• Journal of Intelligence and Information Systems
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• v.22 no.4
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• pp.177-192
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• 2016

Machine learning is a field of artificial intelligence. It refers to an area of computer science related to providing machines the ability to perform their own data analysis, decision making and forecasting. For example, one of the representative machine learning models is artificial neural network, which is a statistical learning algorithm inspired by the neural network structure of biology. In addition, there are other machine learning models such as decision tree model, naive bayes model and SVM(support vector machine) model. Among the machine learning models, we use SVM model in this study because it is mainly used for classification and regression analysis that fits well to our study. The core principle of SVM is to find a reasonable hyperplane that distinguishes different group in the data space. Given information about the data in any two groups, the SVM model judges to which group the new data belongs based on the hyperplane obtained from the given data set. Thus, the more the amount of meaningful data, the better the machine learning ability. In recent years, many financial experts have focused on machine learning, seeing the possibility of combining with machine learning and the financial field where vast amounts of financial data exist. Machine learning techniques have been proved to be powerful in describing the non-stationary and chaotic stock price dynamics. A lot of researches have been successfully conducted on forecasting of stock prices using machine learning algorithms. Recently, financial companies have begun to provide Robo-Advisor service, a compound word of Robot and Advisor, which can perform various financial tasks through advanced algorithms using rapidly changing huge amount of data. Robo-Adviser's main task is to advise the investors about the investor's personal investment propensity and to provide the service to manage the portfolio automatically. In this study, we propose a method of forecasting the Korean volatility index, VKOSPI, using the SVM model, which is one of the machine learning methods, and applying it to real option trading to increase the trading performance. VKOSPI is a measure of the future volatility of the KOSPI 200 index based on KOSPI 200 index option prices. VKOSPI is similar to the VIX index, which is based on S&P 500 option price in the United States. The Korea Exchange(KRX) calculates and announce the real-time VKOSPI index. VKOSPI is the same as the usual volatility and affects the option prices. The direction of VKOSPI and option prices show positive relation regardless of the option type (call and put options with various striking prices). If the volatility increases, all of the call and put option premium increases because the probability of the option's exercise possibility increases. The investor can know the rising value of the option price with respect to the volatility rising value in real time through Vega, a Black-Scholes's measurement index of an option's sensitivity to changes in the volatility. Therefore, accurate forecasting of VKOSPI movements is one of the important factors that can generate profit in option trading. In this study, we verified through real option data that the accurate forecast of VKOSPI is able to make a big profit in real option trading. To the best of our knowledge, there have been no studies on the idea of predicting the direction of VKOSPI based on machine learning and introducing the idea of applying it to actual option trading. In this study predicted daily VKOSPI changes through SVM model and then made intraday option strangle position, which gives profit as option prices reduce, only when VKOSPI is expected to decline during daytime. We analyzed the results and tested whether it is applicable to real option trading based on SVM's prediction. The results showed the prediction accuracy of VKOSPI was 57.83% on average, and the number of position entry times was 43.2 times, which is less than half of the benchmark (100 times). A small number of trading is an indicator of trading efficiency. In addition, the experiment proved that the trading performance was significantly higher than the benchmark.

• Journal of Convergence for Information Technology
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• v.8 no.1
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• pp.235-242
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• 2018

The interest about 4th Industrial Revolution was impressively increased from newspapers, iindustry, government and academic sectors. Especially AI what could be felt by the skin of many peoples, already overpassed the ability of the human's even in creative areas. Namely, now many people start fo feel that the effect of the revolution is just infront of themselves. There were several issues in this trend, the ability of deep learning by machine, the identity of the human, the change of job environment and the concern about the social change etc. Recently many studies have been made about the 4th industrial revolution in many fields like as AI(artificial intelligence), CRISPR, big data and driverless car etc. As many positive effects and pessimistic effects are existed at the same time and many preventing actions are being suggested recently, these opinions will be compared and analyzed and better solutions will be found eventually. Several educational, political, scientific, social and ethical effects and solutions were studied and suggested in this study. Clear implication from the study is that the world we will live from now on is changing faster than ever in the social, industrial, political and educational environment. If it will reform the social systems according to those changes, a society (nation or government) will grasp the chance of its development or take-off, otherwise, it will consume the resources ineffectively and lose the competition as a whole society. But the method of that reform is not that apparent in many aspects as the revolution is progressing currently and its definition should be made whether in industrial or scientific aspect. The person or nation who will define it will have the advantage of leading the future of that business or society.

