• Asia pacific journal of information systems
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• v.19 no.2
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• pp.139-155
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• 2009

For the last few decades, many studies have tried to explore and unveil venture companies' success factors and unique features in order to identify the sources of such companies' competitive advantages over their rivals. Such venture companies have shown tendency to give high returns for investors generally making the best use of information technology. For this reason, many venture companies are keen on attracting avid investors' attention. Investors generally make their investment decisions by carefully examining the evaluation criteria of the alternatives. To them, credit rating information provided by international rating agencies, such as Standard and Poor's, Moody's and Fitch is crucial source as to such pivotal concerns as companies stability, growth, and risk status. But these types of information are generated only for the companies issuing corporate bonds, not venture companies. Therefore, this study proposes a method for evaluating venture businesses by presenting our recent empirical results using financial data of Korean venture companies listed on KOSDAQ in Korea exchange. In addition, this paper used multi-class SVM for the prediction of DEA-based efficiency rating for venture businesses, which was derived from our proposed method. Our approach sheds light on ways to locate efficient companies generating high level of profits. Above all, in determining effective ways to evaluate a venture firm's efficiency, it is important to understand the major contributing factors of such efficiency. Therefore, this paper is constructed on the basis of following two ideas to classify which companies are more efficient venture companies: i) making DEA based multi-class rating for sample companies and ii) developing multi-class SVM-based efficiency prediction model for classifying all companies. First, the Data Envelopment Analysis(DEA) is a non-parametric multiple input-output efficiency technique that measures the relative efficiency of decision making units(DMUs) using a linear programming based model. It is non-parametric because it requires no assumption on the shape or parameters of the underlying production function. DEA has been already widely applied for evaluating the relative efficiency of DMUs. Recently, a number of DEA based studies have evaluated the efficiency of various types of companies, such as internet companies and venture companies. It has been also applied to corporate credit ratings. In this study we utilized DEA for sorting venture companies by efficiency based ratings. The Support Vector Machine(SVM), on the other hand, is a popular technique for solving data classification problems. In this paper, we employed SVM to classify the efficiency ratings in IT venture companies according to the results of DEA. The SVM method was first developed by Vapnik (1995). As one of many machine learning techniques, SVM is based on a statistical theory. Thus far, the method has shown good performances especially in generalizing capacity in classification tasks, resulting in numerous applications in many areas of business, SVM is basically the algorithm that finds the maximum margin hyperplane, which is the maximum separation between classes. According to this method, support vectors are the closest to the maximum margin hyperplane. If it is impossible to classify, we can use the kernel function. In the case of nonlinear class boundaries, we can transform the inputs into a high-dimensional feature space, This is the original input space and is mapped into a high-dimensional dot-product space. Many studies applied SVM to the prediction of bankruptcy, the forecast a financial time series, and the problem of estimating credit rating, In this study we employed SVM for developing data mining-based efficiency prediction model. We used the Gaussian radial function as a kernel function of SVM. In multi-class SVM, we adopted one-against-one approach between binary classification method and two all-together methods, proposed by Weston and Watkins(1999) and Crammer and Singer(2000), respectively. In this research, we used corporate information of 154 companies listed on KOSDAQ market in Korea exchange. We obtained companies' financial information of 2005 from the KIS(Korea Information Service, Inc.). Using this data, we made multi-class rating with DEA efficiency and built multi-class prediction model based data mining. Among three manners of multi-classification, the hit ratio of the Weston and Watkins method is the best in the test data set. In multi classification problems as efficiency ratings of venture business, it is very useful for investors to know the class with errors, one class difference, when it is difficult to find out the accurate class in the actual market. So we presented accuracy results within 1-class errors, and the Weston and Watkins method showed 85.7% accuracy in our test samples. We conclude that the DEA based multi-class approach in venture business generates more information than the binary classification problem, notwithstanding its efficiency level. We believe this model can help investors in decision making as it provides a reliably tool to evaluate venture companies in the financial domain. For the future research, we perceive the need to enhance such areas as the variable selection process, the parameter selection of kernel function, the generalization, and the sample size of multi-class.

