• Journal of the Economic Geographical Society of Korea
• /
• v.6 no.2
• /
• pp.377-402
• /
• 2003

This study aims at analysing basic operational grounds of regional financial institutions in Pusan. Since 1980s many papers have discussed the issues how to develop the regional financial market. But they have neglected regional financial institutions and failed to clarify their roles in the regional economy. Recently the central government expels many regional financial institutions under financial distresses from the regional financial market without assessing their roles in the regional economy. This paper shows that regional financial institutions are indispensible for the stability and development of the regional economy, especially because they can supply credit to the small firms and households which have vulnerable credit standings and are tightly constrained in their access to bank credit. This paper also examines how credit unions deal with the problems caused by asymmetric information after the collapse of solidarity.

• Korea Trade Review
• /
• v.42 no.5
• /
• pp.213-232
• /
• 2017

A Bank Payment Obligation is now in operation as payment instruments in the business of Supply Chain Finance since 2013. The BPO is an irrevocable undertaking of the Obligor Bank subject to the successful electronic matching of all required Data Sets with the established Baseline in the TMA. Although the BPO should be regarded as similar to a Letter of Credit, it is a new payment solution based on a technology and data-driven mechanisms. The BPO is different from the letter of credit in their structure such as a bank to bank obligation, an automated matching engine, a transfer and confirmation of the Credit, etc. The BPO can also be used more effectively on a stand-alone solution as an electronic alternative to the traditional instruments. it will provide a new range of solutions to meet the ever-changing needs of the trade customers. However, the BPO could be raised several issues including an assurance of payment between recipient banks and sellers because the BPO is a bank-to-bank obligation. The URBPO do not applies to the relationships between banks and their business clients. So, the primary objective of this paper is to promote the institutional understanding and present the implications by reviewing the majn issues in the BPO as comparision with the Letter of Credit from the institutional point of view. This research was also based on documentary research focusing on the preceding research and the materials of ICC and SWIFT.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.22 no.50
• /
• pp.293-302
• /
• 1999

This paper presents an efficient reengineering technique for the logistics process innovation which is the foundation of supply-chain management. Based on consulting experience on the domestic manufacturing firms, this paper provides promotion step for logistics innovation and six reengineering points including check system for customer's credit limit, check system of real-time inventory information, automatic system for sequential production plan, automatic order-release system, automatic packing system, and happy-call system for order-forward information. For each reengineering point, application cases in domestic industry are also presented.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.18
• /
• pp.105-134
• /
• 2002

In the Spring of 2000, the Banking Commission of the ICC decided to appoint a working group to draft a supplement to the UCP 500 to clarify the position regarding electronic presentation under a documentary credit. Provisions was drafted to supplement its existing rules for documentary credit, that is, UCP 500. These new provisions known as Supplement to UCP 500 for Electronic Presentation was approved by the ICC Banking Commission at the beginning of November 2001 and came in force as of 1 April 2002 The eUCP covers matters such as definitions of key terms such as electronic record, electronic signature, format, paper document, received. An eUCP Credit must specify the formats in which electronic records are to be presented and if not, electronic records may be presented in any format. Electronic records may be presented separately and need not be presented at the same time. The purpose of this paper is to understand the main substance of eUCP and to facilitate the introduction of electronic letter of credit by studying the problems and revision of eUCP and new electronic UCP. The main substances of eUCP are electronic address as place for presentation of electronic records, flexibility of the formats of electronic records to be presented, endowment of the notice of completeness of presentation to the beneficiary, one electronic record satisfying one or more originals or copies of an electronic record, the electronic records to be examined including the electronic record at the hyperlink to an external system or the referenced system, no remark as to the time period for the examination of documents. The Roles of eUCP are the Promotion of the Electronic Trade, the Supply of Basis on the Uniform Rules for Electronic Letter of Credit, the introduction of Electronic Trade Model. The characteristics of eUCP are a supplement to the UCP, no address of any issues relating to the issuance or advice of Credit electronically, independence of specific technologies and developing electronic commerce system, that is, Bolero Service. The Problems of eUCP are flexibility of format of electronic record, heavy burden on the side of banks, and the problems regrading the number of presentation, the notice of completeness of presentation, no provision in regard to the time to examine the electronic records, and representation of the electronic records. In the revision of eUCP to resolve the problems, the things to be taken into consideration are as follows; the designation of the format allowing the banks to examine electronically, prohibition of the paper documents, the development of the system receiving the electronic records, the addition of the reception notice on the side of the banks, the setting of the time to examine the electronic records, the construction of the backup system or the dual processing system.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.33
• /
• pp.247-275
• /
• 2007

This paper is to propose the Direction for the institutional improvement of Financial Supply Chain Management(FSCM) Solution which are currently coming into operation under Global e-Trading Platform. The Financial Supply Chain compromise the entire trade processes and information that manage a trader's cash, Accounts payable and receivable, Risk, working capital, and so on in international trade transaction. From a buyer's perspective, this involves the full procurement-to-payment process. For the seller, it is the order-to-cash cycle. Bolero provides the party concerned a e-trade platform which conformed to these fundamental pre-requisites to underpin fully electronic trade. But this FSCM solution have failed to provide the efficient platform to effectively manage the process of Global e-Trade because it does not correspond with e-Trade environment. Therefore, present FSCM system need the institutional improvement as follows: AA) Strengthening the role of the correspondent Bank under e-Trade System, BB) Extending the function of e-Trade intermediary institution, CC) The introduction of Trade Insurance System, etc. So, by streamlining and automating these processes on an open and flexible platform, The party concerned can optimize their trade transaction and maintain better relations with their business partners

