• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.58
• /
• pp.215-236
• /
• 2013

It is quite true that the more Korean contractors receive overseas contracts, the more they need guarantees. The top market for them is the Middle East countries, consisting of more than the half of the total amount awarded last year and the trend is increasing as well. The problem, however, is that employers in these countries are reluctant to use international rules for guarantee such as URDG or ISP98 and easily make unfair callings. However, Korean contractors(applicants), especially small and medium sized enterprises(SMEs) tend to hurriedly enter a contract without looking into its contents as well as guarantees. They do not realize the importance of the guarantees until they receive callings from the employers(beneficiaries). Being independent from the underlying contracts, guarantee is the equivalent to cash in that it usually does not require any proof of demand when calling and the guarantor should make a payment within usually 5 business days after the request. It is often observed these days that several Korean SMEs go bankrupt due to liquidity risks after receiving unfair callings from employers in the Middle East countries. In retrospect, some cases could be obviated if contractors were a little more careful in checking the contents of a guarantee at the time of concluding a contract. For example, there is one case where the underlying contract includes a reduction clause in the Advance Payment bond and the guarantee does not have that clause. In the end, the Korean contractor had to take the whole burden of the bond amount though it had finished 81% of the project. Nobody could argue that contractors should take a full responsibility if they fail in their obligations. However, the employer's wrongful callings need to be prevented in the first place, if possible. As there shouldn't be a case where one party is at a disadvantage against the other like the case mentioned above, useful insight is being sought to minimize unfair calling risks for the benefit of the applicant. First, the applicant should carefully look into every detail of the potential guarantee before signing a contract, heeding especially that there is a reduction clause in the AP bond. Second, the governing principles for guarantee should be the ones that are internally used such as URDG758 that is objective in terms of callings given that, for example, it specifies that the requirement for a supporting statement when making a demand is a default rule. It is also recommended that the form of guarantees be the standard demand guarantee. Third, parties involved in issuing guarantees are advised to understand international rules for guarantee like URDG758 and ISP98 and to play a key role in guiding SME contractors in Korea so that they can protect themselves from possible wrongful callings, particularly from employers in the Middle East countries. I hope this study would give a wake-up call for Korean SMEs wishing to do business in the Middle East countries and remind them of the importance of guarantee itself and its governing principles.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.51
• /
• pp.213-239
• /
• 2011

This article examines two important issues of the demand for payment by the beneficiary and the payment by the guarantor to the beneficiary under the revised Uniform Rules for Demand Guarantee (URDG) published by ICC, which are called URDG 758 and effected on July 1, 2010. Here, after first briefly defining the concept and nature of the demand for payment, this article discusses various issues surrounding the demand: By whom, where and how the demand has to be made; which documents are required in demanding the payment; how much amount can be demanded and paid; when and where the payment has to be made and which currency has to be used for the payment. The demand for payment has to be made by the beneficiary to the guarantor on or before expiry of the guarantee at the place of issuance of the guarantee unless any other place is specified in the guarantee. The demand has to be made in paper form unless the guarantee requires an electronic form. Unless otherwise expressly stipulated in the guarantee, the demand must be supported by a statement by the beneficiary indicating the applicant is in breach of the underlying contract. Also the demand must identify the guarantee under which it is made, and the time for examination by the guarantor starts on the date of identification. The demand cannot be for more than the amount available under the guarantee. When the demand is complying the guarantor must pay the amount demanded. The payment has to be made at the branch or office of the guarantor that issued the guarantee unless any other place is indicated in the guarantee. The payment has to be made in the currency specified in the guarantee, unless the guarantor is unable to make payment in that currency due to an impediment beyond its control or any illegality under the law of the place for payment. In case of "extend or pay" or "pay or extend" demands, the demand is deemed to be withdrawn if the extension is granted. But if not, the demand has to be paid without any further demand by the beneficiary.

• The Journal of the Korea Contents Association
• /
• v.21 no.3
• /
• pp.419-429
• /
• 2021

The purpose of this study is to investigate the effects of service guarantees of tourist hotels on employees' perception of role clarity and customer orientation. Specifically, this study analyzed how the employees' perception of role clarity as a parameter, with the employees' reliability, guarantee-related communication, guarantee limitation, and organizational support as independent variables, affected the dependent variable, customer orientation. As a result of empirical analysis of employees in the first grade hotel in Seoul, it was analyzed that the higher the reliability of employees in service guarantee, the higher the communication and organizational support in the organization related to guarantee work, the higher the role clarity and perception level of employees. The higher the reliability, guarantee limitation and organizational support level of guarantee, the higher the customer orientation, but the guarantee-related communication did not show significant influence. The perception degree of role clarity of employees has a significant effect on customer orientation. According to those results of this analysis, this study examined the influence of each configuration of service guarantee of tourist hotel employees on customer orientation, and presented various academic and practical implications.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.51
• /
• pp.263-283
• /
• 2011