• Journal of Intelligence and Information Systems
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• v.18 no.2
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• pp.29-45
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• 2012

Bond rating is regarded as an important event for measuring financial risk of companies and for determining the investment returns of investors. As a result, it has been a popular research topic for researchers to predict companies' credit ratings by applying statistical and machine learning techniques. The statistical techniques, including multiple regression, multiple discriminant analysis (MDA), logistic models (LOGIT), and probit analysis, have been traditionally used in bond rating. However, one major drawback is that it should be based on strict assumptions. Such strict assumptions include linearity, normality, independence among predictor variables and pre-existing functional forms relating the criterion variablesand the predictor variables. Those strict assumptions of traditional statistics have limited their application to the real world. Machine learning techniques also used in bond rating prediction models include decision trees (DT), neural networks (NN), and Support Vector Machine (SVM). Especially, SVM is recognized as a new and promising classification and regression analysis method. SVM learns a separating hyperplane that can maximize the margin between two categories. SVM is simple enough to be analyzed mathematical, and leads to high performance in practical applications. SVM implements the structuralrisk minimization principle and searches to minimize an upper bound of the generalization error. In addition, the solution of SVM may be a global optimum and thus, overfitting is unlikely to occur with SVM. In addition, SVM does not require too many data sample for training since it builds prediction models by only using some representative sample near the boundaries called support vectors. A number of experimental researches have indicated that SVM has been successfully applied in a variety of pattern recognition fields. However, there are three major drawbacks that can be potential causes for degrading SVM's performance. First, SVM is originally proposed for solving binary-class classification problems. Methods for combining SVMs for multi-class classification such as One-Against-One, One-Against-All have been proposed, but they do not improve the performance in multi-class classification problem as much as SVM for binary-class classification. Second, approximation algorithms (e.g. decomposition methods, sequential minimal optimization algorithm) could be used for effective multi-class computation to reduce computation time, but it could deteriorate classification performance. Third, the difficulty in multi-class prediction problems is in data imbalance problem that can occur when the number of instances in one class greatly outnumbers the number of instances in the other class. Such data sets often cause a default classifier to be built due to skewed boundary and thus the reduction in the classification accuracy of such a classifier. SVM ensemble learning is one of machine learning methods to cope with the above drawbacks. Ensemble learning is a method for improving the performance of classification and prediction algorithms. AdaBoost is one of the widely used ensemble learning techniques. It constructs a composite classifier by sequentially training classifiers while increasing weight on the misclassified observations through iterations. The observations that are incorrectly predicted by previous classifiers are chosen more often than examples that are correctly predicted. Thus Boosting attempts to produce new classifiers that are better able to predict examples for which the current ensemble's performance is poor. In this way, it can reinforce the training of the misclassified observations of the minority class. This paper proposes a multiclass Geometric Mean-based Boosting (MGM-Boost) to resolve multiclass prediction problem. Since MGM-Boost introduces the notion of geometric mean into AdaBoost, it can perform learning process considering the geometric mean-based accuracy and errors of multiclass. This study applies MGM-Boost to the real-world bond rating case for Korean companies to examine the feasibility of MGM-Boost. 10-fold cross validations for threetimes with different random seeds are performed in order to ensure that the comparison among three different classifiers does not happen by chance. For each of 10-fold cross validation, the entire data set is first partitioned into tenequal-sized sets, and then each set is in turn used as the test set while the classifier trains on the other nine sets. That is, cross-validated folds have been tested independently of each algorithm. Through these steps, we have obtained the results for classifiers on each of the 30 experiments. In the comparison of arithmetic mean-based prediction accuracy between individual classifiers, MGM-Boost (52.95%) shows higher prediction accuracy than both AdaBoost (51.69%) and SVM (49.47%). MGM-Boost (28.12%) also shows the higher prediction accuracy than AdaBoost (24.65%) and SVM (15.42%)in terms of geometric mean-based prediction accuracy. T-test is used to examine whether the performance of each classifiers for 30 folds is significantly different. The results indicate that performance of MGM-Boost is significantly different from AdaBoost and SVM classifiers at 1% level. These results mean that MGM-Boost can provide robust and stable solutions to multi-classproblems such as bond rating.

