• Journal of the Korea Institute of Information and Communication Engineering
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• v.25 no.3
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• pp.346-354
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• 2021

Since 2015, Blockchain has experienced rapid development throughout the world, institutions including Central Banks, Government Departments, Commercial Banks, IT Giants are all accelerating their exploration on Blockchain, and investment on Blockchain related R&D departments and start-up companies also shows explosive growth. This paper studies the impact of blockchain technology on banks' conventional trade settlement methods and describes blockchain technology in term of its concepts, advantages, and disadvantages. It also studies the application processes of blockchain technology combined with conventional trade settlement methods (remittance, collection, and L/C), and analyzes the positive and negative impacts of blockchain technology on the conventional trade settlement methods. In addition, this paper lists the blockchain application cases, analyzes the technology development status and existing problems, and puts forward suggestions and measures for the development of blockchain finance in China based on the case analysis and impact research.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.55
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• pp.185-208
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• 2012

Before and after the Capital Market Integration Act in 2007 is implemented in South Korea, many of small-and mid sized exporting companies in South Korea has been bankrupted or filed for lawsuit claiming mis-selling(KIKO) by the banks. The basic economic structure of KIKO in Korea are part of a business model based on the use or misuse of exotic derivatives whose results are anything but imaginary. 571 mid sized exporting companies have been damaged about $28 billion. KIKO is a currency option product that sells foreign currencies at higher foreign exchange rate when the rate moves within a certain range, but sells foreign currencies at two or three times lower rate than the market price when the rate exceeds the designated upper limit. KIKO, Therefore, is hard to know whether the non financial firms intended to hedge against further strengthening of their currency or merely to speculate. It is also hard to know how thoroughly they understood the risk-return profile of these transactions. It is similarly hard to ascertain whether the derivatives dealers offering these transactions were meeting the demands of their clients or taking advantage of them. These exotic derivatives were inappropriate for either hedging or speculating, and no knowledgeable investor would be likely to enter into these contracts intentionally.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.49
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• pp.89-109
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• 2011

Among various export financing, forfaitng and factoring give a comfort to exporters as those special financing schemes are extended to them on a without recourse basis. This is good for the exporters in terms of financing and risk cover of buyer or LC issuing banks. To enjoy this benefit, the SME exporters should, however, know the risks involved in sales contract. For example, if the export and importer set Korean law as governing law in the sales contract especially for open account exports, the exporter's receivables might be not welcome by factors according to provisions of Korean Conflict Law and it's application. Those regulations tell that the factor's position would be unstable when the sales contact limit exporter's assignment of receivables to the factor when the sales contract is subject to Korean law. Also the exporters should know related regulation of importer which might affect the assignment of receivables as well. This paper suggests the Korean exporters take internationally recognized agreement/convention such as UNI|DROIT Convention on International Factoring, UN Convention on the Assignment of Receivables in International Trade.

• Korea Trade Review
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• v.47 no.2
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• pp.103-120
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• 2022

This paper studies the possibility of options as an instrument for central bank to intervene foreign exchange market. As opposed to spot transaction or forward transaction, which impacts spot exchange rate only once, currency options can continuously resist a directional speculative pressure on spot market due to the dynamic delta hedging of OTC currency options market maker. This research also analyzes whether and how central banks can use currency options to lower exchange rate volatility and maintain (implicit) target zones in foreign exchange markets. It argues that short position rather than long position in options will result in market makers dynamically hedging their long option exposure in a stabilizing manner, consistent with the first objective. Selling a "Strangle" allows a central bank to increase the credibility of its commitment to a target zone, and could have a lower expected cost than spot market interventions. However, this strategy also exposes the central bank to an unlimited loss potential. Therefore these kinds of intervention strategies must be used in the short run and temporarily.

• Korea Trade Review
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• v.45 no.2
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• pp.103-119
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• 2020

As the easy payment service is popularized and the competition in the service market is fierce, research on factors affecting users' continuous use of the easy payment service is becoming increasingly important. However, in the existing studies, the discussion of the continuous intention to use the consumer's simple payment service has not been sufficiently conducted. Existing research remains on the way of listing technology and consumer characteristics. To bridge this research gap, this study aims to integrate and modify ECM and UTAUT to consider factors influencing the continuous use of easy payment services. The user's expectations and the confirmation were considered as important factors to decide. For empirical analysis, a survey was conducted for 236 users who had experience with domestic easy payment service. As a result, it was verified that confirmation, performance expectancy, effort expectancy, social influence, and habit in regard to easy payment services are important for continuous use intention. Through this study, it is expected that the consumer's technology acceptance mechanism on the continuous use of simple payment will be grasped in more detail to develop academic discussions in the field. Implications from the results as well as limitations of the study are presented.

