• Communications of the Korean Mathematical Society
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• v.30 no.3
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• pp.297-311
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• 2015

We present a robust and accurate boundary condition for pricing financial options that is a hybrid combination of the payoff-consistent extrapolation and the Dirichlet boundary conditions. The payoff-consistent extrapolation is an extrapolation which is based on the payoff profile. We apply the new hybrid boundary condition to the multi-dimensional Black-Scholes equations with a high correlation. Correlation terms in mixed derivatives make it more difficult to get stable numerical solutions. However, the proposed new boundary treatments guarantee the stability of the numerical solution with high correlation. To verify the excellence of the new boundary condition, we have several numerical tests such as higher dimensional problem and exotic option with nonlinear payoff. The numerical results demonstrate the robustness and accuracy of the proposed numerical scheme.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.55
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• pp.185-208
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• 2012

Before and after the Capital Market Integration Act in 2007 is implemented in South Korea, many of small-and mid sized exporting companies in South Korea has been bankrupted or filed for lawsuit claiming mis-selling(KIKO) by the banks. The basic economic structure of KIKO in Korea are part of a business model based on the use or misuse of exotic derivatives whose results are anything but imaginary. 571 mid sized exporting companies have been damaged about $28 billion. KIKO is a currency option product that sells foreign currencies at higher foreign exchange rate when the rate moves within a certain range, but sells foreign currencies at two or three times lower rate than the market price when the rate exceeds the designated upper limit. KIKO, Therefore, is hard to know whether the non financial firms intended to hedge against further strengthening of their currency or merely to speculate. It is also hard to know how thoroughly they understood the risk-return profile of these transactions. It is similarly hard to ascertain whether the derivatives dealers offering these transactions were meeting the demands of their clients or taking advantage of them. These exotic derivatives were inappropriate for either hedging or speculating, and no knowledgeable investor would be likely to enter into these contracts intentionally.

• International conference on construction engineering and project management
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• 2011.02a
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• pp.526-533
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• 2011

Contracting is said to be a high-risk business, and a common cause of business failure is related to cash management. A contractor's financial viability depends heavily on how actual payments from an owner deviate from those defined in the contract. The paper presents a method for contractors to evaluate the punctuality and fullness of owner payments based on historical behaviour. It does this by classifying owners according to their late and incomplete payment practices. A payment profile of an owner, in the form of aging claims submitted by the contractor, is used as a basis for the method's development. Regression trees are constructed based on three predictor variables, namely, the average time to payment following a claim, the total amount ending up being paid within a certain period and the level of variability in claim response times. The Tree package in the publicly available R program is used for building the trees. The analysis is particularly useful for contractors at the pre-tendering stage, when contractors predict the likely payment scenario in an upcoming project. Based on the method, the contractor can decide whether to tender or not tender, or adjust its financial preparations accordingly. The paper is a contribution in risk management applied to claim and dispute resolution practice. It is argued that by contractors having a better understanding of owner payment behaviour, fewer disputes and contractor business failures will occur.

• Journal of the Korean Home Economics Association
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• v.43 no.6 s.208
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• pp.113-131
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• 2005

The purpose of this study was to investigate older people's planning for estate distribution by examining the factors associated with their will-holding status. This study used data from the 1994 Assets and Health Dynamics among the Oldest Old (AHEAD) Survey, Wave One. The objectives of this study were (a) to establish profiles of older people who have a written will and to compare their financial portfolios across will-holding status; (b) to identify factors that influence the decision to make a will, and (c) to draw implications for family economists, financial educators, planners, and policy makers. The results suggested that a household's financial resources (i.e., liquid and illiquid assets, housing equity, and household income) positively influence the probability of having a will. Older people who resided in a community property state and who were in poor health were less likely to be will-holders than their counterparts, holding financial resources and other variables constant. Demographic characteristics such as age, education, and race, and behavioral characteristic also were significant determinants of the likelihood of having a will. Volunteer participation and charitable contribution, which are proxies for altruism, increased the likelihood of having a will. The probability of having a will also was higher among those who had life insurance and had gwen inter-vivos gifts of more than $\$5,000$ to their children or grandchildren in the past 10 years. On the other hand, the likelihood of having a will declined with increasing number of biological children. From the findings, implications for financial planners and educators were suggested along with directions for future research.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.16 no.6
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• pp.3870-3881
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• 2015

This study examined one of the contemporary issues on debate to identify any significant financial determinants on the cash holdings of the cheabol firms in the Korean domestic capital markets. Several important findings on the financial characteristics affecting the cash holdings were evidenced by utilizing various methodologies for statistical estimations. Financial or managerial implications with discussion were provided for the pronounced factors such as CASHFLOW, MVBV, REINVEST, and AGENCY. Assuming that the chaebol firms were overall subject to the financial constrains, they may increase or stockpile cash reserves as internal capital for future investment opportunities or repayment of existing debt, rather than external financing burdened by a high cost of capital. Given the on-going controversy on the optimal level of corporate cash holdings coupled with any foreseeable capital transfer among the associated nations through the investment vehicles such the FTAs (Free Trade Agreements) or TPP (Trans-Pacific Pacts), any empirical findings of the study may shed new light on identifying financial determinants which may significantly affect the level of cash holdings for the business conglomerates, the 'chaebol' firms, in the Korean capital markets.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.20 no.4
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• pp.232-241
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• 2019

