• Journal of Korean Society of Industrial and Systems Engineering
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• v.21 no.48
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• pp.133-144
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• 1998

International capital movement has made progress at global liberalization of finance and foreign exchange, international monetary norm changing into floating exchange rate system, easiness of collection of information and trade at improvement of information communication technology from early of 1970's. Results of empirical test for relation between foreign exchange rate or various determination factors of foreign exchange rate and interest rate are followed by next sentences. First, according to relation between foreign exchange rate and interest rate, correlation for each of variables after OECD entrance is increased. But, long-term & short-term interest rate is affected by Hanbo & Kia's bankruptcy, continuous large scale corporates bankruptcy and crisis of foreign exchange. Therefore, financial instability is occured. If portfolio investment fund has been inflow as it is mollified by continuous shortage of foreign exchange and fall of country's credit rating, it is expected to have positive effect for long-term & short-term interest rate from appreciation of won against dollar. Second, results from relation between determination factor of foreign exchange rate and interest rate are followed by next sentences. If surplus of current account and goods account is continued, yield of corporate bond is to be stable. But, margin of surplus is expected to diminish after second quarter 98, and difference between external and domestic interest (after adjusting foreign exchange rate) is to be diminished. And if net inflows of foreign investor's fund (stock and bond) is diminished, it is to have negative effect for yield of corporate bond. According to foreign investor's investment movement of previous years, hedge fund were stayed at least during two years in Mexico. It means that sudden capital outflow is not to be happened at Korea. But if external factors from depreciation of yen and China's renminbi are instable, interest rate is expected to increase from capital's outflows. Third, if it is to decrease instability of foreign exchange rate from increase in surplus of future current account, credit rating's upwardness, stability of yen and renminbi, foreign exchange rate is expected to be stable. It is expected to have continuous stability from short-term interest rate to long-term interest rate in this empirical test.

• Proceedings of the Safety Management and Science Conference
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• 2002.11a
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• pp.305-319
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• 2002

International capital movement has made progress at global liberalization of finance and foreign exchange, international monetary norm changing into floating exchange rate system, easiness of collection of information and trade at improvement of information communication technology from early of 1970's. Results of empirical test for relation between foreign exchange rate or various determination factors of foreign exchange rate and interest rate are followed by next sentences. First, according to relation between foreign exchange rate and interest rate, correlation for each of variables after OECD entrance is increased. But, long-term ＆short-term interest rate is affected by Hanbo ＆ Kia's bankruptcy, continuous large scale coporates bankruptcy and crisis of foreign exchange. Therefore, financial instability is occured. If portfolio investment fund has been inflow as it is mollified by continuous shortage of foreign exchange and fall of country's credit rating, it is expected to have positive effect for long-term & short-term interest rate from appreciation of won against dollar. Second, results from relation between determination factor of foreign exchange rate and interest rate are followed by next sentences. If surplus of current account and goods account is continued, yield of corporate bond is to be stable. But, margin of surplus is expected to diminish after second quarter 98, and difference between external and domestic interest (after adjusting foreign exchange rate) is to be diminished. And if net inflows of foreign investor's fund (stock and bond) is diminished, it is to have negative effect for yield of corporate bond. According to foreign investor's investment movement of previous years, hedge md were stayed at least during two years in Mexico. It means that sudden capital outflow is not to be happened at Korea. But if external factors from depreciation of yen and China's renminbi are instable, interest rate is expected to increase from capital's outflows. Third, if it is to decrease instability of foreign exchange rate from increase in surplus of future current account, credit rating's upwardness, stability of yen and renminbi, foreign exchange rate is expected to be stable. It is expected to have continuous stability from short-term interest rate to long-term interest rate in this empirical test.

• Environmental and Resource Economics Review
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• v.13 no.2
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• pp.271-300
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• 2004

We investigate the two recent simulations of the proto-type domestic carbon emission trading system in Korea and draw some policy implications. The first simulation includes the 5 electric power companies based on baseline and credit. But the second one is with the 7 energy-intensive companies based on cap and trade. The voluntary approaches in this paper revealed the instability of market equilibrium, i.e., price volatility or distortion, excess supply or demand. These phenomena stems from excess incentives to the players, asymmetric information, players' irresponsible strategic behaviors, and non acquaintance of trading system. This paper suggests the basic design for domestic carbon trading system in future and a stepwise introduction strategy for it including the incentive auction scheme, the total quantity of incentive needed, and how to finance it. Meantime, the further simulations on the various sectors based on voluntary participation must be essential for learning experiences and better policy design.

