• The Journal of Asian Finance, Economics and Business
• /
• v.1 no.4
• /
• pp.5-13
• /
• 2014

This study contributes to addressing the problem of an aging population by providing important information that determines feasible monthly payments for the clients of Chinese reverse mortgage products and by promoting the implementation of reverse mortgages in China. The variables used in this study include mean values obtained from time series data, of the rate of increase of housing prices, and the probability value, interest rate, and mortality rate obtained through the geometric Brownian motion (GBM). For mortality rates, China Life Insurance female mortality rates (2000-2003) were used. This study aims to apply the main variables that affect reverse mortgage products in a monthly payment model based on Chinese financial market conditions, and determine loan values. In this study, Shanghai's reverse mortgage monthly payments, by age levels, were calculated through the loan-to-value (LTV) and payment (PMT) methods to evaluate the value of the reverse mortgages. Based on the optimal combination of the three factors of payment amount, loan interest rates, and the level of acceptance of prices, efforts must be made to extract the best value for the elderly. Only in this way can the interests of both lenders and borrowers be protected, by increasing the market share and economies of scale of the reverse mortgage industry and effectively improving the living standards of the elderly.

• The Korean Journal of Financial Management
• /
• v.25 no.3
• /
• pp.155-173
• /
• 2008

Controlling for the impacts of main strands of debt maturity theories, we highlight the relationship between syndicated loan maturity and ownership structure of Korean borrowers. We find that as the ownership of large shareholders increases, the maturity of syndicated loans also increases. Additionally, we identify a negative relation between foreigners' ownership and loan maturity, indicating that foreign institutional investors serve valuable monitoring functions; as their equity shares increase, they fully take advantage of frequent renewals through the short maturity of syndicated loan. We also show that the predicted value of leverage is more systematically and positively related to the maturity of syndicated loan.

• Proceedings of the Korean Institute of Building Construction Conference
• /
• 2019.11a
• /
• pp.182-183
• /
• 2019

The amount of multi-aged housing more than 15 years since the completion has increased, and the real estate market caused by apartment remodeling has also increased. The domestic mortgage loan regulation on relocation expense caused by remodeling apply to same limit as that for mortgage loan newly-built apartment. The excessive government housing regulation could be an obstacle for the occupants residential stability of remodeling apartment. To suggest methods for government housing regulation of residential mortgage loan related to remodeling, examples for mortgage loan regulation and mortgage products were studied and compared. It is pointed out that regulation on occupants relocation expense caused by remodeling has to be relaxed and mortgage product development are needed to boost remodeling project.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.1 no.1
• /
• pp.91-100
• /
• 2000

In 1997 the recession of Korean economy brought about the bankruptcy of large corporations and the large size of non-Performing financial assets which led to IMF financial crisis. One of the major reasons for IMF financial crisis was poor loan management of domestic financial institutions . During the restructuring process of financial institutions since the IMF financial crisis, the importance of the loan management has been recognized. Especially. financial institutions' credit allocation had been concentrated on a few big conglomerates and their subsidies as well as some specific business areas. Hence, risk-diversifying portfolio effects were not reflected in any loan portfolios. The IMF financial crisis in 1997 has clearly showed that credit-risk management is essential not only for individuals' loan but also for portfolios consisting of various loans The main objective of this paper is to provide some suggestions on the direction for financial institutions in Korea to improve their loan portfolio management. Particularly, for the effective management of loan portfolios, this paper introduces quantitative credit-risk management schemes such as KMV models and CreditMetrics which are commonly used in financial institutions in advanced countries. Financial institutions in Korea should make their best efforts to establish a more scientific as well as quantitative loan portfolio management.

• Journal of Navigation and Port Research
• /
• v.44 no.5
• /
• pp.414-422
• /
• 2020

In this study, an empirical analysis of 55 ship finance cases executed by a specific ship finance bank from 2009 to 2016 during the recession period was conducted. The purpose of this study was to find the factors affecting changes in the debt performance of Korean shipping companies. The main factors were the loan nature (investment purpose, loan-to-value (LTV), syndicated loans, loan terms, put-option, balloon, and spread), financial nature (total assets turnover, net profit-to-sales ratio, debt ratio, quick ratio, total borrowing, bonds payable to total assets, interest expenses-to-sales ratio, debt service coverage ratio (DSCR), and total assets), and the company nature (company age, chief executive officer's (CEO's) shares, and listing status). In this study, the factors affecting the debt repayment capability of domestic shipping companies (loan nature, financial nature, and company nature) were verified. The credit rating was used to measure the dependent variable, debt repayment ability. The variables of investment purpose, put-option, balloon, and spread in the loan nature, debt ratio in the financial nature, and the CEO's shares and company age in the company nature were found to be significant.

