• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.13
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• pp.581-603
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• 2000

Beneficiary must present all documents stipulated in the Credit. If the documents conform in all respects with the terms and conditions of the Credit, beneficiary has a right to payment from an issuing or confirming bank. And banks must examine all documents presented by beneficiary for taking up the documents. If the documents appear on their face not to be in compliance with the terms and conditions of the Credit, banks may refuse to take up the documents. But standard for compliant documents with the terms and conditions of the Credit in the UCP or Section 5 of UCC is unclear. Because UCP Article 13(a) provides merely that banks must examine all documents stipulated in the Credit ${\cdots}$ to ascertain whether or not they appear, on their face, to be compliance with the terms and conditions of the Credit. ${\cdots}$ Documents which appear on their face to be inconsistent with one another will be considered as not appearing on their face to be in compliance with the terms and conditions of the Credit. Also UCC Section 5-108(a) provides merely that. ${\cdots}$ an issuer shall honor a presentation that, ${\cdots}$ appears on its face strictly to comply with the terms and conditions of the letter of credit. All problems are not resolve with easy by these regulations. Accordingly, I examined requirements for compliant documents with the terms and conditions of the Credit on the basis of the UCP and cases. To analyse this, I divided into three requirements ; (1) Completeness, (2) Regularity, (3) Linkage.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.75
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• pp.117-136
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• 2017

Trade finance services have been played an important role in the Korea trade development history since 1960's. These days the trade environment is confronted by the 4th Industrial revolution and new trade protectionism. So we need to improve the Korea Trade Finance Services in order to improve Korea trade volume. Bank of Korea(BOK) also revised the Rule of Korea Trade Finance in 2014 and enlarged the trade fund for commercial banks where they handle the trade finance to small and medium enterprises(SME) in 2016. This article handle the current state and problems of Korea trade finance services and suggest the improvement measures as follows; First, the commercial banks, which handle trade finance fund, should improve the customs and practice of judge loan for SMEs. Second, the export volume counting rule for trade loan should harmonize between BOK's Rule and Foreign Trade Management Regulation under the Foreign Trade Act. Third, the processing trade and intermediate trade also can use the trade finance like other trade. Fourth, Trade finance should be in balance between export and import finance to defend the new protectionism. It means that the trade finance should expand to import in the certain conditions. Lastly, the related trade promotion agencies and their employees should improve their skills and abilities for handling trade finance.

• International Commerce and Information Review
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• v.10 no.3
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• pp.239-261
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• 2008

Documentary credit transactions are judged by the principle of strict compliance. The compliance of the tendered documents with the credit's teams ensures the proper completion of the underlying transaction. But if the documents tendered by beneficiary differ, a discrepancy of documents occurs. Such a discrepancy raises difficult problems for the bank to which the documents are tendered. It has to decide whether to reject or accept them or to accept them under a protective mechanism. Therefore, this study is to examine the case study of complying presentation of the description of the goods in documentary credit through the Korean Supreme Court Cases. The objectives of this paper are as follow : 1. To examine two point of views on document compliance such as strict compliance and substantial compliance. 2. To analyze Korean Case Law which challenges the legal conclusions, standard for examination of documents and New ISBP. 3. To draw out the criterion for conformity and discrepancy of description in invoices and WC and to provide the guidelines for determining the nature and extent of an issuing bank's duty of documentary compliance. 4. Finally to suggest some implications through the Korean case law. By using the examination standards for description of goods suggested in Korean Case Law and New ISBP, the traders will be able to prepare documentation more perfectly and document checkers will be able to examine the negotiation documents more easily.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.20
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• pp.295-315
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• 2003

Since the end of World War II, the standby letters of credit have been used as a surety device, serving as a performance bond and guarantee in the world. UCP has been used a governing rule for standby letters of credit transactions in international commercial transactions. But the UCP may be sufficient for certain simple standbys, it is not fully applicable nor appropriate for standbys - as is recognized in UCP 500 Article 1. On the other hand, the International Standby Practices(ISP98) provide rules of practice drafted specifically for standby letters of credit intended as an alternative to UCP 500. It became effective on January 1, 1999. In addition to restating general rules applicable to all independent undertakings with greater precision than does UCP 500, thereby reducing the possibility of litigation, it addresses issues that commonly arise in standby practice not addressed in UCP 500. UCP 500 is valid and still applies to standby letter of credit "to the extent to which they may be applicable." Since ISP98 and UCP 500 coexist and may be applicable to standby letters of credit by incorporation, applicants, beneficiaries and issuers have a choice. This study will assist all interested parties in establishing the right rules for the right product, for the right standby letters of credit.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.61
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• pp.191-211
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• 2014

