• East Asian Economic Review
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• v.21 no.1
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• pp.81-100
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• 2017

This study measures the degree of dollarization in North Korea using results from a survey of 231 North Korean refugees. Specifically, we compare foreign currency use of households as both store-of-value substitutes (i.e., asset substitution) and transaction substitutes (i.e., currency substitution) before and after the confiscatory currency reform of 2009. The degree of dollarization has advanced since the currency reform in terms of both asset and currency substitutions. Survey results also indicate that the Chinese yuan is frequently used in the Sino-North Korean border area, whereas the US dollar is predominantly used in non-border areas. Furthermore, foreign currency increasingly serves as a medium of exchange not only for large transactions but also for smaller transactions, such as food purchases.

• KDI Journal of Economic Policy
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• v.44 no.3
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• pp.49-74
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• 2022

This paper empirically examines how fiscal instability affects financial instability. According to an IMF forecast (2021a), the fiscal space in Korea will be steadily reduced in the future. The theoretical literature predicts that if fiscal stability is undermined, financial stability will also be in danger given that government guarantees on banks are weakened and/or sovereign bonds held in banks become riskier. This paper empirically finds the existence of this negative impact of fiscal instability on financial instability. I also find that the intensity of this fiscal-financial relationship is greater in a country where (i) its currency is not a reserve currency such as the US dollar or euro, (ii) its banking sector is large relative to government sector, and/or (iii) its private credit to GDP is high. Korea has all of these three characteristics and hence needs to put more effort into maintaining fiscal stability.

• Korean Journal of Construction Engineering and Management
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• v.9 no.4
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• pp.75-83
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• 2008

In the previous comparative studies of international competitiveness conducted before 2003, Korean construction productivity had been estimated to be lower (or poor) than that of developed countries such as US, UK, and Japan. However, the amount of international contracts Korean has won increased substantially, and Korean construction has progressed with creating two skyscrapers such as Petronas Tower and Burj Dubai. At this point we need to reevaluate what we are capable of. In this paper, we evaluated international competitiveness of our construction industry comparing to advanced countries by analyzing labor productivity. For evaluating construction competitiveness we measured labor productivity using the value of construction work in US dollar per hour based on domestic and foreign statistical data and analyzing completion days per a story and the ratio of underground floors to ground floors of buildings in Korea and Japan. As a result, although our construction productivity is not yet competitive with the US and Japan yet, we excel the UK.

• Journal of The Geomorphological Association of Korea
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• v.27 no.3
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• pp.87-103
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• 2020

The purpose of this study is to evaluate the risk of cropland and man-made infrastructures in a landslide-prone area using a GIS-based method. To achieve this goal, a landslide inventory map was prepared based on aerial photograph analysis as well as field observations. A total of 550 landslides have been counted in the entire study area. For model analysis and validation, extracted landslides were randomly selected and divided into two groups. The landslide causative factors such as slope, aspect, curvature, topographic wetness index, elevation, forest type, forest crown density, geology, land-use, soil drainage, and soil texture were used in the analysis. Moreover, to identify the correlation between landslides and causative factors, pixels were divided into several classes and frequency ratio was also extracted. A landslide susceptibility map was constructed using a bayesian predictive model (BPM) based on the entire events. In the cross validation process, the landslide susceptibility map as well as observation data were plotted with a receiver operating characteristic (ROC) curve then the area under the curve (AUC) was calculated and tried to extract a success rate curve. The results showed that, the BPM produced 85.8% accuracy. We believed that the model was acceptable for the landslide susceptibility analysis of the study area. In addition, for risk assessment, monetary value (local) and vulnerability scale were added for each social thematic data layers, which were then converted into US dollar considering landslide occurrence time. Moreover, the total number of the study area pixels and predictive landslide affected pixels were considered for making a probability table. Matching with the affected number, 5,000 landslide pixels were assumed to run for final calculation. Based on the result, cropland showed the estimated total risk as US $ 35.4 million and man-made infrastructure risk amounted to US $ 39.3 million.

• The Journal of the Korea Contents Association
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• v.20 no.11
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• pp.281-291
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• 2020

This study used Gauss-Poisson jump diffusion process on standard assets to estimate the statutory reserves of Variable Annuity (VA) guarantees specified in Korean bylaw of insurance supervision and calculated guarantee fees and risks based on the model to see the effect of considering the jumps. Financial assets, except KOSPI 200, have fat-tailed return distributions, which is an indirect evidence of discontinuous jumps. In the case of a domestic stock index and foreign stock indexes(Korean Won), guarantee fees and risks decrease when jumps are considered in models of underlying assets. This is explained by decreases in standard deviations after the jump diffusion is considered. On the other hand, in the case of domestic bond indexes and a foreign bond index(Korean Won), guarantee fees and risks tend to increase when jumps are considered. Results from a foreign stock index(US Dollar) and a foreign bond index(US Dollar) were opposite to those from the same kinds of Korean Won indexes. We conclude that VA guarantee fees and risks may be under or over estimated when jumps are not considered in models of underlying assets.

