• Communications for Statistical Applications and Methods
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• v.29 no.1
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• pp.85-101
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• 2022

Derivative-linked securities (DLS) is a type of derivatives that offer an agreed return when the underlying asset price moves within a specified range by the maturity date. The underlying assets of DLS are diverse such as interest rates, exchange rates, crude oil, or gold. A German 10-year bond rate-linked DLS and a USD-GBP CMS rate-linked DLS have recently become a social issue in Korea due to a huge loss to investors. In this regard, this paper accounts for the payoff structure of these products and evaluates their prices and fair coupon rates as well as risk measures such as Value-at-Risk (VaR) and Tail-Value-at-Risk (TVaR). We would like to examine how risky these products were and whether or not their coupon rates were appropriate. We use Hull-White Model as the stochastic model for the underlying assets and Monte Carlo (MC) methods to obtain numerical results. The no-arbitrage prices of the German 10-year bond rate-linked DLS and the USD-GBP CMS rate-linked DLS at the center of the social issue turned out to be 0.9662% and 0.9355% of the original investment, respectively. Considering that Korea government bond rate for 2018 is about 2%, these values are quite low. The fair coupon rates that make the prices of DLS equal to the original investment are computed as 4.76% for the German 10-year bond rate-linked DLS and 7% for the USD-GBP CMS rate-linked DLS. Their actual coupon rates were 1.4% and 3.5%. The 95% VaR and TVaR of the loss for German 10-year bond rate-linked DLS are 37.30% and 64.45%, and those of the loss for USD-GBP CMS rate-linked DLS are 73.98% and 87.43% of the initial investment. Summing up the numerical results obtained, we could see that the DLS products of our interest were indeed quite unfavorable to individual investors.

• Journal of Environmental Science International
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• v.16 no.7
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• pp.839-845
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• 2007

It is necessary to draw up many plans to solve problems in the management of groundwater resources in Jeju Island while systematically develop and utilize water resources at an optimal level. It also seems to an evitable option to establish Groundwater Management Areas in Jeju Island. The excess use of groundwater could be discouraged by imposing charges on those licenses. Such policy as allowance trading system do not appear to be because of transaction costs, but could be applied if only were accompanied by complementary method. The methods of using and conserving the limited resources of groundwater should be founded through socially agreeable and appropriate ways. The policy complemented allowance trading system by Pigouian tax could be effective to regulate licenses. This is cutting the numbers of licenses at a constant rate, imposing charges on those who want to continue using licenses, and reimbursing in cash to those who return the licenses.

• KIEAE Journal
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• v.12 no.6
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• pp.63-68
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• 2012

The aim of this study is to evaluate current policies and suggest the way of overcome financial impediments to the energy efficiency function of residential buildings. Based on this analysis the paper enumerates policy recommendations for enhancing how energy efficiency is addressed in building codes and other policies for residential buildings. For achieving this goal, this study conducts the cost-benefit analysis to measure total energy savings and associated total cost. The results of study shows that the cost is greater than the benefit from 1st to 4th year but the benefit will be greater than the cost for the rest of the year. In addition, this study designs a financial support method and an implementation mechanism. Investment from the capital market will take place with the government's interest subsidy. Home retrofit will be undertaken with low interest rate with 2.5% and the return will be paid by a monthly energy bill. The results of this study provides some useful insights for the policy design, including the importance of developing information tools for providing appropriate information to households.

• Journal of Korean Foot and Ankle Society
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• v.23 no.3
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• pp.83-90
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• 2019

Achilles tendon rupture is a common sports injury encountered in younger populations. Various treatment methods are used for acute and chronic rupture. Several treatments for each condition are available, each having their advantages and disadvantages. In an acute rupture, surgical treatment may be a priority for younger patients or those wishing a quick return to play, but the long-term functional outcome is similar to non-surgical treatment. In addition, the re-rupture rate shows a slight difference between the two treatments. The clinical outcomes are similar regardless of the surgical treatment, but an accelerated rehabilitation program should be accompanied by good results. In chronic and neglected rupture, surgical treatment is preferred over non-surgical treatment. Treatments are chosen based on the size of the tendon defect. This article reviews the current updates in the treatment of Achilles tendon rupture that will help clinicians choose the appropriate treatment.

• Journal of Technology Innovation
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• v.7 no.2
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• pp.1-20
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• 1999

This paper investigates the effects of various R&D investments on economic growth empirically. To this end, the relationships between various R&D investments and economic growth are analysed, and the rates of return of R&D investments are estimated. Furthermore, the effect of government R&D investment on private sector R&D investment, and the effect of social factors, which affect the relationship between the R&D inputs and economic growth, are analysed. Based on the results of this analysis, a simulation model is developed, which shows the relationship between R&D investments and economic growth rate; this model is verified by analysing the correlation between the actual and the estimated economic growth rate, using the data between 1981 and 1995 of eight selected countries. The validation results show that the simulation model has sufficient accuracy to be used for evaluating and proposing R&D policies for the countries for which appropriate data is available. However, the time-lag effect, which is naturally believed to exist between the R&D input and the economic growth, could not be analysed in a mathematical form, because of the lack of the data to establish this relationship. Thus, when estimating the relationship between them, the time-lag effect in this relationship was included implicitly by using the data of fifteen years.