• The Journal of the Korea Contents Association
• /
• v.8 no.7
• /
• pp.208-215
• /
• 2008

Sport industry creates value-added by production and distribution of product or service related with sports or sports. Because this industry shows promise in becoming a major industry area, the government is making an effort to bring up or develop it. The financing to firms of sport industry area(sporting goods industry, sport facility industry, sport service industry) with low interest rate and long-term repayment period on the basis of sports promotion fund is excellent scheme to promote sport industry. Nevertheless, Because many people indicate operational inefficiency of it, it is necessary to check operational efficiency through investigation for loan system of sports promotion fund. The purposes of this paper are to present some directions for the improvement of efficiency by the analysis to public loan system using funds of other government organization and to the current status of loan system of sports promotion fund. The result of this study are as follows. First, we propose enlargement of loan size and range. Second, it is necessary to use mortgages loan to technology in case of sporting goods industry and sport service industry. Third, we suggest the mitigation of loan disproportion and flexible application among loam amount of sport industry areas. Fourth, we suggest the construction of loan practical committee. Finally we propose the establishment of selection criteria to firms and ex-post evaluation system related with loan system of sports promotion fund.

• Journal of Digital Convergence
• /
• v.14 no.11
• /
• pp.107-113
• /
• 2016

This paper proposes various policies for maximizing the performances of Government loan. In order to do so, this paper offers new 10 policies with results from analyzing a survey for the requirements of SMEs that were supported with Government loan program. Also this paper drives methods for finding new value indices and reforming formulas for quantifying some indices. On the other hand, this paper introduces financing methods using K-OTC and KONEX markets and presents three portal sites to provide information about Government sponsored loan matched to needs of an individual company. Also this paper improves the supplement points resulted from operating Government loan. In conclusion, these new policies will raise effectiveness and efficiency of Government loan programs and will contribute to achieving the goals which are establishing the foundation for growth in IT industry as well as IT SMEs, improving the quality of the national livelihood and promoting the growth of national economy.

• IE interfaces
• /
• v.24 no.4
• /
• pp.295-303
• /
• 2011

This paper presents a discrete time optimal asset buying problem with a predetermined final deadline where an available budget is limited. A cost is paid to search for assets called the search cost. A seller who shows up offers a price for the asset and then the buyer decides whether or not to buy the asset by comparing the offered price to his optimal selection threshold. When the budget becomes less than the search cost or the price of the asset the buyer can get a necessary loan with some interests. We clarify the properties of the buyer's optimal selection threshold in order to maximize the expected value of budget which is left after paying all the search costs and the price of the asset at that point in time.

• International conference on construction engineering and project management
• /
• 2009.05a
• /
• pp.1015-1022
• /
• 2009

Currently, Korean real estate market has experienced cooling down of the business because of the global economic crisis which resulted from the subprime mortgage lending practice. In response, the Korean government has enforced various policies at the base of deregulating real estate speculation, such as increasing Loan to value ratio (LTV) in order to stimulate housing demand and supply. However, these policies seemed to result in deep confusion in the Korean housing market. Furthermore, analysis for housing market forecasting, especially international financial crisis on Korean real estate market, has been partial and fragmentary, therefore comprehensive solution and systematical approach is required to analyze the real estate and real estate financial market including causal nexus between market determining factors. In an integrated point of view, applying the system dynamics modeling, the paper aims at proposing Korean Real Estate and Mortgage market dynamics models based on fundamental principles of housing market determined by supply and demand. We also find the impact of deregulation policies focusing on mortgage loan which is the main factors of policies.

• Proceedings of the Korea Contents Association Conference
• /
• 2008.05a
• /
• pp.258-261
• /
• 2008

Sport industry creates value-added by production and distribution of product or service related with sports or sports. Because this industry shows promise in becoming a major industry area, the government is making an effort to bring up or develop it. The financing to firms of sport industry area(sporting goods industry, sport facility industry, sport service industry) with low interest rate and long-term repayment period on the basis of sports promotion fund is excellent scheme to promote sport industry. Nevertheless, Because many people indicate operational inefficiency of it, it is necessary to check operational efficiency through investigation for loan system of sports promotion fund. The purposes of this paper are to analyze public loan system using funds of other government organization and to the current status of loan system of sports promotion fund.