• KDI Journal of Economic Policy
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• v.13 no.1
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• pp.35-63
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• 1991

Currently, Korea's banking industry holds a sizable amount of non-performing loans which stem from the government-led bailout of many troubled firms in the 1980s. Although this burden was somewhat relieved with the aid of banks' recapitalization in the booming securities market between 1986-88, the insolvent credits still resulted in low profitability in the banking sector and have been detrimental to the progress of financial liberalization and internationalization. This paper surveys the corporate bailout experiences of major advanced countries and Korea in the past and derives a rationale for readjustment measures against non-performing loans, in which rescue plans depend on the nature of the financial system. Considering the features of Korea's financial system and the banking sector's recent performance, it discusses possible means of liquidation in keeping with the rationale. The conflict of interests among parties involved in non-performing loans is widely known as one of the major constraints in writing off the loans. Specifically, in the case of Korea, the government's excessive intervention in allocating credits has preempted the legitimate role of the banking sector, which now only passively manages its past loans, and has implicitly confused private with public risk. This paper argues that to minimize the incidence of insolvent loan readjustment, the government's role should be reduced and that the correspondent banks should be more active in the liquidation process, through the market mechanism, reflecting their access to detailed information on the troubled firms. One solution is that banks, after classifying the insolvent loans by the lateness or possibility of repayment, would swap the relatively sound loans for preferred stock and gradually write off the bad ones by expanding the banks' retained earnings and revaluing the banks' assets. Specifically, the debt-equity swap can benefit both creditors and debtors in the sense that it raises the liquidity and profitability of bank assets and strengthens the debtor's financial structure by easing the debt service burden. Such a creditor-led or market-led solution improves the financial strength and autonomy of the banking sector, thereby fostering more efficient resource allocation and risk sharing.

• The Korean Journal of Financial Management
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• v.27 no.2
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• pp.169-204
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• 2010

This paper examines the dynamic relationship between fund flow and market risk at the aggregate level and explores whether sudden sharp changes in fund flow (fund run) can cause a systemic risk in the Korean financial markets. We use daily and weekly data and regression and VAR analysis. Main results of the paper are as follows: First, in the stock market, a concurrent and a lagged unexpected fund flows have a positive relationship with market volatility. A positive shock in fund flow predicts an increase in stock market volatility. In the bond market, an unexpected fund flow has a negative relationship with the default risk premium, but a positive relationship with the term premium. And an unexpected fund flow of the money market fund has a negative relationship with the liquidy risk, but the explanatory power is very low. Second, for examining whether changes in fund flow induce a systemic risk, we construct a spillover index based on the forecast error variance decomposition of VAR model. A spillover index represents that how much the shock in fund flow can explain the change of market risk in a market. In general, explanatory powers from spillover indexes are so fluctuant and low. In the stock market, the impact of shocks in fund flow on market risk is relatively high and persistent during the period from the end of 2007 to 2008, which is the subprime-mortgage crisis period. In bond market, since the end of 2008, the impact of shocks in fund flow spreads to default risk continually, while in the money market, such a systematic effect doesn't take place. The persistent patterns of spillover effect appearing around a certain period in the stock market and the bond market suggest that the shock to the unexpected fund flow may increase the market risk and can be a cause of systemic risk in the financial markets. However, summarizing the results of regression and VAR model analysis, and considering the very low explanatory power of spillover index analysis, we can conclude that changes in fund flow have a very limited power in explaining changes in market risk and it is not very likely to induce the systemic risk by a fund run in the Korean financial markets.

