• Journal of Intelligence and Information Systems
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• v.20 no.3
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• pp.93-108
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• 2014

To support business decision making, interests and efforts to analyze and use transaction data in different perspectives are increasing. Such efforts are not only limited to customer management or marketing, but also used for monitoring and detecting fraud transactions. Fraud transactions are evolving into various patterns by taking advantage of information technology. To reflect the evolution of fraud transactions, there are many efforts on fraud detection methods and advanced application systems in order to improve the accuracy and ease of fraud detection. As a case of fraud detection, this study aims to provide effective fraud detection methods for auction exception agricultural products in the largest Korean agricultural wholesale market. Auction exception products policy exists to complement auction-based trades in agricultural wholesale market. That is, most trades on agricultural products are performed by auction; however, specific products are assigned as auction exception products when total volumes of products are relatively small, the number of wholesalers is small, or there are difficulties for wholesalers to purchase the products. However, auction exception products policy makes several problems on fairness and transparency of transaction, which requires help of fraud detection. In this study, to generate fraud detection rules, real huge agricultural products trade transaction data from 2008 to 2010 in the market are analyzed, which increase more than 1 million transactions and 1 billion US dollar in transaction volume. Agricultural transaction data has unique characteristics such as frequent changes in supply volumes and turbulent time-dependent changes in price. Since this was the first trial to identify fraud transactions in this domain, there was no training data set for supervised learning. So, fraud detection rules are generated using outlier detection approach. We assume that outlier transactions have more possibility of fraud transactions than normal transactions. The outlier transactions are identified to compare daily average unit price, weekly average unit price, and quarterly average unit price of product items. Also quarterly averages unit price of product items of the specific wholesalers are used to identify outlier transactions. The reliability of generated fraud detection rules are confirmed by domain experts. To determine whether a transaction is fraudulent or not, normal distribution and normalized Z-value concept are applied. That is, a unit price of a transaction is transformed to Z-value to calculate the occurrence probability when we approximate the distribution of unit prices to normal distribution. The modified Z-value of the unit price in the transaction is used rather than using the original Z-value of it. The reason is that in the case of auction exception agricultural products, Z-values are influenced by outlier fraud transactions themselves because the number of wholesalers is small. The modified Z-values are called Self-Eliminated Z-scores because they are calculated excluding the unit price of the specific transaction which is subject to check whether it is fraud transaction or not. To show the usefulness of the proposed approach, a prototype of fraud transaction detection system is developed using Delphi. The system consists of five main menus and related submenus. First functionalities of the system is to import transaction databases. Next important functions are to set up fraud detection parameters. By changing fraud detection parameters, system users can control the number of potential fraud transactions. Execution functions provide fraud detection results which are found based on fraud detection parameters. The potential fraud transactions can be viewed on screen or exported as files. The study is an initial trial to identify fraud transactions in Auction Exception Agricultural Products. There are still many remained research topics of the issue. First, the scope of analysis data was limited due to the availability of data. It is necessary to include more data on transactions, wholesalers, and producers to detect fraud transactions more accurately. Next, we need to extend the scope of fraud transaction detection to fishery products. Also there are many possibilities to apply different data mining techniques for fraud detection. For example, time series approach is a potential technique to apply the problem. Even though outlier transactions are detected based on unit prices of transactions, however it is possible to derive fraud detection rules based on transaction volumes.

• The Korean Journal of Air & Space Law and Policy
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• v.35 no.2
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• pp.3-40
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• 2020

