• Information Systems Review
• /
• v.10 no.3
• /
• pp.89-109
• /
• 2008

Korean card firms suffered harsh setbacks due to high credit defaults in 2002 and 2003, after issuing cards recklessly. Their key principle is changed to grow without damaging profitability and financial soundness. However, competition in the credit card market is heating up rapidly. Bank-affiliated card firms, having stronger sales networks and more capital than independent issuers, have increased their investments in card affiliates in a bid to develop new cash cows. Moreover, newly emerging independent card firms have waged fiercer campaigns to raise their credit card market share. In order to overcome these business conditions, S-card has settled on a strategy that focuses on stepping up marketing aimed at increasing charge card spending rather than credit card loans or cash lending services. Accordingly, S-card reformed the current business classification system of merchants, which was out-of-dated and originally built for the purpose of deciding merchant service fees only. They also drove customer segmentation planning to deliver the right customers to the right merchants. In this paper, we emphasize the problems of business classification systems of merchants with which most credit card firms have faced, and the need for reforming them not only to provide customer-tailored services but also to raise their business promotion excellence by reviewing S-card's process of customer segmentation.

• Journal of Digital Convergence
• /
• v.11 no.12
• /
• pp.61-67
• /
• 2013

The B2B e-commerce assurance system supports e-commerce purchases by Credit Guarantee Fund. This process seeks to replace a variety of current systems, including B2C, the credit card payment method on B2B, 2001 Credit Guarantee Fund and the Bank, logistics, e-MP (Market Place), and Business-to-business e-MP (business-to-business electronic payment settlement system). Over the past 10 years of its operation, the e-MP service (B2B e-commerce electronic payment systems) has contributed much to the growth of SMEs. The development of business-to-business e-commerce transactions systems and limits have provided a stable purchasing platform, improving corporate competitiveness. However. the project-based scale of credit guarantee institutions has limitations. To overcome these limitations, we propose a new model of direct or indirect government support for small business e-MP projects. This new model will support the B2B electronic commerce by allowing it to directly involve guarantee institutions directly in B2B online transactions. Therefore, this study urges government backing of the SME based B2B online business model with e-MP service.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2001.10a
• /
• pp.346-349
• /
• 2001

As intensifying competition alters the dynamics of the wireless industry and carriers begin to tap out traditional subscribers-business users and early adopters-wireless operators have come under pressure to begin expanding their target subscriber base. While alternative market segments such as youths, senior citizens, and lower-income or credit-challenged customers often offer less compelling fundamentals (i.e., lower average revenue per user and higher churn rates), carriers, in their race to increase market share, can no longer overlook these potential market segments. In particular, the youth market is a very appealing market segment for carriers to focus on for several reasons. Carriers in many parts of the world have already begun recognizing the compelling advantages of concentrating on youths and teens. This paper will examine the dynamics of the youth/teen population and what attributes make this group an appealing market for wireless carriers. In addition, it will take a look at new emerging technologies that may help carriers attract the youth market especially mobile data, entertainment applications, and wireless messaging. This paper also studies the sensation that carriers in Europe and Japan are achieving with the youth population and suggests how carriers in Korea can emulate that success.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.52
• /
• pp.25-44
• /
• 2011

Possibility of credit risk, foreign exchange risk and interest rate risk of exporter increases in the recent international Commercial transactions, due to financial crisis of Europe and liberalization of Middle East. Under this circumstance, Forfaiting is trade finance that forfaiter purchase negotiable debt instrument without recourse from exporter, which occurred related with international commercial transactions, and credit risk, contingency risk, foreign exchange risk and interest rate risk of exporter can be transferred to forfaiter. Forfaiting is typically medium-term finance(three to five years) concluded at fixed interest rate, although it can also arranged on a floating interest-bearing basis for periods from six months to ten years or more. But Forfaiting service of Korea has limitation as follows. First, forfaiting in Korea deals with unrestricted irrevocable documentary credit as debt instruments. Period that forfaiting is provided is short and amount of money is limited, compared with advanced forfaiting. But forfaiting provided in advanced countries deals with various methods such as guarantee for bill, payment guarantee, and can be resold in financial market. Recently importance of forfaiting is increasing in international commercial transactions. Therefore profound study on forfaiting is required. The study will examine the risk that happens to the concerned parties in forfaiting, and its management measures. The study adopted literature review method such as local and foreign books and papers about trade finance, internet information about forfaiting, and professional journal related with international finance.

• Journal of Engineering Education Research
• /
• v.6 no.2
• /
• pp.38-43
• /
• 2003

The objective of our large credit project-based undergraduate subject is to help students to combine programming language skills and learned algorithms into a complete IT solution. This paper describes our experience in running an undergraduate 9 credit project-based subject 'Enterprise Solution Development' of Youngsan University. Proven educational effect showed that solution development experience helps students be more competitive in the job market thus makes contribution in human resource development.

