• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2019.05a
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• pp.41-44
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• 2019

Most of the financial transactions in modern society are traded online, and offline transactions can be made with cards and smart phones in addition to cash transactions. The advantage of monetary transactions on-line is that the purchasing process is simple, volume increases due to cash, and mobility degradation factors such as weight disappear. However, the online environment has no limitation on the physical distance, and there is a problem that if personal information is exposed to another person, it can be directly connected with financial loss. Of course, in most financial sectors, there is no problem because security policies are prepared for financial accidents. In this paper, we show that it is possible to prevent stealing of encrypted information and to operate with a simple structure by arbitrarily changing the fixed card number, expiration date, and CVC every time using OTP.

• Management Science and Financial Engineering
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• v.12 no.1
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• pp.127-142
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• 2006

In this paper, we present a frequency reassignment problem (FRP) that arises when we add new base stations to resolve hot-spots or to expand the coverage of a code division multiple access (CDMA) network. For this problem, we develop an integer programming (IP) model along with some valid inequalities and preprocessing rules. Also, we develop an effective heuristic procedure that solves two sub-problems induced from the original problem in repetition. Computational results show that the proposed heuristic procedure finds a feasible solution of good quality within reasonable computation time. Also, the lower bound by-produced from the heuristic procedure is quite strong.

• Management Science and Financial Engineering
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• v.7 no.2
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• pp.13-30
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• 2001

This paper discusses a paradox in an Indefinite Quadratic transportation Problem. Here, the objective function is the product of two linear functions. A paradox arises when the transportation problem admits of a total cost which is lower than the optimum cost, by transporting larger quantities of goods over the same route. A sufficient condition for the existence of a paradox is established. Paradoxical Range of flow is obtained for any given flow in which the corresponding objective function value is less than the optimum value of the given transportation problem. It is illustrated with the help of a numerical example.

• Management Science and Financial Engineering
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• v.19 no.1
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• pp.25-28
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• 2013

Consider the inverse bin-packing number problem. Given a set of items and a prescribed number K of bins, the inverse bin-packing number problem, IBPN for short, is concerned with determining the minimum perturbation to the item-size vector so that all the items can be packed into K bins or less. It is known that this problem is NP-hard (Chung, 2012). In this paper, we investigate some special cases of IBPN that can be solved in polynomial time. We propose an optimal algorithm for solving the IBPN instances with two distinct item sizes and the instances with large items.

• Journal of the Economic Geographical Society of Korea
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• v.16 no.3
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• pp.512-527
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• 2013

This study examines the spatial distribution characteristics of financial industry which has been a necessary service for contemporary urban life. In particular, we analyze the spatial distribution patterns of money lending business which is considered with informal financial services as well as the spatial distribution patterns of banks which are representative of the institutional financial services. For the purpose, their density distribution patterns are explored by Kernel density analysis for both financial services in first. Moran's I coefficients are estimated for these two financial services to clarify the distintion in their geographical concentration patterns. The results of spatial autocorrelation analysis show stark differences between the center city and outskirts of the Seoul metropolitan area. Multivariate regression models are developed to explain the relationships between the spatial distributions of financial services and geographical variables. Finally, we discuss financial exclusion problem in the Metropolitan Seoul based on these spatial distribution characteristics.

• The Journal of the Convergence on Culture Technology
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• v.5 no.3
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• pp.71-78
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• 2019

The importance of social responsibility such as ethical management and social contribution activities is emphasized for the sustainable growth of companies. Although there is a great deal of research on corporate social responsibility due to the increase in social interest and expectation, most of them have been limited to research on general manufacturing industry. The purpose of this study is to analyze the effect of social responsibility activities on financial performance. In addition, we want to analyze the difference in the financial performance of companies with excellent social responsibility activities announced by the Institute of Economic Justice and others. The analysis period is from 2011 to 2016, and we analyze using the robust regression methodology which is relatively effective in solving the autocorrelation and this dispersion problem. First, it is proved that the higher the KEJI index, the more positive effect on financial performance. In addition, we found that there is a significant difference in the financial performance of companies with excellent social responsibility activities and those with other social responsibility activities. These results will have important implications for establishing a firm's financial strategy and will serve as useful information for the financial industry that is striving for sustainable management.

• Asia Marketing Journal
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• v.12 no.2
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• pp.111-133
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• 2010

