• 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.

• The Korean Journal of Financial Management
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• v.10 no.1
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• pp.249-280
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• 1993

Recent financial theory views insurance policies as financial instruments that are traded in markets and whose prices reflect the forces of supply and demand. This article analyzes individual's insurance purchasing behavior along with capital market investment activities, which will provide a more realistic look at the tradeoff between insurance and investment in the individual's budget constraint. It is shown that the financial economic concept of insurance cost should reflect the opportunity cost of insurance premium. The author demonstrates the importance of riskless and risky financial assets in reaching an equilibrium insurance premium. In addition, the paper also investigates how the investment income could affect the four established theorems on traditional insurance literature. At the present time in Korea, the price deregulation is being debated as the most important current issue in insurance industry. In view of the results of this paper, insurance companies should recognize investment income in pricing their coverage if insurance prices are deregulated. Otherwise. price competition may force insurance companies to restrict coverage or to leave the market.

• Asia Marketing Journal
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• v.15 no.1
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• pp.1-22
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• 2013

This case focuses on Shanghai Tang, the first truly Chinese luxury brand that appeals to both Westerners and, more recently, to Chinese consumers worldwide. A visionary and wealthy businessman Sir David Tang created this company from scratch in 1994 in Hong Kong. Its story, spanned over almost two decades, has been fascinating. It went from what best a Chinese brand could be in the eyes of Westerners who love the Chinese culture, to a nearly-bankrupted company in 1998, before being acquired by Richemont, the second largest luxury group in the world. Since then, its turnaround has been spectacular with a growing appeal among Chinese luxury consumers who represent the core segment of the luxury industry today. The main objective of this case study is to formally examine how Shanghai Tang overcame its downfall and re-emerged as one the very few well- known Chinese luxury brands. More specifically, this case highlights the ways with which Shanghai Tang made a transitional change from a brand for Westerners who love the Chinese culture, to a brand for both, Westerners who love the Chinese culture and Chinese who love luxury. A close examination reveals that Shanghai Tang has followed the brand identity concept that consists of two major components: functional and emotional. The functional component for developing a luxury brand concerns all product characteristics that will make a product 'luxurious' in the eyes of the consumer, such as premium quality of cachemire from Mongolia, Chinese silk, lacquer, finest leather, porcelain, and jade in the case of Shanghai Tang. The emotional component consists of non-functional symbolic meanings of a brand. The symbolic meaning marks the major difference between a premium and a luxury brand. In the case of Shanghai Tang, its symbolic meaning refers to the Chinese culture and the brand aims to represent the best of Chinese traditions and establish itself as "the ambassador of modern Chinese style". It touches the Chinese heritage and emotions. Shanghai Tang has reinvented the modern Chinese chic by drawing back to the stylish decadence of Shanghai in the 1930s, which was then called the "Paris of the East", and this is where the brand finds inspiration to create its own myth. Once the functional and emotional components assured, Shanghai Tang has gone through a four-stage development to become the first global Chinese luxury brand: introduction, deepening, expansion, and revitalization. Introduction: David Tang discovered a market gap and had a vision to launch the first Chinese luxury brand to the world. The key success drivers for the introduction and management of a Chinese luxury brand are a solid brand identity and, above all, a creative mind, an inspired person. This was David Tang then, and this is now Raphael Le Masne de Chermont, the current Executive Chairman. Shanghai Tang combines Chinese and Western elements, which it finds to be the most sustainable platform for drawing consumers. Deepening: A major objective of the next phase is to become recognized as a luxury brand and a fashion or design authority. For this purpose, Shanghai Tang has cooperated with other well-regarded luxury and lifestyle brands such as Puma and Swarovski. It also expanded its product lines from high-end custom-made garments to music CDs and restaurant. Expansion: After the opening of his first store in Hong Kong in 1994, David Tang went on to open his second store in New York City three years later. However this New York retail operation was a financial disaster. Barely nineteen months after the opening, the store was shut down and quietly relocated to a cheaper location of Madison Avenue. Despite this failure, Shanghai Tang products found numerous followers especially among Western tourists and became "souvenir-like" must-haves. However, despite its strong brand DNA, the brand did not generate enough repeated sales and over the years the company cumulated heavy debts and became unprofitable. Revitalizing: After its purchase by Richemont in 1998, Le Masne de Chermont was appointed to lead the company, reposition the brand and undertake some major strategic changes such as revising the "Shanghai Tang" designs to appeal not only to Westerners but also to Chinese consumers, and to open new stores around the world. Since then, Shanghai Tang has become synonymous to a modern Chinese luxury lifestyle brand.

