• The Journal of the Korea Contents Association
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• v.20 no.3
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• pp.245-253
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• 2020

If the conversion rate of jeonse price to monthly rent is the market interest rate or the landlord's expected return, then the conversion rate of jeonse price to monthly rent in the country should be the same. However, the conversion rate of jeonse price to monthly rent has always been higher than the market interest rate. This study identifies the supply cost components of rental housing as a risk premium in the presence of current housing prices, market interest rates, depreciation costs, holding taxes, and leases, and identifies the relationship between the current housing prices and each factor. Housing rent is expressed as the current price. This overcomes the shortcomings that implicitly assume fluctuations in housing prices or do not include current housing prices in the conversion rate of jeonse price to monthly rent. This study found that the conversion rate of jeonse price to monthly rent is the required rate of return or required rate of renter, not market interest rate, by expressing the supply cost of rental housing as a combination of components. This not only explained the fact that the conversion rate of jeonse price to monthly rent was always higher than the market interest rate, but also explained the regional differences. It also explained why the conversion rate of jeonse price to monthly rent varies by type of housing.

• Proceedings of the Korean Society of Computer Information Conference
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• 2011.01a
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• pp.55-58
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• 2011

This paper proposes a method of occluded number recognition by matching interest points. Interest points of input pattern are found via SURF features extracting and matched to interest points of clusters in database following three steps: SURF matching, coordinate matching and SURF matching on coordinate matched points. Then the satisfied interest points are counted to compute matching rate of each cluster. The input pattern will be assigned to cluster having highest matching rate. We have experimented our method to different numerical fonts and got encouraging results.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2004.05a
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• pp.742-745
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• 2004

Most of options pricing theory including Black and Scholes continuous model and Cox, Ross, and Rubinstein(CRR)'s binomial lattice model were developed based on the notion that continually revised risk-free hedges involving options and stock should earn the risk-free interest rate. This notion is valid with the assumption that the investor's attitude toward risk is neutral. In reality, this assumption may be frequently violated. Therefore, Hodder, Mello, and Sick proposed the way to value real options using the risk-adjusted interest rate. However, they did not show how to derive the mathematical expression for it. In this paper, we will clearly present how to obtain the mathematical expression for the risk-adjusted interest rate for real options and demonstrate two numerical examples to show its applicability.

• Journal of Navigation and Port Research
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• v.45 no.5
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• pp.259-275
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• 2021

This study analyzed the decision-making process in ship finance for the choice between fixed and floating interest rates using behavioral finance theories. Results confirmed that causes and background of decision-making processes could be explicitly explained by the framework of behavioral finance theories. This study also determined whether decisions were irrational. A case-study research was applied as the methodology. Decision-making data on ship finance collected through narrative and questionnaire responses were analyzed and evaluated using behavioral finance theories. Theories of behavioral finance used in the analysis and research of this study included availability heuristic, anchoring effect, and opportunity cost theory. Narrative and survey responses were clearly explained by theories of behavioral finance. It was found that a shipping company suffered additional losses owing to decisions that included behavioral finance errors. Behavioral finance theories largely influenced the decision-making process of choosing between a fixed interest rate and a floating interest rate. Shipping finance decisions related to interest rate selections could be clearly explained by behavioral finance theories. Errors related to behavioral finance could result in irrational decisions. Thus, managers who are responsible for shipping finance should remain vigilant toward any behavioral finance errors when making shipping finance decisions.

• Journal of the Korean Operations Research and Management Science Society
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• v.37 no.3
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• pp.1-12
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• 2012

The research mainstream has focused on improving the competitiveness throughout the reinforcement of customer satisfaction and loyalty in the banking industry, but there is still a lack of research that reflects characteristics of banking services. From a customer point of view, this study considers a variety of bank characteristics such as levels of interest rate, numbers of transaction banks, monthly average balance, and age. In line with this observation, the main objective of the current research is to investigate the relationship between bank characteristics and ongoing transaction intentions with a particular bank using a categorial regression analysis and in turn, provide insights for managers. First, the findings show that deposit interest rate is insignificant for leading customers to ongoing transaction intentions, but loan interest rate is significant when customers are satisfied with a loan interest rate. Second, if customers only transact their banking services with a particular bank, they are more likely to deal with the bank, rather than customers who transact additional one or two banks. Third, in the case of monthly average balance, customers who have more than \100 million wons per month are likely to switch other competitors. Finally, old customers are more stable than young customers when they consider to switch the relationship with a bank. The author provides insights for bank managers and discusses research limitations and further directions of the study.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.75-81
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• 2020

