• The Journal of Society for e-Business Studies
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• v.21 no.2
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• pp.81-96
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• 2016

This paper analyzes the impact of information breach on shareholder value by measuring the stock price reaction associated with the announcements of data breach. The breach firms in the sample lost, on average, 1.3% of their market value, amounting to 98.9 million won of loss within two-day of the event period after the announcement. We examine the abnormal returns in various categories (i.e., source, type, size, etc.) of information breach. Although the market does not react significantly to the announcements of outside breach, we find statistically significant market reactions to inside breach. We estimate abnormal returns over the following 60 days. The mean 60-day cumulative abnormal return and BHAR (buy-and-hold abnormal returns) are both significantly far from zero. We conclude that there is a coherent market reaction following the announcement. The difference between the market reactions to IT firms and Non-IT firms is statistically significant. But breach amount, firm size, and the year the breach occurred do not show to be significant variables.

• Information Systems Review
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• v.9 no.1
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• pp.105-120
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• 2007

With the fast development of the Internet and the increasing dependence on information infrastructures, companies are faced with various information security threats such as information leakages, modifications, and information breaches. South Korea is one of the leading countries in the Internet usage, but is ranked relatively low when it comes to information security. In fact, many Korean firms have suffered financial losses and damaged corporate images from the information security breaches. However, because of the difficulties in quantifying the costs of the information security breaches, Korean companies tend to delay their investment decisions on information security. The purpose of this study is to measure the cost of information security breach and the economic value of security investment using the event study methodology. Our results show that the announcement of an information security breach negatively influenced the market value of the corresponding company. The effect was statistically significant at the significance level of p=0.05. The breached companies lose, on average, 0.86% of their market values on the day of the announcement - an average loss in market capitalization of $55 million. On the other hand, the investment on information security had no effect on the stock price or the market value of the firm.

• Asia pacific journal of information systems
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• v.24 no.4
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• pp.531-557
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• 2014

Although the area of information security planning and management has gained an increased attention, not much discussion was available on the role and the impact of the board members towards a firm's security management and governance decisions. In this research, we draw on corporate governance and the organizational demography literature to conduct an exploratory empirical study on the association between the board structure of a firm and the possibility of information security breaches. Our results show that the board size, the average age/tenure and the heterogeneity of age could reduce the possibility of security breaches while the proportion of independent directors and the heterogeneity of tenure could increase it. Our findings shed lights on the important role played by the board when managing information security risks in organizations.

• The Journal of the Korea Contents Association
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• v.12 no.10
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• pp.169-177
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• 2012

Due to the influences of global financial crisis, countries are putting their efforts on the enhancement of appropriateness and transparency of director compensation. In several countries including Germany, the United States, the United Kingdom, France, and Italy, listed companies and financial institutions in certain levels make public announcement for compensations of individual directors, not the averages. Recently, even Asian countries including China, Hong Kong, and Singapore are introducing individual director compensation public announcement policies. On the other hand, in cases of companies, which must submit annual reports, under current Korean capital market laws and enforcement ordinances, they are obligated to mention 'total wage paid to all executives in that business year' on the annual report, but does not have to mention individual wages of each executive. About this, at the 17th national assembly, revised bill for the Securities and Exchange Act for companies to mention wages of each executive. The financial world is opposing to open individual director compensation to the public as they concern about the shrinking of outstanding human resources recruitment, breach of corporate confidence, privacy invasion, deterioration of labor-management relations, and downfall of the executive's management will as director compensation will be standardized downward; however, if public opening of individual director compensation is forced, domestic companies will prepare more objective and rational standards when they calculate director compensations, and moreover, it will prevent arbitrary intervention of dominant shareholders. Therefore, to clearly and efficiently control director compensation, we need regulations for obligating public opening of individual director compensation.

• The Korean Society of Law and Medicine
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• v.23 no.4
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• pp.3-28
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• 2022

Recently, the targets and clauses of negotiation between 'National Health Insurance Service (NHIS)' and Pharmaceutical companies has been expanded. Due to newly adopted 'Quality management clause', 'Compulsory supply maintenance clause' and 'Penalty for breach of contract clause', not only 'Ministry of Health and Wellfare (MOHW)'s 'drug listing' and 'Price cap' announcement, but also 'negotiation between NHIS and pharmaceutical companies' can be a legal sanction to the suppliers. Once secretary of MOHW order NHIS to negotiate with pharmaceutical company, NHIS notify this order to the company and enter into the negotiation. 'The order' exists in the public domain between the government (MOHW) and public institutions (NHIS) and does not constrain the legal rights of companies (Therefore companies cannot pile a lawsuit about the order). However, 'the notice' or 'negotiation' is an act which has a counterpart, can be a target of administrative litigation if the company get some disadvantages from the talks. Negotiations can be divided into four types according to "the target (whether it is listed on the insurance benefit list)" and "the purpose (whether the target is price or conditional)." In particular, negotiations on listed drugs, whose goal is to set unfavorable conditions for companies, can be illegal if there is no price. So we need to consider compensation for the company as an incentive to negotiate.

• Korean Journal of Heritage: History & Science
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• v.52 no.2
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• pp.240-253
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• 2019

Archaeological heritages are precious cultural relics and public assets that must be preserved, conserved, and shared with people all over the world. Investigating archaeological heritage is valuable and plays an important role for the public good; our ancestors' cultures can be restored, and it helps with developing a clear understanding of the cultural and social aspects of a historical period as well as teaches about historical factors unreported in the literature. One of the most basic and important conditions necessary for recognizing the value and importance of archaeological heritage investigation, expertise, and quality improvement is to establish detailed criteria for investigation services and the qualification examination of archaeological heritage. Observation of detailed criteria and the qualification examination of archaeological heritage can partially demonstrate society's recognition of strengthening transparency, public property, and the objectivity of the investigation of archaeological heritage. However, the detailed criteria for investigation services and the qualification examination of archaeological heritage currently implemented as administrative rules are neither followed by all institutes in the public and private sectors nor the government. Thus, there are serious problems in terms of the effectiveness and stability of institutions. The detailed criteria for the qualification examination breach the principle of statutory reservation, the principle of statutory regulation, and regulations on the announcement and management of orders and rules. Non-compliance with compensation criteria for investigation services or with detailed criteria for the qualification examination of archaeological heritage will be one of the reasons for the failure of the investigation foundation for archaeological heritage in the future. That is, it will result in the expansion, reproduction, and repetition of a vicious cycle of conflict between developers, who are the decision-makers responsible for selecting an investigating organization for archaeological heritage and determining the cost, and investigating organizations. This includes the impractical shortening of investigation periods and reducing costs by developers, distrust of the values and the importance of investigations of archaeological heritage, a decrease in quality, accidents caused by a lack of safety, a lack of occupational ethics, and non-recruitment of new experts, etc. Therefore, it is necessary to change the structure from a vicious cycle to a virtuous cycle, and promote the enactment of regulations that will ensure effectiveness and stability in the process of attaining the goals of the institution and application of the institution, as well as the continuous advancement of work to fill the gaps with reality.