• Journal of Distribution Science
• /
• v.19 no.1
• /
• pp.105-113
• /
• 2021

Purpose: The rural market in India provides tremendous scope for FMCG consumer healthcare companies to market their products because of a significant increase of rural purchasing power. Many empirical studies in this area highlight the challenges and opportunities for marketers in the FMCG space. Research articles are not in abundance to understand intermediaries' expectations in the supply chain specific to consumer healthcare products. The existing literature did not significantly address the challenges of channel partners in the rural market. The present study aims to determine the retailer expectations from manufacturers and channel members' mutual expectations in the FMCG distribution channel. Research design and Methodology: The present study adopted a qualitative research methodology. Fifty respondents from each level of distribution channel such as super-stockist, distributors and retailers in central India were identified and an interview method was adopted to collect the data. Results: Nineteen factors were identified to influence the intermediaries for involvement in the business with any FMCG brand. Factors like Profit margin, reverse logistics, credit terms, return on investment, timely payments were crucial for managing the expectations of all intermediaries. This study provides academic as well as practical implications in terms of enabling the industry to align its channel management strategies accordingly.

• The Journal of Asian Finance, Economics and Business
• /
• v.9 no.9
• /
• pp.39-47
• /
• 2022

This study explored the effectiveness of the measures taken by the Jordanian Central Bank embedded in its monetary policy in encouraging banks to support investment. It aimed to explore the impact of this monetary policy on supporting credit-related decisions and the monetary policies that aim to support investment in Jordan. The targeted tools of the monetary policy are: (Overnight Deposit Window Rate, money supply, and exports). The researchers carried out an analysis to measure the effectiveness of the monetary policy in fostering investment in Jordan during the period 1992-2020. They carried out the time series analysis. They explored the stationarity of the time series. They used the ARDL model. It was found that the Overnight Deposit Window Rate has a negative significant effect on the gross fixed capital formation. It was found that the money supply has a positive insignificant effect on gross fixed capital formation. The researcher recommends using Overnight Deposit Window Rate in a manner that is consistent with the intended investment-related goals.

• The Journal of Asian Finance, Economics and Business
• /
• v.6 no.3
• /
• pp.9-18
• /
• 2019

The purpose of this study is to investigate the relation between conservative loan loss accounting practice of banks, defined as accounting behavior that increases loan loss allowances against expected credit losses, and bank lending. Furthermore, we specify the macroeconomic conditions reflecting debtors' borrowing environments and analyze how these conditions affect the relation between conservative loan loss allowances and bank lending. Although existing literature reports that accounting conservatism has a direct effect on non-financial firms' investment behavior, there is little evidence about an effect of conservatism on banks' lending behavior. By exploiting data showing the links between individual Japanese firms and their individual lenders to control both loan demand and supply, we estimate OLS regressions to test the relationships among conservative loan loss allowance, bank lending, and macroeconomic conditions using a unique dataset containing bank-firm-year observations between 2001 and 2013. We find banks that have conservative loan loss allowances tend to provide fewer loans to firms with financing needs when macroeconomic conditions are good and these conservative banks are likely to provide more loans to firms when macroeconomic conditions are bad. Our findings suggest that reflecting expected credit loss into loan loss allowances can mitigate the procyclical behavior of banks.

• The Journal of the Korea Contents Association
• /
• v.22 no.9
• /
• pp.271-282
• /
• 2022

The paper analyzes the effects of the emergence of Fintech on the banking and savings banking industries in Korea. From the analysis, we find that net interest margin decreases and credit supply increases with the advent of Fintech in the banking industry. Similarly, in the savings banking industry, a profitability index decreases. This is interpreted as the result of reduced monopoly power and increased efficiency in the industries, inducing an increase in overall consumer benefits. Individual financial institutions may, however, experience difficulties such as reduced profitability and increased Fintech investment costs.

• Journal of Labour Economics
• /
• v.41 no.3
• /
• pp.1-59
• /
• 2018

The Earned Income Tax Credit (EITC) is a policy that supports low-income households financially as well as provides an economic incentive to participate in the labor market. Thus, estimating the causal effect of the policy on the labor force participation rate of low-income households is critical for the policy evaluation. In this paper, we exploit the variation in the eligibility to the EITC and the size of the benefit over several reforms of the EITC in South Korea since 2008 and estimate the impact on the participation in the labor market. Using data from four major household surveys, we find that the results are mixed; in some samples and specifications, we find that the effect is positive and statistically significant, while it is insignificant in others. The estimated effect is more likely to be positive and significant when we restrict the sample to the period before 2014. It is an important topic of future research whether the EITC's effect gets weaker because it is extended to cover the self-employed and beneficiaries of the National Basic Livelihood Security.