• The Journal of Asian Finance, Economics and Business
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• v.1 no.4
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• pp.5-13
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• 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 Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.73-85
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• 2020

As an effort to achieve sustainable development and increase people's welfare, financial inclusion has become the policy agenda of many countries. Therefore, the effect of financial inclusion on economic growth, poverty, income inequality, and financial stability in several countries in Asia has become the goal and this is the subject of this study. Financial inclusion is measured by 3 dimensions, namely banking penetration, access to banking services, and use of banking services. Poverty ratio below the national poverty line and the Gini coefficient are used as indicators of poverty and income inequality. Financial stability is measured by Bank Z-Score and bank nonperforming loans. The results from the hypothesis test shows that all dimensions of financial stability simultaneously have significant influence on economic growth, poverty, income inequality, and financial stability. On the other hand, the partial impact of financial inclusion dimension on economic growth, poverty alleviation, income inequality, and financial stability in ten countries of Asia has not been optimal. The derived results of this study is required to be interpreted and considered by the Governments of each country in developing strategies for increasing financial inclusion, so that the policy to achieve sustainable development and enhancement of people's welfare can be achieved.

• Journal of Korean Library and Information Science Society
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• v.55 no.1
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• pp.47-67
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• 2024

This study attempted to analyze factors affecting public library collection development. To this end, a recognition survey was conducted on librarians in public libraries to ask about the collection development policy, the environment of the book, and the importance of the reference information. As a result of the analysis, more than 80% of public library librarians were aware of the necessity of the collection development policy. In addition, many librarians prioritized matters related to the status of loans and applied them to their work, and it was found that reference sources such as literature/academic award-winning books, newspapers/magazines, media, and various book-related associations were more important.

• Journal of the Korean Regional Science Association
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• v.13 no.2
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• pp.25-43
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• 1997

This paper empirically estimates gains from capital inflow to a regional ecomomy. It will be a usefulc for indicator for a local government to build a policy for attracting capital. We estimate the respective Cobb-Douglas production function for 11 provinces of Korea, derive its marginal productivity of capital, and then calculate the amount of capital moved between two provinces and gains from the capital movement. With no barriers to capital movement, there would be a strong motive for capital inflow to Seoul, Pusan, and Kyungki, whereas capital outflow would be expected in Chonnam, Chungbuk, Chungnam, and Kyungbuk. The ratio of gains from capital movement to the regional domestic from capital movement to the regional domestic product(RDP) is high in Cheju, Kangwon, Chungbuk, and so on. It turns out that capital flows from an area with lower productivity of capital to one with hihger productivity. This implies that if the local government of an underdeveloped region wants to lure capital investment from outside, it needs to provide it with strong incentives of eax reduction and special loans.

• Journal of Digital Convergence
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• v.2 no.1
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• pp.145-160
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• 2004

P Leasing Company was a steady growing company with positive net income in most years since 1985 when it was established. However, it suddenly experienced a minus net income of 6.8 billion won in 1996. The reason of its deficit was known to be the financial distress of its two major leasing contracts. The total amount of two contracts was 58 billion won witch is about 8% of total amount of its leasing contracts. In this paper, we analyse how the disability of lease payments from the two leasing contracts influence P Leasing Company's financial stability, growth opportunity, and profitability. In addition, by performing ROI analyse, we point out the financial reasons of P Leasing Company's deficit in 1996. We hope our case analysis to help students understand the cash flow of leasing companies. The P Leasing Company case also illustrates the fact that bad leasing contracts would seriously affect the profitability of leasing companies as bad loans would seriously do the profitability of commercial banks.

• KDI Journal of Economic Policy
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• v.38 no.1
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• pp.71-91
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• 2016

This paper examines the effect of the government college loan program in Korea on student academic performance, dropout decisions and loan defaults. While fairness in educational opportunities has been guaranteed to some degree through this program, which started in 2009, there has been a great deal of controversy over its effectiveness. Empirical findings suggest that recipients of general student loan (GSL) lower academic performance than those who received income contingent loan (ICL). Moreover, for students attending private universities, a higher number of loans received increased the probability of a dropout decision, and students from middle-income households had a higher probability of being overdue than students from low-income households. These findings indicate that expanding the ICL program within the allowance of the government budget is necessary. Furthermore, providing opportunities for students to find various jobs and introducing a rating system for defaulters are two necessary tasks.

