• Journal of Korea Trade
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• v.23 no.7
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• pp.147-155
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• 2019

Purpose - As the U.S.-China trade war has become considerably worse, the Chinese government is considering applying non-tariff barriers to trade, especially local contents rule. The main purpose of this research is to check whether it is suitable for Korean investors to invest in the current Chinese capital market. Design/methodology - In order to check the stability of the recent Chinese capital market, we investigated the behavior of foreign equity investment (including Korean equity investment) in the Chinese capital market after China announced the Shanghai-Hong Kong Stock Connect (SH-HK Connect). In this paper, we researched whether international portfolio investment would or would not contribute to an increase the volatility of an emerging market's stock market (Chinese capital market) when foreign investors make investment decisions based on the objective of short-term gains by rushing into countries whose markets are booming and fleeing from countries whose markets are falling. Findings - The empirical results indicate that foreign investors show strong, negative feedback trading behavior with regard to the stock index of the Shanghai Stock Exchange (SSE), and when the performance of foreign investors in the Chinese stock market was fairly good. Also, we found evidence that the behavior of foreign investors significantly decreased volatility in SSE stock returns. Consequently, the SH-HK Connect brought on a win-win effect for both the Chinese capital market and foreign investors. Originality/value - It appeared that the Chinese capital market was very suitable for Korean investors after the China's declaration of the SH-HK Connect. However, the win-win effect was brought on by the Chinese government's aggressive capital control but the capital controls could possibly cause financial turmoil in the Chinese capital market. Therefore, Chinese reform in industrial structure and the financial sector should keep pace with suitable capital control policies.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.195-210
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• 2020

This study describes the structure of the capital markets for small- and medium-sized enterprises (SMEs) and startup companies in Korea, which is an emerging market that has experienced drastic changes. The overall capital market can be divided into private and public capital markets. In the private capital market, most of the demand for capital comes from non-listed private firms, including startups and SMEs. In the case of SMEs and startups, the KOSDAQ, the Korea New Exchange (KONEX), and primary collateralized bond obligations (P-CBOs) are part of the public capital market. SMEs and startups are generally incapable of raising sufficient capital owing to their low credit ratings, and they largely have limited access to primary markets to issue shares and borrow money. The Korean government has developed a systematic financial aid program to provide funds to these companies. The fund for SMEs has significantly contributed to the development of the venture capital market. Many Korean banks provide substantial lending to SMEs, but this lending is available only because of the Korean government's loan recovery guarantee. Furthermore, SMEs can issue corporate debt in the form of primary collateralized bond obligations through government guarantees, but such debt issuances have placed increasing pressure on public guarantee institutions.

• The Korean Journal of Financial Management
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• v.26 no.1
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• pp.127-163
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• 2009

This paper examines the results of survey that the foreign ownership is cointegrated with capital market conditions in Korea using Vector Error Correction Model (VECM) and how the mechanism of innovations and dynamics among the foreign ownership and capital market proxies in the VECM was described. Specifically, we find that the foreign ownership and capital market proxies follow I (1) process and there are cointegrated relations between the foreign ownership and capital market proxies. Adopting the impulse response function and variance decomposition in the VECM, we suggest, in turn, the default risk premia, liquidity of market and the rate of interest in long term business cycle take on a special function on the KSE and KOSDAQ. Finally, we also offer evidences of which there are differences of the mechanism of dynamics and innovations between on the KSE and on the KOSDAQ.

