• Korea Trade Review
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• v.44 no.6
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• pp.201-216
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• 2019

At present, there are various standards used as the governing law of contracts for establishing, implementing, and resolving disputes between the parties to international sales contracts, called "Forum Shopping." Uncertainty and increased transaction costs, which may arise from these various norms, may hinder the activation of international commerce. This study examines the process of enacting and examining various international unification norms that have emerged through international organizations to eliminate trade barriers caused by choice of governing law concerning parties involved in the international sale of goods. Issues regarding the positive and negative perspectives are discussed to identify obstacles to international unification norms. In particular, by comparing and analyzing the differences between the regulations of the CISG and PICC, the representative international unification norms on international sales contracts, the possibility of unification of the norms on international sales contracts are reviewed. Direction for the establishment of a single international regulation is presented for reducing the transaction costs and uncertainties in the international sale of goods.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.75
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• pp.137-158
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• 2017

Traditional banking systems of transactions are being replaced by FfinTech. Block Chain System can be a key point in Fourth Industrial Revolution such as AI, Big Data, IOT and also can be used as a tools of smart contract or smart payment systems in International Trade. If banking regulation is to be liberalized FinTech would be more activated in Korea and various attempts would be available especially smart payment in business. There are so many levels to be achieved from the time of contract to the time of clearance. We cannot expect speed and range of IT advancement and international trade, Block Chain system will challenge the traditional banking process. First, Block Chain Payment system can be used in P2P, B2B transaction and also T/T in small business. Second, Bit Coin transaction can be available within the parties without the Trusted Third Party. Third, By using of Block Chain system Traditional International Trade process can be altered.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.41
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• pp.205-234
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• 2009

The trade portal site is one of the innovative skills which makes it possible for trade companies to manage international trade activities more efficiently by using the newest information technology. Especially, trade portal site can be considerable help to small and medium-sized enterprises which have much difficulties in finding overseas buyers due to the lack of international marketing capabilities. This study attempts to present a comprehensive model about the determinants of e-Trust in domestic trade portal site and to suggest practical strategies for e-Trade. Therefore, a theoretical framework was presented by the literature review, and a empirical study was carried out through a questionnaire survey to those who have had experiences of visiting trade portal site. The empirical analysis had the following results. First, it reveals that reputation, web-site quality, transaction efficiency of the trade portal site have influence upon e-Trust dimension. On the other hand, perceived risk did not have significant relationship with e-Trust. Second, e-Trust had significant impact on willingness to depend on the trade portal site. And also, e-Trust had positive influence on performance of using which is measured by sales increase, information sharing, and synergy effect.

• Korea Trade Review
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• v.46 no.2
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• pp.93-106
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• 2021

This study analyzes trade communication methods by comparing and analyzing payment methods and procedures of L/C and BPO transactions. As a result of the study, BPO transaction is validated based on the combination results of the confirmed baseline and data set unlike the L/C transaction. Therefore, BPO is superior to L/C transaction in that there is no confrontation between the parties over the matching results. And it can proceed with certain transaction that is paid first and proved later. In addition, the process of accepting data mismatches results in a confirmation of the payment commitment considering the intention of the importer. This allows flexible disposition of documents in response to the post payment situation as long as the documents are held by the exporter, which can be said to be superior to the L/C transaction.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.73
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• pp.21-42
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• 2017

A BPO is an irrevocable undertaking given by an Obligor Bank acting on behalf of the buyer to a Recipient Bank acting on behalf of the seller to pay on satisfaction of certain specified conditions. There have been a Trade Service Utility(TSU), a Transaction Matching Application(TMA) and ISO 20022 TSMT messages that core electronic technical systems linked to the BPO. As a key usefulness of the BPO, it brings to market an alternative means of satisfying the risk mitigation, financing and information management needs of banks and businesses engaged in trade. That is, corporates can spread the risk among multiple Obligor Banks by requesting multiple BPOs for the same trade transaction not to exceed the value of the initial transaction. Since the BPO replaces the manual document checking process with the electronic matching of data, buyers and sellers will benefit from significantly increased accuracy and objectivity. By using BPO, buyers and sellers can become trusted counterparties by demonstrating reliability and giving sellers the assurance of being paid on time as per the payment terms and conditions agreed. When compared to L/C, the BPO requires submission of data only. This requires a change of practice of those accustomed to dealing with physical documentation. The beneficiary of a BPO is the Recipient Bank which is always the Seller's Bank. In the meantime, banks will need to agree between themselves that the URBPO 750 will be applied, modified or excluded. However, customers of banks will face low transactional costs due to a fully automated process and standardized data formats used in international trade documentation. There is no amendment and cancellation rules in the URBPO 750s, but only have Assignment of Proceeds rules. As a result, the BPO is likely to enable new business opportunities, lower costs, fast transaction process and strengthen key customer relationships.