• Journal of Korean Philosophical Society
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• v.147
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• pp.239-260
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• 2018

Is an artificial intelligence robot, a non-human beings newly emerging in the age of technology, a threat to human beings, or a mutual cooperation or ensemble with human beings? The desire to control nature through the use of the power of science and technology is manifested in the fear that humans can annihilate themselves. This study attempts to identify the problems of Cartesian epistemology underlying these questions and fears and to answer these questions based on Merleau - Ponty 's ontological ontology using the Ontology and Latour' s ontology and technological philosophy. The cogito derived from the Cartesian philosophy became the basis of the structure of dichotomous epistemology of 'subjectivity and objectivity' based on human - reason. In the human-centered world, all non-human beings were tools or controls for humans. The problem of the modern people is not only to get help from the natural scientific methods to control the nature including man, but also to think that scientific method is the only way to understand the world. In criticizing this, Merleau-Ponty shows that the body mediates between human beings and non-human beings, and provides a possible ontological basis for the ontology. Merleau - Ponty 's phenomenological methodology and ontology are newly developed by Simondon under the influence of phenomenological philosopher and phenomenology. The relationship between human beings and nonhuman beings by Simondon appears as an ensemble of human and technical objects or a mutual co - operation of human and technical objects. In particular, Latour goes a step further in Simondon and defines all the bodies living in the world as actor-network theory, denying the core concept of modernity. Merleau - Ponty 's phenomenological view can be a new possible basis for the philosophical discussion of the technological age. We will see that the problem itself can be solved by shifting modern fear to a phenomenological attitude.

• The Journal of the Korea institute of electronic communication sciences
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• v.16 no.5
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• pp.889-898
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• 2021

Currently, due to the demographic cliff phenomenon in Republic of Korea, A serious defense vacuum could occur due to the lack of South Korean military's personal strength. As a result, The South Korean military has a possibility to implement the polices the prepare for military provocations and preemptive strikes by the North Korean military while resolving the South Korean defense vacuum caused by the shrinking population. It seems like that the only way for the South Korean military to solve the shortage of personal strength due to the population decline is to reduce the number of Mechanized Units(MU) other than, infantry and automate, and autonomous driving the weapons system of the Mechanized Units(MU). In this paper, we propose the use of the virtual autonomous driving of the self propelled artillery K-9's in self selection of the position and occupation of position and self positioning in the position. At the same time in this paper, the self propelled artillery K-9 model robot is used to simulate and the explain about the operation method, necessity and feasibility in the self propelled artillery K-9. In addition, this paper predicted the problems that would arise if the South Korean military deployed autonomous driving self propelled K-9, in real combat.

• The Journal of the Korea Contents Association
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• v.21 no.9
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• pp.149-163
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• 2021

The 4th industrial revolution refers to the next-generation industrial revolution led by information and communication technologies such as artificial intelligence (AI), Internet of Things (IoT), robot technology, drones, autonomous driving and virtual reality (VR) and it also has made a significant impact on the development of the advertising industry. However, the world is rapidly changing to a non-contact, non-face-to-face living environment to prevent the spread of COVID 19. Accordingly, the role of the 4th industrial revolution and advertising is changing. Therefore, in this study, text analysis was performed using Big Kinds to examine the 4th industrial revolution and changes in advertising before and after COVID 19. Comparisons were made between 2019 before COVID 19 and 2020 after COVID 19. Main topics and documents were classified through LDA topic model analysis and Word2vec, a deep learning technique. As the result of the study showed that before COVID 19, policies, contents, AI, etc. appeared, but after COVID 19, the field gradually expanded to finance, advertising, and delivery services utilizing data. Further, education appeared as an important issue. In addition, if the use of advertising related to the 4th industrial revolution technology was mainstream before COVID 19, keywords such as participation, cooperation, and daily necessities, were more actively used for education on advanced technology, while talent cultivation appeared prominently. Thus, these research results are meaningful in suggesting a multifaceted strategy that can be applied theoretically and practically, while suggesting the future direction of advertising in the 4th industrial revolution after COVID 19.