• Journal of the Institute of Convergence Signal Processing
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• v.8 no.3
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• pp.136-142
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• 2007

Recent researches in the recognition system have shown that SVM (Support Vector Machine) classifiers often have superior recognition rates in comparison to other classifiers. In this paper, we present the handwritten numeral recognition algorithm using SVM classifiers. The numeral features used in our algorithm are mesh features, directional features by Kirsch operators and concavity features, where first two features represent the foreground information of numerals and the last feature represents the background information of numerals. These features are complements each of the other. Since SVM is basically a binary classifier, it is required to construct and combine several binary SVMs to get the multi-class classifiers. We use two strategies for implementing multi-class SVM classifiers: "one against one" and "one against the rest", and examine their performances on the features used. The efficiency of our method is tested by the CENPARMI handwritten numeral database, and the recognition rate of 98.45% is achieved.

• Journal of KIISE:Software and Applications
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• v.33 no.10
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• pp.886-895
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• 2006

Fingerprint classification reduces the number of matches required in automated fingerprint identification systems by categorizing fingerprints into a predefined class. Support vector machines (SVMs), widely used in pattern classification, have produced a high accuracy rate when performing fingerprint classification. In order to effectively apply SVMs to multi-class fingerprint classification systems, we propose a novel method in which SVMs are generated with the one-vs-all (OVA) scheme and dynamically ordered with $na{\ddot{i}}ve$ Bayes classifiers. More specifically, it uses representative fingerprint features such as the FingerCode, singularities and pseudo ridges to train the OVA SVMs and $na{\ddot{i}}ve$ Bayes classifiers. The proposed method has been validated on the NIST-4 database and produced a classification accuracy of 90.8% for 5-class classification. Especially, it has effectively managed tie problems usually occurred in applying OVA SVMs to multi-class classification.

• 한국HCI학회:학술대회논문집
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• 2008.02a
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• pp.504-509
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• 2008

Support Vector Machine (SVM) is one of powerful learning machine and has been applied to varying task with generally acceptable performance. The success of SVM for classification tasks in one domain is affected by features which represent the instance of specific class. Given the representative and discriminative features, SVM learning will give good generalization and consequently we can obtain good classifier. In this paper, we will assess the problem of feature choices for human detection tasks and measure the performance of each feature. Here we will consider HOG-family feature. As a natural extension of SVM, we combine SVM with Principal Component Analysis (PCA) to reduce dimension of features while retaining most of discriminative feature vectors.

• Journal of the Korea Institute of Information Security & Cryptology
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• v.23 no.5
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• pp.939-946
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• 2013

This paper proposes normal behavior profiling methods for anomaly detection in IEC 61850 based substation network. Signature based security solutions, currently used primarily, are inadequate for APT attack using zero-day vulnerabilities. Recently, some researches about anomaly detection in control network are ongoing. However, there are no published result for IEC 61850 substation network. Our proposed methods includes 3-phase preprocessing for MMS/GOOSE packets and normal behavior profiling using one-class SVM algorithm. These approaches are beneficial to detect APT attacks on IEC 61850 substation network.

