• Knowledge Management Research
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• v.20 no.4
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• pp.39-55
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• 2019

Although Firms have been increasing their information security significantly to handle increased security risks, the effects of information security were not well understood. This study aims to investigate the market value of information security by employing the event study methodology. Our research also explores how market responses vary depending on the type of information security announcements. We collected 177 firm-level information security announcements between 2001 and 2017 in South Korea. For all samples, our results indicate that the stock market positively reacts to information security announcements. We also conducted subsample analysis and found that while information security certification announcement has a positive impact on the stock market, information security activities (e.g. award, information security system) announcement had no impact on the stock market. Our study adopted a novel approach (i.e. event study) for investigating the effects of information security and found that information security investment positively affects firm value. Our results allow managers to measure the effects of information security investment and help them make right decisions on information security investment.

• Korean Security Journal
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• no.6
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• pp.147-165
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• 2003

Since Electronic Security System is introduced in Korea in 1981 by foreign technology, Security market has been increasing considerably during short period, and It performs it's security roles well in place of security guards. As electronic and communication technology is highly developed, Electronic Security System and security market structure is changing naturally. Especially high-tech mobile communication technology will change the method of Electronic Security business. Also the pattens of residence and life style, such as the trend toward nuclear family and single life could effect security market. In recent year, new business models that apply the mobile phone and internet is appeared. Although Electronic Security System is changed by the changes of technology, It is very difficult to change the basic elements, such as sensing, alarm signal transfering, and response. The rate of increase of Electronic Security market is expected to matain it's increase pace for the time being. But the development of new system for new protectes such as childeren, old person, vehicle rather than immovable facility is necessary to prepare for the continuous competition.

• Journal of Electrical Engineering and Technology
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• v.12 no.6
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• pp.2196-2207
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• 2017

This paper presents a two-stage market auction model in a pool-based electricity market, which explicitly takes into account the system network security. The security network-constrained market auction model considers the use of corrective control to yield economically efficient actions in the post-contingency state, while ensuring a certain security level. Under this framework, the proposed model shows not only for quantifying the correlation between secure system operation and efficient market operation, but also for providing transparent information on the pricing system security for market participants. The two-stage market auction procedure is formulated using Benders decomposition (BD). In the first stage, the market participants bid in the market for maximizing their profit, and the independent system operator (ISO) clears the market based on social welfare maximization. System network constraints incorporating post-contingency control actions are described in the second stage of the market auction procedure. The market solutions, along with the BD, yield nodal spot prices (NSPs) and nodal congestion prices (NCPs) as byproducts of the proposed two-stage market auction model. Two benchmark systems are used to test and demonstrate the effectiveness of the proposed model.

• Journal of Information Technology Services
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• v.17 no.1
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• pp.33-45
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• 2018

Recently, many South Korean firms have suffered financial losses and damaged corporate images from the data breaches. Accordingly, a firm should manage their IT assets securely through an information security investment. However, the difficulty of measuring the return on an information security investment is one of the critical obstacles for firms in making such investment decisions. There have been a number of studies on the effect of IT investment so far, but there are few researches on information security investment. In this paper, based on a sample of 76 investment announcements of firms whose stocks are publicly traded in the South Korea's stock market between 2001 and 2017, we examines the market reaction to information security investment by using event study methodology. The results of the main effects indicate that self-developed is significantly related to cumulative average abnormal returns (CAARs), while no significant effect was observed for discloser, investment characteristics and firm characteristics. In addition, we find that the market reacts more favorably to the news announced by the subject of investment than the vendor, in case of investments with commercial exploitation. One of main contributions in our study is that it has revealed the factors affecting the market reaction to announcement of information security investment. It is also expected that, in practice, corporate executives will be able to help make an information security investment decision.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2015.05a
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• pp.790-791
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• 2015

This study analysis the global market trends of information security industry expanding its area through the convergence with other technologies. domestic market of information security industry is expected to show a high growth rate, given that the share of the domestic market in the world market is very low, heightened awareness caused by several information accidents, and the expansion of physical information industry's exports. The crucial point to note is the prospect that the domestic market will be led by its product market, but global market will be spearheaded by its service market. Consequently, to overcome current slump, it is need to establish market promotion strategies focused on fostering the information security service market which is higher value added than information security product market.