• Korea Trade Review
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• v.45 no.5
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• pp.1-22
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• 2020

This study explores the role of relationship banking for the exports of SMEs (small and medium sized enterprises) in Korea. Using a sample of SMEs listed on the Korean stock markets between 2004 and 2018, I find that relationship banking has a positive impact on exporting behaviors of SMEs. This result indicates that relationship banking is suitable for SMEs to raise their funds in the export decision-making since the incentive for banks to obtain soft information enhances SMEs' access to external finance. In particular, through further analysis considering financial constraints, I find that the positive impact of relationship banking on exports is amplified for financially constrained SMEs. In addition, the positive impact on exports is also amplified for export starters. Finally, relationship banking provides benefits for SMEs' export decision-making regardless of the financial crisis. To sum up, relationship banking may be useful means of financing for Korean SMEs whose creditworthiness cannot be assessed only by hard information. As the role of finance in international trade has recently been highlighted, this study provides insightful evidence that relationship banking may enhance exports of SMEs as a source of trade finance.

• Journal of the Economic Geographical Society of Korea
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• v.19 no.4
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• pp.677-693
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• 2016

Using Social Network Analysis and Trade in Value Added Database(TiVA), this paper examines the world trade network. Main findings are as follows. Firstly, there are three types of industries, which have dominant status in the world value added trade network. Those are the manufacturing industries in the developing countries such as China's electronics industry, the service industries in the developed countries such as U.S. R&D, and the manufacturing industries in the developed countries such as German motor vehicle industry. Secondly, the major hub industries in the world trade network have their own specific types in the brokerage roles. Most interestingly, U.S. service industries such as the R&D, the logistics industry, and the whole sale and retail industry reveal itinerant and liaison brokerage roles. Thirdly, Korean industries have been dominated by Chinese industries. However, the financial industry and the R&D industry could have revealed superior status as the brokerage role of itinerant. This implies Korean industries could sustain their competitiveness of the hubness status only by openness policy in the service industry.

• Korea Trade Review
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• v.43 no.1
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• pp.1-23
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• 2018

International Development Cooperation (IDC hereafter), which closely relates to international trade and foreign direct investment, is gaining global importance regarding diplomatic relations and economic cooperation. As Korea contributes increasing resources to the international community, Korea should play a larger role in the IDC along with increasing academic cooperation, impling more necessity to grow research on the IDC as a crucial element of international trade. The IDC has focused on the provision of basic human needs, such as food, shelter, and clothing. However, higher education has not yet be explored for its effectiveness or validity as to service area including foreign trade or insurance. In this regard, this research aims to review existing IDC literature, to propose a project for insurance education, and to provide alternative ways for future development of the IDC. This paper is structured as follows. First, the literature review begins with the IDC's history and development, review of traditional methods of providing basic human needs (food or sheltering) and public health, importance of job creation and business activities to alleviate poverty, and the introduction of insurance education as a vehicle to reduce poverty. Results of the case study provide implications for service area projects including foreign trade education.

• Journal of the Korea Institute of Information and Communication Engineering
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• v.15 no.11
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• pp.2359-2364
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• 2011

E-commerce is a kind of trade type between buyers and sellers rely on computer networks. Carried out according to certain standards of various business activities. e-commerce is based on modern information technology and network technology, financial electronic collection, management, information technology, business and trade information networks into one, aimed at logistics, capital flow and information flow of harmony and unity of the new trade, trade activities of the entire process, electronic, networking and digital. E-commerce has brought to the traditional ways of trading a huge impact, led to changes in economic structures, is a business revolution in the way and is recognized internationally as the 21st century is an important driver of economic development compared to current traditional companies. In this material, we first consider the current problem, analyze particular characteristics of clothing shopping mall to increase the purchasing power of customer. For these reasons, we describe the process for building the clothing site.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.77
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• pp.113-144
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• 2018

This study explores how to prevent the fraudulent export financing and its subsequent export insurance fraud in relation to O/A negotiation. Under the traditional letter of credit(L/C) transactions, the banks, as a negotiation bank, can extend trade financing to the exporters through negotiation of draft and/or shipping documents. Under the O/A transaction scheme, however, bank cannot ascertain existence of trade performance and it is much riskier to extend an advance financing to the exporters before the buyer sends confirmation of debt. In O/A negotiation. some exporters tried to fraud banks by falsifying the shipping documents and the size and gravity of this fraudulent export financing were huge. Therefore, this study examines the banking process in O/A-based trade financing, documents examination process, the negotiation of instruments, treatment of trade financing in export credit guarantee, most importantly, explores what could be the criteria for appropriate treatment of account receivable to insure the safe transfer of account receivable. To maximize the benefit for optimum trade financing, the Bank of Korea established several Trade Finance Rules (refers to "BOK Rules") requiring that commercial banks should maintain optimal credit limits(so called, 'the principle of optimal loan') to extend the trade finance. The K-sure post-shipment credit guarantee programs and short-term export insurance program(EFF)can also facilitate 'the principle of optimal loan' principle.