• KDI Journal of Economic Policy
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• v.37 no.2
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• pp.64-97
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• 2015

This paper studies a series of capital market promotion policies Korea pursued over a 30-year period during its development era (1960s - 1980s). The purpose of this paper is twofold. The first purpose is to understand the policy approaches Korea took, and the second is to extract lessons that can benefit policymakers in the developing world, where capital market promotion is an important policy goal. There are two key features of Korea's capital market promotion policies. First, the government was actively involved, sometimes indirectly by giving tax incentives to encourage IPOs. However, in other times, it was directly involved by giving IPO orders and threatening those that did not comply. No stock exchange in a developed country has ever experienced such government involvement. Combined with rapid economic growth, this interventionist approached allowed the Korean stock market to experience phenomenal growth over a short period of time. Second, the capital market promotion policies had multiple objectives. One was to mobilize domestic capital for economic development. Another was to lower firms' debt-to-equity ratios. Most interestingly, however, the Korean government wanted to popularize stock ownership, thereby allowing ordinary Koreans to share in the fruits of economic growth.

• The Journal of Information Systems
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• v.30 no.1
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• pp.65-84
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• 2021

Purpose Based on the development of artificial intelligence and big data technologies, the RegTech has been emerged to reduce regulatory costs and to enable efficient supervision by regulatory bodies. The word RegTech is a combination of regulation and technology, which means using the technological methods to facilitate the implementation of regulations and to make efficient surveillance and supervision of regulations. The purpose of this study is to describe the recent adoption of RegTech and to provide basic examples of applying RegTech to capital market regulations. Design/methodology/approach English-based ontology and deep learning technologies are quite developed in practice, and it will not be difficult to expand it to European or Latin American languages that are grammatically similar to English. However, it is not easy to use it in most Asian languages such as Korean, which have different grammatical rules. In addition, in the early stages of adoption, companies, financial institutions and regulators will not be familiar with this machine-based reporting system. There is a need to establish an ecosystem which facilitates the adoption of RegTech by consulting and supporting the stakeholders. In this paper, we provide a simple example that shows a procedure of applying RegTech to recognize and interpret Korean language-based capital market regulations. Specifically, we present the process of converting sentences in regulations into a meta-language through the morpheme analyses. We next conduct deep learning analyses to determine whether a regulatory sentence exists in each regulatory paragraph. Findings This study illustrates the applicability of RegTech-based ontology and deep learning technologies in Korean-based capital market regulations.

• Management & Information Systems Review
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• v.28 no.3
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• pp.161-189
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• 2009

The sub-prime crisis led to the collapse of US investment banks which were considered highly competitive during the Asian Financial Crisis. The event gave us a lesson on importance of the financial supervision. Additionally concerns rise over the fact that the role model of the Capital Market Law, created for the purpose of developing the capital market, is the US investment banks. This paper investigates if the prudential regulations, among them especially the capital regulation, are able to prevent the risk the arises from Korean financial firms operating investment bank business. The current capital requirement regulation, Net Capital Ratio(NCR), is not sufficient, because it's nature of being a ratio makes the NCR ineffective when assets and liabilities are concurrently rising. We also verified the internal model which measured the market risk, by comparing the US investment and Korean banks' diversification effect. The result of the test is that it is difficult to conclude the internal model has a critical defect. This paper's contribution is that it is not sufficient use only the capital regulation in supervising financial markets.

• Knowledge Management Research
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• v.23 no.1
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• pp.89-109
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• 2022

Due to COVID-19 and soaring participation of individual investors, large-scale transactions exceeding system capacity limits have been reported frequently in the capital market. The capital market IT systems, which the impact of system failure is very critical, have encountered unexpectedly tremendous transactions in 2020, resulting in a sharp increase in system failures. Despite the fact that many companies maintained large-scale system capacity planning policies, recent transaction influx suggests that a new approach to capacity planning is required. Therefore, this study developed capital market IT system capacity planning models using machine learning techniques and analyzed those performances. In addition, the performance of the best proposed model was improved by using sentiment index that can promptly reflect the behavior of investors. The model uses empirical data including the COVID-19 period, and has high performance and stability that can be used in practice. In practical significance, this study maximizes the cost-efficiency of a company, but also presents optimal parameters in consideration of the practical constraints involved in changing the system. Additionally, by proving that the sentiment index can be used as a major variable in system capacity planning, it shows that the sentiment index can be actively used for various other forecasting demands.

• Asia pacific journal of information systems
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• v.11 no.3
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• pp.185-208
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• 2001

A growing number of firms are competitively entering into e-business because they see the high potential of e-business growth as an opportunity. The positive expectation of e-business market leads most firms to go into e-business, but it is not clarified what kinds of benefits firms gain through e-business. In this paper, we examine whether firms' economic benefits are related to e-business activities. For this purpose, we employ event study methodology and assess the cumulative abnormal returns for 782 e-business initiatives made by firms listed in Korean capital markets. The well-known "Dot Com Effect" is empirically verified through this study. The results of this study indicate that the e-business potential is highly evaluated in the capital market, and e-business firms are expected to create significant benefits in the future period.