Marketing financial services used to be easier. Today, the competition in financial services is fierce. Not only has the competition become more intense, financial services have also changed structurally. In an environment with various customer needs and severe competitions, the marketing in financial services industry is getting more difficult and more important than before. However, there are still not enough studies on financial services marketing in Korea whereas lots of research papers have been published frequently in some international journals. The purpose of this paper is (1)to review the literature on financial services marketing, (2)to investigate current marketing activities based on in-depth interview with financial marketing managers in Korea, and (3)to suggest some implications for future research on the financial services marketing. Financial products are not consumer products. In fact, they are not products at all in the way product marketing is usually described. Nor are they altogether like services. The financial industry operates in a unique way, and its marketing tasks are correspondingly complex. However, the literature review shows that there has been a lack of basic studies which dealt with inherent characteristics of financial services marketing compared to the research on marketing in other industries. Many studies in domestic marketing journals have so far focused only on the general customer behaviors and the special issues in some financial industries. However, for more effective financial services marketing, we have to answer following questions. Is there any difference between financial service marketing and consumer packaged goods marketing? What are the differences between the financial services marketing and other services marketing such as education and health services? Are there different ways of marketing among banks, securities firms, insurance firms, and credit card companies? In other words, we need more detailed research as well as basic studies about the financial services marketing. For example, we need concrete definitions of financial services marketing, bank marketing, securities firm marketing, and etc. It is also required to compare the characteristics of each marketing within the financial services industry. The products sold in each market have different characteristics such as duration and degree of risk-taking. It means that there are sub-categories in financial services marketing. We have to consider them in the future research on the financial services marketing. It is also necessary to study customer decision making process in the financial markets. There have been little research on how customers search and process information, compare alternatives, make final decision, and repeat their choices. Because financial services have some unique characteristics, we need different understandings in the customer behaviors compared to the behaviors in other service markets. And also considering the rapid growth in financial markets and upcoming severe competition between domestic and global financial companies, it is time to start more systematic and detailed research on financial services marketing in Korea. In the second part of this paper, I analyzed the results of in-depth interview with 20 marketing managers of financial services companies in Korea. As a result, I found that the role of marketing departments in Korean financial companies are mainly focused on the short-term activities such as sales support, promotion, and CRM data analysis although the size and history of marketing departments to some extent show a sign of maturity. Most companies established official marketing departments before 2001. Average number of employees in a marketing department is about 58. However, marketing managers in eight companies(40% of the sample) still think that the purpose of marketing is only to support and manage general sales activities. It shows that some companies have sales-oriented concept rather than marketing-oriented concept. I also found three key words which marketing managers think importantly in financial services markets. They are (1)Trust in customer relationship, (2)Brand differentiation, and (3)Rapid response to customer needs. 50% of the sample support that "Trust" is the most important key word in the financial services marketing. It is interesting that 80% of banks and securities companies think that "Trust" is the most important thing, whereas managers in credit card companies consider "Rapid response to customer needs" as the most important key word in their market. In addition, there are different problems recognition of marketing managers depending on the types of financial industries they belong to. For example, in the case of banks and insurance companies, marketing managers consider "a lack of communication with other departments" as the most serious problem. On the other hand, in the case of securities firms, "a lack of utilization of customer data" is the most serious problem. These results imply that there are different important factors for the customer satisfaction depending on the types of financial industries, and managers have to consider them when marketing financial products in more effective ways. For example, It will be necessary for marketing managers to study different important factors which affect customer satisfaction, repeat purchase, degree of risk-taking, and possibility of cross-selling according to the types of financial industries. I also suggested six hypothetical propositions for the future research.

• Bulletin of the Korean Mathematical Society
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• v.48 no.4
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• pp.791-812
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• 2011

This is a survey on American options. An American option allows its owner the privilege of early exercise, whereas a European option can be exercised only at expiration. Because of this early exercise privilege American option pricing involves an optimal stopping problem; the price of an American option is given as a free boundary value problem associated with a Black-Scholes type partial differential equation. Up until now there is no simple closed-form solution to the problem, but there have been a variety of approaches which contribute to the understanding of the properties of the price and the early exercise boundary. These approaches typically provide numerical or approximate analytic methods to find the price and the boundary. Topics included in this survey are early approaches(trees, finite difference schemes, and quasi-analytic methods), an analytic method of lines and randomization, a homotopy method, analytic approximation of early exercise boundaries, Monte Carlo methods, and relatively recent topics such as model uncertainty, backward stochastic differential equations, and real options. We also provide open problems whose answers are expected to contribute to American option pricing.

• Convergence Security Journal
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• v.13 no.1
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• pp.31-36
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• 2013

The personal information protection act has been enacted from 2011 for the protection of public and private privacy. Since the application area of the law is so broad, there is a limit to covers everything in the financial field. In this paper, I'll discuss an impact and problem by the personal information protection act. and propose some new task to build an efficient personal information protection governance on financial sector.

• Journal of Information Processing Systems
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• v.15 no.3
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• pp.682-693
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• 2019

The traditional classification methods mostly assume that the data for class distribution is balanced, while imbalanced data is widely found in the real world. So it is important to solve the problem of classification with imbalanced data. In Mahalanobis-Taguchi system (MTS) algorithm, data classification model is constructed with the reference space and measurement reference scale which is come from a single normal group, and thus it is suitable to handle the imbalanced data problem. In this paper, an improved method of MTS-CBPSO is constructed by introducing the chaotic mapping and binary particle swarm optimization algorithm instead of orthogonal array and signal-to-noise ratio (SNR) to select the valid variables, in which G-means, F-measure, dimensionality reduction are regarded as the classification optimization target. This proposed method is also applied to the financial distress prediction of Chinese listed companies. Compared with the traditional MTS and the common classification methods such as SVM, C4.5, k-NN, it is showed that the MTS-CBPSO method has better result of prediction accuracy and dimensionality reduction.