This paper intends to study some problems in the application of UCP 600 in the international trade transactions with China. Generally speaking, China complies with UCP 600 well. Nevertheless, there are some problems in the application of UCP 600 in China owing to the difference in law and practices. There are some problems in the application of UCP 600 in China owing to the difference of practices under Bills of Exchange Act and The Provisions of the Supreme People's Court on Some Issues Concerning the Trial of Cases of Disputes over Letter of Credit. The Act insists on the formal requirements, the consistency between a letter amount and a figure amount, the unconditional payment character of bills of exchange. The Provisions include the recognition of revocable credits, the difference of standard in examining documents, the difference in the treatment of issuing banks in relation to discrepant documents. These aforesaid matters of the Act and the Provisions are inconsistent with the practices under the UCP 600. There are two main problems in the operation of letters of credit in China. One is the lack of concerned parties' practice knowledge in relation to letters of credit in China. The other is the inactive stance of nominated banks in China. There are two main problems in relation to judiciary institutions in China. First, judges in China tend to abuse the injunctions owing to the lack of understanding in relation to letters of credit. Secondly, there are inconsistency in the court ruling in China.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.45
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• pp.111-136
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• 2010

Bill of lading means the transport document ("marine", "ocean" or "port-to-port" or similar), however named, covering sea shipment only. Data in a bill of lading, when read in context with the credit, the document itself and international standard banking practice, need not be identical to, but must not conflict with, data in that document, any other stipulated document or the credit, according to UCP 600 and ISBP. This article has provided the general guideline of the discrepancies on the basis of UCP 600, ISBP 681 and the ICC Banking Commission Opinions, for the solution of the unpaid problems of the credit transactions. I have studied especially the ICC Banking Commission Opinions and the DOCDEX Decisions on the bill of lading after UCP 600, the international standard banking practice (ISBP 681), and the recent Korean cases. As such, this article would fill a need gap in the market between the general principles in the UCP provisions and the daily job of the practitioner. The credit practitioners are suggested to this resulting guidance whenever doubts arise as to how to check the credit documents in daily practice.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.64
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• pp.131-154
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• 2014

The International Standard Banking Practice for the Examination of Documents under UCP 600 (ISBP 745) is the product by the Drafting Group of the ICC Banking Commission during a number of years. ISBP 745 is a practical complement to UCP 600, ICC's universally used rules on documentary credits. ISBP 745 does not amend UCP 600. Two rules should be read in their entirety and not in isolation. ISBP 745 explains, in explicit detail, how the UCP 600 rules are to be applied on a day-to-day basis. It fills a needed gap between the general principles announced in UCP 600 and the daily work of the documentary credit practitioners. It has developed into an invaluable aid to banks, corporates, logistics and insurance companies alike, on a global basis. By using ISBP 745, document checkers can bring their practices in line with those followed by their colleagues worldwide. The result should be a significant reduction in the number of shipping documents refused for discrepancies on first presentation. This study aims to summarize the reasons for revision of the ISBP rules and the key-points of ISBP 745, and to provide the documentary credit practitioners with some considerations under its practical application.

• Journal of Arbitration Studies
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• v.14 no.1
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• pp.29-60
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• 2004

Recently stand-by credits are using as surety devices in various global business transactions including sale of goods. Stand-by credits have lots of merits but simultaneously have high possibility of improper demand by the beneficiary due to the characteristics of the documents required. So so-called fraud rule has developed as a solution to the improper demand in letter of credit transactions. And the actual way of the fraud rule is the injunction by the competent court. The purpose of this article is to examine the applicability of the injunction in stand-by credit transactions by means of case studies. For this purpose, the author examined the concept of the injunction, necessity of the injunction in stand-by credit transactions and the cases of injunction granted and injunction denied. Firstly, the courts have legal standard of the application of injunction due to the legislation of the relative articles in the United Nations Convention on Independent Guarantees and Stand-by Letters of Credit and the Uniform Commercial Code. Secondly, the courts have taken a negative attitude granting injunction in order to observe the independence principle. Thirdly, the courts have a tendency to grant injunction when the demand has no conceivable basis and the applicant will suffer irreparable injury without injunction. Finally, like the saying 'prevention is the best cure', the applicant always pays attention with reasonable care before improper demand by the beneficiary.

• Journal of the Korea Institute of Information Security & Cryptology
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• v.19 no.1
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• pp.33-42
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• 2009

Recently, there have been many researches about anonymous credential systems for supporting the user anonymity. However, these systems only hold a high security level, even though they must be able to be applied to various application that might require access control, conditional traceability, etc. As new challenges to these systems, some researches that several entities store the link information that associates identities and pseudonyms each other have been performed. In this paper, based on the oblivious transfer, we suggest a new pseudonym protocol that solves the pseudonym exhaustion problem which the original pseudonym retrieval protocol suffers from. By using the universal re-encryption and one-way function, we can also archive other requirements like the pseudonym unlinkability from the outside.

• Korea Trade Review
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• v.43 no.2
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• pp.127-157
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• 2018

This paper investigates how blockchain technology which is an innovation technology of the 4th Industrial Revolution has been settled in international trade. FinTech technology is expected to expand because a new remittance method for replacing the letter of credit has been introduced. In addition, since the purchase of individual customers makes international trade increase rapidly, more convenient FinTech technology will stand in a spotlight. Thus, we confirm that cryptocurrency use will increase in order to maintain stability and reduce risk in international transactions. However, since the legal standing of blockchain technology is now insufficient, the slow spread of FinTech technology will be made for a while.