• KDI Journal of Economic Policy
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• v.43 no.3
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• pp.1-32
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• 2021

With CB data in South Korea, this study examines whether the credit risk of borrowers changes when the regulation on bank mortgage supply is relaxed. We analyze the effect of deregulation on LTV and DTI limits in the Seoul-metropolitan area in August 2014 with a difference-in-difference approach. We find that the probability of delinquency is lower in the Seoul metropolitan area after the deregulation than in other urban areas. The effect is noticeable among low-income and low-credit borrowers. We also find that borrowers change their debt structure to reduce the interest costs utilizing their improved access to bank mortgages. The findings suggest the necessity to consider the burden of the high interest costs of unsecured loans for debtors with low incomes and low credit ratings in designing housing finance regulations.

• Land and Housing Review
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• v.14 no.3
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• pp.55-75
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• 2023

Based on prior studies on real estate policy, tax policy, and financial policy, this study examined how tax policy and financial policy affected real estate prices using monthly data from January 2014 to December 2021. We performed a VAR model using unit root tests, cointegration tests, as well as conducted impulse response analysis and variance decomposition analysis. The results are as follows. First, the tax regulation index and the financial regulation index had no discernible impact on housing prices. Specifically, a one-sided stabilizing regulatory policy was ineffective and, instead, led to unintended side effects, such as price increases resulting from reduced transaction volume. Secondly, mortgage rates had a negative impact on the housing sale price index. In other words, an increase in interest rates might led to a decrease in housing prices. Thirdly, an increase in the transfer difference, which involves capital gains tax, has a positive effect on housing prices. This led to rising housing prices because the transfer taxes were shifted to buyers, causing them to hesitate to make purchases due to the increased tax burden. Fourthly, both acquisition taxes and mortgage loans had relatively little impact on housing prices.

• KDI Journal of Economic Policy
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• v.14 no.1
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• pp.191-212
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• 1992

This paper discusses the role of money in the process of capital accumulation where financial markets are impeded by contract enforcement problems in the context of overlapping generations framework. In particular, in less developed countries (LDCs) creditors may know little about the repayment capability of potential debtors due to incomplete information so that financial instruments other than money may not acceptable to them. In this paper the impediments to the operation of the private finanical markets are explicitly modelled. We argue that creditors cannot observe actual investment decisions made by the potential borrowers, and as a result, loan contracts may not be fully enforceable. Therefore, a laissez-faire regime may fail to provide the economy with the appropriate financial instruments. Under these circumstances, we introduce a government operated discount window (DW) that acts as an open market buyer of private debt. This theoretical structure represents the practice of governments of many LDCs to provide loans (typically at subsidized interest rates) to preferred borrowers either directly or indirectly through the commercial banking system. It is shown that the DW can substantially overcome impediments to trade which are caused by the credit market failure. An appropriate supply of the DW loan enables producers to purchase the resources they cannot obtain through direct transactions in the credit market. This result obtains even if the DW is subject to the same enforcement constraint that is responsible for the market failure. Thus, the DW intervention implies higher investment and output. However, the operation of the DW may cause inflation. Furthermore, the provision of cheap loans through the DW results in a worse income distribution. Therefore, there is room for welfare enhancing schemes that utilize the higher output to develop. We demonstrate that adequate lump sum taxes-cum-transfers along with the operation of the DW can support an allocation that is Pareto superior to the laissez-faire equilibrium allocation.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.8 no.4
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• pp.37-47
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• 2013

This study investigates regional financial markets and proposes some policy measures for boosting up the regional financial system. Financial supports for start-ups, small and medium sized enterprises(SMEs) in early stage growth have been constrained due to expanded financial gaps among regions during financial restructuring period. The bank consolidation through M&A is associated with widening financial gaps between Seoul area and others, and between regions where regional banks survives or not. Loans to small firms are associated with relationship lending techniques that may be better supported by smaller regional banks. The loan rate to SMEs in locals where regional banks are activated has tended to be 10%point higher than the locals where regional banks closed, and also drive the greater contribution for preventing local capital outflow and promoting local capital investment by local penetrating strategy. Government should develop regional financial policies to boost up regional financial system, and expand the business area of regional financial institutions for supporting start-ups and SMEs.