• Journal of Information Technology Services
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• v.15 no.3
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• pp.51-69
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• 2016

Recently, many Korean firms have suffered financial losses and damaged firm's trust due to information security incidents. Hence, a lot of firms have realized the importance of the information security. In particular, the demand for information security certification has increased. This study examined the effect of information security certification using the event study methodology. Our research shows that the announcement of the information security certification significantly influences the market value of the corresponding firm. The certified firms rise, on average, o.4993% (-2 day), 0.5462% (+1 day) of their market value. Further, we found that the financial sector in our data showed a 1.4% higher abnormal returns than the nonfinancial sector. On the other hand, whether a firm first acquired the information security certification is not significant. Our paper presents that it is possible to analyze the effect of the information security certification using the event study. We are expected to be used in making a decision for the investment of information security. Also, our results indicate that the firm which have acquired the information security certification should actively announce that fact.

• Convergence Security Journal
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• v.23 no.2
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• pp.115-120
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• 2023

In the domestic physical security (mechanical security) market, there is an increasing variation in the expansion of security areas due to the infrastructure of large enterprises and small and medium-sized enterprises. In other words, problems related to on-site dispatch between companies are constantly being raised due to the limitation of physical security service s to the scope of dispatch according to the dispatch time. Therefore, in this study, based on the results of the criteria for the scope of dispatch as a criterion for dispatch time through simulations related to on-site dispatch, we propose a plan to activate the physical security (mechanical security) market in the future.

• Journal of Information Technology Applications and Management
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• v.23 no.2
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• pp.177-194
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• 2016

This study analyzed President Park's speeches and the government's industry policy in the field of information security using cognitive map. The relationship analysis between policy tool variables and policy goal variables was employed to derive revitalization strategy of information security. This paper found that entrepreneurship revitalization has very strong causality with expansion of domestic market and global market. But, on the other hand, HR development has very weak causality with job creation and future growth driver because the labor market in the information security industry is poor and its transfer rate to other industry is very high. This study showed that this cognitive map could be characterized by a scarcity of feedback loops and a strong emphasis on the positive loops in the structure of virtuous circle. In this paper, we also constructed a comprehensive cognitive map on the policy vision of information security, showing that there are a risk of cyber threat, an opportunity of new fusion security market, information security reinforcing circle, global economic circle, and domestic market circle.

• Korean Security Journal
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• no.13
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• pp.383-402
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• 2007

World security market has continuously been growing since the 2000s. The growth rate seems to reach up to 7-8% annually. What is more, Korea is expected to be one of the most rapidly developing markets, Based of this view, this research investigates the principal drivers to have affected on the expansion of Korean security market over the past 20 years. In addition to that, this study also examines the influence of recent changes in the world economy and globalization, socio-demographic change, development of information technology on the future security market. The data reviewed in this study are official crime rates, socio-economic indicators, statistics from the National Police Agency and the business reports of a leading private security company. This study shows that several factors such as rising crime rates, lack of police capacities, national economic growth and rising household income have played important roles in development of Korean market. It is also expected to keep those positive affects on the future market. On the other side, in recent years, the security market seems to be increasingly affected by new social economic changes. Those are impact of last aging society, rapid increase of individual household and women's participation in labor market. These factors seem to increase personal and household needs for security service. World economy, globalization process and development of information technology are also deemed to give rise to social demands for surveillance, monitoring service and security in cyber space.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2018.05a
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• pp.279-280
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• 2018

This study examines the status of Korea's information security industry through mutual comparison between Korea and the world, and also suggests policy implications. In the world information security industry, we find that the service market is far greater in sales and the market attractiveness than the product market, but in Korea, the opposite result is obtained. The results of this study suggest that it is urgent to take measures to increase the value added of information security products with weak income generation capability and it is necessary to introduce the restructuring of the main market of information security industry from product market to service market.