The term "accident" in the Warsaw Convention of 1929 and the Montreal Convention of 1999, which govern carrier liability in international air transport, is an important criterion for determining carrier liability. However, because there is no explicit definition of the term in the treaty provisions, the term is largely subjected to the judgment and interpretation of the courts. Although there have been numerous changes in purpose and circumstance in the transition from the Warsaw regime to the conclusion of the Montreal Convention, there was no discussion on the concept of "accident" therefore, even after the adoption of the Montreal Convention, there is no doubt that the term is to be interpreted in the same manner as before. On this point, the United States Supreme Court's Air France v. Saks clarified the concept of "accident" and is still cited as an important precedent. Recently, the CJEU, in GN v. ZU, presented a new concept of "accident" introduced in the Montreal Convention: that "reference must be made to the ordinary meaning" in interpreting "accident" and that the term "covers all situations occurring on aboard an aircraft." Furthermore, the CJEU ruled that the term does not include the applicability of "hazards typically associated with aviation," which was controversial in previous cases. Such an interpretation can be reasonably seen as the court's expansion of the concept of "accident," with a focus on "protecting consumer interests," a core tenet of both the Montreal convention and the European Union Regulations(EC: No 889/2002). The CJEU's independent interpretation of "accident" is a departure from the Warsaw Convention and the Saks case, with their focus on "carrier protection," and instead focuses on the "passenger protection" standard of the Montreal Convention. Consequently, this expands both the court's discretion and the carrier's risk management liability. Such an interpretation by the CJEU can be said to be in line with the purpose of the Montreal Convention in terms of "passenger protection." However, there are problems to be considered in tandem with an expanded interpretation of "accident." First, there may be controversy concerning "balance" in that it focused on "passenger protection" in relation to the "equitable balance of interests" between air carriers and passengers, which is the basic purpose of the agreement. Second, huge losses are expected as many airlines fly to countries within the European Union. Third, there is now a gap in the interpretation of "accident" in Europe and the United States, which raises a question on the "unity of rules," another basic tenet of the Convention. Fourth, this interpretation of "accident" by the CJEU raises questions regarding its scope of application, as it only refers to the "hazards typically associated with aviation" and "situations occurring aboard an aircraft." In this case, the CJEU newly proposed a novel criterion for the interpretation of "accident" under the Montreal Convention. As this presents food for thought on the interpretation of "accident," it is necessary to pay close attention to any changes in court rulings in the future. In addition, it suggests that active measures be taken for passenger safety by recognizing air carriers' unlimited liability and conducting systematic reforms.

• Journal of Distribution Science
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• v.9 no.2
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• pp.83-95
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• 2011

Conventional markets in Korea have played a pivotal role in the vitalization of local communities and economies along with the distribution of products. Although many people believe the markets to be disorderly, they are lively and provide local people with things to enjoy, watch and buy. However, superstores have undergone a mushrooming proliferation since Korea opened its gates to multinational superstores in 1996. This phenomenon has caused a crisis for Korea's conventional markets. They have lost their competitiveness because of this environmental change, inefficient management, and their outmoded facilities. Government efforts to revitalize the markets have centered on redevelopment of the facilities, a perspective that has caused not only the fall of the old business districts but also the decline of the distribution function. Under these conditions, the traditional market has re-entered into competition. The Korean government enacted a special law to revitalize the conventional markets and has been implementing many policies to support them since 2003. In 2009, the government amended the law and adopted the Business Improvement District System. The government also changed the official term from 'old markets' to 'Conventional markets'. Despite this legal amendment, though, we still need to re-establish the concept of the Conventional market. Historically, markets grew up spontaneously to dispose of surplus products. Some manmade markets were established through urban planning or as public facilities. Their businesses transactions have always been based on mutual trust between consumers and trades people, the traditional way of commercial dealing. Conventional markets can be defined, then, as creatures of societal necessity where transactions for services and products are based on mutual trust. Problematically, unlisted markets are left out of government support. Although unlisted markets have performed almost the same functions as listed markets, they exist only as a statistic as far as the special law is concerned. In some areas, there are more unlisted markets than unlisted ones. Therefore, it is necessary to establish systematic management methods for the unlisted markets. Some unlisted markets received support in the form of facility improvement from local governments' budgets in the early stage of the special law's enforcement. The current government also assists with safety issues involving unlisted markets; however, the current special law provides no legal framework for unlisted markets. Moreover, consumers cannot tell the difference between unlisted markets and listed ones. Finding a solution to this problemrequires new standards and a wider scope of support by which the efficiency of the market improvement support system might be enhanced.

