• Journal of Korea Society of Industrial Information Systems
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• v.29 no.2
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• pp.119-131
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• 2024

In recent years, there has been a significant growth in loan comparson services offered by fintech platforms in South Korea. However, it has been reported that loan comparison platform users tend to have a higher risk of default compared to non-users. This paper investigates the difference in platform-specific credit risk factors using survival analysis models - Kaplan-Meier curves and Accelerated Failure Time (AFT) model. Our findings show that, relative to non-users, users of loan comparison platforms are characterized by elevated default rates, a greater propensity for home ownership, lower credit scores, and shorter loan durations. Furthermore, our AFT models elucidate the variance in default risk among the various loan comparison service platforms, highlighting the imperative for customized strategies that address the unique risk profiles of customers on each platform.

• Industry Promotion Research
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• v.9 no.2
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• pp.197-205
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• 2024

This study examines the impact of corporate ESG performance on debt default risk using a sample of Chinese A-share listed.The I mpact of ESG Performance on Debt Default Risk of Heavy Polluter Firms from 2012 to 2022. The findings show that good ESG performance can effectively reduce firms' debt default risk. Further analysis shows that firms' ESG performance reduces debt default risk by mitigating the impact of financing constraints. This study explores the influencing factors of debt default risk from the perspective of ESG performance, and also enriches the research on the economic impact of corporate ESG performance, providing empirical evidence for the prevention of corporate debt default risk.

• Journal of Family Resource Management and Policy Review
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• v.26 no.3
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• pp.19-34
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• 2022

There are growing concerns about debt insolvency among youth and low-income households. The deterioration in household debt quality among young people is due to a combination of sluggish employment, an increase in student loan burden and an increase in high-interest loans from the secondary financial sector. The purpose of this study was to explore the possibility of household debt default among young borrowers in Korea and to predict the factors affecting this possibility. This study utilized the 2021 Household Finance and Welfare Survey and used random forest algorithm to comprehensively analyze factors related to the possibility of default risk among young adults. This study presented the importance index and partial dependence charts of major determinants. This study found that the ratio of debt to assets(DTA), medical costs, household default risk index (HDRI), communication costs, and housing costs the focal independent variables.

• The Journal of Society for e-Business Studies
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• v.23 no.3
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• pp.207-224
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• 2018

In this article, an empirical study was conducted by using public dataset from Lending Club Corporation, the largest online peer-to-peer (P2P) lending in the world. We explore significant predictor variables related to P2P lending default that housing situation, length of employment, average current balance, debt-to-income ratio, loan amount, loan purpose, interest rate, public records, number of finance trades, total credit/credit limit, number of delinquent accounts, number of mortgage accounts, and number of bank card accounts are significant factors to loan funded successful on Lending Club platform. We developed online P2P lending default prediction models using discriminant analysis, logistic regression, neural networks, and decision trees (i.e., CART and C5.0) in order to predict P2P loan default. To verify the feasibility and effectiveness of P2P lending default prediction models, borrower loan data and credit data used in this study. Empirical results indicated that neural networks outperforms other classifiers such as discriminant analysis, logistic regression, CART, and C5.0. Neural networks always outperforms other classifiers in P2P loan default prediction.

• Korean Journal of Construction Engineering and Management
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• v.12 no.2
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• pp.121-132
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• 2011

One of the advantages of BOT PF(Project Finance) is the government can be protected from risks involved in projects as the private finances, builds, and operates relevant projects. Moreover, the private may avoid outstanding responsibility in case of default thanks to BOT PF's unique financial structure and characteristics. However, despite increasing attention on risk mitigation effect of financial structure and characteristic of BOT PF to default risk with emerging controversies of capital crunch, introduction of IFRS, and contingent liabilities, valuation of default risk mitigation effect caused by financial structure and characteristics of BOT PF still seems sophisticated due to uncertain cash flows, complexly layered contracts, and their interaction. So, this paper is to show the theoretical frame to assess the default risk mitigation effect of financial structure and characteristic of BOT PF with option pricing and related financial economic theories and to provide some meaningful implications. Finally, this research shows that the financial structure and characteristics of BOT PF help mitigate the default risk and default risk mitigation effect increases as change of relevant variables on financial feasibility gets the BOT project less financially feasible.

• Journal of Intelligence and Information Systems
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• v.29 no.3
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• pp.419-437
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• 2023

As the number of thin filers in Korea surpasses 12 million, there is a growing interest in enhancing the accuracy of assessing their credit default risk to generate additional revenue. Specifically, researchers are actively pursuing the development of default prediction models using machine learning and deep learning algorithms, in contrast to traditional statistical default prediction methods, which struggle to capture nonlinearity. Among these efforts, Graph Neural Network (GNN) architecture is noteworthy for predicting default in situations with limited data on thin filers. This is due to their ability to incorporate network information between borrowers alongside conventional credit-related data. However, prior research employing graph neural networks has faced limitations in effectively handling diverse categorical variables present in credit information. In this study, we introduce the Transformer embedded Graph Convolutional Network (TeGCN), which aims to address these limitations and enable effective default prediction for thin filers. TeGCN combines the TabTransformer, capable of extracting contextual information from categorical variables, with the Graph Convolutional Network, which captures network information between borrowers. Our TeGCN model surpasses the baseline model's performance across both the general borrower dataset and the thin filer dataset. Specially, our model performs outstanding results in thin filer default prediction. This study achieves high default prediction accuracy by a model structure tailored to characteristics of credit information containing numerous categorical variables, especially in the context of thin filers with limited data. Our study can contribute to resolving the financial exclusion issues faced by thin filers and facilitate additional revenue within the financial industry.

