• Atmosphere
• /
• v.34 no.2
• /
• pp.107-121
• /
• 2024

In this study, we empirically analyzed the impact of physical risks due to climate change on the soundness and operational performance of the financial industry by combining economics and climatology. Particularly, unlike previous studies, we employed the Seasonal-Trend decomposition using LOESS (STL) method to extract trends of climate-related risk variables and economic-financial variables, conducting a two-stage empirical analysis. In the first stage estimation, we found that the delinquency rate and the Bank for International Settlement (BIS) ratio of commercial banks have significant negative effects on the damage caused by natural disasters, frequency of heavy rainfall, average temperature, and number of typhoons. On the other hand, for insurance companies, the damage from natural disasters, frequency of heavy rainfall, frequency of heavy snowfall, and annual average temperature have significant negative effects on return on assets (ROA) and the risk-based capital ratio (RBC). In the second stage estimation, based on the first stage results, we predicted the soundness and operational performance indicators of commercial banks and insurance companies until 2035. According to the forecast results, the delinquency rate of commercial banks is expected to increase steadily until 2035 under assumption that recent years' trend continues until 2035. It indicates that banks' managerial risk can be seriously worsened from climate change. Also the BIS ratio is expected to decrease which also indicates weakening safety buffer against climate risks over time. Additionally, the ROA of insurance companies is expected to decrease, followed by an increase in the RBC, and then a subsequent decrease.

• Journal of Korea Technology Innovation Society
• /
• v.8 no.1
• /
• pp.94-115
• /
• 2005

The purpose of this study is to evaluate the economic value of a biotechnology in the middle of R&D and to examine strategies to manage a variety of risks and uncertainties intrinsic in research and development of biotechnologies through economic valuation in consideration of technological and industrial characteristics of the technology. To do this, this study analyzes the probability of commercial success of the technology development in qualitative terms, evaluates the quantitative value of the technology on the basis of a determined model, and proposes the implications on R&D strategy. In concrete, this study analyzes the economic value of the technology by constructing a decision tree reflecting the characteristics of the R&D process of the technology and draw the implications on the future R&D strategies of the technology.

• KDI Journal of Economic Policy
• /
• v.46 no.3
• /
• pp.67-91
• /
• 2024

This paper aims to examine the economic impact of the implementation of an unemployment insurance (UI) program for entrepreneurs in South Korea. Despite facing labor market risks similar to paid employees, entrepreneurs are often not eligible for UI in many countries. South Korea, where entrepreneurs represent over 20% of the workforce, is considering a design of UI for entrepreneurs, with the goal of providing coverage to this group by 2025. This study examines how the addition of UI for entrepreneurs would impact the economy using a model of entrepreneurship based on a search and matching framework. The study's findings suggest that the implementation of UI for entrepreneurs would lead to increased business closures and reduced hiring, resulting in a slack labor market, which in turn would reduce social welfare overall. However, social welfare can be improved by subsidizing UI contributions paid by entrepreneurs, which provides the greatest improvement in social welfare compared to other social protection systems such as unemployment assistance.

• International Commerce and Information Review
• /
• v.15 no.3
• /
• pp.41-62
• /
• 2013

This paper, the accumulation of foreign exchange reserves in the financial systems of emerging markets mid-to long-term impact on how investigated. The accumulation of foreign exchange reserves in emerging markets is a highly effective means to prevent the recurrence of another financial crisis as well as to minimizing risks of financial crisis. By examining the economic effects of excessive accumulation of foreign exchange reserves on factors such as foreign liabilities, domestic consumption, domestic investment and economic growth from a mid-to long-term perspective, it reduced domestic consumption, but on the other hand, led to the expansion of the trade-related industries based on increase of exports. Although China implements a policy to substantially increase domestic investment, other emerging market countries have stagnant domestic investment activities due to excessive accumulation of foreign exchange reserves. Such fact signifies that excessive accumulation of foreign exchange reserves increases potential risks by depressing the mid-to long-term economic growth through the scale down of trade-related industries.

• International Journal of Computer Science & Network Security
• /
• v.24 no.5
• /
• pp.172-180
• /
• 2024

Since the beginning of 2015, corporate social responsibility (CSR) models have been changing in connection with the trend towards the transition of joint value creation of corporate activities and consideration of stakeholders' interests. The purpose of the academic paper lies in empirically studying the current practice of social responsibility of transnational corporations (TNCs). The research methodology has combined the method of qualitative analysis, the method of cases of agricultural holdings in emerging markets within the framework of resource theory, institutional theory and stakeholders' theory. The results show that the practice of CSR is integrated into the strategy of sustainable development of TNCs, which determine the methods, techniques and forms of communication, as well as areas of stakeholders' responsibility. The internal practice of CSR is aimed at developing norms and standards of moral behaviour with stakeholders in order to maximize economic and social goals. Economic goals are focused not only on making a profit, but also on minimizing costs due to the potential risks of corruption, fraud, conflict of interest. The system of corporate social responsibility of modern TNCs is clearly regulated by internal documents that define the list of interested parties and stakeholders, their areas of responsibility, greatly simplifying the processes of cooperation and responsibility. As a result, corporations form their own internal institutional environment. Ethical norms help to avoid the risks of opportunistic behaviour of personnel, conflicts of interest, cases of bribery, corruption, and fraud. The theoretical value of the research lies in supplementing the theory of CSR in the context of the importance of a complex, systematic approach to integrating the theory of resources, institutional theory, theory of stakeholders in the development of strategies for sustainable development of TNCs, the practice of corporate governance and social responsibility.