• Korean Journal of Construction Engineering and Management
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• v.14 no.1
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• pp.32-42
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• 2013

The Korean Government introduced a cultural heritage supervision system in January 2010 to control quality and to prevent poor construction. However, cultural heritage related constructions that require supervision, a scope of supervision, supervision cost and placement of supervisors have not been standardized yet. For this reason, standards of supervision for repair works of cultural heritage that reflect the characteristics of small-scale repair works and restoration of cultural heritage are required. Accordingly, this study has suggested standards of supervision works and cost by analyzing the average construction period that is suitable for the characteristics of cultural heritage repair works. In other words, this study has suggested standards of full-time supervision costs by applying the fixed amount-added method (adding direct labor cost, direct expenses, overhead expenses, engineering fee, charges for additional works and VAT) which is the same as the method of calculating supervision costs for public construction projects because a supervisor has to work full time at a construction site to perform supervision if the project is a mid/large-scale cultural heritage repair work. Also, this study has suggested standards of part-time supervision costs for a small-scale cultural heritage repair work and the ways of supervising the construction projects by visiting the project site on important occasions. According to the result of the analysis by applying the forgoing standards of supervision costs for cultural heritage, a full-time supervision cost for cultural heritage repair works is approximately 98% compared to the construction supervision of a public construction project, and a part-time supervision is approximately 158% compared to architectural construction supervision. It is expected that the valuable cultural heritage of Korea will be preserved by controlling quality of cultural heritage repair works through the application of this study result - the standards of supervision costs for cultural heritage repair works - to an actual project.

• The Korean Journal of Financial Management
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• v.24 no.2
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• pp.41-79
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• 2007

This study examines the expiration-day effects of stock index futures and options in the Korean stock market. The so-called 'expiration-day effects', which are the abnormal stock price movements on derivatives expiration days, arise mainly from cash settlement. Index arbitragers have to bear the risk of their positions unless they liquidate their index stocks on the expiration day. If many arbitragers execute large buy or sell orders on the expiration day, abnormal trading volumes are likely to be observed. If a lot of arbitragers unwind positions in the same direction, temporary trading imbalances induce abnormal stock market volatility. By contrast, if some information arrives at market, the abnormal trading activity must be considered a normal process of price discovery. Stoll and Whaley(1987) investigated the aggregate price and volume effects of the S&P 500 index on the expiration day. In a related study, Stoll and Whaley(1990) found a similarity between the price behavior of stocks that are subject to program trading and of the stocks that are not. Thus far, there have been few studies about the expiration-day effects in the Korean stock market. While previous Korean studies use the KOSPI 200 index data, we analyze the price and trading volume behavior of individual stocks as well as the index. Analyzing individual stocks is important for two reasons. First, stock index is a market average. Consequently, it cannot reflect the behavior of many individual stocks. For example, if the expiration-day effects are mainly related to a specific group, it cannot be said that the expiration of derivatives itself destabilizes the stock market. Analyzing individual stocks enables us to investigate the scope of the expiration-day effects. Second, we can find the relationship between the firm characteristics and the expiration-day effects. For example, if the expiration-day effects exist in large stocks not belonging to the KOSPI 200 index, program trading may not be related to the expiration-day effects. The examination of individual stocks has led us to the cause of the expiration-day effects. Using the intraday data during the period May 3, 1996 through December 30, 2003, we first examine the price and volume effects of the KOSPI 200 and NON-KOSPI 200 index following the Stoll and Whaley(1987) methodology. We calculate the NON-KOSPI 200 index by using the returns and market capitalization of the KOSPI and KOSPI 200 index. In individual stocks, we divide KOSPI 200 stocks by size into three groups and match NON-KOSPI 200 stocks with KOSPI 200 stocks having the closest firm characteristics. We compare KOSPI 200 stocks with NON-KOSPI 200 stocks. To test whether the expiration-day effects are related to order imbalances or new information, we check price reversals on the next day. Finally, we perform a cross-sectional regression analysis to elaborate on the impact of the firm characteristics on price reversals. The main results seem to support the expiration-day effects, especially on stock index futures expiration days. The price behavior of stocks that are subject to program trading is shown to have price effects, abnormal return volatility, and large volumes during the last half hour of trading on the expiration day. Return reversals are also found in the KOSPI 200 index and stocks. However, there is no evidence of abnormal trading volume, or price reversals in the NON-KOSPI 200 index and stocks. The expiration-day effects are proportional to the size of stocks and the nearness to the settlement time. Since program trading is often said to be concentrated in high capitalization stocks, these results imply that the expiration-day effects seem to be associated with program trading and the settlement price determination procedure. In summary, the expiration-day effects in the Korean stock market do not exist in all stocks, but in large capitalization stocks belonging to the KOSPI 200 index. Additionally, the expiration-day effects in the Korean stock market are generally due, not to information, but to trading imbalances.

