• Journal of Distribution Science
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• v.11 no.4
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• pp.81-88
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• 2013

Purpose - This paper analyzes the influence of the RMB internationalization on the KRW/dollar exchange rate using an autoregressive distributed lag model. Comparing the parameter estimators from the sample period before and after the global financial crisis, we found that the RMB/dollar exchange rate has increasingly become more influential on the KRW/dollar exchange rate. Moreover, for the past several years, the Chinese government has actively utilized the financial service FTA negotiation as a measure for the RMB internationalization. This paper simultaneously considers RMB internationalization and financial service negotiations in the Korean-Chinese FTA. The purpose of this paper is to explicitly suggest a direction for the financial service negotiations in the Korean-Chinese FTA considering the effects of RMB internationalization. Research design, data, and methodology - The research plan of this paper has two parts. First, for an empirical study, this paper uses the daily exchange rate of the U.S. dollar against the currencies of the ASEAN5, Taiwan,and Korea. By using an autoregressive distributed lag model, this paper studies the influence of the change in the RMB/dollar exchange rate on changes in the local currency/dollar exchange rate in seven economies neighboring China. Our sample periods are 06/2005 - 07/2008 and 06/2010 -02/2013. During these periods, China was under the multi-currency basket system. We exempted the period of 08/2008 - 05/2010 from the analysis because there was nearly no RMB/dollar exchange rate fluctuation during those months. Second, after analyzing the recent financial service liberalizations and deregulations in China, we recommend a direction for the financial service negotiations in the Korean-Chinese FTA. In the past several years,the main Chinese financial policy agenda has surrounded the RMB internationalization. Therefore, it is crucial to understand this in the search for strategies for the financial service negotiations in the Korean-Chinese FTA. This paper employs an existing literature survey and examines the FTA protocols in its research methodology. Results and Conclusions - After the global financial crisis, the Chinese government wanted to break away from the dollar influence and pursued independent RMB internationalization in order to continue the growth and stability of its economy. Hence, every neighboring economy of China has been strategically impacted by RMB internationalization. Nevertheless, there is little empirical study on the influence of RMB internationalization on the KRW/dollar exchange rate. This paper is one of the few studies to analyze this problem comprehensively. By using a relatively simple estimation model, we can confirm that the coefficient of the RMB/dollar exchange rate has become more significant, except in the case of Indonesia. Although Korea is not under the multi-currency basket system but under the weakly controlled floating exchange rate system, its coefficient appears as large as that of the ASEAN5. This is the basis of the currency cooperation that has grown from the expansion of trade between the two countries. These empirical results suggest that the Korean government should specifically consider the RMB internationalization in the Korean-Chinese FTA negotiations.

• Journal of Distribution Science
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• v.16 no.12
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• pp.47-56
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• 2018

Purpose - The potential use of cryptocurrencies in a retail environment proposes a rapid shift from the traditional financial system. Nakamoto(2008) defines Bitcoin as an open source alt-coin based on the blockchain technology. Luther(2016) insists that the new technology will be widely adopted for the digital payment processes. However, the use of Bitcoin is in the real world is still sparse. Despite the growing attention and purported benefits, it is doubtful whether the Bitcoin will be eagerly accepted by ordinary consumers in the mainstream market. To answer this question, this paper develops a causal model that has a dual path to explain the motivation to adopt Bitcoin. According to Glaser, Zimmermann, Haferkorn, Weber, and Siering(2014), Bitcoin is both an asset and a currency at the same time. In summary, the attitude towards Bitcoin may vary depending on whether the fin-tech product is viewed as an asset or as a currency. Based on the arguments, we propose that asset attitude and currency attitude will give influence to consumers' intention to adopt Bitcoin. Research design, data, and methodology - Quantitative data collection is conducted from a Bitcoin SIG(special interest group) working in an internet community. As a result, 192 respondents who know Bitcoin completed the survey. To analyze the causal relations in the research model, PLS-SEM(partial least squares structural equation modeling) method is used. Also, reliability and validity of measures are tested by performing Cronbach's alpha test, Fornell-Larcker test and confirmatory factor test. Results - Our test results show that every hypothesis is supported except the influence of perceived ease of use. In addition, we find that the relationships between constructs are different between the high innovative group and low innovative group. Conclusions - We provide evidence that asset attitude and currency attitude are key antecedents of Bitcoin adoption.