• Knowledge Management Research
• /
• v.18 no.1
• /
• pp.67-81
• /
• 2017

As the important breakthrough continues in the field of machine learning and artificial intelligence recently, there has been a growing interest in the analysis and the utilization of the big data which constitutes a foundation for the field. In this background, while the economic value of the data held by the corporates and public institutions is well recognized, the research on the evaluation of its economic value is still insufficient. Therefore, in this study, as a part of the economic value evaluation of the data, we have conducted the economic value measurement of the data generated through the small business guarantee program of Korean Federation of Credit Guarantee Foundations (KOREG). To this end, by examining the previous research related to the economic value measurement of the data and intangible assets at home and abroad, we established the evaluation methods and conducted the empirical analysis. For the data value measurements in this paper, we used 'cost-based approach', 'revenue-based approach', and 'market-based approach'. In order to secure the reliability of the measured result of economic values generated through each approach, we conducted expert verification with the employees. Also, we derived the major considerations and issues in regards to the economic value measurement of the data. These will be able to contribute to the empirical methods for economic value measurement of the data in the future.

• Knowledge Management Research
• /
• v.21 no.2
• /
• pp.21-40
• /
• 2020

Korea Credit Guarantee Fund(KODIT) is a public financial institution under the provision of the Korea Credit Guarantee Fund Act. Facing the waves of change both locally and globally, KODIT will serve as 'social value creator' in making a paradigm shift from a large corporation(Conglomerate-dominated) economy to a social enterprise-oriented one based on social economy. This study focuses on the supporting service programs for social enterprises and job creation how it affects the performance of social value creation of KODIT. There is currently no detailed research of the social value in terms of the business and management academic agenda. Therefore, the present study describes the importance of social value creation on the policy financial institution. This study conducted in-depth case study for social value performance. As a public policy financial institution, KODIT exert diverse efforts to correct market failure and achieve inclusive growth. For example, KODIT extends credit guarantee services for the liabilities of promising corporations and stimulates financial and non-financial supporting programs for social enterprises. Although the role of social value and social economy has gained business field attention, few investigations have been conducted to explain how social value is achieved. The present study can thus act as the foundation for exploring the social value creation in the circumstances of public financial institution.

• The Journal of Asian Finance, Economics and Business
• /
• v.5 no.4
• /
• pp.9-20
• /
• 2018

Global rating agencies, such as Moody's and S&P, have assigned credit ratings to corporate bonds issued by Japanese firms since 1980s. Local Japanese rating agencies, such as R&I and JCR, have more market share than the global raters. We examine the yield spreads of 1,050 yen-denominated corporate bonds issued by financial firms in Japan from 1998 to 2014 and find no evidence that bonds rated by at least one global agency are associated with a significant reduction in the cost of debt as compared to those rated by only local rating agencies. Unlike non-financial firms, the reputation effect of global rating agencies does not exist for Japanese financial firms. We also observe that firms with less information asymmetry are more likely to acquire ratings from Moody's or S&P. Additionally, the firm's financial profile does not affect its choice to seek out ratings from global raters. Our findings are contradictory to those by Han, Pagano, and Shin (2012), who employ bonds issued by non-financial firms in Japan. Our conjecture is that the asymmetric nature of financial firms makes investors less likely to depend on a credit risk assessment by rating agencies in determining the yields of new bonds.

• KDI Journal of Economic Policy
• /
• v.37 no.1
• /
• pp.19-44
• /
• 2015

This paper examines the effect of the global financial crisis on corporate investment in Korea. Specifically, the crisis was considered to have possibly constrained firm-level investment as the negative shock to the credit supply dramatically unfolded. As Duchin et al. (2010) demonstrated, if a negative supply-side shock is evident during a crisis period, larger cash holdings before the crisis will lead to fewer constraints to corporate investment, or vice versa. In order to investigate the supply-side effect of the crisis, we use firm-level financial data, including firms listed on the Korean stock market as well as small and medium-sized enterprises. We find that corporate investment declined significantly after the crisis, even if we control for factors associated with the demand side, such as contemporaneous capital productivity and cash flow. More importantly, the decline is positively and significantly related to cash holdings before the crisis, implying the negative effect of a credit supply shock. Small and medium enterprises experienced relatively sharp investment declines compared to those of larger firms, and the relationship between pre-crisis cash amounts and the degree of investment decline is greater than that in large firms. Additionally, we examine whether the negative effect persists up to the present, finding evidence that the cash-investment relationship continues in small and medium-sized enterprises.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.22 no.6
• /
• pp.207-214
• /
• 2021

This study aims to analyze the effect of the level of accounts receivable on firm profitability. It is possible to find the optimal level of accounts receivable that maximizes profitability. In this study, 6,632 samples were selected from manufacturing companies listed on the Korean Stock Exchange from 2001 to 2018. We used the fixed effect panel model to analyze the model equation. There is a positive (+) relationship between the profitability of a company, the Return on Assets (ROA), and accounts receivable (AR). Also, this relationship has a nonlinear relationship or a reverse-U shape. There is an optimal level of accounts receivables, which results in profitability increase up to a certain extent, but subsequently, profitability decreases when accounts receivables exceed this level. In the case of monopoly companies with a higher-than-average market share, the coefficient between accounts receivable and firm profitability is greater than that for competitors with a lower market share than average. It supports the hypothesis that Titman (1984) suggested, that trade credit is important for enhancing corporate profitability. It is confirmed that accounts receivables play an important role in enhancing firm profitability and it is necessary to understand this well from the corporate standpoint.