• Journal of the Korea Convergence Society
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• v.10 no.3
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• pp.49-57
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• 2019

The core technology development of the Fourth Industrial Revolution is linked to the development of other core technologies, which will change the industrial structure in the future and create a new smart business model. In this paper, tried to analyze the technology maturity level and analyze the technology maturity. To do this, used technology trend information to investigate and integrate the market, policy, etc. Of core technology of the 4th Industrial Revolution to achieve a comprehensive maturity level. Because technology maturity measures are scored by technology developers, prejudices may be acted upon according to a person's tendency, which may be a subjective evaluation. It is also a measure of the maturity of individual technologies, and thus is not suitable for evaluating the overall system integration perspective. However, it is possible to evaluate the maturity before integrating the core element technologies constituting the whole system and to use it as a means to compare the effect of the whole system and its feasibility and play an important role in the planning of technology development.

• The Journal of the Korea Contents Association
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• v.21 no.5
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• pp.70-83
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• 2021

The issue of predicting the relationship between humans and AI robots is a 'strong AI' problem. Many experts predict the tragic ending which is a strong AI with superior thinking ability than humans will conquer humans. Due to the expectations of AI robots are projected onto media, the 'morally good AI' that meets human expectations is an important issue. However, the demand for good AI and the realization of perfect technology is not limited to machines. Rather, it appears as a result of putting all responsibility on humans, driving humans into immoral beings and turning them into human and human problems, which is resulting in more alienation and discrimination. As such, the result of technology interacts with the human being used and its properties are determined and developed according to the reaction. This again affects humans. Therefore, AI technology that considers human emotions in consideration of interaction is also important. Therefore, this study will clarify the process that the demand for 'Good AI' in the relationship of AI to humans with Randall Collins' Interaction Ritual Chain. Emotional energy in Interaction Ritual Chain has explained the formation of human bonds. Also, the methodology is a type of thinking experiment and explained through Janet and surrounding characters in the TV show .

• The Journal of the Korea institute of electronic communication sciences
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• v.17 no.2
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• pp.343-350
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• 2022

It is worth verifying the effectiveness of data integration between data with different features. This study investigated whether the data integration affects the accuracy of deep neural network (DNN), and which integration method shows the best improvement. This study used two different public datasets. One public dataset was taken in an actual farm in India. And another was taken in a laboratory environment in Korea. Leaf images were selected from two different public datasets to have five classes which includes normal and four different types of plant diseases. DNN used pre-trained VGG16 as a feature extractor and multi-layer perceptron as a classifier. Data were integrated into three different ways to be used for the training process. DNN was trained in a supervised manner via the integrated data. The trained DNN was evaluated by using a test dataset taken in an actual farm. DNN shows the best accuracy for the test dataset when DNN was first trained by images taken in the laboratory environment and then trained by images taken in the actual farm. The results show that data integration between plant images taken in a different environment helps improve the performance of deep neural networks. And the results also confirmed that independent use of plant images taken in different environments during the training process is more effective in improving the performance of DNN.

• Journal of the Korean Institute of Landscape Architecture
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• v.47 no.2
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• pp.59-75
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• 2019

This study was carried out to explore the 4th Industrial Revolution technology from the perspective of the landscape industry to provide the basic data necessary to increase the virtuous circle value. The 4th Industrial Revolution, the characteristics of the landscape industry and urban regeneration were considered and the methodology was established and studied including the technical classification system suitable for systematic research, which was selected as a framework. First, the 4th Industrial Revolution technology based on digital data was selected, which could be utilized to increase the value of the virtuous circle for the landscape industry. From 'Element Technology Level', and 'Core Technology' such as the Internet of Things, Cloud Computing, Big Data, Artificial Intelligence, Robot, 'Peripheral Technology', Virtual or Augmented Reality, Drones, 3D 4D Printing, and 3D Scanning were highlighted as the 4th Industrial Revolution technology. It has been shown that it is possible to increase the value of the virtuous circle when applied at the 'Trend Level', in particular to the landscape industry. The 'System Level' was analyzed as a general-purpose technology, and based on the platform, the level of element technology(computers, and smart devices) was systematically interconnected, and illuminated with the 4th Industrial Revolution technology based on digital data. The application of the 'Trend Level' specific to the landscape industry has been shown to be an effective technology for increasing the virtuous circle values. It is possible to realize all synergistic effects and implementation of the proposed method at the trend level applying the element technology level. Smart gardens, smart parks, etc. have been analyzed to the level they should pursue. It was judged that Smart City, Smart Home, Smart Farm, and Precision Agriculture, Smart Tourism, and Smart Health Care could be highly linked through the collaboration among technologies in adjacent areas at the Trend Level. Additionally, various utilization measures of related technology applied at the Trend Level were highlighted in the process of urban regeneration, public service space creation, maintenance, and public service. In other words, with the realization of ubiquitous computing, Hyper-Connectivity, Hyper-Reality, Hyper-Intelligence, and Hyper-Convergence were proposed, reflecting the basic characteristics of digital technology in the landscape industry can be achieved. It was analyzed that the landscaping industry was effectively accommodating and coordinating with the needs of new characters, education and consulting, as well as existing tasks, even when participating in urban regeneration projects. In particular, it has been shown that the overall landscapig area is effective in increasing the virtuous circle value when it systems the related technology at the trend level by linking maintenance with strategic bridgehead. This is because the industrial structure is effective in distributing data and information produced from various channels. Subsequent research, such as demonstrating the fusion of the 4th Industrial Revolution technology based on the use of digital data in creation, maintenance, and service of actual landscape space is necessary.