• Journal of Korea Trade
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• v.23 no.7
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• pp.113-127
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• 2019

Purpose - This paper investigates whether financial crises could be the indicators of capital outflow waves or vice versa in Korea. Korea has experienced two severe financial crises, which are the Asian Crisis and the global financial crisis. Although there were many variables associated with these two remarkable events, one notable variable was gross capital outflows, which had significantly increased around them. Motivated by existing literature which built theoretical frameworks explaining the relationship between capital flight and financial crises, we examine the empirical evidence for this relationship. Design/methodology - We use panel data from 61 countries including Korea from 1980 to 2009 to study the associations between capital flight and diverse financial crises such as banking, currency, debt, and inflation crises. To be specific, we use the complementary log-log model to see whether capital outflow waves are reliable indicators for domestic financial crises. Findings - The results show, first, that banking, currency, and inflation crises are associated with capital flight. Second, debt crises are also associated with capital flight, but the result is not robust to different specifications. And, third, the positive associations between capital flight and crises are mainly driven by banking flows rather than FDI and portfolio flows. Originality/value - This paper is one of a few studies that investigates domestic (not foreign) investors' behavior during financial turmoil. Furthermore, theoretical studies which provide contradictory explanations on the movements of gross capital outflows during financial crises emphasizes the importance of empirical evidence in this paper.

• Asia-Pacific Journal of Business
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• v.12 no.3
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• pp.379-396
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• 2021

Purpose - The purpose of this paper is to study the rational payoff from the standpoint of foreign investors and the government when the government issues GDP-linked bonds to foreign investors. Design/methodology/approach - In this paper, the prices of 12 types of GDP-linked bond structures, which are classified according to the calculation cycle of the rate of change of linked GDP, the currency issued, and whether options are embedded, were evaluated. The Fama-French 3-factor model and the GMM-SDF model are used in the asset pricing model, and domestic and overseas investors used different basis assets. Findings - The KRW premium for US investors is estimated to be 43bp on a quarterly basis and 30bp on an annual basis, respectively, meaning that when the government issues bonds in KRW, the interest rate paid to US investors will be reduced by 30bp to 160bp (annually converted). Using the Fama-French 3 factor model, the KRW premium is the risk premium for the US market beta, meaning that if US investors do not intend to invest in US market beta, it is advantageous to receive an additional interest rate by investing in USD-denominated GDP-linked bonds. Korea's GDP- linked bond give US investors diversified investment utility, so they are willing to incorporate Korean GDP-linked bonds even if -150bp of interest is deducted from the structure issued to Korean investors. And as a result of estimating the value of the option through the GDP-linked bond with options that provides a floor for guaranteeing the principal, the value of the option linked to the annual GDP issued in dollars was the lowest. Research implications or Originality - Issuing dollar-denominated GDP-linked bonds linked to annual GDP with the option of guaranteeing the principal by the government is a way to increase investment opportunities for US investors and achieve financial stability of the government.

• The Journal of the Convergence on Culture Technology
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• v.7 no.1
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• pp.608-614
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• 2021

Currently, blockchain-based public cryptocurrency (hereinafter referred to as cryptocurrency) cannot acquire status as a currency for transaction due to the economic policies of each country, but it is used as an alternative currency transaction method due to individual circumstances of some Internet users. With this trend, it is predicted that such cryptocurrency can be used in real life beyond the Internet in the near future. In this paper, a technical method for designing a cryptocurrency payment system based on LoRaWAN that can easily build a wireless Internet network infrastructure at low cost as a way to activate the use of cryptocurrency in real life is presented based on the LoRaWAN standard.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.18 no.4
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• pp.1020-1041
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• 2024

With the development of covert communication technologies, the number of covert communication technologies using blockchain as a carrier is increasing. However, using the transaction amount of digital currency as a carrier for covert communication has problems such as low embedding rate, large consumption of transaction amount, and easy detection. In this paper, firstly, by experimentally analyzing the distribution of bitcoin transaction amounts, we determine the most suitable range of amounts for matrix decomposition. Secondly, we design a novel matrix decomposition method that can successfully decompose a large amount matrix into two small amount matrices and utilize the elements in the small amount matrices for covert communication. Finally, we analyze the feasibility of the novel matrix decomposition method in this scheme in detail from four aspects, and verify it by experimental comparison, which proves that our scheme not only improves the embedding rate and reduces the consumption of transaction amount, but also has a certain degree of resistance to detection.