• Korea Real Estate Review
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• v.28 no.3
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• pp.21-35
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• 2018

The recent performance of residential mortgages demonstrated how default risk operated separately from prepayment risk. In this study, we investigated the determinants of the borrowers' decisions pertaining to early termination through default from the mortgage performance data released by Freddie Mac, involving securitized mortgage loans from January 2011 to September 2013. We estimated a Cox-type, proportional hazard model with a single risk on fundamental factors associated with default options for individual mortgages. We proposed a mortgage default model that included two specifications of delinquency: one using a delinquency binary variable, while the other using a delinquency probability. We also compared the results obtained from two specifications with respect to goodness-of-fit proposed in the spirit of Vuong (1989) in both overlapping and nested models' cases. We found that a model with our proposed delinquency probability variable showed a statistically significant advantage compared to a benchmark model with delinquency dummy variables. We performed a default prediction power test based on the method proposed in Shumway (2001), and found a much stronger performance from the proposed model.

• Korean Journal of Construction Engineering and Management
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• v.23 no.2
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• pp.65-75
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• 2022

On 11 June 2021, the Supreme Court ruled that the judgment of the lower court was justified for the subject case, that the plaintiff could assert the defendant's liability for default due to incomplete performance even though the warranty period for defects which stipulated in the particular condition of the contract has expired. In Korean civil law, the concurrent between the exclusion period for defect warranty and the extinctive prescription for default liability is conceded, since the exclusion period and the extinctive prescription have their respective purposes in law, therefore these two should be judged by harmonizing them based on that they are mutually related. If the subject judgment is generalized, there is no reason to exist for the provisions of defect liability in the construction contract any longer. This study examines the subject judgments through the general theory and precedent case studies on the defect liability and default liability, then derived any problems that may arise if the subject judgment is generalized. In addition, based on a realistic model, it was suggested for a practical improvement method that both the provisions of the warranty period shall be changed realistic and to stipulate the character of its nature as written provisions in the contract.

• Korean Journal of Construction Engineering and Management
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• v.2 no.4 s.8
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• pp.69-79
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• 2001

Characteristics of Contactor's Defect Liability was too many discussed. But it's not clearly defined yet. Because recent Government Construction Projects are very complex and executed through long time, too many conflicts were appeared related to Contactor's Defect Liability. Therefore to analyse and to resolve the conflicts legal aspects of Contactor's Defect Liability stated in Civil Law and Government Contract Act was systematically compared. The result of this research is as follows : (1) Characteristic of Contactor's Defect must be regarded as a breach of Contract and be an incomplete contract implementation. (2) To decide the range of Damage, Characteristic of Defect must be regarded. (3) Contactor's Defect Liability must be effectual from the day of delivery. (4) Retainage must be added to secure the completion during the Contract Period and Defect Repairing Liability must be omitted in the Contract performance Security.

• The Korean Journal of Air & Space Law and Policy
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• v.35 no.2
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• pp.113-136
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• 2020

Worldwide, so-called 'over-booking' of Air Carriers is established in practice. Although not invalid, despite their current contracts, passengers can be refused boarding, which can hinder travel planning. The Korean Supreme Court ruled that an airline carrier who refused to board a passenger due to over-booking was liable for compensation under the "Nonperformance of obligation". But what the court should be thinking about is when the benefit(transport) have been disabled. Thereforeit may be considered that the impossibility of benefit (Transport) due to the rejection of boarding caused by 'Over-booking' may be not the 'subsequent impossibility', but not the 'initialimpossibility '. The legal relationship due to initial impossibility is nullity (imposibilium nulla est obligation). When benefits are initial impossibile, our civil code recognizes liability for damages in accordance with the law of "Culpa in Contrahendo", not "nonperformance of obligation". On this reason, the conclusion that the consumer will be compensated for the loss of boarding due to overbooking by the Air Carrier is the same, but there is a need to review the legal basis for the responsibility from the other side. However, it doesn't matter whether it is non-performance or Culpa in Contrahendo. Rather, the recognition of this compensation is likely to cause confusion due to unstable contractual relationships between both parties. Even for practices permitted by Air Carriers, modifications to current customary overbooking that consumers must accept unconditionally are necessary. At the same time, if Air Carriers continue to be held liable for non-performance of obligations due to overselling tickets, it can be fatal to the airline business environment that requires overbooking for stable profit margins. Therefore, it would be an appropriate measure for both Air Carriers and passengers if the Air Carrier were to be given a clearer obligation to explain (to the consumer) and, at the same time, if the explanation obligation is fulfilled, the Air Carrier would no longer be forced to take responsibility for overbooking.