• KDI Journal of Economic Policy
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• v.35 no.2
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• pp.133-166
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• 2013

This study analyzes the relationships between soft dollar(brokerage commission) and characteristics of funds, and between brokerage commission and return on funds, using the data on equity funds of Korea from June 2008 to November 2011. The result confirms a statistically significant negative relationship between management & sales fees and brokerage commission, meaning that rather than raising management & sales fees, which could be easily recognized by investors, it is through brokerage commission, a hidden cost, which asset management firms indirectly compensate for their services. Meanwhile, the analysis on the relationship between brokerage commission and return on funds reveals that higher brokerage commissions lead to lower return on funds, meaning at least in short-term no contribution to increasing returns in the future. These results suggest the need for streamlining the system to alleviate conflicts of interest between investors and management firms in addition to effectively controlling for principal-agent problems.

• Journal of Digital Convergence
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• v.11 no.3
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• pp.23-31
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• 2013

In Korea, middle and small-sized company takes up an absolute majority of all businesses, and most of them are founded as a limited company. Yet, it is a type of business that fits a company of certain size, and its establishment process is complicated due to various reasons such as investor protection. It is also required to have strict organization structure based on the principle of separation of ownership and management. Accordingly, as the principles may undermine entrepreneur's will to start business, there has been dramatic change in legal system on business establishment and management since 2010. The changes include streamlined process at the foundation stage and digitalization of many regulations on business establishment and operation for more convenience in starting business. Also, new business types for small-sized companies were adopted, and freedom to select business name has been enhanced. The issue of non-par value stock has been allowed, and various types of stock have been adopted for more convenient financing, defense against hostile M&A, and easier business succession.

• Journal of Arbitration Studies
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• v.29 no.2
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• pp.35-63
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• 2019

Since imposing Performance Requirements (PRs) on investors have been conducted as a means to protect a host state's domestic industry in the short run, with its effect on improving the international balance of payments, it has been implemented mostly in developing countries. From the viewpoint of investors, however, PRs hinder free competition and investment activities and have the effect of distorting international trade activities; therefore, they are expected to bring detrimental effects on the host state's economic development in the long run. PRs provided by International Investment Agreements (IIAs) and WTO-TRIMs, too, included many abstract regulations which are grounded on the host state's economic efficiency in the past; however, those PRs are gradually being more concretely specified, shifting to a form of prohibition with the goals of increasing the protection on investors and realizing investment liberalization. Accordingly, when Korea freshly concludes IIAs or revises them afterwards, one should focus more on following the points regarding PRs. First, to protect Korean companies' investment activities, it is advantageous to list the contents of prohibited PRs extensively and concretely and create a stipulation. Second, it is necessary to list the contents of the PRs prohibited and add the phrases for prohibiting "any other similar requirements" explicitly, as well so as to cover the PRs that can appear newly. Third, as in the cases associated with PRs, issuable matters are mostly either the range of applying PRs or the conditions of applying them (relevance or detrimental effects); therefore, it is necessary to classify the cases accumulated by issues and analyze them thoroughly. In conclusion, as this study has analyzed the theoretical characteristics of PRs provided in IIAs and related cases and suggests exquisite theory regarding PRs, it not only lays fundamental grounds for follow-up research but also gives useful and practical guidelines for the parties concerned and the arbitrators according to the ISDS procedure.

• Management & Information Systems Review
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• v.35 no.3
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• pp.81-93
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• 2016

UK "FSMA" provides a safe harbour for members of professions, which are lawyers, accountants, and actuaries in their provision of certain financial services, despite the general prohibition, the professions carry on exempt regulated activities. In particular, DPBs(designated professional bodies), which professional bodies are designated by the Treasury, must have rules and have to supervise and regulate their members those activities by rules. Also, the FSA must keep itself informed about the role of DPBs, and may make directions concerning the safe harbour in relation to particular classes of persons of different descriptions of regulated activities. On the other hand, Korea "FSCMA" explicitly except provision of financial services by professions to investment adviser without regard to mainstream financial services activities or incidental activities. Under "FSMA", if the professions conduct provision of financial services as mainstream activities, they must be authorized person and even if their activities is incidental, they have to comply with exemption sections. Therefore, there is a need of prepare the legal safeguards about provision of financial services by professions for the investor protection.

• The Journal of Small Business Innovation
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• v.19 no.1
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• pp.37-58
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• 2016

Despite the growing importance of corporate venture capital (CVC) in the venture capital market, little scholarly attention has been devoted to cross-border CVC investment. Venture firms perceive higher risks of technology leakage in cross-border CVC investment than they do in domestic CVC investment due to geographical and cultural disparity. Given that venture firms would not receive CVC investment in the presence of the partner uncertainty, we argue that the likelihood of cross-border CVC investment increases with the strength of intellectual property protection (IPP) regime, the investment timing (i.e. funding round number), and the industry unrelatedness with the corporate investor. Additionally, we investigate how the venture firm's complementary resource need interact with the partner uncertainty in decisions for cross-border CVC investment. By examining 2,873 CVC investment transactions in the period 1994-2009, we found supporting evidence for the strength of IPP regime and the industry unrelatedness in mitigating the partner uncertainty of foreign corporate investors. However, the effectiveness of these factors is moderated by the type of resources that the venture firms need from the foreign corporate investors.