• KDI Journal of Economic Policy
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• v.37 no.2
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• pp.64-97
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• 2015

This paper studies a series of capital market promotion policies Korea pursued over a 30-year period during its development era (1960s - 1980s). The purpose of this paper is twofold. The first purpose is to understand the policy approaches Korea took, and the second is to extract lessons that can benefit policymakers in the developing world, where capital market promotion is an important policy goal. There are two key features of Korea's capital market promotion policies. First, the government was actively involved, sometimes indirectly by giving tax incentives to encourage IPOs. However, in other times, it was directly involved by giving IPO orders and threatening those that did not comply. No stock exchange in a developed country has ever experienced such government involvement. Combined with rapid economic growth, this interventionist approached allowed the Korean stock market to experience phenomenal growth over a short period of time. Second, the capital market promotion policies had multiple objectives. One was to mobilize domestic capital for economic development. Another was to lower firms' debt-to-equity ratios. Most interestingly, however, the Korean government wanted to popularize stock ownership, thereby allowing ordinary Koreans to share in the fruits of economic growth.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.3 no.3
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• pp.203-209
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• 2002

The Korean venture industry showed a rapid growth due to various government incentive measures, development in information technology, and explosive growth of the KOSDAQ market. Recently, however, the Korean venture industry has revealed numerous side effects, which seemed to be coming from excessively aggressive government involvement in the industry, and fallen into a deep depression. This phenomenon may imply that the Korean venture industry has been established by the government policy rather than based on the venture capital market, whereas the venture industry in advanced nations has grown up autogenously based on it. This paper analyzes the Korean venture capital market and suggests policy recommendations to revitalize the domestic venture capital market. They include facilitating the supply of funds through limited partnerships and overseas venture capital, extending the direct equity investment, and actively promoting the KOSDAQ market.

• Journal of the Korea Society of Computer and Information
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• v.29 no.4
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• pp.125-134
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• 2024

This study was conducted to verify the impact of social capital on labor market entry for poor and disabled women and to reveal the relationship. In the case of poverty-stricken and disabled women, the reality is that there is very little research on the impact on labor market entry depending on the level and type of social capital that disabled women possess or are involved in for economic activities. Therefore, in this study, we looked at how the level and type of social capital possessed by poor and disabled women affects their entry into the labor market. As a result of the study, the level of social capital of poor and disabled women is larger and the stronger the density, the more labor market they have. It was found to have a very significant impact on market entry, and in terms of social capital type, greater trust and participation were found to have a very significant impact on labor market entry. Based on these research results, major policy implications were suggested regarding the impact of the level and type of social capital of poor and disabled women on their entry into the labor market.

• The Journal of Fisheries Business Administration
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• v.26 no.1
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• pp.79-104
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• 1995

Dividend Policy involves the decision to pay out earnings versus retaining them for reinvestment in the firm, and dividend policy decisions can have either favorable or unfavorable effects on the attainment of firm's objective. This paper is to examine the present status of dividend policy of the Pusan Cooperative Fish Market, and to suggest the optimal dividend policy decisions appropriate for achieving its objective, which is to promote the fishermen's benefits and protect the interest of consumers. There are two types of dividend that the Pusan Cooperative Fish Market pays to the equity owners : (1) dividend on capital and (2) equalized patronage dividend. During'90s, while the rate of dividend on capital ranged from 1.7% to 2.8%, that of equalized patronage dividend ranged from 13.9% to 22.9%. Therefore, the rate of total dividend on capital including revolving funds has been about 20%, which turns out to be much higher than those of companies listed in the stock market. According to the current dividend data, the Pusan Cooperative Fish Market focuses on the equalized patronage dividend and the dividen on capital is the secondary type of dividend. In addition, the interesting feature of equalized patronage dividend is that it is supposed to be reinvested into capital by the Articles of the Fish Market, as soon as the Fish Market pays it to its members. Finally, this paper suggests the rational dividend policy of the Fish Market that is able to help its objective to be achidved more efficiently. The overall direction of the rational dividend policy can be summarized as follows ; (1) The level of cash dividend on capital should be increased enough to reflect the market interest rate. (2) The subsidy of working capital to some member fisheries cooperatives as quasi- dividend should be cut off steadily. (3) The equalized patronage dividend should be replaced by the original patronage dividend whose level is determined by the volume of each member's purchase. (4) In the long-term, it is necessary to improve the system of revolving funds in the way that revoloving funds could serve to complement equity capital for only a fixed time, after which they ard repaid to the members.

