analysis was used to identify preference for management methods of no-show and type of reservation guide. Findings: As a result, 77.3% of the respondents were perceived that the reservation cancellation was a habit. The most preferred method of managing the reservation cancellation would be refusal to refund the reservation deposit (61.7%), followed by payment for cancellation (16.0%), limit of future reservations (16.0%) and penalty (6.3%) in their order. 186 of the subjects (62.0%) preferred the texting for prevention of reservation cancellations, and 102 of the subjects (34.0%) preferred the phone calls. The preferred timing and frequency of the SMS were twice 3 days before, once a day before and three times 7 days before, while the preferred timing and frequency of phone call was once a day before. Practical Implications: The no-show rate can be improved by enhancing SMS pre-notification and by improving afterwards telephone counseling. For other factors, it needs to study on the service differentiation with the characteristics of each patient group.