• The Korean Journal of Financial Management
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• v.25 no.2
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• pp.33-68
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• 2008

The purpose of this paper is to test the market timing hypothesis and impact of macro economic variables on capital structure choice as well as the traditional static trade-off and pecking order theories of capital structure in a integrated framework. Through a two stage test of target capital structure and capital structure choice, none of theories was consistently supported, but most of them were partly supported. In the first stage analysis of target ratio, coefficients of firm-specific variables generally supported the predictions of pecking order theory rather than those of the static trade-off theory. However, the result of the second stage test on capital structure choice supported the hypothesis of the static trade-off theory, which claims that firms usually set and pursue the target leverage ratio. Further, the result of the seconde stage shows that a simple pecking oder theory does not hold because firms with deficit of internal fund tend to issue bonds rather than stocks to raise outside fund. Also, the result indicates that the market timing hypothesis holds because firms with over-valued stocks tend to issue stocks rather than bonds. However, contrary to Korajczyk and Levy(2003), the impact of macro economic variables such as term or credit spreads on capital structure choice was negligible, and the impact of macro economic and market timing hypothesis variables were not greater in financially unconstrained firms as Korajczyk and Levy(2003) suggested.

• International Commerce and Information Review
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• v.16 no.5
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• pp.87-114
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• 2014

The Uniform Customs and Practice for Documentary Credits (UCP) is a set of rules on the issuance and use of letters of credit. Historically, the commercial parties, particularly banks, have developed the techniques and methods for handling letters of credit in international trade finance. This practice has been standardized by the ICC (International Chamber of Commerce) by publishing the UCP in 1933 and subsequently updating it throughout the years. The ICC has developed and moulded the UCP by regular revisions, the current version being the UCP600. This latest version, called the UCP600, formally commenced on 1 July 2007. During the revision process, notice was taken of the considerable work that had been completed in creating the International Standard Banking Practice for the Examination of Documents under Documentary Credits (ISBP), ICC Publication 745. This publication has evolved into a necessary companion to the UCP for determining compliance of documents with the terms of letters of credit. It is the expectation of the Drafting Group and the Banking Commission that the application of the principles contained in the ISBP, including subsequent revisions thereof, will continue during the time UCP 600 is in force. This paper focuses on documents including various certificates, Packing List, Weight List, Beneficiary's Certificate, Analysiis, Inspection, Health, Phytosanitary, Quantity and Quality Certificates, Courier Receipts, Shipping Advice etc. and suggests some implications in the field.

• International Commerce and Information Review
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• v.14 no.4
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• pp.297-315
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• 2012

In this paper, we explore the effects of export insurance on the Korea's export by using the gravity model with the data of 112 countries that Korea exports on years of 2005 and 2009. For this model, we used the Korea export as a dependent variables and real GDP, distance between the two nations, export insurance, country credit rating of the Korea's counterpart countries and FTA were used as an independent variables. The results show that the underwriting performance of the export insurance and the sovereign credit rating of the export counterpart countries have the positive impact on Korea's export. Also, the impact of the export insurance is more increasing to the Korea exportation but the importance of the economy size of the export counterpart countries decreased after 2008 global financial crisis. Particularly, the influence to the export by the sovereign credit rating has diminished in that period and this seems to be due to the export insurance has increased. These results imply that the export insurance plays an important role to promote the Korea's exportation since 2008 global recession. Especially, if the recession continues, then there will be more crippling impact to the small-mid size companies rather than large size companies. Therefore, Korea government should do their best to continuously expand the export insurance for the purpose of increasing Korea exportation, expecially to the small-mid size companies.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.57
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• pp.35-60
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• 2013