• Asia Marketing Journal
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• v.11 no.3
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• pp.185-203
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• 2009

Yuhan Kimberly, a joint-venture company of Korean Yuhan Company and American Kimberly-Clark, opened a premium diaper market in Korea by launching Pull-Ups which was pants-typed diapers in 1993. Pull-Ups was imported as finished goods from Kimberly-Clark. However, in spite of its huge market share in United States, it failed to land down in Korean market because of wrong positioning strategy which did not consider domestic customers' tastes. In 1996, Yuhan-Kimberly brought out a pants-typed diaper, Huggies-Toddler, to Korean market again. This paved the way for the combination of Kimberly-Clark's production power and Yuhan-Kimberly's marketing power and led to launch new product superior to Pull-Ups. However, this product was unsuccessful in the market because of wrong positioning which did not catch domestic customer's life styles such as cultural, environmental and habitual differences in toilet training, the cost increase coming from IMF crisis in Korea, weak trust within the company, weak trust within the company, and too much higher price than regular diapers. In 2005, Yuhan-Kimberly redeveloped new pants market business strategy. It was organically combined with winning product development plan, winning communication strategy and the market structure change through the pants market creation. Customer's habit, usage and attitude were studied with total 55 times market investigations. Also, all processes from planning to designing were executed in the customer's view by investigating product research, positioning research and advertisement research. Yuhan-Kimberly repositioned new product as a wearing diaper not as a toilet training diaper and launched Huggies Magic Panty as a premium product which had 25% higher price than previous Huggies. Huggies Magic Panty was recognized as a great hit product in domestic diaper market and the sales recorded 37.6 bill won in 2006, 57.2 bill won in 2007, and 90 bill won in 2008 since launching in 2005. The reason of Huggies Magic Panty's success was the repositioning strategy deduced from the precise check of customer's usage habit. It was the winning strategy of Huggies that were market investigation in order to survive in domestic baby goods market where a lot of companies struggled intensively, the exact positioning based on its market investigation and aggressive 360 degree communication strategy to give customers impressions efficiently.

• The Journal of the Korea Contents Association
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• v.14 no.4
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• pp.110-122
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• 2014

Korea's film industry has been growing over the last 10 years, and there has been much attention to the antecedents of film box office sales both academic and business communities. So far, previous research which explained success factors of film or movie mainly focused on 3 stages, production, distribution and screening. However, these 3 steps are heavily vertically integrated in Korea's firm industry unlike United States. Almost 130% of movie theaters are multiplex chain and operated by film production companies such as CJ and Lotte Entertainment In this situation, film sales are likely to he affected by movie theaters own facilities or location factors rather than movie contents. Based. on resource-based view and S-C-P paradigm, the authors examined "whether movie theater's facilities factors and trade area factors such as accessibility, competitive situation, and population have effect to movie theater's sales revenues. The results showed that the average occupancy of theater is the most important factor to movie theaters sales in both large and small cities. In large cities, movie theater's facilities factors which included vibration seat special sound system, premium movie theater, VIP lounge are relatively important than trade area factors. In contrast, in small cities, location factors and accessibility are the most important factors to movie theaters sales. We discuss the managerial and theoretical implication for the results and the specific limitations are suggested at the end of the paper.

• International Journal of Highway Engineering
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• v.13 no.3
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• pp.39-49
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• 2011

The porous pavement system is widely considered very effective in urban street because of its various benefits on safety and environment, but the pavement thickness design system has not been established yet. In porous pavement system. rainwater penetrates to the subgrade through porous pavements layers. Porous pavements are expected to reduce or alleviate the problems caused by impermeable pavement layer such as flood damage due to heavy rain in the city, drainage load, disorder in ecosystem, and heat island. However, its structural design methods in traffic roads has not been made mainly because of not being able to consider adequately the effect of rainwater on subgrade strength. In this study, structural design method of porous pavements is suggested after considering the subgrade weakness due to rainwater and numerical mechanical analysis. It is noted that elastic modulus of subgrade is reduced by 20% as subgrade moisture content is increased by 2% at optimum moisture content in the literature review. As a result of both finite element analysis and strength loss of subgrade by the existing design method, it is necessary to increase subbase thickness about 30cm in porous pavements compared with the existing traffic road pavement system. It is similar to premium thickness of structural design of porous pavements in Japan.

