• Title/Summary/Keyword: Large Financial Institutions

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Does Investor Protection Affect Bank Liquidity Risk? (투자자 보호제도가 은행들의 유동성위험에 영향을 미치는가?)

  • Lee, Chisun;Kim, Jeongsim
    • The Journal of the Korea Contents Association
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    • v.19 no.9
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    • pp.242-253
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    • 2019
  • There has been a large literature on bank liquidity risk since the 2008 global financial crisis because liquidity risk was at the heart of the crisis. However, there is no study that investigates whether the level of investor protection influences liquidity risk-taking behavior of banks. Therefore, this study aims to explore the relationship between investor protection and liquidity risk as well as to provide policy implications. Using a panel dataset of commercial banks in 21 OECD countries, we found that strong investor protection encourages banks to take lower liquidity risk. Furthermore, this positive role of shareholder protection is more prominent during a crisis, implying that legal protection of investors plays an essential role in bank stability while market discipline is largely ineffective due to extensive government guarantees in turbulent times.

The Scale of Households in Negative Housing Equity and Policy Direction (하우스푸어 규모 추정 및 정책 방향에 대한 고찰)

  • Choi, Eun-Hee;Lee, Jong-Kwon;Moon, Hyo-Gon;Kim, Kyeong-Mi
    • Land and Housing Review
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    • v.5 no.4
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    • pp.259-269
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    • 2014
  • After global financial crisis, the ratio of household debt to GDP was decreasing in other advanced countries such as the U.S., and the U.K. and so on. But, in Korea, household debt (of which residential mortgage loan account for a large part) ratio is still increasing. This paper focuses on the scale and characteristics of households in negative housing equity (those are called House-poors in Korea), and also the socio-economic backgrounds of the formation process. In financial perspective, the problem of negative housing equity depends on financial debt repayment capability. We used DSR (Debt Service Ratio) and LTA (Loan to Asset ratio) as financial indicators to evaluate the debt repayment capability. The critical value of DSR is assumed as 40%, and LTA 100%. The socio-economic backgrounds of the House-poors are as follows : increasing households debt dependency, over lending competition of financial institutions and unreasonable loan in household economy, instability of real estate market, week regulation on mortgage loan. Finally, this paper suggests some implications about the range and the target of public intervention.

A study on the standardization for outpatient management and adminstration process of some regional hospitals (일부지역 의료기관의 외래원무관리 표준화에 관한 연구)

  • Kim, Jin-A;Lee, Moo-Sik;Hwang, Hye-Jung;Kim, Kwang-Hwan
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.17 no.7
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    • pp.357-366
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    • 2016
  • This study evaluated the standardization of the outpatient management process in several regions of South Korea. The hospital workers in the administration department of the different medical institutions that are registered with the Korean Hospital Association were surveyed. These institutions can be standard hospitals or hospitals greater in size. A summary of the research results are as follows. There was no significant correlation in their registration procedures in relation to the institution's founder, number of sickbeds, number of staff employed in the administration department, and average number of outpatients per day. On the other hand, the prepayment of medical fees occurred more frequently when the number of sickbeds was larger. In addition, there was no large difference in their appointment procedures in relation to those features. Nevertheless, the prepayment of medical fees accounted for 11.8 % of the entire payment in institutions with less than five hundred beds, while fifty percent of the payment was made in advance in larger institutions with five hundred or more beds. From this research, there was only a small difference among the institutions' outpatient management, but a notable difference was observed in their electronic data processing systems and facilities. Therefore, more financial support should be generated for the implementation of a more integrated process. As a follow-up study, to provide patients with quality medical services, it will be necessary to apply the standardized procedure to an actual medical institution and analyze the expected effect.

Legal Research on FinTech Regulatory Sandbox Fostering Financial Innovations in Korea (핀테크 활성화를 위한 규제 샌드박스의 도입 방안 연구)

  • Ko, Young-Mi
    • Journal of Legislation Research
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    • no.53
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    • pp.213-267
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    • 2017
  • Regulatory barrier is considered most challenging out of all FinTech barriers, which many technology innovators have always experienced. Even though technological solutions promise customers accessibility to more cost-effective and secured financial services, it is quite challenging to create regulatory environment that enables innovation FinTech industry. Especially, a common challenge FinTech innovators and business face is regulatory uncertainty and confusion rather than any particular regulation. Since many FinTech models are continuously introducing new innovative ways in providing financial services, significant confusion could be raised in applying principles of existing law and regulations. In addition, it is uncertain whether or not applying complex regulatory compliance model intended for large financial institutions to small start-ups is appropriate since most existing regulations and rules are established and introduced without considering innovative tools such as mobile instruments, e-trade, and internet. Therefore, new mechanism to access to regulatory information in a more cost-effective, quick and immediate way should be created. Regulators, technological innovators, and financial customers should cooperate each other to find out appropriate solutions for those issues. Many regulators are introducing regulatory sandbox which provides service providers with opportunities to test their innovations, during the test, providing regulators with enough time to understand risks of innovations. However, regulatory sandbox is not a panacea for all challenges to FinTech innovations. Therefore, regulators should make comprehensive and multidimensional efforts including regulatory sandbox in supporting FinTech ecosystem.

