• Korean Management Science Review
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• v.29 no.3
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• pp.23-43
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• 2012

Enacted for enhancing the competitiveness of the Korean capital market and financial industry, Capital Market Consolidation Act (CMCA) was intended to induce considerable changes such as adopting the concept of financial investment products, regulating financial investment functionally, extending financial investors' business areas and intensifying protection for investors. Employing DEA (Data Envelopment Analysis), this study measures and compares the efficiencies of domestic financial companies between the before and after the enactment of the Consolidation Act. We categorize the financial companies into 4 groups (banks, life insurance companies, property and casualty insurance companies and securities companies) depending on their business types, and evaluate how much and in which direction the Consolidation Act affects the efficiency of each group respectively. The study shows that there is no significant difference between the average efficiency of banks and that of property and casualty insurance companies due to the trade-off between opportunities and threats of the Act. To the contrary, it shows that the respective average efficiencies of life insurance companies and securities companies moved in the opposite directions to a considerable extent. Through empirical tests, we demonstrate the effect of the Act on the efficiency of Korean financial companies, and suggest the countermeasures for each financial group against the Act.

• Journal of Digital Convergence
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• v.9 no.2
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• pp.33-40
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• 2011

It is very difficult to predict what effects the introduction of IFRS(International and Financial Reporting Standars) has on the existing system. Only the cautious and careful adoption of new system will minimize the confusion. The purpose of this paper is to propose appropriate design and construction of IS on financial statement according to the introduction of IFRS(International Financial Reporting Standard) in order to minimize the confusion. In order to meet that purpose, suggestions on five areas in consolidation financial statement are proposed. Those five aspects are as follows: Area of SPE Consolidation, Area of internal transaction setoff, Area of unrealized gain or loss setoff, Area of eliminate the investment account against the stockholder's equity, Making Consolidation footnote and Consolidation CoA as other area.

• The Journal of the Korea Contents Association
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• v.14 no.10
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• pp.112-123
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• 2014

This Study aims to establish better sound fiscal plan by investigating perception of local government officials. Local government fiscal consolidation is affected by a combination of factors, including social, economic, demographic, political financial health of local governments. We derived the financial situation of the government-related indicators, financial health-related indicators, the indicators to improve the financial health on the basis of this study are an existing discussion. To ensure the financial soundness of the Cheonan, it is necessary to increase the efficiency of financial management including financial monitoring and control devices provided the locals, investment screening analysis system to enable it. In addition, fiscal controls should be strengthened in order to effectively autonomous government debt management. You must cuts expense of local government to prepare for expansion of local government finance, it is necessary to realize that the fee rates. It should be made through a blend of autonomy and control in the central government, network of local government and the development of local financial operations. You should also to be distributed to the residents welfare and community development funds are invested substantially to establish a systematic planning, resource allocation, evaluation, and reflux system.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.1-12
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• 2021

Altman's Z-score is used to measure a company's financial health and to predict the probability that a company will collapse within 2 years. It is proven to be very accurate to forecast bankruptcy in a wide variety of contexts and markets. The goal of this study is to use Altman's Z-score model to forecast insolvency in non-financial publicly traded enterprises. Non-financial firms are a significant industry in Malaysia, and current trends of consolidation and long-term government subsidies make assessing the financial health of such businesses critical not just for the owners, but also for other stakeholders. The sample of this study includes 84 listed companies in the Kuala Lumpur Stock Exchange. Of the 84 companies, 52 are considered high risk, and 32 are considered low-risk companies. Secondary data for the analysis was gathered from chosen companies' financial reports. The findings of this study show that the Altman model may be used to forecast a company's financial collapse. It dispelled any reservations about the model's legitimacy and the utility of applying it to predict the likelihood of bankruptcy in a company. The findings of this study have significant consequences for investors, creditors, and corporate management. Portfolio managers may make better selections by not investing in companies that have proved to be in danger of failing if they understand the variables that contribute to corporate distress.

• KDI Journal of Economic Policy
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• v.28 no.1
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• pp.145-191
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• 2006

This paper studies implications of financial conglomeration for both financial risk of individual conglomerates and systemic risk potential in post-crisis Korea. Our analyses suggest that we cannot conclude that financial conglomerates are taking on higher risks relative to non-conglomerate independent institutions. We also find that larger financial institutions show a significantly higher profitability and lower variability in profitability operating on a superior efficient frontier. However, it turns out that the consolidation has raised systemic risk potential as direct and indirect interdependencies among large banking institutions have substantially increased. Furthermore, financial conglomerates have become more vulnerable to contagion risks from non-bank sectors and capital markets. In the face of the shifting risk structure, financial supervisory and regulatory systems must be upgraded toward a more risk-based, consolidated supervision. Prompt corrective action provision for financial conglomerates must be based upon fully consolidated group risks, and effective supervisory devices need to be introduced to avoid inadvertent extension of public safety net to cross-sectoral activities of financial conglomerates. It is also critical to strengthen internal control and risk management capacities at financial conglomerates, and to establish strong market discipline by improving information transparency and monitoring incentives in the financial market.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.8 no.4
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• pp.37-47
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• 2013

This study investigates regional financial markets and proposes some policy measures for boosting up the regional financial system. Financial supports for start-ups, small and medium sized enterprises(SMEs) in early stage growth have been constrained due to expanded financial gaps among regions during financial restructuring period. The bank consolidation through M&A is associated with widening financial gaps between Seoul area and others, and between regions where regional banks survives or not. Loans to small firms are associated with relationship lending techniques that may be better supported by smaller regional banks. The loan rate to SMEs in locals where regional banks are activated has tended to be 10%point higher than the locals where regional banks closed, and also drive the greater contribution for preventing local capital outflow and promoting local capital investment by local penetrating strategy. Government should develop regional financial policies to boost up regional financial system, and expand the business area of regional financial institutions for supporting start-ups and SMEs.