• Journal of Intelligence and Information Systems
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• v.25 no.2
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• pp.1-23
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• 2019

Big data refers to data that is difficult to store, manage, and analyze by existing software. As the lifestyle changes of consumers increase the size and types of needs that consumers desire, they are investing a lot of time and money to understand the needs of consumers. Companies in various industries utilize Big Data to improve their products and services to meet their needs, analyze unstructured data, and respond to real-time responses to products and services. The financial industry operates a decision support system that uses financial data to develop financial products and manage customer risks. The use of big data by financial institutions can effectively create added value of the value chain, and it is possible to develop a more advanced customer relationship management strategy. Financial institutions can utilize the purchase data and unstructured data generated by the credit card, and it becomes possible to confirm and satisfy the customer's desire. CRM has a granular process that can be measured in real time as it grows with information knowledge systems. With the development of information service and CRM, the platform has change and it has become possible to meet consumer needs in various environments. Recently, as the needs of consumers have diversified, more companies are providing systematic marketing services using data mining and advanced CRM (Customer Relationship Management) techniques. KB Kookmin Card, which started as a credit card business in 1980, introduced early stabilization of processes and computer systems, and actively participated in introducing new technologies and systems. In 2011, the bank and credit card companies separated, leading the 'Hye-dam Card' and 'One Card' markets, which were deviated from the existing concept. In 2017, the total use of domestic credit cards and check cards grew by 5.6% year-on-year to 886 trillion won. In 2018, we received a long-term rating of AA + as a result of our credit card evaluation. We confirmed that our credit rating was at the top of the list through effective marketing strategies and services. At present, Kookmin Card emphasizes strategies to meet the individual needs of customers and to maximize the lifetime value of consumers by utilizing payment data of customers. KB Kookmin Card combines internal and external big data and conducts marketing in real time or builds a system for monitoring. KB Kookmin Card has built a marketing system that detects realtime behavior using big data such as visiting the homepage and purchasing history by using the customer card information. It is designed to enable customers to capture action events in real time and execute marketing by utilizing the stores, locations, amounts, usage pattern, etc. of the card transactions. We have created more than 280 different scenarios based on the customer's life cycle and are conducting marketing plans to accommodate various customer groups in real time. We operate a smart offering system, which is a highly efficient marketing management system that detects customers' card usage, customer behavior, and location information in real time, and provides further refinement services by combining with various apps. This study aims to identify the traditional CRM to the current CRM strategy through the process of changing the CRM strategy. Finally, I will confirm the current CRM strategy through KB Kookmin card's big data utilization strategy and marketing activities and propose a marketing plan for KB Kookmin card's future CRM strategy. KB Kookmin Card should invest in securing ICT technology and human resources, which are becoming more sophisticated for the success and continuous growth of smart offering system. It is necessary to establish a strategy for securing profit from a long-term perspective and systematically proceed. Especially, in the current situation where privacy violation and personal information leakage issues are being addressed, efforts should be made to induce customers' recognition of marketing using customer information and to form corporate image emphasizing security.

• Asia Marketing Journal
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• v.13 no.4
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• pp.227-251
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• 2012

This study analyzed Woori Investment and Securities' industry-leading marketing from both a brand management and a marketing decision-making perspective. By executing a different marketing strategy from its competitors, Woori Investment and Securities recognized recent changes in the asset management and investment markets as an open opportunity, and quickly responded to the market changes. First, the company launched the octo brand as a multi-account product, two years before its competitors offered their own products. In particular, it created a differentiated brand image, using the blue octopus character, which became familiar to the general financial community, and was consistently employed as part of an integrated marketing communications strategy. Second, it executed a brand expansion strategy by sub-branding octo in a variety of new financial products, responding to rapid changes in the domestic financial and asset management markets. Through this strategic evolution, the octo brand became a successful wealth management brand and representative of Woori Investment & Securities. Third, it has converged market research, demand and trend analysis, and customer needs acquired through various customer contact channels into a marketing perspective. Thus, marketing has participated in the product development stage, a rarity in the finance industry. Woori Investment and Securities has a leading marketing system. The heart of the successful product creation lies in a collaboration of their customer bases among the finance companies in the Woori Financial Group. The present study suggested a corresponding strategy for octo brand, which is expected to enter into the maturity stage of its product life cycle. In addition, this study found a need to modify the current positioning strategy in order to position and preserve sustainability in the increasingly competitive asset management market. It also suggested the need for an offensive strategy to counter the number one M/S company, and address the issue of cannibalism in the Woori Financial Group.