A Study on the International Arbitration System of Singapore (싱가포르 국제중재제도에 관한 연구)

  • Kim, Sang-Chan;Kim, Yu-Jung
    • Journal of Arbitration Studies
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    • v.24 no.2
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    • pp.137-160
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    • 2014
  • These days, in line with the increase of opportunities in our country's firms to do transaction, large-scale M&A and investment with foreign firms incorporating arbitration clauses in the contracts have become general practice. Recently, Singapore has come to the fore as a place of arbitration and, particularly, Singapore International Arbitration Center (SIAC) was assessed as the favored international arbitration institution uniquely in Asia at the 2010 International Arbitration Survey: Choices in International Arbitration, along with the ICC, LCIA, and AAA/ICDR. Therefore, the country's firms need to understand properly the international arbitration procedure of Singapore. This study examines the international arbitration system of Singapore, focusing on the arbitration procedure of the SIAC. The Center revised arbitration rules twice in 2010 and 2013, and established the Court of Arbitration of SIAC in April 2013 for the first time in Asia in pursuit of stricter neutrality and promptness. It further seeks to run the arbitration procedure fairly by selecting a third country's people as an arbitrator, while its arbitration expenses are cheaper than those of the ICC. The study believes that for the country's international arbitration institutions such as the KCAB to jump forward as a world-class international arbitration institution, the Korean government should render positive support to them, learning from Singapore which does not spare any political and financial assistance to cultivate international arbitration institutions. On the other hand, KCAB should also try hard to improve in the aspects of neutrality, fairness, and promptness and to be selected as a trustworthy international arbitration institution by firms in Asian countries.

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How to Reflect Sustainable Development, exemplified by the Equator Principles, in Overseas Investment (해외투자(海外投資)와 지속가능발전 원칙 - 프로젝트 파이낸스의 적도원칙(赤道原則)을 중심으로 -)

  • Park, Whon-Il
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.31
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    • pp.27-56
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    • 2006
  • Today's financial institutions usually take environmental issues seriously into consideration as they could not evade lender liability in an increasing number of cases. On the international scene, a brand-new concept of the "Equator Principles" in the New Millenium has driven more and more international banks to adopt these Principles in project financing. Sustainable development has been a key word in understanding new trends of the governments, financial institutions, corporations and civic groups in the 21st century. The Equator Principles are a set of voluntary environmental and social guidelines for sustainable finance. These Principles commit bank officers to avoid financial support to projects that fail to meet these guidelines. The Principles were conceived in 2002 on an initiative of the International Finance Corporation(IFC), and launched in June 2003. Since then, dozens of major banks, accounting for up to 80 percent of project loan market, have adopted the Principles. Accordingly, the Principles have become the de facto standard for all banks and investors on how to deal with potential social and environmental issues of projects to be financed. Compliance with the Equator Principles facilitates for endorsing banks to participate in the syndicated loan and help them to manage the risks associated with large-scale projects. The Equator Principles call for financial institutions to provide loans to projects under the following circumstances: - The risk of the project is categorized in accordance with internal guidelines based upon the environmental and social screening criteria of the IFC. - For Category A and B projects, borrowers or sponsors are required to conduct a Social and Environmental Assessment, the preparation of which must meet certain requirements and satisfactorily address key social and environmental issues. - The Social and Environmental Assessment report should address baseline social and environmental conditions, requirements under host country laws and regulations, sustainable development, and, as appropriate, IFC's Environmental, Health and Safety Guidelines, etc. - Based on the Social and Environmental Assessment, Equator banks then make agreements with borrowers on how they mitigate, monitor and manage the risks through a Social and Environmental Management System. Compliance with the plan is included in the covenant clause of loan agreements. If the borrower doesn't comply with the agreed terms, the bank will take corrective actions. The Equator Principles are not a mere declaration of cautious banks but a full commitment of lenders. A violation of the Principles in the process of project financing, which led to an unexpected damage to the affected community, would not give rise to any specific legal remedies other than ordinary lawsuits. So it is more effective for banks to ensure consistent implementation of the Principles and to have them take responsible measures to solve social and environmental issues. Public interests have recently mounted up with respect to environmental issues on the occasion of the Supreme Court's decision (2006Du330) on the fiercely debated reclamation project at Saemangeum. The majority Justices said that the expected environmental damages like probable pollution of water and soil were not believed so serious and that the Administration should continue to implement the project seeking ways to make it more environment friendly. In this case, though the Category A Saemangeum Project was carried out by a government agency, the Supreme Court behaved itself as a signal giver to approve or stop the environment-related project like an Equator bank in project financing. At present, there is no Equator bank in Korea in contrast to three big banks in Japan. Also Korean contractors, which are aggressively bidding for Category A-type projects in South East Asia and Mideast, might find themselves in a disadvantageous position because they are generally ignorant of the environmental assessment associated with project financing. In this regard, Korean banks and overseas project contractors should care for the revised Equator Principles and the latest developments in project financing more seriously. It's because its scope has expanded to the capital cost of US$10 million or more across all industry sectors regardless of developing countries or not. It should be noted that, for a Korean bank, being an Equator bank is more or less burdensome in a short-term period, but it must be conducive to minimizing risks and building up good reputation in the long run.