This study examines one of the conventional and controversial issues in modern finance. Specifically, this study identifies financial determinants of corporate R&D intensity for firms belonging to Korean Chaebols. Empirical estimation procedures are applied to derive more robust results of each hypothesis test. Static panel data, Tobit regression and stepwise regression models are employed to obtain significant financial factors of R&D expenditures, while logit, probit and complementary log-log regression models are used to detect financial differences between Chaebol firms and their counterparts not classified as Chaebols. Study results found the level of R&D intensity in the prior fiscal year, market-value based leverage ratio and firm size empirically showed their significance to account for corporate R&D intensity in the first hypothesis test, whereas the majority of explanatory variables had important power on a relative basis. Assuming that the current circumstances in the domestic capital market may necessitate gradual changes of Korean Chaebols in terms of their socio-economic function, the results of this study are expected to contribute to identifying financial antecedents that can be beneficial to attain optimal level of corporate R&D expenditures for Chaebol firms on a virtuous cycle.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.14 no.11
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• pp.5476-5487
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• 2013

From foreign and/or domestic investors' perspectives, it may be interesting to find any financial attributes or profile of the firms headquartered in 'Chungcheong' province concerning profitability, given that this subject so far drew less attention in the previous literature. This study performed three hypothesis tests on the profitability indicator by utilizing the models such as the 'panel data' one and the 'logistic' regression one, applying a modified 'Dupont' system. With respect to the major findings, the results identified that the proxies measuring leverage across the book-value(BVLEV1) and the market-value(MVLEV1) bases, were statistically significant constituents determining profitability. Another explanatory variable, SIZE, with its positive and statistically significant relationship to the indicator, represented that the firms in the province were smaller than their counterparts in the other regional areas in Korea. DRELY applying a modified 'Dupont' system, found to be the only statistically significant discriminating factor between these comparison groups. As one of the primary contributions of this study, the outcomes may be used by the financial institutions operated across the regions including Seoul Metropolitan area, when implementing their lending practices to provide funds for potential borrowers such as the firms belonging to 'Chungcheong' province.

• The Journal of the Korea Contents Association
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• v.7 no.12
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• pp.123-130
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• 2007

The purpose of this paper is to capture risk profiles of smaller-sized Korean firms $vis-{\grave{a}}-vis$ larger-sized firms during the Asian financial crisis. For this purpose, risk profiles are provided by estimating expected default risks and by tracking how these have changed during this period with respect to their magnitude, volatility, and sensitivity measures. Methodology used in this study employs the Black-Scholes-Merton model for producing estimates of default risks. And the conventional trans-log function is utilized for obtaining sensitivity measures of the estimated default risks. According to empirical evidence obtained here, it is revealed that contractions of corporate loans associated with IMF austerity policy was the main factor responsible for the drastic change in the default risk profile of Korean firms after occurrence of the Asian financial crisis.

• Journal of the Korean Home Economics Association
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• v.38 no.5
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• pp.25-41
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• 2000

This study examined the relationships of store preference with perceived store attributes and consumers' individual characteristics and the impacts of shopping situations on actual store choice. Data were obtained from an on-site questionnaire survey to a convenience sample of young consumers. A total of 456 responses was analyzed. Based on store preference and store choice, respondents were divided into four preference(or choice) groups of: Independent fashion specialty store; Independent general fashion store; Department store and Brand-franchised store. MANOVA, ANOVA and $\chi$$^2$ analyses revealed that there were significant differences among 4 store preference groups on 3 store attribute factors(price, promotion, and merchandise & displays), fashion involvement, perceived financial risk and 5 demographic characteristics(age, gender, marital status, education and spending). Also, there were significant differences among 4 store choice groups on 3 shopping situations the respondents had experienced. Based on the results, the study provided a profile of each store preference group and marketing implications.

• Journal of the Korean Institute of Intelligent Systems
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• v.7 no.1
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• pp.34-44
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• 1997

The Belgian Nuclear Research Centre(SCK${\cdot}$CEN) has been a pioneer of the peaceful uses of nuclear energy after over forty years of existence. Recently, SCK${\cdot}$CEN's financial support of doctoral and postdoctoral research in close collaboration with universities has been a vital ingredient for securing a quality profile committed to the pursuit of execllence. FLINS, Fuzzy Logic and Intelligent technologies in Nuclear Science, was initially built within one of the postdoctoral research project at SCK${\cdot}$CEN. Among SCK${\cdot}$CEN's activities which will have an important impact on its scientific future, the application of fuzzy logic and intelligent technologies in nuclear science and engineering opens new domains in radiation protection, safety assessment, human reliability, nuclear reactor control, waste and disposal, etc. In this paper, we review the available literature on fuzzy logic in nuclear applications. We then present the initiative of R&D on fuzzy logic applications at SCK${\cdot}$CEN, namely, (1) safety control for a nuclear reactor, and (2) a safety evaluation model for nuclear transmission lines. By these two examples of nuclear applications, we illustrate the potential use of fuzzy logic in nuclear safety issues.