• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.61
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• pp.29-55
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• 2014

Subject matter of international trade are various. They contain not only tangible assets such as goods but also intangible assets including service, technology, and capital etc. Technology, a creation of the human intellect, is important as it is the main creative power to produce goods. It can be divided into Patent, Trademark, Know-how and so on. These Technologies are protected by the national and international laws on regulations for the Intellectual Property Rights(IPR), since technology development is needed a lot of time and effort, and the owner of the technology may have crucial benefits for creating and delivering better goods and services to users and customers. Therefore, any licensee who wants to use the technology which other person(licensor) owns, he(the licensee) and the original owner(the licensor) shall make Technology Transfer Contract. Differently from the International Sales Contract in which seller provides the proprietary rights of goods for buyer, in the case of International Transfer of Technology Contract, the licensor doesn't provide proprietary rights of technologies with the licensee, on the contrary the right of using is only allowed during the contract. The purpose of this paper is to examine the main issues in International Transfer of Technology Contract. This author focused on the main obligations of both parties, namely licensor's obligation to provide the technology and licensee's obligation to pay the royalty. As every country has different local mandatory laws about Intellectual Property Rights(IPR) and these mandatory rules and laws prevails over the contract, the related rules and laws should be examined carefully by both parties in advance. Especially the rules and laws about the competition limitation in the local country of licensee and the economic union(like the EU) should be checked before contracting. In addition, the contract has much more complicate and delicate aspects than other international business contracts, so both parties should review carefully before singing the contract.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.69
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• pp.453-472
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• 2016

As globalization is widely expanded in Islamic world as well as huge capital like oil-money is looking for new investment areas, our government should keep eyes on the current situation of Muslim market. This study will focus on the research of operation model of Islamic insurance. It will analysis on the institutional aspects of Islamic insurance(Takaful) system, which is a step further on the basis of these previous researches about Islamic finance. Takaful is conducted with various machanism such as Wakala, Mudarabah, Waqf. The mechanism can also be intermingled with one another to form other diverse contracts. However most of them are focused on basic conceptual elements of Islamic insurance system. As public interests in Islamic insurance are increasing these days, many Islam related literatures are issued accordingly. But most of them were focused on basic aspect of Islamic financial system or on the study of business management structure. The conceptual approach to evaluate the Islamic insurance market shall become the foundation of operation in conventional business law and regulation penetrate to the Islamic business environment. Therefore, the research of the operation model in Islamic insurance system as well as the search of trade engineering basis.

• Journal of Arbitration Studies
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• v.22 no.3
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• pp.71-92
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• 2012

The significant increase in international trade over the last few decades has been accompanied by an increase in the number of commercial disputes between Korea and India. Understanding the Indian dispute resolution system, including arbitration, is necessary for successful business operation with Indian companies. This article investigates characteristics of India's Arbitration and Conciliation Act in order to help then traders who enter into business with Indian companies to settle their disputes efficiently. The Arbitration and Conciliation Act(1996) based on the 1985 UNCITRAL Model Law on International Commercial Arbitration and the UNCITRAL Arbitration Rules 1976, has a number of characteristics including the following: (i) this act covers ad hoc arbitration and institutional arbitration (ii) parties to the arbitration agreement have no option except arbitration in case of any dispute (iii) the parties can choose their own laws, places, procedures, and arbitrators (iv) the decision of the arbitrators is final and binding (v)role of the court has been minimized and (vi) enforcement of foreign awards is recognized. However, there have been some court decisions that have not been in tune with the spirit and provisions of the Act. Therefore, Korean companies insert the KCAB's standard arbitration clause into their contracts and use India's ADR(Alternative Dispute Resolution) Methods to strategically resolve their disputes. Additionally, Korean companies investigate Indian companies' credit standing before entering into business relations with them.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.13
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• pp.83-103
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• 2000

Through the this paper, a conclusion could be derived from CISG PICC MISC made by UNIDROIT, UNCITRAL, ICC of representative system making out a draft for uniform law, convention, trade usages. (1) In short, like most int'l sales rules applicable to commercial contracts, these rules play a supporting role, supplying answers to problems arising from transaction between the parties. (2) Though every one has in its own way a special feature, use of MISC made on the basis of actual facts which the parties are faced with their daily transactions, CISG and Incoterms being now in force, is desirable. (3) In case of use of MISC similar to a system of Incoterms, as PICC, it is necessary for MISC to set forth definitions about important terminology which is possible to give concerned parties confusion. (4) In a sense, PICC has a character complementing problems which CISG can not solve, therefore, if int'l agreement is given, it is desirable to adopt revised PICC adding specials conditions (A) of MISC as appendix of PICC such as Llouyd's Form in an appendix to MIA, as int'l convention.