• Journal of Korean Society of Transportation
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• v.22 no.7 s.78
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• pp.119-129
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• 2004

This paper is designed to report the results of development and validation procedures in relation to the Freeway Incident Management System (FIMS) prototype development as part of Intelligent Transportation Systems Research and Development program. The central core of the FIMS is an integration of the component parts and the modular, but the integrated system for freeway management. The whole approach has been component-orientated, with a secondary emphasis being placed on the traffic characteristics at the sites. The first action taken during the development process was the selection of the required data for each components within the existing infrastructure of Korean freeway system. After through review and analysis of vehicle detection data, the pilot site led to the utilization of different technologies in relation to the specific needs and character of the implementation. This meant that the existing system was tested in a different configuration at different sections of freeway, thereby increasing the validity and scope of the overall findings. The incident detection module has been performed according to predefined system validation specifications. The system validation specifications have identified two component data collection and analysis patterns which were outlined in the validation specifications; the on-line and off-line testing procedural frameworks. The off-line testing was achieved using asynchronous analysis, commonly in conjunction with simulation of device input data to take full advantage of the opportunity to test and calibrate the incident detection algorithms focused on APID, DES, DELOS and McMaster. The simulation was done with the use of synchronous analysis, thereby providing a means for testing the incident detection module.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.31
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• pp.27-56
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• 2006

Today's financial institutions usually take environmental issues seriously into consideration as they could not evade lender liability in an increasing number of cases. On the international scene, a brand-new concept of the "Equator Principles" in the New Millenium has driven more and more international banks to adopt these Principles in project financing. Sustainable development has been a key word in understanding new trends of the governments, financial institutions, corporations and civic groups in the 21st century. The Equator Principles are a set of voluntary environmental and social guidelines for sustainable finance. These Principles commit bank officers to avoid financial support to projects that fail to meet these guidelines. The Principles were conceived in 2002 on an initiative of the International Finance Corporation(IFC), and launched in June 2003. Since then, dozens of major banks, accounting for up to 80 percent of project loan market, have adopted the Principles. Accordingly, the Principles have become the de facto standard for all banks and investors on how to deal with potential social and environmental issues of projects to be financed. Compliance with the Equator Principles facilitates for endorsing banks to participate in the syndicated loan and help them to manage the risks associated with large-scale projects. The Equator Principles call for financial institutions to provide loans to projects under the following circumstances: - The risk of the project is categorized in accordance with internal guidelines based upon the environmental and social screening criteria of the IFC. - For Category A and B projects, borrowers or sponsors are required to conduct a Social and Environmental Assessment, the preparation of which must meet certain requirements and satisfactorily address key social and environmental issues. - The Social and Environmental Assessment report should address baseline social and environmental conditions, requirements under host country laws and regulations, sustainable development, and, as appropriate, IFC's Environmental, Health and Safety Guidelines, etc. - Based on the Social and Environmental Assessment, Equator banks then make agreements with borrowers on how they mitigate, monitor and manage the risks through a Social and Environmental Management System. Compliance with the plan is included in the covenant clause of loan agreements. If the borrower doesn't comply with the agreed terms, the bank will take corrective actions. The Equator Principles are not a mere declaration of cautious banks but a full commitment of lenders. A violation of the Principles in the process of project financing, which led to an unexpected damage to the affected community, would not give rise to any specific legal remedies other than ordinary lawsuits. So it is more effective for banks to ensure consistent implementation of the Principles and to have them take responsible measures to solve social and environmental issues. Public interests have recently mounted up with respect to environmental issues on the occasion of the Supreme Court's decision (2006Du330) on the fiercely debated reclamation project at Saemangeum. The majority Justices said that the expected environmental damages like probable pollution of water and soil were not believed so serious and that the Administration should continue to implement the project seeking ways to make it more environment friendly. In this case, though the Category A Saemangeum Project was carried out by a government agency, the Supreme Court behaved itself as a signal giver to approve or stop the environment-related project like an Equator bank in project financing. At present, there is no Equator bank in Korea in contrast to three big banks in Japan. Also Korean contractors, which are aggressively bidding for Category A-type projects in South East Asia and Mideast, might find themselves in a disadvantageous position because they are generally ignorant of the environmental assessment associated with project financing. In this regard, Korean banks and overseas project contractors should care for the revised Equator Principles and the latest developments in project financing more seriously. It's because its scope has expanded to the capital cost of US$10 million or more across all industry sectors regardless of developing countries or not. It should be noted that, for a Korean bank, being an Equator bank is more or less burdensome in a short-term period, but it must be conducive to minimizing risks and building up good reputation in the long run.