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Determinants of Corporate Loans and Bonds before and After Economic Crisis in Korea: Empirical Study on the Firm-level Data (경제위기 전후 기업대출시장 및 회사채시장의 결정요인: 미시적 실증연구)

  • Lim, Youngjae
    • KDI Journal of Economic Policy
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    • v.28 no.2
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    • pp.239-262
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    • 2006
  • The paper suggests that there has been a shift in the allocation of bank credit from large firms to small firms before and after the economic crisis. The paper also suggests that the improved lending practices of financial institutions, at least partially, contributed to this shift of corporate loans from large firms to small firms. Comparing the periods before and after the economic crisis also suggests that some important changes occurred to the corporate bond market. The effect of firm size on the corporate bond market differs before and after the economic crisis. Before the crisis, the larger the firms, the more they could borrow in the corporate bond market. However, after the crisis, it is not the case. The following interpretation could be put forward. Before the crisis, investors in the corporate bond market expected that the government would rescue large firms if they face the risk of bankruptcies. However, the collapse of Daewoo Group in 1999 shattered the TBTF (Too Big To Fail) myth of the public. The liquidity crisis of Hyundai Group in 2000-2001 reinforced the disintegration of the TBTF myth.

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Design and Implementation of Channel Server Model for Large-scale Channel Integration (대용량 채널 통합을 위한 채널 서버 모델 설계 및 구현)

  • Koo, Yong-Wan;Han, Yun-Ki
    • Journal of Internet Computing and Services
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    • v.10 no.1
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    • pp.123-134
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    • 2009
  • The CRM(Customer Relationship Management) is a business strategy model which can reap higher profits and can provide a competitive edge to an enterprise in today's new business environments. Early next year (2009), the Capital Market Consolidation Act will be in effect in South Korea. This is required for a qualitative growth to provide QoS (Quality of Service) and ensure growth in finance, IT industry & service. Accordingly, the securities and insurance companies, banks and other financial institutions make efforts to improve their derivative financial product and also enhance their services. In this paper we design and implement a Channel Server model for a Scalable Service Channel Server to efficiently manage the high volumes of inbound customer interactions based on the requirements of a CRM center. The proposed Scalable Service Channel Server supports integration with other third party service and standardization of multiple inbound service channels. The proposed model can be efficiently used in an inbound CRM center of any banking, finance, securities and insurance establishments.

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On Characteristics of the Growth of Regional Credit Unions in Korea (한국 지역신협의 성장의 특징)

  • Kim, Myoungrok;Choi, Jin-Bae
    • Journal of the Korean Regional Science Association
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    • v.32 no.4
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    • pp.75-90
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    • 2016
  • It is unique from other financial institutions that credit unions in Korea have been developed as voluntary activity for enhancing the financial access of the poor in 1960s. However, currently some raise criticism that the cooperative identity as voluntary movement has been weaker. This paper endeavor to analyze the growth of credit unions during 2000s and explain what the implications of their growth are, using data from National Credit Union Federation of Korea. Our findings are as follows; firstly, the development of credit unions in 2000s are able to be regarded as a reflection of the rationale of advocate for quantitative growth. Secondly, the growth of credit unions are mostly dependant on non-taxable deposit, large loan, and collateralized loan which can lead to weaken the identity as voluntary cooperatives. Thirdly, the strategy of quantitative growth cannot be helpful for soundness of asset and profitability, eventually weakening their sustainability.

A Study for Determining Optimal Economic Life of the Domestic Financial Information Systems Based on Data (데이터를 기반으로 한 국내 금융권 정보시스템의 최적 경제수명주기 모델에 대한 연구)

  • Park, Sungsik;Hahm, Yukun;Lee, Seojun
    • Informatization Policy
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    • v.19 no.2
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    • pp.85-105
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    • 2012
  • So far, the importance of informatization, as well as investment into it, has been growing steadily. Due to the uncertainties and risks in adopting information technologies, systematic decision-making is definitely needed in investing in a large scale information system. Based on the existing theories about the economic life span of information systems and in consideration of the actual cost involved in the adoption and operation of the systems by the financial institutions in Korea, this study presents the optimal economic life span for all types of information systems in terms of the economic cost and generalizes the optimal life span. The ultimate purpose of this study is to develop a model that could be used in anticipating the timing of economic replacement of the information system of the same type and making decisions on IT investment.

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