• Korean Journal of Construction Engineering and Management
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• v.10 no.4
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• pp.14-25
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• 2009

Development work of apartment houses is a complex medium-and long-term project requiring grand resources and work force. Since in combination inner and outer project variables relate to project output, uncertainties caused by not only a given site condition but also politic, economy and social sectors are generated during the project. These risks influence output of the project as important factors, and ultimately as management variables in priority giving an effect on earnings and the financial structure of enterprises they should be manageable with the risk reduction plan. In this point of view, this study focused on development work of apartment houses among construction project. Risky factors were deduced, analyzed and evaluated based on Value Engineering from planning to designing to executing to maintaining. Eventually, this study showed the foundation guaranteeing competitive power of public and private construction sectors.

• The Korean Journal of Community Living Science
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• v.18 no.1
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• pp.3-20
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• 2007

The purpose of this study was diagnosed to grasp the needs for the elderly-elderly care activity in rural areas. The research was conducted in questions and case studies in 7 farming villages. The major findings of this study as follows: First, the senior citizens in rural areas were not in good health, and the illnesses were revealed to be arthritis, high blood pressure, and diabetes. At the occurrence of an illness, they complained about the discomfort in doing daily life routines and expected eir spouses or offsprings to te care of them. Elders in the rural community responded that they had difficulty and financial problems in family maintenance. Leisure activities included watching TV, playing card/board games, or spending time without any specific activities. Second, recipients of elderly-elderly care expected to receive services from a woman in her 50s $1{\sim}2$ hours, once to twice a week. Third, the service providers wanted to be elderly-elderly care takers, hoping to work once a week for $2{\sim}3$ hours. They wanted the education for the elderly-elderly care to be once a week for 3 hours, with understanding the elderly, consultation, preventing senile dementia, and health as the contents.

• Journal of the Korean Solar Energy Society
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• v.23 no.1
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• pp.17-28
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• 2003

This study aims to investigate and analyze the overall recognition of the photovoltaic system for the application of BIPV(Building Integrated Photovoltaic) in Korea. For this purpose, a survey was carried on through questionnaires answered by 6 groups of experts such as construction engineers, registered architects, mechanical engineers, electrical engineers, university or college professors, and others who are ranked high in their companies or universities or colleges and who mostly seem to be eager to participate in the development of the PV system and to make a business of the system. The results of the survey are as follows: 1. About 95% of those experts who answered the questionnaire have known about renewable energy, and 93% of them are interested in solar energy as alternative energy 2. Host experts have a lot of information on the solar energy system, but have scanty information on the PV system. 3. The experts in the educational and research field have researched for the reasonable period of the participation in the development of the PV system and the period of making a business of the system. They judge that companies in the mechanical and electrical field will participate in the development of the PV system and will make a business of the system in 5 years. 4. The experts have thought that the PV system is designed not for economy but for the environment of the earth and that PV system technology in Korea is much lower than that in the advanced countries. 5. The experts hesitate to participate in the development of the PV system and to make a business of the system because they have little confidence in the economy of the PV system now and because they have thought that they will bear a great financial burden of construction cost 6. The experts judge that it is most desirable to apply the PV system to the rooftops of buildings. And they are greatly interested in the BIPV.