• The Journal of the Convergence on Culture Technology
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• v.9 no.1
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• pp.747-754
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• 2023

With the development of information and communication technology, online fractional investment platforms have emerged through the convergence of online platform technology and new investment techniques for asset-backed derivatives. In this study, the concept and previous studies of the online fractional investment platform business, commercialization models and service processes, market status, and pending discussions and alternatives were presented. Recently, the Securities and Futures Commission's decision on securitization of split ownership has become an important guide to the stable business sustainability of platform operators, but academic research is needed according to the current status and case analysis. To identify specific market issues, examples of representative online fractional investment securitization platform businesses such as "MusiCow" for music copyright, "Tessa" based on art, "Kasa" for real estate, "Piece" based on real assets, and "BangCow" for Korean beef shipments were analyzed. Through the case analysis of this study, the characteristics of the business model according to the basic assets of the online fractional investment platform were compared and presented. Since most business models are judged to be securitic, they must comply with the provisions of the Capital Markets Act or be recognized as the target of innovative financial services. From a practical point of view, it is meaningful in that it presented improvement directions that online fractional securitization platform operators should consider and organized institutional considerations for investor protection.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.17 no.1
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• pp.177-189
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• 2022

This study proposes policy recommendations for the Korea New Exchange ("KONEX"), which is a financial platform for SMEs and startups that relied on indirect and policy financing in the past. SMEs and venture firms with limited human and physical listing resources can grow through market incubation, and venture capitalists expect an early exit or return on investment. However, the lack of liquidity and sluggish trading volume have weakened the function of the market. Despite prior policy efforts, the number of newly listed companies has decreased while listing demand for KOSDAQ and K-OTC has increased. This study aims to suggest short- and long-term improvements in regulations and throughout the KONEX firms' listing life cycle. First, the minimum deposit requirement on individual investors should be abolished to increase the number of investors. Second, information disclosure should be conducted by firms so that the nominated advisor can focus on discovering and supporting new listed companies. Third, in order to increase trading volume, the 5% dispersion rule should be changed to 25% dispersion incentive principle. Fourth, a new track without profit condition in expedited transfer listing should be introduced because the KOSDAQ relaxes the profit realization requirements for listing. Lastly, transfer listing without additional review for firms that fulfill ownership dispersion, information disclosure, and investor protection will strengthen the incubating role of the KONEX.

• Journal of Venture Innovation
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• v.3 no.2
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• pp.95-109
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• 2020

The source of value-added creation in modern times has been transformed from material to man's value-added generating power, and ownership of the means of production has been converted from a particular landlord, capitalist to a person with value-added capacity, and a system of capital participation is needed beyond the profit-sharing system or performance incentive system in which workers of an enterprise participate in simple profits if they significantly increase the added value of the company. It is also necessary to introduce our private stock system as a means of addressing the problem of capital bias and for the stable development of capitalism. The purpose of Employee Stock Ownership Plans is to improve the economic and social status of workers and promote labor-management cooperation by allowing workers to acquire and hold shares of the stock company in which the employee ownership association is established through the employee ownership association, but the reality is that our stock ownership system has failed to achieve its purpose due to insufficient protection against the employee. In terms of welfare, the acquisition of our company shares should include active government support for the welfare of workers' ownership on a social welfare level rather than on the logic of the capital market, and in terms of investment, it would not be appropriate to apply the regulation for investor protection to see workers' acquisition of our company shares as 'investment' in the view of workers' willingness to own shares on the stock market. Therefore, as a way to support and deregulate employee's stock acquisition, 1. Expanding direct support, such as tax support, 2. As employee's stock ownership association is being discussed as a division's nature, it is less effective in terms of various management, not investment, and 3. Those who own stocks with 1% of the company's shares and 300 million won in face value will be classified as major shareholders. As a way to reduce the risk of management of our company owners and cooperative funds, As a measure to reduce the risk of management of our company owners and cooperative funds, only our employee shareholders' association shall manage the fund in a long-term deposit, and even though our employee's stock is managed by the association or company after the end of the deposit period, the management of each employee shall be allowed and In terms of improving the utilization of our company's stock and fund, 1. Employee's stockholders are prohibited from lending during the deposit period, but it is necessary to improve profitability by allowing them to borrow under strict restrictions, 2. It is necessary to make the use of the employee's welfare funds available for the preservation of losses, and to stipulate the redemption obligations of unlisted companies in order to improve the redemption system of our company.