• Journal of Korean Society of Rural Planning
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• v.24 no.3
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• pp.87-96
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• 2018

While cities became bigger and bigger since 1990s, many indiscretely high buildings started to be built in the mountain areas inside a city and in the rural areas in the suburb of each city. To regulate such indiscrete developments, the government prepared for some relevant legal and institutional criteria by having enacted the "Landscape Act" and established a strong management means in the legal and institutional aspects by having introduced the natural landscape deliberation system and the landscape deliberation one into the "Natural Environment Conservation Act." However, since some uniform levels of absolute height and no. of stories are suggested legally and institutionally, it is hard to consider the effects of a real building structure onto the relevant landscape. Accordingly, this thesis is intended to grasp the contrast of the landscape elements in the allowable height section, which is presented through landscape sensitivity. As the results from the visual contrast rating on a small apartment complex located in Dangjin and a large scale of apartment complex in Seosan as the apartment complexes surrounded with natural landscapes that were selected as the subjects of this study, the following conclusion can be finalized. First, there were deducted some factors, that is, forms, lines, colors, textures and sizes as the ones with which can measure and evaluate the contrasting properties when a structure gets into a natural landscape. Second, in case of a small scale of apartment complex (in the foreground) compared to a large one (in the foreground), it was found that the contrasting properties were bigger. In addition, it was also found that the contrasting property of the landscape factor of the foreground compared to that of the middle one becomes bigger depending on a distance. Third, as the results from an evaluation on the contrasting properties of the landscape factor depending on the changes of each floor of a structure, it was found that the factors, that is, forms, lines, colors, textures and sizes are very significant. Among those factors, the factors, forms and lines in a small scale of apartment complex (in the foreground) showed each log regression. But in all of the other cases, they showed each line regression. Fourth, as the results from examining the regression coefficients of the landscape factor, the coefficients of the shapes and lines have similar coefficients and the colors and the textures have similar ones, too. In case of the sizes of apartment complexes, the colors and the textures of a large apartment complex (in the foreground) have similar coefficients, in case of that in the middle ground, the shapes and lines have similar coefficients. Fifth, as the results from estimating the contrasting properties of the landscape factor on the floors within the allowed scope of the landscape sensitivity, it was found that the contrasting property was 3.5 to 4.9 in case of a small scale of apartment complex (in the foreground), but 2.5to 3.7 in case of a small scale of one. In case of a large scale of apartment complex, the value was 3.5 to 5.3, but in case of a large one in the middle ground was 2.9 to 4.9. Sixth, it was comprehended that the contrasting properties of the landscape factor become different depending on each size of apartment complex and the distance of a view point. In this study, it is intended to find the meaning from the aspect that the results can be used as the baseline data for comprehending a proper range of heights of structures objectively during a natural landscape deliberation or a landscape deliberation.

• Journal of Intelligence and Information Systems
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• v.22 no.4
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• pp.193-215
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• 2016