• Korean Journal of Construction Engineering and Management
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• v.15 no.1
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• pp.111-121
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• 2014

The Clean Development Mechanism (CDM) allows New & Renewable Energy projects to make additional income by selling CER's, which represent the amount of Green House Gases(GHG) that is reduced in the project. However, forward contracts used to hedge fluctuating market prices does not allow projects to sell CER's at a premium. As an alternate approach to maximize CER revenue, CER's are modeled as a 'real option', in which CER's are sold only above the desired sales price. Using the Binomial Option Pricing model, the resultant lattices are used to determine whether to sell, defer or abandon the option at individual nodes. Overlaying Pascal's Triangle on the lattices also enabled the calculation of the annual probabilities for deferring CER sales without incurring downside losses. Application to an actual Landfill Gas project showed increased overall NPV, and that CER sales could be deferred at a maximum of 2 years. The proposed framework allows transparency in the analysis and provides valuable and strategical information when making investment decisions related to CER sales of CDM projects.

• Journal of Digital Convergence
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• v.10 no.8
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• pp.347-365
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• 2012

This study was carried out to enlighten on the factors by which newspaper headlines are determined and to empirically explore how news influence variables, editor's role orientation and professionalism have impact on deciding headlines. It turned out from the survey of 345 journalists working in the editorial departments of 17 major national daily and economic newspapers that 7 determinant factors have impact on editors deciding headlines: creativity, standardized expression, fairness, consideration for a readers, reflection of company policy, summarization and intriguer. In addition, the determinant factors of headlines were analyzed to have correlation with news influence variables such as the government-sponsors, readers and colleagues, and company policy and the management. In the awareness of role, also, it was shown that the editors who considered social integration as important place weighted on the reflection of company policy, fairness and creativity; those editors who placed power monitoring on priority took fairness and creativity seriously; and the editors who believed that delivering information was important thought of fairness, consideration for a readers and summarization as important. In addition, the organization-oriented editors turned out compliant to a system, positive on the governmental policies and sought for social stability; those editors who put a premium on a sense of objective balance and neutrality showed a strong aspect of a professional in social reform, check against government and the social governance by the privileged.

• Journal of Technology Innovation
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• v.26 no.2
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• pp.95-128
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• 2018

Since mid and late 2000s, the smartphones has been widely diffused and Korea ranked first in global smartphone market in 2011 thanks to its rapid adoption of Android operating system, technology capability accumulated in featurephone development, vertical integration on smartphone production and premium positioning. However, Korea fell behind because of the rise of another latecomer, China, in four years (2015) after it recorded the top position globally. How did the leadership change occurred in the smartphone industry so rapidly? In order to answer the question, we investigated three favorable windows of opportunity for the rise of China, which are technological, demand, and institutional, and the strategic responses of Chinese firms as well as the rigidity and complacency with the past success of Korean firms. Our findings contribute to the extension of 'catch-up cycle' theory as well as provide in-depth insights for strategies and policies settings to overcome the recent rise of China in information and communication technology sector for Korea.

• Culinary science and hospitality research
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• v.22 no.4
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• pp.319-332
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• 2016

The purpose of this study is to suggest management strategies for both upscale hotel buffet restaurants and independent buffet restaurants by conducting an IPA(Important-Performance/satisfaction Analysis) on the selection attributes for buffet type restaurants. Additionally, the effects of the selection attributes' satisfaction on the "intention to recommend" was tested. Surveys were conducted from April 15th through May 4th, 2016 by using both SNS and off-line surveys of consumers with buffet restaurants dining experiences within the previous year, of which a total number of 160 questionnaires were used for the statistical analysis. The result showed a few different selection attributes in each quadrant; additionally, food quality and menu had positive effects on the "intention to recommend" for hotel buffet restaurants, while food quality was the only selection attribute with positive effects for independent buffet restaurants. Based on the results of the study, it can be suggested for the hotel buffet restaurants to constantly develop new and unique menu items to lead the needs of the fast changing consumers of today instead of focusing on the premium characteristics of upscale hotels and their brand names. In addition, offering a variety desserts seems to be something to re-consider for both types of buffet restaurants.