• International Commerce and Information Review
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• v.9 no.2
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• pp.65-86
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• 2007

This paper reviews the properties and application methods of widely used types of risk measures, identifies the rationale and business-side effects of hedging, derives the theoretical formula of optimal hedging ratio, and analyzes the various functional aspects of VaR(Value-at-risk) as a risk measure and a hedging tool. Especially this paper focuses on the characteristics of VaR compared with other risk measures in terms of their own principal determinants and identifies its stronger aspects in the dimension of hedging strategy tools. As well, this paper provides the detailed processes deriving the optimal hedge ratios based on the distributional parameters and risk factors. In addition, this paper presents the detailed and substantial processes of estimating the minimum variance hedge ratio and minimum-VaR hedge ratio using the actual data and shows that the minimum variance hedge ratio proves helpful for many cases although it is not appropriate for the non-linear portfolio including the option contracts. We demonstrate the trade-off relationship between the minimum variance hedge strategy and the minimum-VaR hedge strategy in their hedging costs and performances through calculation of the respective VaRs and variances of unhedged and hedged portfolios and the optimal hedge ratio and hedging effectiveness values for the given long position in US Dollar with the short position in Euro.

• Journal of Arbitration Studies
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• v.23 no.4
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• pp.191-209
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• 2013

The amount of international trade conducted through Hong Kong (HK) is increasing, thus rendering the legal framework governing contracts of sale between Mainland China (China) and HK is of particular importance. The status of HK under the CISG is currently unclear, however. First, the CISG entered into force in China in 1988. This important development had no legal effect for HK though as China lacked the power to enter into international conventions for HK. Second, the "Letter of Notification" deposited to the Secretary-General of the UN referred a list of treaties to be applied to HK, taking effect from July 1, 1997. This list, however, made no mention of the CISG. Third, China made a reservation in Article 95 of the CISG. Pursuant to Article 1(1)(b) of the CISG, the CISG cannot apply to HK. As a result, the Chinese Arbitral Tribunal apply the Chinese law according to the closest connection principle with the contract. In this case, attention must be given to the different result to which the CISG is applied. Liability for damages pursuant to the Chinese Contract Law (CCL) is just the same as Article 74 CISG, but CCL does not govern the case with substitute transaction and without substitute transaction when the contract is avoided. Therefore, the contract should be governed by the CISG from a business perspective when a contract is concluded between China and HK; otherwise, a promisee could not be fully compensated for all loss incurred.

• The Korean Journal of Financial Management
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• v.21 no.1
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• pp.205-229
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• 2004

The deviation from put-call parity condition may affect market prices since it provides an opportunity of arbitrage to many participants. This study uses the KOSPI200 index data and examines the interdependence among spot, futures, and options contracts by examining whether the deviations from the parity have significant roles in price formation. Whenever the parity condition is violated, the deviation tends to affect the prices significantly in most markets. The results show that positive values of deviation are associated with the fall of the prices in the spot and put option contracts and the rise of the call option premiums, thus decreasing the deviations. Also, the decreasing impact of deviations lasts for at Beast an hour in most markets. Futures prices, however, do not show clear relations with the deviations, which suggests the possibility that futures markets lead other markets.

• Korean Business Review
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• v.12
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• pp.303-321
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• 1999

Electronic commerce, driven by the development of the Internet and computer, premises to be an important engine for growth for the world economy in th the 21st century. Electronic commerce offers considerable new opportunities for the business and citizens in all regions of the world by enhancing productivity across of our economics and encourage trade in both goods and services. Specially in relation to contract, electronic commerce requires a coherent, coordinated approach internationally on key issues such as a validity, a legality, consumer protection. Electronic commerce, which breaks down national boundaries and widens the gap between the place where services are performed and the place where they are consumed, requires a new paradigm when making an between contracting parties.

• Korea Trade Review
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• v.43 no.4
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• pp.27-50
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• 2018

This study focuses on the judgement of Seoul High Court' regarding the formation and performance of contracts applying the CISG. The purpose of this study is to provide legal understanding to contracting parties involved in contract for the international sale of goods that can be considered in raising the understanding of the CISG within the scope of the subject. This study aimed at the legal validity of judgments, the defects in reason for judgments and legal standards that could be established. The main contribution of this study is summarizing the facts of judgments and arguments of the parties and furthermore, in accordance with the order, the judgment order of the court and the decision criteria of the application law, the CISG articles comment and interpretation on the formation of the contract, legal bases of fundamental breach of contract, termination of contract, concurrent fulfillment and other supplementary matters and so on.

• Korea Trade Review
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• v.42 no.2
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• pp.205-225
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• 2017

The study attempts to verify the case related to the notice of payment refusal by issuing bank regarding discrepancy in transport document under L/C(Letter of Credit) transaction. Considering the high portion of trade between Korea and China, Korean companies and banks in L/C transaction should be careful about many unpredictable situations. The case of this study is that Chinese seller(beneficiary) initiated a civil suit against Industrial Bank of Korea to Chinese court and Chinese courts in the first and second trials judged that the notice of payment refusal by Industrial bank of Korea doesn't satisfy Article 16, (c) (ii) (iii) in UCP 600. However, Industrial Bank of Korea implements the judgement even though the judgement is highly biased to Chinese seller. Considering the judgement by Chinese courts, the study suggests some countermeasures to Korean companies and banks which opened L/C. First, the issuing bank should describe the contents of discrepancy specifically based on Article 16, (c) in UCP 600. Second, it is necessary to insert a clause regarding governing law in the L/C contract like sales contract. Third, considering the biased judgement by Chinese court and difficulty in execution of foreign judgement in China, it is recommended to using arbitration as a method of dispute resolution such as ICLOCA and DOCDEX Rules which are international system operated by international instruments because it has legal effects to parties in L/C contracts if the issuing bank inserts arbitration clause in L/C.