• Journal of Korean Society on Water Environment
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• v.26 no.5
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• pp.740-746
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• 2010

Rainwater has been used in many countries as a way of minimizing water availability problems. Rainwater harvesting system (RHS) has been successfully implemented as alternative water supply sources even in Korea. Although RHS is an effective alternative to water supply, its efficiency is often heavily influenced by temporal distribution of rainfall. Since natural precipitation is a random process and has probabilistic characteristics, it will be more appropriate to describe these probabilistic features of rainfall and its relationship with design storage capacity as well as supply deficit of RHS. This study presents the methodology to establish the relationships between storage capacities and deficit rates using probability distributions. In this study, the real three-story building was considered and nine scenaries were developed because the daily water usage pattern of the study one was not identified. GEV, Gumbel and the generalized logistic distribution ware selected according to the results of Kolmogorov-Smirnov test and Chi-Squared test. As a result, a set of curves describing the relationships under different exceedance probabilities were generated as references to RHS storage design. In case of the study building, the deficit rate becomes larger as return period increases and will not increase any more if the storage capacity becomes the appropriate quantity. The uncertainties between design storage and the deficit can be more understood through this study on the probabilistic relationships between storage capacities and deficit rates.

• Journal of Korea Port Economic Association
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• v.34 no.1
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• pp.99-110
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• 2018

This study empirically examines simple methodology to quantify the risk resulted from the uncertainty of bunker price and foreign exchange rate, which cause main resources of the cost in shipping industry during the periods between $1^{st}$ of January 2010 and $31^{st}$ of January 2018. To shed light on the risk measurement in cash flows we tested GBM(Geometric Brownian Motion) frameworks such as the model with conditional heteroskedasticity and jump diffusion process. The main contribution based on empirical results are summarized as following three: first, the risk analysis, which is dependent on a single variable such as freight yield, is extended to analyze the effects of multiple factors such as bunker price and exchange rate return volatility. Second, at the individual firm level, the need for risk management in bunker price and exchange rate is presented as cash flow. Finally, based on the scale of the risk presented by the analysis results, the shipping companies are required that there is a need to consider what is appropriate as a means of risk management.

• Journal of Korean Academy of Fundamentals of Nursing
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• v.20 no.4
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• pp.372-380
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• 2013

Purpose: This study was done to investigate nurses' perceived importance of, and performance of intravenous fluid therapy. Methods: Data were collected from a convenience sample of 234 nurses (return rate: 93%) working in 3 small-medium general hospitals. Results: The score for perceived importance of intravenous fluid therapy ($3.65{\pm}0.37$) was higher than that of performance ($3.45{\pm}0.39$). There were positive correlations between perceived importance and performance (r=.576, p<.001). There were 180 (80.8%) errors in intravenous fluid therapy. Perceived importance and performance scores were higher in nurses who had not experienced medication errors in intravenous fluid therapy. Conclusion: The results indicate a need to develop appropriate strategies to improve perceived importance and performance and enhance safety management during intravenous fluid therapy for nurses in small-medium general hospitals.

• Korean Journal of Air-Conditioning and Refrigeration Engineering
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• v.27 no.1
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• pp.50-56
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• 2015

Korea district heating systems have mainly used setting temperature control and outdoor reset control. Different from such conventional normal methods, a thermal-load control proposed in Sweden can decrease the return temperature and reduce pump power consumptions because the control is able to provide the appropriate amount of required heat. In this study, further improved predictive optimal control in addition to the conventional controls were simulated in order to verify its effect in district heating system using TRNSYS 17. $200m^2$ apartment housing which accounts for 25% in Korea and is used as a calculation model;. the number of households in the simulation was 9. As a result, a higher temperature difference and decreasing flow rate at primary loop were shown when using thermal-load control.

• Journal of Korea Technology Innovation Society
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• v.11 no.2
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• pp.241-263
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• 2008

Within any income approach, a discount rate is used to convert some projected free cash flow to its presented value. In case of valuing companies, the most frequently used discount rate is the weighted average cost of capital(WACC) at the aggregate level. But technology valuation is different to discounting aggregate corporate cash flow since it is concerned about individual Intellectual property. Therefore, blindly applying standard discount rate such as WACC in technology valuation is unlikely to lead to the right result. The primary focus of this paper is to establish the structure of discount rate for technology valuation and to suggest the method of estimation. To determine an appropriate discount rate for technology valuation, the level of technology risk, market risk and competitive risk should be included in the structure of discount rate. This paper suggests the build-up model which consists of three components as a expansion of the CAPM. It includes (1) a risk-free rate of return, (2) general market risk premium and beta and (3) intellectual property risk premium related to technology risk and specific target market risk. However, there is no specific check list for examining the intellectual property risk until now and no specific method for quantifying its risk into risk premium. This paper developed the 10 element to determine the level of the intellectual property risk and applied estimation function such as linear function, natural log function and exponential function to transform the level of risk into risk premium. The limitation of this paper is that the range of intellectual property risk premium is inferred based on the information of foreign and domestic valuation agency. Finally, this paper explored the development of an intellectual property discount rate for technology valuation and presented the method in order to quantify the intellectual property risk premium.