• Journal of the Korea Academia-Industrial cooperation Society
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• v.1 no.1
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• pp.91-100
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• 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 Korean Society on Water Environment
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• v.20 no.2
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• pp.151-156
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• 2004

A decision support system, Watershed Analysis Risk Management Framework(WARMF), was applied to the Kyungan Stream watershed, a tributary of Lake Paldang, for calculation of total maximum daily loads(TMDL). The WARMF system was developed by Systech Engineering, USA, and has been successfully used in several watersheds, for TMDL studies. The study area was divided into 14 sub-basins, based on digital elevation model(DEM). The integrated watershed and stream model of WARMF was validated by flow and BOD data measured during the year of 1999. There were reasonable agreements between model results and field data, both in water flow and BOD. The validated Kyungan WARMF was extensively utilized to study the quantitative relationship between waste loads and receiving water quality. Based on TMDL guideline at Paldang Lake and Kyungan Stream, the water quality criterion were set to be 3.0mg/L, 3.5mg/L, and 4.0mg/L at the watershed outlet. The allowable waste loads of BOD, both from point and non-point sources, were determined at each water quality criterion. From this study, it was concluded that the WARMF provided several advantages over the conventional application of watershed and stream models for TMDL study, such as time variable simulations, multiple possible soutions, and reduction loads for goal water quality, etc.