• Journal of the military operations research society of Korea
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• v.2 no.1
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• pp.185-194
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• 1976

A terminal response time analysis for a general class of terminals-to-computer subsystem is presented in this paper. On the point of the front view, it should be considered for R.O.K. Military Defense to set up the communication network in order to facilitate for the currency of the information and the data communication system. The model used to study is based on the advanced data communications system in which terminals are connected to Terminal Control Units(TCU) that are in turn connected to local Front-End Processor(FEP). The line control procedures used to interface a TCU and an FEP may be half-duplex Binary Synchronous Communication(BSC), half-duplex Synchronous Data Link Control(SDLC), or full-duplex SLDC. This paper will contribute to facilitate the initial phase of system design and configuration for the Military Defense Communication Network System in future.

• Journal of Korea Trade
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• v.24 no.7
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• pp.38-53
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• 2020

Purpose - A financial crash triggers asset fire sales by foreign investors and, as a consequence, the price of domestic assets severely decreases. Domestic investors take advantage of these low prices by replacing foreign assets with domestic assets, which helps to alleviate the liquidity shock caused by foreigners. However, is the amount of capital retrenchment by domestic investors sufficient to protect the Korean economy from capital stop by foreign investors during financial crisis? This paper answers this question and suggests the implications of this phenomenon for the Korean economy. Design/methodology - We estimate the associations between capital stop and retrenchment and various financial crises such as banking, currency, debt, and inflation crises using the complementary log-log model. Specifically, we use data of gross capital flows to differentiate between the role of foreign and domestic investors in financial markets. Capital stop and retrenchment designate a sharp decrease in gross capital inflows and outflows, respectively. Findings - Capital stop is significantly associated with financial crises, especially currency and debt crises. This implies that increased risk aversion during times of financial turmoil encourages foreign investors to retrench their investments, worsening liquidity shocks. Conversely, capital retrenchment is not significantly associated with such crises. The results show that, although financial crises reduce gross capital outflows, the reduction is not as large as that with capital inflows. Originality/value - The contribution of this paper is threefold. First, this study investigates how domestic investors behave during times of financial distress by studying gross capital flows-not net capital flows. Second, we concentrate on sharp changes in capital flows during crises. Third, we examine the associations between capital stop and retrenchment and financial crises in general, not specific events.

• Journal of Internet Computing and Services
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• v.21 no.2
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• pp.65-72
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• 2020

In this paper, a USB module with fingerprint recognition was designed as a distributed node of blockchain on distributed ID (DID, distributed ID) for user identification. This biometric-linked fingerprint recognition device was verified for the real-time authentication process of authentication transaction with FIDO(Fast IDentity Online) server. Blockchain DID-based services were proposed like as a method of individual TV rating survey, and recommending service for customized shopping channels, and crypto-currency, too. This DID based remote service can be improved by recognizing of channel-changing information through personal identification. The proposed information of production purchase can be shared by blockchain. And customized service can be provided for the utilization of purchase history in shoppingmall using distributed ID. As a result, this blockchain node-device and Samsung S10 Key-srore with FIDO service can be certified for additional transactions through various biometric authentication like fingerprint, and face recognition.

• Journal of the Semiconductor & Display Technology
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• v.21 no.1
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• pp.1-4
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• 2022

As computers can express and utilize information in a semantic dimension different from the real world, humans have opened the door to the digital world and have played a pivotal role in the transformation of the human habitual environment. Using metaverse, it can be possible to predict concepts such as virtual currency, artificial intelligence, and virtual reality, which have now become possible for practical systemic visualization. In order to implement the metaverse in the realm of technology, it requires not only a multifaceted discussion on the platform, but also research on an architect that can include the intrinsic complexity of the metaverse. In this paper, we discuss the architecture for an open metaverse platform based on convergence wrapping that can converge various contents into one space, and propose a comprehensive platform design.