This study aims to empirically test the effect of liquidity and adequacy on bank performance through interest rate risk and credit risk. Capital adequacy and liquidity are variables that can affect the ups and downs of opinion, where the bank's performance in this study is the dependent variable. Good credit distribution can minimize the occurrence of defaults. This study uses banking companies in Indonesia that are listed on the Indonesian stock exchange, with a total number of 43 banking companies, this study however, uses only 30 companies ranging from years 2014 to 2019, primarily due to the availability of the limited data. The data analysis techniques used in this study is PLS-SEM with the WarpPLS application. The research results show that capital adequacy and liquidity has a positive effect on bank performance, interest rate risk and credit risk can mediate capital adequacy on bank performance, interest rate risk can mediate liquidity on bank performance, and interest rate risk has a positive effect on bank performance. However, credit risk can't mediate liquidity on bank performance and credit risk does not have a positive effect on bank performance. This is in line with the commercial loan theory, shiftability theory and the doctrine of anticipated income, which explains how best to give credit, both in longer and the shorter term.

• Journal of Korea Port Economic Association
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• v.32 no.2
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• pp.59-71
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• 2016

This study empirically examines the dynamic specification of the ship price model based on a vector autoregressive model and data covering from January 2000 to October 2014. Our results are summarized as follows: first, the relationship between ship price and interest rate shows significantly negative and the relationship between ship price and freight rate shows positive. It provides consistent implication that ship price depends on interest rate and freight rate under the dynamic Gordon model. Second, we apply an impulse response analysis to ship price and find the responses of the ship price from both factors, interest rate and freight rate, which affect during seven periods approximately. Finally, the results of a variance decomposition indicate that freight rate is more important than interest rate on the ship price.

• Journal of Arbitration Studies
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• v.31 no.1
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• pp.55-81
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• 2021

Awarding interest in international arbitration remains one of the most challenging areas for tribunals and parties given the myriad of issues that arise. This article seeks to provide an overview of how international arbitral tribunals grant delay interest. It reviews the various issues that international arbitral tribunals face concerning pre-award and post-award interest, determining the appropriate interest rate, surrounding simple or compound interest, and the complex issue of choice of law. A comparative context is provided by surveying the laws of major jurisdictions from both the common law and civil law and the regulations of leading arbitral institutions. It concludes with a review of the law, jurisprudence, and practice in Korea related to delay interest and how Korean tribunals under the KCAB Domestic and International Rules have determined delay interest in recent years.

• International Journal of Advanced Culture Technology
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• v.7 no.1
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• pp.84-88
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• 2019

This paper examines whether the exchange rate respond differently to monetary policy shocks in Korea using regression model. We find an asymmetric response of the monetary policy shocks to the monetary policy shocks in the context of Korea. Over the whole period sample, we do not find the effect of an actual interest rate on exchange rate. But we find that the estimated coefficient on the expected and unexpected change in the policy rate are negative and statistically significant. In the period of monetary policy easing, the estimated coefficient on the expected and unexpected change in the policy rate are negative but not statistically significant. In contrast, the period of monetary policy tightening, the estimated coefficient on the expected and unexpected change in the policy rate are negative and statistically significant.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.43-52
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• 2020

This paper examines how macroeconomic variables, such as interest rate differences, inflation, exchange rates, economic growth and external debt growth, affect capital flight in the ASEAN-8 countries. We apply a panel data model with fixed effect estimation for the data for eight countries from the period 1994 to 2018. We use the residual approach used by the World Bank to measure the value of capital flight. The results show that the interest rate differences, exchange rates, economic growth and foreign debt growth had a positive and significant effect on outward capital flight. A further implication of this finding is that the interest rate differences, exchange rate, economic growth and foreign debt growth are factors that trigger an increase in capital outflow in the ASEAN-8 countries. Nonetheless, inflation rate is not considered to be the main factor influencing capital flight, as average inflation in the ASEAN-8 countries remains relatively stable. This paper will be beneficial for policymakers in the ASEAN-8 countries and encourage them to constantly pay attention to these four variables, as they significantly influence capital flight, whereas they can disregard the impact of the inflation variable that is not significant in influencing capital flight.