• Journal of Intelligence and Information Systems
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• v.25 no.2
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• pp.39-55
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• 2019

Recently banks and large financial institutions have introduced lots of Robo-Advisor products. Robo-Advisor is a Robot to produce the optimal asset allocation portfolio for investors by using the financial engineering algorithms without any human intervention. Since the first introduction in Wall Street in 2008, the market size has grown to 60 billion dollars and is expected to expand to 2,000 billion dollars by 2020. Since Robo-Advisor algorithms suggest asset allocation output to investors, mathematical or statistical asset allocation strategies are applied. Mean variance optimization model developed by Markowitz is the typical asset allocation model. The model is a simple but quite intuitive portfolio strategy. For example, assets are allocated in order to minimize the risk on the portfolio while maximizing the expected return on the portfolio using optimization techniques. Despite its theoretical background, both academics and practitioners find that the standard mean variance optimization portfolio is very sensitive to the expected returns calculated by past price data. Corner solutions are often found to be allocated only to a few assets. The Black-Litterman Optimization model overcomes these problems by choosing a neutral Capital Asset Pricing Model equilibrium point. Implied equilibrium returns of each asset are derived from equilibrium market portfolio through reverse optimization. The Black-Litterman model uses a Bayesian approach to combine the subjective views on the price forecast of one or more assets with implied equilibrium returns, resulting a new estimates of risk and expected returns. These new estimates can produce optimal portfolio by the well-known Markowitz mean-variance optimization algorithm. If the investor does not have any views on his asset classes, the Black-Litterman optimization model produce the same portfolio as the market portfolio. What if the subjective views are incorrect? A survey on reports of stocks performance recommended by securities analysts show very poor results. Therefore the incorrect views combined with implied equilibrium returns may produce very poor portfolio output to the Black-Litterman model users. This paper suggests an objective investor views model based on Support Vector Machines(SVM), which have showed good performance results in stock price forecasting. SVM is a discriminative classifier defined by a separating hyper plane. The linear, radial basis and polynomial kernel functions are used to learn the hyper planes. Input variables for the SVM are returns, standard deviations, Stochastics %K and price parity degree for each asset class. SVM output returns expected stock price movements and their probabilities, which are used as input variables in the intelligent views model. The stock price movements are categorized by three phases; down, neutral and up. The expected stock returns make P matrix and their probability results are used in Q matrix. Implied equilibrium returns vector is combined with the intelligent views matrix, resulting the Black-Litterman optimal portfolio. For comparisons, Markowitz mean-variance optimization model and risk parity model are used. The value weighted market portfolio and equal weighted market portfolio are used as benchmark indexes. We collect the 8 KOSPI 200 sector indexes from January 2008 to December 2018 including 132 monthly index values. Training period is from 2008 to 2015 and testing period is from 2016 to 2018. Our suggested intelligent view model combined with implied equilibrium returns produced the optimal Black-Litterman portfolio. The out of sample period portfolio showed better performance compared with the well-known Markowitz mean-variance optimization portfolio, risk parity portfolio and market portfolio. The total return from 3 year-period Black-Litterman portfolio records 6.4%, which is the highest value. The maximum draw down is -20.8%, which is also the lowest value. Sharpe Ratio shows the highest value, 0.17. It measures the return to risk ratio. Overall, our suggested view model shows the possibility of replacing subjective analysts's views with objective view model for practitioners to apply the Robo-Advisor asset allocation algorithms in the real trading fields.