• Journal of the Korean Institute of Rural Architecture
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• v.6 no.3
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• pp.1-14
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• 2004

Around the rural village area the traditional markets which are center the small capital it was active at the strong-point and the possibility the fact that it is developed. With this the same small capital currently as the city and the area where the quality of the rural village coexists, has the regional quality which belongs in guard of the capital region or strong-point city. With relative estrangement from the support process against this result past falling behind farming village it does not illustrate the possibility of knowing the fact that the duplex point who is falling behind as guard territory of reverse appears. Selects the small capital of the each area from like this point of view and the possibility of knowing center role of traditional market the possibility which is various is the possibility of doing in the process which propels an activation. Currently it is planned from the multi local self-governing group and the result which investigates the traditional market activation contents which are in the process of propelling, it will be able to discover the multi branch problem points against a traditional market activation.

• Knowledge Management Research
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• v.17 no.4
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• pp.27-56
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• 2016

Korean traditional markets have been struggling of late as big-sized superstores and SSM(Super Supermarkets) are thriving in the market. They have therefore upgraded their facilities and undertaken management modernization actively to overcome the threat to traditional markets and ensure their competitiveness; however, the effect does not appear to be verifiable. The purpose of this study is to analyze the impact of the organizational characteristics of the traditional market merchant association on social capital and organizational performance. In other words, this paper investigates a merchant association's organizational characteristics in terms of the modernization of business activities of the traditional markets and the influence on their social capital and organizational performance. This study analyzes the traditional market by evaluating the impact of these factors. This study consists of four hypotheses: The first hypothesis relates to the causal relationship between the characteristics of a merchant association and social capital. The second and third hypotheses, respectively, relate to the causal relationships between the social capital of a merchant association and the merchant's satisfaction and that between the social capital of a merchant association and organizational commitment. The last hypothesis relates to the relationship between the organizational commitment of a merchant association and the merchant's satisfaction. This study conducts a reliability and validity analysis of the above factors and analyzes the causal relationships between them by using the PLS(Partial Least Squares) path model as one of the structural equation models. The results of the empirical analysis are summarized as follows: First, the organizational characteristics of the traditional market merchant association have a significant influence on social capital. However, only two sub-hypotheses are not significant; these insignificant hypotheses relate to the relationship between a merchant's entrepreneurship and structural capital and that between a merchant's entrepreneurship and cognitive capital. Second, the social capital of a merchant association influences organizational commitment significantly. Third, the relationship between the social capital of a merchant association and the merchant's satisfaction is mostly significant. However, one of the sub-hypotheses, that is, the relationship between relational capital and a merchant's satisfaction is not exceptionally significant. Lastly, the organizational commitment of a merchant association affect the merchant's satisfaction significantly. Through our extensive study, this paper found that a merchant association's organizational characteristics of the traditional market significantly affect social capital, organizational commitment, and satisfaction through the mediation of social capital. Therefore, in order to activate the key traditional market, an understanding of organizational characteristics and social capital is primarily required. Systematic management and investment pertaining to these two factors will be the first consideration for revitalizing traditional markets.

• The Journal of the Korea Contents Association
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• v.19 no.9
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• pp.233-241
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• 2019

The purpose of this study is to empirically analyze whether the influence of foreign investors from the monitoring role in Korean capital market is observed differently in accordance with the global financial crisis situation. We collected a total of 2,919 firm data from 2003 to 2015 and performed the empirical tests between foreign investor ownership and firms' cost of equity capital separately according to the situation of the global financial crisis. From the empirical results, foreign investors in general were playing a positive function in the Korean capital market by effectively performing the monitoring role for companies. However, we observed that their monitoring role is not effectively performed when the risk level of capital market is maximized, such as during the global financial crisis. The study suggested that the influence of foreign investors may vary depending on the level of risk in the capital market, which is expected to contribute to the market participants and academia.