• KDI Journal of Economic Policy
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• v.32 no.1
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• pp.27-49
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• 2010

This paper provides insight into some important features of the intergenerational resource allocation in Korea, before and after the financial crisis in 1997-98. Data sets of three periods before and after the financial crisis (1996, 2000, and 2005) were used to compare the results. This research particularly addresses two related issues: i) the generational effects of economic crisis, and ii) the capacity of age reallocation systems to spread economic risks across generations. The results show tremendous consumption smoothing and resource reallocation by age, during and after the financial crisis. Private education and private health consumption decreased for children between 1996 and 2000. However, the decrease in private education and private health consumption was mitigated by the increase in public consumption. It appears that the public sector did not only mitigate the adverse impact of the economic crisis on consumption, but it also reduced the widening disparity amongst generations. Within transfers, the public transfers for the elderly increased substantially as the private transfers decreased rapidly. Finally, there was a big increase in the asset-based reallocation of the elderly. The increase in asset-based reallocation was mainly due to an increase in asset income between 1996 and 2000, but it was almost entirely due to a decrease in saving (i.e. an increase in dissaving) between 2000 and 2005. This suggests that Korean elderly seemed to have some degree of supporting system during the crisis, even without sufficient pension benefits. The increased reliance on asset accumulation will be critical in the long-run in Korea, as public pension funds diminish due to population aging.

• The Korean Journal of Financial Management
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• v.26 no.3
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• pp.139-169
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• 2009

This paper introduces the modified VaR which takes into account the asymmetry and fat-tails of financial asset distribution, and then compares its out-of-sample forecast performance with traditional VaR model such as historical simulation model and Riskmetrics. The empirical tests using stock indices of 6 countries showed that the modified VaR has the best forecast accuracy. At the test of independence, Riskmetrics and GARCH model showed best performances, but the independence was not rejected for the modified VaR. The Monte Carlo simulation using skew t distribution again proved the best forecast performance of the modified VaR. One of many advantages of the modified VaR is that it is appropriate for measuring VaR of the portfolio, because it can reflect not only the linear relationship but also the nonlinear relationship between individual assets of the portfolio through coskewness and cokurtosis. The empirical analysis about decomposing VaR of the portfolio of 6 stock indices confirmed that the component VaR is very useful for the re-allocation of component assets to achieve higher Sharpe ratio and the active risk management.

• Korean Journal of Heritage: History & Science
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• v.44 no.3
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• pp.18-43
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• 2011

The results of study on planting and cultivate of Hong Man-Seon(1643~1715)'s 'Salimkyungjae(The Economy of Forest)' the first summative textbook of agricultural skill of South Korea, are as follows. First, 'Salimkyungjae' suggests that one can enrich oneself, eat fruits in fall, enjoy the shade of trees in summer, and enjoy flowers in spring if one plants tree with 10 year plan with knowledge of ecology. Second, the number of plants had increased continuously from the early Chosun Dynasty to the mid Chosun Dynasty. The 52 plants in the book are classified into 31 trees, 8 shrubs, 3 others, and 10 herbs, and 28 of them are fruit trees. Hence, we can see that the book is for the promotion of welfare. Third, planting(transplantation) is the best on January of the lunar calendar, and the second on February, and fertile soil should be added much. Trees must be planted as deep as once it was planted, and buttressed. It will sprout well if it is planted at the depth of one inch, and planting a cutting should be carried out at the early March with 5 inch and finger-thick branches. Grafting is the best when it begins to sprout. Fruit trees will bear many fruits if they are grafted at the direction of South, and fruits will be greater if the trees' branches are cutting off on January. Especially, January was selected for the best season of planting traditionally. Fourth, flower trees are planted or sowed with manure around January and February of the lunar calendar, and it is recommended to replant them into flowerpots with manure when having flower buds around March and April of the lunar calendar. It would bloom earlier when using water mixed with stable manure, and sulfur smoke can be used in order to change the flower color from red to white. Flowerpots would be placed at half shaded lot with being supported by bricks. Pomegranate, gardenia, camellia and four-season flower should be planted after flowers fallen. When flower trees are beside walls, they need to be rotated frequently since their branches all point toward house. Seeds need to be preserved in a sunny hut, where its entrance and ventilating openings would be at south because it is convenient to manage pots. Fifth, insects hidden at fruit trees would be destroyed by torch smoke when roosters cry on New year's day of the lunar calendar. Insects would be decoyed into straw hanged at dawn of Cheongmyeongday(淸明日). Insects on fruit trees would be controlled using sulfur powder to close up holes or sulfur smoke to fumigate. Particularly, it suggests that utilization of fertile soil would be the best solution for growing health plants and preventing pest.