• The Journal of Information Systems
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• v.10 no.1
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• pp.323-352
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• 2001

Venture business plays a great role in creating national competitive power in every country. In particular, software venture business can mostly belong to manufacturing business, and takes the top seat of core industry as the basis of globalization, informatization and localization as well as the driving force of national competitive power. However, software venture business still has some risks in the whole area of business administration including the process of business starting. There are also problems to be solved in such areas as manager's ability, leadership, talent, level of technical development, marketing channel, recruiting of marketing specialists, financial plan and fund raising. In this respect, this study divides 102 software venture businesses into two; business in the stage of growth and matured business through the analysis of questionnaire and analyzes their present managerial conditions according to their characteristics after classifying them into four categories such as general management, technical development, marketing, finance and accounting. Therefore, this study attempts to provide the basic data useful for business activities of software venture business from now on. The results are as follows; First, it can be judged that software venture businesses make efforts for their technical development in their character, and that they make a great investment in research and development. Consequently, it can be believed that this kind of investment must be continued in the future. Second, it can be seen that they are not much interested in marketing and its manpower. In fact, software venture businesses develop products technically at the risk of their life, while marketing plays an important role in the continuity of business. Thus, it is necessary for them to invest in the supplement of manpower in marketing. Third, it is observed that they generally have some difficulties in raising money from outside. By the way, it. is believed that this problem will be solved by appealing to the persons interested such as investors and creditors, if evaluation system would be developed more exquisitely so that their accounting and technical value may be appraised.

• Journal of Aquaculture
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• v.11 no.3
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• pp.285-294
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• 1998

When Cochlodinium polykrikoides came into the culture tanks through influent cultivated water during the red tides, hundred thousands of commercial flounders were concomitantly killed and many culturists suffered from a great deal of financial loss in the east coast of Korea. It is charactrized by high sinking rate after sunset and the formatino of clump which results in oxygen deficiency by its respiration at tank bottom under condition. We investigated the efficacy of hydrogen peroxide and chlorine dioxide, known to form radicals, for extermination of red tide organism C. polykrikoides. When C. polykrikoides seawater with a density of 6,000 cells/$m\ell$ was treated with 14, 28 and $42mg/\ell$ of hydrogen peroxide, its survival rate was markedly decreased to 9.8, 0.8 and 0.3% respectively immediately after 6 hours of treatments whereas when it was treated with 1.5, 2.1 and $3.0mg/\ell$ chlorine dioxide, its survival rate showed 87.7, 81.3 and 80.1 and 80.1% respectively at the same treatment time. Hydrogen peroxide was the effective agent since it has scarcely injured the cultured olive flounder when exposed to the tested concentration range of $14~28mg/\ell$ with the extermination of almost3 C. polykrikoides during the experimental period of 5 days and has shown the oxygen increase of approximately $1.23mg/\ell$ 2 hours immediately after the flounder by C. polykrikoides in the land-based culture tank is assumed to be not by the toxicity of itself but by oxygen dificiency from the rapid respiration of dinoflagellate clump sunken to the tank bottom.

• KIEAE Journal
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• v.16 no.6
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• pp.57-67
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• 2016

Purpose: Laws and regulations of land use are enormous, and the appliance of regulations is overlapped redundantly. Therefore, there are many problems such as time consuming in the process, limiting individual property rights, and interrupting enterprises' economic activities. This study will discuss problems of redundant regulations of land use and its improvement by figuring out current regulations of land use in Gyeonggi-do, one of provinces which applies the most various regulations of land use. Method: This study reviews laws on national land-use planning system and characteristics of land-use regulation in Korea. The extent of the review is limited to "framework act on the regulation of land use" with categories of national land, urban planing, architecture, etc. Through case studies in Gyeonggi-do, the status and problems of redundant regulations of land use are defined. For example, it is overlapped in "Seoul Metropolitan Area Readjustment Planning Act", Development Restriction Zone, Paldang Special District, and so on. It is mainly referred to 2015 Gyeonggi-do land-use restriction map. Result: First, Gyeonggi-do confronts many problems related to the development restrictions and the financial increasement for environmental management by redundant regulations. The development restrictions include supplying additional land for industrial use, relocating colleges, and height limitation relating to military facilities. Second, in order to organize redundant regulations, it is required to combine similar regulations and adjust through communication system among other departments. Third, regulations should consider unique local condition of each district. Lastly, efficient application of regulations is necessary so as to maximize the function of land, protect individual property rights, and stimulate local development.