• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.22
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• pp.71-106
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• 2004

Todays, L/C transactions in international trade are governed by UCP 500 and eUCP. But UCP 500 and eUCP do not cover all legal problem of L/C transactions. Therefore choice of laws in international L/C transactions are occurred. U.S.A. has an enacted law (UCC ${\S}5-Letter$ of Credit) to govern L/C transaction. But other countries has no special enacted law to govern L/C transaction. The reason is that there are difference between legal attitude of U.S.A. and other countries. American law considers L/C as a special device made by merchants. Therefore U.S.A. applies UCC ${\S}5-Letter$ of Credit instead of general contract law. UCC ${\S}5-Letter$ of Credit includes provisions of warranties, remedies, and so on that UCP 500 and eUCP do not include. But the liabilities of the Issuing Bank on the wrongful dishonor in L/C transaction is very important legal problem. First, this study is to justify concepts of honor and dishonor, and sufficient conditions for dishonor of the issuing bank. in UCC. Second, this study is to examine closely the liabilities of the Issuing Bank on the wrongful dishonor in L/C transaction. Third, this study is suggest distinctive features on the Liabilities to wrongful dishonor of the issuing bank in UCC ${\S}5-Letter$ of Credit and our trader's matters to be attended to L/C transactions governed by UCC.

• Journal of Korea Trade
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• v.24 no.1
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• pp.59-81
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• 2020

Purpose - This study analyzes the scope of due diligence and risks of banks and K-Sure in trade finance covered by EFF focusing on Moneual case, one of the latest and biggest trade finance fraud cases in Korea. Also, we suggest anti-fraud measures in trade finance on the part of banks and K-Sure in order to give them a desirable way of due diligence and reasonable risk management of export insurance. Design/methodology - Based on Moneual case of trade finance fraud, this study employs the methodology of an extended literature review and analysis of court decisions. Findings - Seoul High Court of Korea failed to decide whether K-Sure was wholly obliged to pay the insurance against the banks' EFF claims, but issued a compulsory mediation order, judging that both the banks and K-Sure were responsible by 50:50. The court may have judged that both the parties had lacked their due diligence in the trade finance. It is quite difficult for trade finance providers to manually investigate whether the transaction is suspected of trade finance fraud, so digitalization of trade finance which can facilitate the prevention and detection of trade fraud needs to be realized quickly. Since there has been no international rule available for open account trade finance up till now, clearly stipulated EFF terms on the exporter's genuine export obligation might have protected K-Sure from the disaster. Originality/value - This study investigates the due diligence of the banks and K-Sure in Moneual case which few researchers have considered, to the best of our knowledge. This study also suggests several practical methods (including block chain) to prevent complicating trade finance fraud amid increasing use of an open account, and further offers reasonable risk management of EFF employing international factoring rule which is also related to problematic open account trade finance.

• The Journal of Information Technology
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• v.7 no.3
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• pp.99-112
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• 2004

Internet is changing all of the commercial practices and customs on international business transaction. So called e-Trade in global marketing is expected to dominate the global trade in 21st century and thus is being introduced as a major mission assignment for exporting countries. e-Trade has the potential to accelerated existing threads and introduce new ways of carrying out global trade. It is especially important in Korea, which has a high dependency rate on trade. Trade efficiency through the channel of e-Trade is an alternative to strengthen international competition of korean small and medium sized global trading firm.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.22
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• pp.173-197
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• 2004

Letter of Credit between buyer and seller in International Trade Transaction is the means of payment which makes International Trade operate smoothly by guaranteeing an exporter against non-payment and an importer against non-delivery. Therefore, the parties to a sale apply UCP500 established by the International Chamber of Commerce, in accordance with principle of the freedom of contract among the parties concerned, to look to their own legal stability. However, we may recognize some cases to have been applied principle of faith and trust, one of the dominant principles of the civil law, by the Korean Supreme Court and other cases to have not been applied that principle by the Korean Supreme Court. The Court shall apply UCP500 strictly as long as the parties concerned adopt UCP500 in view of the legal stability. In other words, in case that the Court applies principle of faith and trust to the case related to L/C, this rule - principle of faith and trust - should apply to the subject matter which have not stipulated in UCP500 under certain restriction. We suggest keeping in mind points to korean companies as follows; First, the parties to a sale shall understand L/C basis transaction and principles related to L/C deeply. Second, the exporter shall prepare documents in compliance with L/C and fulfil his or her obligation according to UCP500 and L/C related to the contract. Third, as buyer or importer, when he or she receive the shipping documents with discrepancies from the notifying bank, he or she makes him or herself clear to all the parties concerned. Fourth, as bank, she shall examine all the documents according to UCP500 and L/C related to the contract, and if any document with discrepancies, the bank, by all means, shall approach applicant first, and then decide whether to pay the credit amount to beneficiary or not to.

• International Journal of Contents
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• v.17 no.3
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• pp.15-29
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• 2021

The purpose of this paper is to explore how the Confucius Institute Chinese international promotion could better promote the development of China's foreign trade, by analyzing the distribution of the Confucius Institute worldwide, based on the theory of language economics, using SWOT analysis to analyze the advantages and disadvantages of the internal environment, opportunities and challenges of the external environment of Chinese international promotion of Confucius Institute. The following findings were gathered: as a language teaching institution and information exchange platform, Confucius Institute has the ability to share trade information and increase trade opportunities; to improve cultural identity and reduce transaction costs; to promote cultural communication and integration, and drive the development of related industries. The internal disadvantages were mainly reflected in the mismatch between the global regional distribution structure of Confucius Institutes, and the economic and trade structure, such as, the asymmetry between language, culture output, and demand. In addition, the management mechanism was not perfect. External opportunities were mainly new opportunities brought by economic globalization, cultural diversity, and the development of the Belt and Road initiative. External challenges were mainly influenced by the China threat theory and the fierce cultural competition among countries. The corresponding countermeasures were put forward based on the advantages of the platform and grasping the external opportunities: improving the quality of operation and speeding up the localization process; respecting cultural differences and realizing cultural common learning; seeking multilateral cooperation and enhancing the capacity for independent development.