• Journal of Service Research and Studies
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• v.7 no.4
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• pp.139-150
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• 2017

Open economy tightly works with foreign economy. This paper investigates the effect of the shock of foreign bond yield on the credit spreads of domestic corporate bonds in Korea. Foreign bond is referred to as US treasury bond. Credit spreads are defined with the difference between log yields of domestic corporate bonds and log yield of Korea treasury bond. With the data of monthly three-year AA- and BBB- corporate bond yields- ratings, monthly three-year Korean treasury bond yields, monthly US dollar foreign exchange rates, and monthly three-year US Treasury bond yields during the period from October 2000 to September 2014 including global financial crisis period, the paper documents the results as follow. First of all, the yield of Korean treasury and the credit spreads are very sensitive to the increase in the level and the volatility of the yield of the US treasury bond. Changes in the level and the volatility little affect the change of the exchange rate. Second, the change in the level and the volatility negatively affect the level of Korean treasury bond yields but lead to the increase in the level of Korean treasury bond yields at the same time. Third, there exist time lags of the increases of credit spreads by the increase in the level and the volatility. These imply that credit spreads and bond yields are very sensitive to the change in the yields of foreign bonds such as US treasury bond.

• Explosives and Blasting
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• v.13 no.4
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• pp.5-27
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• 1995

Korea-America tungsten treaty is not only Earnning Us Dollar but also it was turnning point of tunnelling technology development such as a burn cut. Because 10th of specialist worked at Sangdong mine under treaty. The first of all, Experimental blasting pattern for single free face carried out. As a result it has brought the burden and $charge/m^3$ and also space distance. After the center holes are blasted. Remain of the works was the implementation of bench cut against the openning to make the full sectional are required. $Ca=\frac{A}{SW}$ where as A =ndi=m activated area S = Peripheral length of Charged room Ca = Rock Coefficient di=Holes diameter Later in 1980, The Oynaite Explosive is Replaced into Emulsion & Milli-Second Delay Electric Cap. Seqential Blasting machine were Applied in the Site. The Subway Tunnelling have been worked so Carefully for Vibration and Noise to near Shopping and housing area. We carried out Empirical formula to solve city Envoirement pollution as follow For Granite: $V=KW^{0.57}D^{-1.75}$ For Granite : $V=KW^{0.5}D^{-1.5}$ V=PPV(cm/sec) K=Coefficency D=Distance(m) W=Amount of power/delay(kg)

• The Journal of Asian Finance, Economics and Business
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• v.5 no.2
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• pp.25-33
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• 2018

In the globalization and free trade era, the current account deficit problem is a common phenomenon experienced by most countries, both developing and developed countries. Also with managed floating regime of exchange rate, it becomes very important to analyze the dynamics of current account balance which determine the trade. The deficit condition has lasted for four years in Indonesia, as well the deficit value above the value of the surplus that has been experienced during the period 2005-2011. This study is firstly aim to examine the condition of the deficit which happens in the export and import, manufactured goods and oil and gas, whether related to the transaction of goods and services. We try to build a predicted model which near the actual. Then, the focuses examines an exchange rate volatility impact on current account deficit. The model used in this research is a simultaneous model of Indonesia current account deficit from 2005 to 2014. The simulation result indicated that depreciation increase surplus to current account deficit. The decrease of export manufactured goods (non oil and gas) higher than the increase of import. For the oil and gas sector, depreciation of the rupiah against the US dollar results in an increased burden of higher oil and gas imports due to import transactions.

• International Commerce and Information Review
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• v.9 no.2
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• pp.65-86
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• 2007

This paper reviews the properties and application methods of widely used types of risk measures, identifies the rationale and business-side effects of hedging, derives the theoretical formula of optimal hedging ratio, and analyzes the various functional aspects of VaR(Value-at-risk) as a risk measure and a hedging tool. Especially this paper focuses on the characteristics of VaR compared with other risk measures in terms of their own principal determinants and identifies its stronger aspects in the dimension of hedging strategy tools. As well, this paper provides the detailed processes deriving the optimal hedge ratios based on the distributional parameters and risk factors. In addition, this paper presents the detailed and substantial processes of estimating the minimum variance hedge ratio and minimum-VaR hedge ratio using the actual data and shows that the minimum variance hedge ratio proves helpful for many cases although it is not appropriate for the non-linear portfolio including the option contracts. We demonstrate the trade-off relationship between the minimum variance hedge strategy and the minimum-VaR hedge strategy in their hedging costs and performances through calculation of the respective VaRs and variances of unhedged and hedged portfolios and the optimal hedge ratio and hedging effectiveness values for the given long position in US Dollar with the short position in Euro.

• Journal of Korea Multimedia Society
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• v.19 no.7
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• pp.1107-1115
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• 2016

Efficient Market Hypothesis (EMH), states that at any point in time in a liquid market security prices fully reflect all available information. This paper presents a study of proving the hypothesis through daily Twitter sentiments using the hybrid approach of the lexicon-based approach and the naïve Bayes classifier. In this research we analyze the currency exchange rate movement of Indonesia Rupiah vs US dollar as a way of testing the Efficient Market Hypothesis. In order to find a correlation between the prediction sentiments from Twitter data and the actual currency exchange rate trends we collect Twitter data every day and compute the overall sentiment to label them as positive or negative. Experimental results have shown 69% correct prediction of sentiment analysis and 65.7% correlation with positive sentiments. This implies that EMH is semi-strong Efficient Market Hypothesis, and that public information provide by Twitter sentiment correlate with changes in the exchange market trends.