• Korea Trade Review
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• v.47 no.4
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• pp.255-270
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• 2022

If import/export shippers entrust their international logistics activities to forwarders, they can receive good logistics services at a lower cost. Therefore, it is important to form a trading relationship between the export shipper company and the forwarder, and it helps to improve the competitiveness of the company. This study derives factors that an export shipper company forms a transaction relationship with a forwarder, and analyzes the effect of transaction formation factors on transaction continuity. Next, the relationship between export consignment characteristics of export shippers and their influence on transaction formation factors and transaction continuity is identified. As a result of the study, transaction formation factors consisted of price, quality, and companionship, and all factors were found to affect transaction continuity. The characteristics of consignment logistics for shippers are the proportion of consignment, the number of business partners, and the transaction period. The proportion of consignment and the number of business partners affected the price factor, and the number of business partners affected the quality factor. There was no mutual influence between the transaction continuity and the characteristics of the shipper's logistics consignment. Therefore, there is a need for recognition of a relationship that can grow between shippers and logistics companies through consignment transactions rather than subordinate recognition based on fair transactions.

• International Commerce and Information Review
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• v.6 no.3
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• pp.123-136
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• 2004

In recent years, although far behind, the "e-Trade (B to G)" is propelled vigorously in Japan. But the diffusion of the "e-Trade" among companies (B to B) represented by bolero.net does not meet expectation. This paper carried out the questionnaire survey to the enterprises, which adopt bolero.net and examined why the diffusion is stagnated to the measures for its future spread. As a result, the top 3 adoption factors are: (1) Transaction climate, (2) Top management support, and (3) Operational improvement. In other words, it depends that top management has the will, which adopts e-trade positively among the reliable business partners and the operational performances can improve efficiently by carrying e-trade. We would like to clarify what will be crucial to spur the diffusion in the future. Based on the findings from the result, the concrete key points to promote the spread are to be indicated as follows: (1) Improve the scores of "Cost" and "Competitive pressure" (2) Improve the institutional factor.

• Korea Trade Review
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• v.44 no.2
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• pp.159-172
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• 2019

An important issue in trade transactions is risk management. Trading partners focus on how to recognize risks and how to address these areas. This article discusses whether the quality of a substantial period of time remains appropriate to the contract even after the risk has been transferred. If the contracted product is not delivered, then the risk is not transferred because it does not fulfill the obligations of delivery. In order to prevent such risks, the Seller must regard the quality of the goods of their fulfillment and provide them to the Buyer in detail. In addition, it is necessary to carry out several times of transportation or insurances of insurance according to the transaction conditions. Commercial practice comes from repetitive trading activities over many years. I think it is constantly changing as the transaction continues. Changes in the way of international commerce always create new orders and regulations. We need to keep a close eye on them.

• Journal of Korea Trade
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• v.24 no.7
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• pp.73-92
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• 2020

Purpose - The letter of credit has been playing a major role to diminish overall risks which exist among concerned parties even though there are differences such as language, culture, law, and distance. This paper reviews essence of the letter of credit and its transaction principles, as well as overall practical questions based on the L/C transaction principle. It also investigates the risk of fraud occurrences in L/C transactions and the importance of fraud prevention and preventive measures in international L/C transactions, including the Fraud Rule, which is a major topic to consider in business transactions. Design/methodology - It is considered that an importing country's concerned parties and an exporting country's concerned parties face different situations. This study employs the existing framework to identify liability, responsibility, and obligation for all concerned parties across countries. Using a quite direct measurement of principles in the letter of credit, such as principle of independence, principle of abstraction, and principle of strictness and coincidence, we studied these differences. Findings - Our main findings can be summarized as follow. The paper enhances the efficiency of the L/C payment method to provide fraud generated from L/C transactions, presentation of a theoretical framework about fraud and fraud prevention, which international trading companies should acknowledge in a material way based on fraud risk resulting from taking advantage of L/C transaction principles. Originality/value - Existing studies focus on fraud accidents in L/C transactions by taking bad advantage of the characteristics of the letter of credit without suggesting risks of fraud. This paper attempts to evaluate and provide preventive measures as a solution for fraud and risky international business in a letter of credit transaction. This area of trade studies is underexplored, both empirically and theoretically, although the issue has long been important to Korean and world community foreign trade.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.65
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• pp.71-94
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• 2015

The insurer's right to take legal proceedings in the name of the assured against a third party who has caused loss of or damage to the goods is of particular importance in marine cargo insurance under international trade transaction. The amounts recovered in subrogation actions, known in practice simply as recoveries, form a significant element in the balancing of the cargo insurer's underwriting account by improving ing the loss record. However, even if the carrier involved in the accident have a liability for damages, in some cases can not claim damages in accordance with the after clauses and carrier's exemption clauses indemnity carrier under the contract of carriage. In recent, the dispute cases to argue damages claim of the carrier in connection with business practices of surrender B/L, the claim is dismissed cases in accordance with the Arbitration Rules of the after clauses. In the future, the surrender B/L is continually to use as a marine transport method, it may also be interested in insurance subrogation of damages claims to insurance accident by a surrender B/L.