• Journal of Electrical Engineering and Technology
• /
• v.12 no.2
• /
• pp.495-501
• /
• 2017

The introduction of smart grid, which is an innovative application of digital processing and communications to the power grid, might lead to more and more cyber threats originated from IT systems. In other words, The Energy Management System (EMS) and other communication networks interact with the power system on a real time basis, so it is important to understand the interaction between two layers to protect the power system from potential cyber threats. This paper aims to identify and clarify the cyber security risks and their interaction with the power system in Smart Grid. In this study, the optimal power flow (OPF) and Power Flow Tracing are used to assess the interaction between the EMS and the power system. Through OPF and Power Flow Tracing based analysis, the physical and economic impacts from potential cyber threats are assessed, and thereby the quantitative risks are measured in a monetary unit.

• Environmental Analysis Health and Toxicology
• /
• v.4 no.1_2
• /
• pp.55-65
• /
• 1989

Nevertheless the serious environmental pollution in Korea has been discussed in concern with health effect, the significant effect are not determined easily. Toxicological method has been used to establish safe levels of exposure for environmental pollutants to have threshold health effect below which significant effects are unlikely to occur. However the conventional method cannot to establish safe levels of exposure for non-threshold pollutants have been used to express comprehensive pollution degree, not in detailed toxic effects. Acceptable exposure or risk levels are decides by policymakers who consider descriptions and estimates of risks together with social and economic benefits. This paper focuses on the concept development of risk assessment and describes some risks of environmental pollution based on the surveyed date in Korea. The current concepts of risk assessment in policy descisions can be explored and areas for possible improvement, given current scientific knowledge are identified. The experience of foreign countries can provide a realistic basis for evaluating the existing data of environmental pollutants. To improve the environmental quality, risk regulation should be managed as soon as possible in Korea.

• KDI Journal of Economic Policy
• /
• v.42 no.4
• /
• pp.117-138
• /
• 2020

Few studies have specifically focused on the uncertainty of demand forecasting despite the fact that uncertainty is the one of greatest risks for governments and private partners in PPP projects. This study presents a methodology for finding robust contract conditions considering uncertainty in travel demand forecasting in a PPP project. Through a case study of an urban railway PPP project in Korea, this study uncovered the risk of excessive government payments to private partners due to the uncertainty in contracted forecast ridership levels. The results allow the suggestion that robust contract conditions could reduce the expected total level of government payments and lower user fees while maintaining profitability of the project. This study offers a framework that assists contract negotiators and gives them more information regarding financial risks and vulnerabilities and helps them to quantify the likelihood of these vulnerabilities coming into play during PPP projects.

• Safety and Health at Work
• /
• v.3 no.4
• /
• pp.294-297
• /
• 2012

Previous studies on the vast increase in suicide mortality in Southeast Asia have indicated that suicide rates increase in parallel with a rise in unemployment or during periods of economic recession. This paper examines the effects of economic recession on suicidal rates amongst agriculture, fisheries, and forestry workers in Korea. Monthly time-series gross domestic product (GDP) data were linked with suicidal rates gathered from the cause of death records between1993-2008. Data were analyzed using generalized additive models to analyze trends, while a polynomial lag model was used to assess the unconstrained time lag effects of changes in GDP on suicidal rate. We found that there were significant inverse correlations between changes in GDP and suicide for a time lag of one to four months after the occurrence of economic event. Furthermore, it was evident that the overall relative risks of suicide were high enough to bring about social concern.

• Health Policy and Management
• /
• v.14 no.4
• /
• pp.1-20
• /
• 2004

This study is to examine relationships of several socioeconomic position indicators with mortality risk in a nationwide longitudinal study of South Korea. The Korea Labor & Income Panel Study, conducted on a probability sample of urban South Korean households by Korea Labor Institute, contains date of death information for the decedents which were used to estimate relative risks of mortality and their $95\%$ confidence intervals (CI) with Cox regression analysis. A total of 125 men and women among 8,415 subjects died between 1998 and 2002. Socioeconomic differentials in mortality were observed after adjustment for sex and age. Those with less than 12-year education had 1.90 times $(95\%\;CI=1.25-2.91)$ greater mortality risk than those with 12-year education or more. Greater mortality risks were also found among those with low occupational class and manual occupation. The magnitude of differentials in mortality risks between occupational class were similar in two different approaches to measuring women's occupational class: (1) approach 1 where women, married or not, retain their own occupational class, and (2) approach 2 where married women are assigned their husbands' occupational class. Relative risks of dying among those with low household Income were 1.62 $(95\%\; CI=1.08-2.42)$ compared with the counterparts. Those who reported economic hardship at the time of survey in 1998 had greater risk of mortality $(RR=1.83,\;95\%\;CI=1.21-2.78)$ than those who did not. In conclusion, increased social discourse and policy discussions about these health inequalities are needed in Korean society. Future studies should explore the causes and mechanisms of socioeconomic mortality inequalities.