In recent years, the proliferation of diverse social networking services has led users to use many mediums simultaneously depending on their individual purpose and taste. Besides, while collecting information about particular themes, they usually employ various mediums such as social networking services, Internet news, and blogs. However, in terms of management, each document circulated through diverse mediums is placed in different categories on the basis of each source's policy and standards, hindering any attempt to conduct research on a specific category across different kinds of sources. For example, documents containing content on "Application for a foreign travel" can be classified into "Information Technology," "Travel," or "Life and Culture" according to the peculiar standard of each source. Likewise, with different viewpoints of definition and levels of specification for each source, similar categories can be named and structured differently in accordance with each source. To overcome these limitations, this study proposes a plan for conducting category mapping between different sources with various mediums while maintaining the existing category system of the medium as it is. Specifically, by re-classifying individual documents from the viewpoint of diverse sources and storing the result of such a classification as extra attributes, this study proposes a logical layer by which users can search for a specific document from multiple heterogeneous sources with different category names as if they belong to the same source. Besides, by collecting 6,000 articles of news from two Internet news portals, experiments were conducted to compare accuracy among sources, supervised learning and semi-supervised learning, and homogeneous and heterogeneous learning data. It is particularly interesting that in some categories, classifying accuracy of semi-supervised learning using heterogeneous learning data proved to be higher than that of supervised learning and semi-supervised learning, which used homogeneous learning data. This study has the following significances. First, it proposes a logical plan for establishing a system to integrate and manage all the heterogeneous mediums in different classifying systems while maintaining the existing physical classifying system as it is. This study's results particularly exhibit very different classifying accuracies in accordance with the heterogeneity of learning data; this is expected to spur further studies for enhancing the performance of the proposed methodology through the analysis of characteristics by category. In addition, with an increasing demand for search, collection, and analysis of documents from diverse mediums, the scope of the Internet search is not restricted to one medium. However, since each medium has a different categorical structure and name, it is actually very difficult to search for a specific category insofar as encompassing heterogeneous mediums. The proposed methodology is also significant for presenting a plan that enquires into all the documents regarding the standards of the relevant sites' categorical classification when the users select the desired site, while maintaining the existing site's characteristics and structure as it is. This study's proposed methodology needs to be further complemented in the following aspects. First, though only an indirect comparison and evaluation was made on the performance of this proposed methodology, future studies would need to conduct more direct tests on its accuracy. That is, after re-classifying documents of the object source on the basis of the categorical system of the existing source, the extent to which the classification was accurate needs to be verified through evaluation by actual users. In addition, the accuracy in classification needs to be increased by making the methodology more sophisticated. Furthermore, an understanding is required that the characteristics of some categories that showed a rather higher classifying accuracy of heterogeneous semi-supervised learning than that of supervised learning might assist in obtaining heterogeneous documents from diverse mediums and seeking plans that enhance the accuracy of document classification through its usage.

• Management & Information Systems Review
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• v.35 no.1
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• pp.51-68
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• 2016

In this paper, we aim to analyze the effect of accounting policy change subsequent to the adoption of K-IFRS in Korea, whereby the firms are required to recognize impairment losses on goodwill on a periodic basis rather than to amortize over a specific period. As a principle-based accounting standard, the K-IFRS expands the scope of fair value measurement with a view to enhance the relevance and timeliness of accounting information. In the same vein, intangibles with indefinite useful life, of which goodwill is an example, are subject to regulatory impairment tests at least once a year. Related literature on the impact of mandatory change in goodwill policy document that impairment recognition is more likely to be practiced opportunistically, mainly because managers have a greater discretion to conduct the tests under K-IFRS. However, existing literature examined the frequency and/or magnitude of the goodwill impairment before versus after the K-IFRS adoption, failing to notice the impairment symptoms at individual firm level. Borrowing the definition of impairment symptoms suggested by Ramanna and Watts(2012), this study performs a series of tests to determine whether the goodwill impairment recognition achieves the goal of communicating timelier information under the K-IFRS regime. Using 947 firm-year observations from domestic companies listed in KRX and KOSDAQ markets from 2008 to 2011, we document overall delays in recognizing impairment losses on goodwill after the adoption of K-IFRS relative to prior period, based on logistic and OLS regression analyses. The results are qualitatively similar in robustness tests, which use alternative proxy for goodwill impairment symptom. Afore-mentioned results indicate that managers are likely to take advantage of the increased discretion to recognize the impairment losses on goodwill rather than to provide timelier information on impairment, inconsistent with the goal of regulatory authority, which is in line with the improvement of timeliness and relevance of accounting information in conjunction with the full implementation of K-IFRS. This study contributes to the extant literature on goodwill impairment from a methodological viewpoint. We believe that the method employed in this paper potentially diminishes the bias inherent in researches relying on ex post impairment recognition, by conducting tests based on ex ante impairment symptoms, which allows direct examination of the timeliness changes between before and after K-IFRS adoption.