• The Journal of Information Systems
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• v.25 no.1
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• pp.201-223
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• 2016

Purpose As social network games (SNG) enjoy rapid growth in the market and become a major sector of the gaming industry, it is of great interest to examine the how users continuously use SNG. In SNG, the users' social interaction is the most prominent advantage of the social network, as well as the entertainment afforded by the game. This study explores the relationship between altruism, which is considered the most prominent characteristic of SNS, and the continuance usage intention, as well as the moderating role of social capital. Based on social capital theory and organizational citizenship behavior, this research model considers social bonding and bridging that are divided by social capital. Design/methodology/approach An AMOS analysis based on survey data from 223 SNG users indicated that SNG with greater altruism enhance social capital (social bonding, social bridging), which is related to the user's satisfaction and the continuance intention of SNG. Findings Social bonding is positively related to the user's satisfaction with SNG. In other words, social bridging positively affects the continuous usage intention of SNG. These findings help managers in developing and implementing altruistic relationships and social capital for continuous usage of SNG.

• The Journal of Fisheries Business Administration
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• v.34 no.2
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• pp.1-25
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• 2003

During the past 100 years, Korean fisheries management policies have enforced the license system, it is the most typical regulation system in Korean fisheries. Even now, it has caused resource management failure, it has also invited economic inefficiency and inequity. Accordingly, the Korean government has recently introduced the self-regulatory management system for fishermen with the TAC system. These systems are one of the most market-oriented regulation systems in fisheries management systems. It is defined as regulatory policy tools other than regulations with command and control approach. It is also called “alternatives” which is composed of regulatory alternatives and non-regulatory alternatives. The self-regulatory management system and the ITQ system are cooperative-based co-management between government and fishermen as an alternative management strategy ; it is gaining the increasing attention to improve the effectiveness of fisheries management in Korea. It is expected not only to positively improve function in fisheries regulation, but also to decrease inefficiency in fisheries policies. However, these systems have many problems. The monopolization of rent is one of the typical examples. As solutions for the problem in the aspect of fishery management, fisheries policy is need of approach to industrial organization. For instance, Contestable market theory is one of the good theoretical background, it mean that market is able to free entry and free exit. Thus, fisheries management carry out policies such as revitalization of the used market of capital goods in fisheries, organize of the self-regulatory management group. Conclusively, as the exploiters and managers, fishers and the government should put emphasis on improving economic efficiency so that fishery would grow as an industry that contributes to the increase of social welfare, and the change to that direction will be the only way for our fisheries to preserve its importance.

• The Journal of Asian Finance, Economics and Business
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• v.4 no.3
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• pp.5-17
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• 2017

This study extends research into whether disclosure of corporate and financial information is associated with firms' costs of equity capital. This study sets out to examine empirically the determinants of corporate disclosure in the annual reports of 37 largest and most liquid firms listed on Kazakhstan Stock Exchange (KASE) in Kazakhstan. It also reports the results of the association between company-specific characteristics and disclosure of the sample companies. Based on the analysis of existing empirical research, the disclosure index has been constructed and regression analysis of the influence of the disclosure index on the cost of equity capital has been conducted. The obtained results show that the received findings correlate with foreign empirical studies, and the disclosure index in this sample has a negative impact on the cost of equity capital. Using cost of equity capital estimates derived from capital asset pricing model, we find that firms with higher levels of financial transparency are associated with significantly lower costs of equity capital. Economic theory assumes that by increasing the level of corporate reporting, firms not only increase their stock market liquidity, but also decrease the investors' estimation risk, arising from uncertainty about future returns and payout distributions. The results show that firms on the Kazakhstan market can reduce their cost of equity capital by increasing the level of their voluntary corporate disclosures.

• Journal of Korea Society of Industrial Information Systems
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• v.17 no.7
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• pp.127-138
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• 2012

Unlike the first generation of Korean Wave (Hallyu 1.0), which mainly refers to the exports of Korean TV dramas via broadcasting systems, the New Korean Wave (Hallyu 2.0) era has been brought by K-pop (Korean popular music) via the rapid growth of social media. The purpose of this study is to understand the impact of this significant shift in media on global fans and their way of adopting Korean cultural goods from a social capital perspective, in order to draw some implications for the current Korean content industries. Most global fans of K-pop are young and use social media to access digital content and share their opinions spontaneously. SNS providers such as YouTube and Facebook not only act as information providers to usher the fans to online music retailers; but also function as links between these fans and cultural producers by turning bonding social capital into bridging social capital. Telecommunication and advertising companies participate in this market as a third party by providing funds for supporting digital circulation and distribution. In this multi-sided market with the interdependent agents, it is extremely important to secure a platform that leads the evolution of its business ecology. Without owning the platform, there is also a very little chance to produce linking social capital as a means to maximize the impact of New Korean Wave.

• KIEE International Transactions on Power Engineering
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• v.11A no.4
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• pp.39-44
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• 2001

As electric power systems have been moving from vertically integrated utilities to a deregulated environment, the charging of reactive power management is a new challenging them for market operators. This paper proposes a new methodology to compute the costs of providing reactive power management service in a competitive electrical power market. The proposed formulation, which is basically different from those shown in the literature, consists of two parts. One is to recover investment capital costs of reactive power supporting equipment based on a reactive power flow tracing algorithm. The other is to recover operational costs based on variable spot prices using the optimal power flow algorithm. The charging shapes resulted from the proposed approach exhibit a quite good meaning viewed from a practical sense. It turns out that reactive power charged are mostly due to recovery of capital costs and slightly due to recovery of operational costs. The methods can be useful in providing additional insight into power system operation and can be used to determined tariffs of a reactive power management service.