There are two typical international rules in issuing guarantee for obligations of party which is responsible to provide some duties such as services, construction, plants, loan repayment, etc. The two internationally recognized rules are currently ISP98 and URDG758. ISP98 was firstly introduced in 1998 for American banks to issue standby letter of credit domestic and overseas for the area where UCP does not cover. URDG was introduced first in 1991 in the name of URDG458 but it has not been widely used and therefore new URDG named URDG758 came out in 2010 to accommodate more standard guarantee practice. At the face of these two prevailing international rules, the users are sometimes confused which rule would be more suitable for their individual transaction. This led us to conduct a comparative analysis on these two rules. Our study suggests that URDG758 is more adequate for construction, ship-building and plants-supply obligations whilst ISP98 is for financial obligations. Also attentions are required when issues such as counter guarantee, governing rule, presentation period, document examination period and default statement exist. This is because ISP98 and URDG758 have different view points.

• 제어로봇시스템학회:학술대회논문집
• /
• 1988.10a
• /
• pp.202-205
• /
• 1988

Several sufficient condition which guarantee the stability of linear state delay systems are derived. And the delay margin which guarantees the stability of the delay systems are presented.

• Journal of Global Scholars of Marketing Science
• /
• v.15 no.2
• /
• pp.183-201
• /
• 2005

The lowest price guarantee policy or price-matching guarantee is the pricing policy that promises to compensate more than the price difference if a consumer finds a lower price for the identical model he or she purchased and submits a certain proof. Most of Korean large discount stores emphasize their competitive price level by adopting the lowest price guarantee policy so that the entire Korean distribution industry is deeply influenced by the policy. The article is the study regarding the effects of the lowest price guarantee policy in Korean unique industry environments. The study investigated the effects of the policy on consumers' preferences of stores. By using the conjoint measurement model, it identified the main effects and interaction effects between the policy and other independent variables. The results showed the significant effects of the policy on consumers' preference of stores and identified the interaction effects between the distance from the residence and the policy, and between overall store price level and the policy.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.12
• /
• pp.495-518
• /
• 1999

Since the end of World War II, the standby letters of credit have been used as a surety device, serving as a performance bond and guarantee in the world. In Korea, the standby letters of credit have been also being used in international transactions. But there have been a few studies on the standby letters of credit. This study is carrying out to reveal the characteristics of the standby letters of credit and the documentary letters of credit and also between the standby letters of credit and guarantees. Secondly, this study is carrying out to indicate types of practical use of standby letters of credit in international transactions, i.e. bid bonds, performance bonds, advanced payment guarantees etc.. Finally, this study is carrying out to indicate governig rules regarding standby letters of credit, i.e. URCG, URDG, UCP, UN Convention on Independent Guarantees and Standby Letters of Credit, ISP etc..

• Cartoon and Animation Studies
• /
• s.11
• /
• pp.121-136
• /
• 2007

Recently, the cases that many works of the korean independent animation advance to the world by steps and some of them win the grand prix in famed global animation film festival are proving the growth potential and competitiveness. In this situation, to guarantee the continuous, and reliable as well, growth and international competitiveness of it, it is needed to ensure the government's systematic supports. Although it is a bit leaned toward the creative animation for a theater, however, or many kinds of supporting system are established and carried out, independent animation is still suffering from the financial pressure. As of now, it is must be considered of the international standing of korean independent animation and is needed to be discussed how the government's supporting systems are proceeding and what they are performing. From this point of view, this paper will study the present condition and international standing of the korean independent animation, and further, will examine and analyze the on-going supporting systems. This, consequently, intends to present the direction of government's system to promote the korean independent animation.

• Journal of the Korean Data and Information Science Society
• /
• v.16 no.4
• /
• pp.1095-1106
• /
• 2005

When X and Y have independent two parameter exponential distributions, we develop a Bayesian testing procedures for the equality of two location parameters. The reference prior in non-regular exponential model is derived. Under this reference prior, we propose a Bayesian test procedures for the equality of two location parameters using fractional Bayes factor and intrinsic Bayes factor. Simulation study and some real data examples are provided.

• 한국데이터정보과학회:학술대회논문집
• /
• 2004.04a
• /
• pp.15-23
• /
• 2004

When X and Y have independent two parameter exponential distributions, we develop a Bayesian testing procedures for the equality of two location parameters. Under the noninformative prior, we propose a Bayesian test procedures for the equality of two location parameters using fractional Bayes factor and intrinsic Bayes factor. Simulation study and some real data examples are provided.