• Korean Journal of Agricultural Science
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• v.29 no.1
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• pp.66-83
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• 2002

The economic feasibility analysis including benefit-cost ratio and internal rate of return of a land consolidation and on-farm development project was mainly depended upon the direct benefits and costs arising during project life. Therefore the projects were neglected in allocating the government's financial funds and loans on account of the low economic rate of return of the project. Accordingly the extended benefit-cost analysis method should be introduced and adapted to cover not only the benefit s such as non-market values of environmental and food security fun ct ions of the project but also market values of the project outputs. The main purposes of this study are (1) to prepare a guide line for economic feasibility analysis based on the IBRD and ADB guidelines, (2) to estimate the benefits from productivity increase, labor saving, savings of O&M cost of farm mechanization and project facilities, savings of farmer's burden for their public health, increasing environmental and public functional value of paddy fields, improving food security condition and formation of peaceful and uncontroversial rural society by implementing the land consolidation and on-farm development, (3) to introduce the newly adapted analytical method as the extended benefit cost analysis which could make possible to be included the values of non-market goods such as the food security and the environmental public function of paddy fields. To carry out this study, the existing publications on the guidelines for economic agricultural projects were reviewed and consultation was made with a For the post evaluation study of the land consolidation and on-farm development project, field survey in Jigok and other comparative area were made to get available information. According to the project completion report, Jigok land consolidation and on-farm development project has 55ha of benefit area out of 69ha of gross area. The project was started in November 11th, 2000 and completed october 30th, 2001. The total project costs were amounted to 2,548 million won and the annual project benefits were estimated at 335million won evaluated by domestic market prices. The ERR(Economic Rate of Return) and SRR(Social Rate of Return) of the project based on the shadow pricing system were estimated at 4.4% and 16% respectively. On the other hand, the ERR and SRR based on the domestic market value system were amounted to 6.37% and 14.62%. In conclusion, Korean land consolidation and on-farm development projects have not carried out from the view point of economic rate of return under shadow pricing system but from the view point of domestic pricing system. For the future feasibility studies on land consolidation projects have to be carried out including the non-market values as environmental and food security function of the projects.

• The Korean Journal of Financial Management
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• v.26 no.2
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• pp.113-153
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• 2009

Financial conglomerates combine banking, securities, insurance and other financial services within a single economic entity. In this paper we analyze the effect of financial conglomeration on the default risk of financial companies in the Korean financial industry. We use two risk measures based on individual company level as proxies of the default risk, one is Z-index proposed by Altman(1968) and the other is the weighted capital adequacy ratio. We find that financial conglomeration has a negative effect on the default risk of financial companies. The asset size and diversity level of financial conglomerates, however, are negatively correlated with the default risk of financial companies. These results mean that in the Korean financial industry, even though the economy of scale and scope does exist, financial conglomeration does not translate into lower risk of financial companies composing financial conglomerates.

• Information Systems Review
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• v.10 no.1
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• pp.21-45
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• 2008

Over the years a lot of organizations or enterprises are spending the majority of their IT budgets on IT resources procurement and maintenance. IT resources are typically duplicated in each Region, Division, and/or Business Unit. The biggest sources of cost savings come directly from the reduction in maintenance cost and the elimination of duplicated resources. Global corporations are investing heavily in shared services implementations in order to stay competitive in an industry environment. A number of financial services firms have turned to IT shared services to reduce the level of IT asset and infrastructure redundancies. Recently, Korean financial services industry is moving to diversification(bank, securities, insurance, etc.) and consolidation(M&A, strategic alliance, etc.), and wants the elimination of duplicated IT resources. This research is intended to find out and demonstrate the factors having a significant effect on adoption of IT shared services center in finance services industry.

• Korean Journal of Agricultural Science
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• v.21 no.1
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• pp.67-80
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• 1994

Farm land is considered the most important production factor in farm production. Land is not only one of the most scarce resource but also the size of land holding is the key factor in determining the size of farm income in Korea. To increase farm productivity by accepting bio-chemical and mechnical technology, the qualitative improvement of farm land through land consolidation and on-farm development have been carried out by the Korean government. Land consolidation with water resource development makes possible the high-tech-capital intensive farming, internal expansion of farm land and hightening the rate of land intensity in connection with UR problems. This paper contained the present status of farm land base development, allocation of investment by types of farm land development and the econome-trical analysis on the effects of the investment on rice productivity during the past 27 years since 1965. The rate of irrigated paddy area had been increased from 42% in 1965 to 74% in 1991. Land consolidated area out of the total paddy area had been achieved 44.9% and the improved rate of poor drained paddy area was shown 43.5% in 1991. To carry out the above farm land base development projects, the government had procured financial budgets consisting of the G't subsidy, long term loan, foreign loan, the provincial G't subsidy, WFP counter fund and farmer's burden.