• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.9 no.1
• /
• pp.119-132
• /
• 2014

This study analyzed the failure prediction model of the firms listed on the KOSDAQ by considering whether there are embezzlement, malpractice and the largest shareholder changes or not. This study composed a total of 166 firms by using two-paired sampling method. For sample of failed firm, 83 manufacturing firms which delisted on KOSDAQ market for 4 years from 2009 to 2012 are selected. For sample of normal firm, 83 firms (with same item or same business as failed firm) that are listed on KOSDAQ market and perform normal business activities during the same period (from 2009 to 2012) are selected. This study selected 80 financial ratios for 5 years immediately preceding from delisting of sample firm above and conducted T-test to derive 19 of them which emerged for five consecutive years among significant variables and used forward selection to estimate logistic regression model. While the precedent studies only analyzed the data of three years immediately preceding the delisting, this study analyzes data of five years immediately preceding the delisting. This study is distinct from existing previous studies that it researches which significant financial characteristic influences the insolvency from the initial phase of insolvent firm with time lag and it also empirically analyzes the usefulness of data by building a firm's fail prediction model which considered embezzlement/malpractice and the largest shareholder changes as dummy variable(non-financial characteristics). The accuracy of classification of the prediction model with dummy variable appeared 95.2% in year T-1, 88.0% in year T-2, 81.3% in year T-3, 79.5% in year T-4, and 74.7% in year T-5. It increased as year of delisting approaches and showed generally higher the accuracy of classification than the results of existing previous studies. This study expects to reduce the damage of not only the firm but also investors, financial institutions and other stakeholders by finding the firm with high potential to fail in advance.

• The Journal of the Korea Contents Association
• /
• v.9 no.7
• /
• pp.325-332
• /
• 2009

The Korean real estate transaction makes a contract after the buying and selling person concerned agreed a business condition. As for vendee, business consists of the method that I issue documents before provision and money left over provision and the registration at the same time, and register a contract deposit in vendor. However, it latent for the real estate transaction various accidents such as fraud from a contract day to time to finish a real estate registration transfer, embezzlement, double contract by the breach of trust. Nevertheless vendee comes to match vendor by an asymmetry of the information one-sidedly to the front completing a registration transfer. I may prevent stellionate by the breach of trust of vendor if I use an ESCROW system in such a responsibility blank state.

• Korean Security Journal
• /
• no.56
• /
• pp.165-185
• /
• 2018

Because financial industry is closely related to the daily lives of people, internal fraud such as embezzlement by the employees can cause serious damage to the national economy, including credit crunch and contagious bankruptcy, as once demonstrated in the Savings Bank Scandal in 2011. Therefore, the importance of financial industry security is being emphasized and developed into converged security that combines physical, human and cyber security. In this study, to prevent fraud caused by internal employees in Korean financial sector, in-depth semi-structured interviews were conducted with a total of 16 participants including bankers, officials of financial regulators, and security experts, who were in charge of risk management in the industry. The collected data were analyzed at three stratification levels such as individual, organization, and socio-cultural factor. Based on this analysis, policy recommendations were suggested for the development of financial industry security and reducing internal fraud in banking institutions.

• Journal of Digital Convergence
• /
• v.18 no.7
• /
• pp.157-166
• /
• 2020

This study examines the status of major corruption in the public and private sectors in Korea. This study adopts the secondary data analysis method, and uses 'The Status of Corruption in Korean Society' released by Ipsos in March 2019. The annual difference analysis is conducted to examine the trend of major corruption, and the results are as follows. First, in the public sector, the number of conspicuous crimes, such as bribery, has decreased, but intelligent crimes that are not easily detected, such as abuse of authority, are increasing. In the private sector, embezzlement was on the decline, but breach of trust remained at a certain level. Second, from 2003 to 2017, the average annual change rate of major corruption in the public sector was 8.0%, while the private sector was 1.8%. Third, the public sector has seen a slight increase in corruption except in 2015, but the private sector has been declining since 2014. This study is different as it makes academic contributions by offering three anti-corruption measures; changing the culture of high power distance, changing the culture of low corruption perception, and abolishing the culture of impunity. Empirical studies using primary data that separate the two groups are required.