The Incoterms which is one of the most useful international instrument for sale of goods provides when a contract goods deliver, risk passes and how costs are allocated between seller and buyer on the contract as long as they agree to use a rule of the Incoterms rules. The Incoterms rules have come into effective to use for an international or domestic trade of goods since January 2011, which have been modified several times since these established by ICC in 1936. The origin of Incoterms rules may had been appeared from English traditional FOB terms that had been affected to American regulations for the sale of goods. The Incoterms rules which had been started from the traditional English FOB terms and American FOB terms have been expanded other trade terms, such as CIF. Although FOB is based on the COD(Cash on Delivery), it is possible replaced COD to CAD(Cash against Delivery) through the use of Bill of Lading and Letter of Credit in the international sale of goods between seller and buyer according to the development of infrastructures on the international commercial transactions. This article exercises the process of transition of the Incoterms rules, being based on the English and American traditional FOB contract form through review literatures, judical precedents and provisions. Then this article provides some feasible alternatives to attempting to resolve some regulation problems of FCA, CPT, CIP, and D-rules in the Incoterms$^{(R)}$ 2010.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.13
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• pp.1033-1055
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• 2000

Almost business enterprises have recently used electronic commerce to conduct their business. Electronic commerce has come to encompass the Internet as well as EDI on private networks begun in the 1960s. The Internet is already changing the way that many companies conduct their business. Domestic electronic commerce has rapidly enhanced, while Int'l electronic commerce has gone steady. There are four issues for developing of Int'l Electronic Commerce. Firstly, The EDI Standardization is to be uniformed and prevailed over the world in UN/EDIFACT authorized by ISO. Secondly, There are two useful systems on Electronic Document Transmission, so called, Bolero project system and Trade Card System. It is thought that Bolero system will be more useful for large trading enterprises, especially, who need a Letter of Credit and electronic B/L, while T/C system is proper to small trade companies who do not need those. Successful results of Bolero system is very important for Int'l electronic commerce enterprises. Thirdly, to secure electronic signature, Int'l Certification Authority is essential for the users of Int'l electronic commerce. Trusted way of distributing public keys is to use a Int'l Certification Authority. The Int'l Certification Authority will accept user's public key, along with some proof of identity and serve as a depository of digital certificates. Both governments and the International business community must involve archiving keys with trusted third parties. Finally, It is important that all the nations and UNCITRAL continue efforts to make legal bases in Int'l electronic commerce concerned, including electronic signature, certification etc.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.7
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• pp.293-302
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• 2020

Capital mobilization is a traditional business of commercial banks and is one of the core foundations for the development of a bank. Capital mobilization is the main input in the operation of a bank, and this is also the basis for generating output for credit activities as well as other banking activities. This study aims to determine the main factors that affect the decisions of individual customers to put savings deposit in Vietnamese commercial banks. Survey data collected from 403 individual customers were analyzed to provide evidence. The results from the multiple regression analysis by using SPSS software revealed that all scales in this study were reliable, and there were six components impacting the savings deposit decision of individual customers from the strongest to the weakest in the following order: the form of promotion, bank brand, service quality, interest rate policy, and employee knowledge and attitude. Besides, the finding showed customers who have high income tend to have a stronger decision on savings deposits in commercial banks. The main findings of this article provide some empirical implications for marketers in banks and serve as a suggestion to improve these factors in order to retain and attract individual customers' savings deposit decisions.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.66
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• pp.285-312
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• 2015

Export and import of food, agriculture, forestry, fishery products are suffering from low growth rate due to the European financial crisis, global recession, and Japan's 2012 export expansion following the aftermath of 2011 earthquake. Upon the signing and enactment of Free Trade Agreement with the U.S. and the EU, agriculture and fishery product have become the center of attention. Agriculture and fishery was reported to be 80million dollars, 1.46% of total national export, in 2012. Starting from2000, South Korea's government began its effort to expand agriculture and fishery export and as a result, export has steadily increased despite decreased consumption led by global recession. K-Sure has started an insurance program with the purpose of promoting SME business's export. It protects SME business against risk arising from credit, emergency, bad debt, and domestic price increase. This study aims to evaluate the service quality of K-Sure's insurance program via surveying SME businesses in the agriculture and fishery industry. Also this study will identify key service factors for SME businesses and explore ways to expand SME exports of agriculture and fishery by analyzing consumer satisfaction index. Results indicated service product quality factor, service communication quality factor, and social quality factor was key to improving consumer satisfaction for SME businesses in agriculture and fishery industry. Service product quality factor had a negative effect on consumer satisfaction in term of variety and results indicated that service communication quality factor's responsiveness element had minimal impact on consumer satisfaction. Conversely, all elements for social quality factor had positive effects on consumer satisfaction. Thus, leading to the conclusion that improvements in service product quality factor and service communication quality factor will indeed increase consumer satisfaction.