• International Commerce and Information Review
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• v.15 no.1
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• pp.333-356
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• 2013

The main purpose of this article is to find out the determinants of usage and performance of the uTradeHub system in Korean SMEs. To achieve the purpose of the study, the research model and the hypotheses were developed based on the previous research on uTradeHub and e-Trade. And to test the research hypotheses, empirical survey was conducted to Korean SMEs which were using uTradeHub services. The results of the empirical analyses are as follows. First, among the external factors, intra-industry competition and transaction intensity were significant determinants of uTradeHub usage level. Secondly, among the internal factors, only CEO's support was found to be a significant determinant. Thirdly, among the IT related factors, IT infrastructure and IT training were positively related to uTradeHub usage level. Finally, the uTradeHub usage level was found to have positive effect both on financial and non-financial export performance of the Korean SMEs.

• International Commerce and Information Review
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• v.6 no.1
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• pp.129-153
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• 2004

In order to succeed in e-Trade Project in Korea, the related parties endeavor to introduce the e-title registry model such as Bolero model(Title Registry Model) and TEDI model (Repository Service Provider Model). Prior to mentioning the Model of e-Title Registry, desirable Global e-Trade Platform is the platform connecting Global e-Trade Platforms in each country and Bolero's Core Messaging Platform and e-Title Registry must be established in each country. Each e-Title Registry must be connected with another registry. Like Korea, Recognized Electronic Document Repository must be established as proxy for preserving, attesting, carrying out sending and receiving electronic document to prevent from disputes between parties and to carry out notarizing electronic documents and related transaction. The purpose of this paper is to promote the introduction of e-Title Registry in the e-Trade and to streamline the procedures of the electronic bill of lading.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.49
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• pp.43-59
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• 2011

Incoterms 2010 have been revised in line with the latest changes in contemporary commercial practice. An understanding of Incoterms 2010 is essential. The Incoterms rules on the use of domestic and international trade terms, facilitate the conduct of global trade. Reference to an Incoterms 2010 rule in a sale contract clearly defines the parties' respective obligations and reduces the risk of legal complications. In 1980 the United Nations Convention on Contracts for the International Sale of Goods(CISG) was introduced to create international certainty and uniformity in the law and to govern issues that arise in an international sale of goods transaction. This paper focuses on harmony and ability of the CISG and Incoterms 2010 to govern contracts for the sale of goods.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.43
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• pp.53-74
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• 2009

INCOTERMS have been changed almost every 10 years since ICC established INCOTERMS as trade terms for International transaction. Recently transportation has become bigger, and modernized by means of electronic appliances such as RFID, IT, and containerization. FRC, FOR/FOT, FOA were added in INCOTERMS1980 and every conditions are unified into three alphabets in INCOTERMS1990. The best features of INCOTERMS2000 are that FCA substitute FRC, FOR/FOT, FOA and customs formalities were simplified to make clear for each party of contract. It seems that business circles still stick to old customs of their trade like FOB or CIF not only in Korea but in an international practice even though there have been several revisions of INCOTERMS until now. ICC have tried to provide INCOTERMS3000 to solve problems between a theory and an actual condition of international trade. This study has tried to suggest opinions against INCOTERMS3000 and has surveyed a recognition, an actual using situation and issues of INCOTERMS to get improvements. For a recognition of INCOTERMS has been spread as you can find at tables many kinds of business circles still stick to old customs of their trade terms FOB and CIF. Now there are two alternative plans. Firstly, we need to suggest improvements against inconsistency of INCOTERMS to be applied on newly revised INCOTERMS3000 and educating business circles to use proper conditions of INCOTERMS for their doing business. Secondly, we shall participate in revising INCOTERMS to activate multimodal transport conditions of INCOTERMS and provide solutions to fill gap between a theory and an actual condition of international trade. It seems that terms of multimodal transport such as FCA, CPT, or CIP can be a perfect condition for each party of contract. We have examined the inconsistent features of Ship's rail and notions of on board, and observed how to activate multimodal transport terms. These would be hot issues of next revision of INCOTERMS and we provided improvements on each trade terms, THC charges, or others against INCOTERMS.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.60
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• pp.141-175
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• 2013

The purpose of this study aims to the implications by the introduction of TSU/BPO system as a instrument of trade settlement. Jointly with financial messaging provider SWIFT, the ICC Banking Commission has developed the URBPO to take into account the legitimate expectations of all relevant sectors. Once the goods have been shipped, the seller's bank uploads the shipping and logistics data to the TSU to be checked against the baseline. URBPO is the first ever set of standards in supply chain finance that governs BPO transactions worldwide. BPO enables banks to reduce the risks associated with international trade to the benefit of both buyers and sellers. A BPO is an irrevocable undertaking given by an Obliger Bank to a Recipient Bank to pay a specified amount under the condition of a successful electronic matching of data or acceptance of mismatches. The BPO should be viewed as an exercise in collaboration between trading partners and their banks. Drawings upon global standards and incorporating the benefits offered by letters of credit, the new instrument has the potential to benefit all parties in a trade transaction-and bring trade settlement into the 21st century.