• Journal of the Korea Institute of Information and Communication Engineering
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• v.22 no.11
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• pp.1435-1441
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• 2018

Online signature verification is one of the simple and efficient methods of identity verification and has less resistance than other biometric technologies. To handle signature verification as a classification problem, it is necessary to gather forgery signatures, which is not easy in most practical applications. It is not easy to obtain a large number of genuine signatures either. In this paper, one class SVM is used to tackle the forgery signature problem and someone else's signatures are used as general handwriting data to solve the genuine signature problem. Someone else's signature does not share shape-based features with the signature to be verified, but it contains the general characteristics of a signature and useful in verification. Verification rate can be improved by using the general handwriting data, which can be confirmed through the experimental results.

• The Bulletin of The Korean Astronomical Society
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• v.38 no.1
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• pp.61.1-61.1
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• 2013

In this study we apply Support Vector Machine (SVM) to the prediction of geo-effective halo coronal mass ejections (CMEs). The SVM, which is one of machine learning algorithms, is used for the purpose of classification and regression analysis. We use halo and partial halo CMEs from January 1996 to April 2010 in the SOHO/LASCO CME Catalog for training and prediction. And we also use their associated X-ray flare classes to identify front-side halo CMEs (stronger than B1 class), and the Dst index to determine geo-effective halo CMEs (stronger than -50 nT). The combinations of the speed and the angular width of CMEs, and their associated X-ray classes are used for input features of the SVM. We make an attempt to find the best model by using cross-validation which is processed by changing kernel functions of the SVM and their parameters. As a result we obtain statistical parameters for the best model by using the speed of CME and its associated X-ray flare class as input features of the SVM: Accuracy=0.66, PODy=0.76, PODn=0.49, FAR=0.72, Bias=1.06, CSI=0.59, TSS=0.25. The performance of the statistical parameters by applying the SVM is much better than those from the simple classifications based on constant classifiers.

• Annual Conference on Human and Language Technology
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• 2005.10a
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• pp.35-42
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• 2005

문서 분류에서의 one class 분류 문제는 오직 하나의 범주를 생성하고 새로운 문서가 주어졌을 때 그 문서가 미리 만들어진 하나의 범주에 속하는가를 판별하는 문제이다. 기존의 여러 범주로 이루어진 분류 문제를 해결할 때와는 달리 one class 분류에서는 학습 시에 관심의 대상이 되는 하나의 범주와 관련이 있는 문서들만을 사용하여 학습을 수행하기 때문에 범주의 경계를 정하는 것은 매우 어려운 작업이다. 이에 본 논문에서는 기존의 연구에서 one class 분류 문제를 해결할 때 관심의 대상이 되는 예제의 일부를 부정 예제로 간주하여 one class 문제를 two class 문제로 변환하고 추가적으로 새로운 가상 부정 예제를 설정하여 학습을 수행하였던 방법에서 더 나아가 범주화를 위한 적절한 부정자질을 선택하고 이를 긍정자질과 함께 사용하여 학습을 수행한 후 SVM을 통하여 범주화 성능을 학인 해 보기로 한다.

• Proceedings of the Korean Information Science Society Conference
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• 2005.07b
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• pp.469-471
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• 2005

문서 분류에서의 one class classification 문제는 오직 하나의 범주를 생성하고 새로운 문서가 주어졌을 때 미리 만들어진 하나의 범주에 속하는가를 판별하는 문제이다. 기존의 여러 범주로 이루어진 분류 문제를 해결할 때와는 달리 one class classification에서는 학습 시에 이미 정해진 하나의 범주와 관련이 있는 문서들만을 사용하여 학습을 수행하기 때문에 범주의 경계를 정하는 것이 매우 어려운 작업이며 또한 분류기의 성능에 있어서도 매우 중요한 요소로 작용하게 된다. 본 논문에서는 기존의 연구에서 one class classification 문제를 해결할 때 관심의 대상이 되는 예제의 일부를 부정 예제로 간주하여 one class문제를 two class문제로 변경시켜 학습을 수행했던 것에서 더 나아가 추가적으로 새로운 가상 부정 예제를 설정하여 학습을 수행하고, SVM을 통하여 범주화 성능을 확인해 보기로 한다.