• Korean Journal of Veterinary Research
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• v.49 no.4
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• pp.329-334
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• 2009

Aujeszky's disease (AD) is a respiratory, infectious viral illness associated with high mortality, especially in neonatal piglets and has frequently been considered an economically important disease in many endemic countries. Although AD is still occurring in a geographically defined region in Korea, little attention has been paid to the economics of AD. In this study, partial budget technique was used to develop a simulation model to measure financial losses following the disease epidemic in a swine operation utilizing stochastic or deterministic parameters from the literatures and the index case herd of AD occurred in 2005, where available and applicable. For the infected case herd with a 12500-pig, the total economic loss for this operation was estimated to be about 199 million Korean won (95% confidence interval [CI] 148,645,000-250,741,000). Given net loss due to death of a pig at sow level was 119,000 won, total loss for the case herd with 1200 sows accounted for 143 million won (95% CI 92,599,000-193,729,000). The net loss of the death of one pig at growing and fattening level resulted in loss of 46,000 won (95% CI 40,000-53,000) and 126,000 won (95% CI 122,000-131,000), respectively. Taking into account for the number of pigs raised in the case herd, total loss amounted to 8 million won (95% CI 7,167,000-9,347,000) and 12 million won (95% CI 11,959,000-12,891,000), for growers and fatteners, respectively, assuming 63% of saved feed intake when a pig dies halfway through the respective period. Under the model's assumptions, suckling pig mortality was the major factors of loss in estimating the economic consequences (approximately 71.8% of the total loss). The high economic losses of a herd infected with AD suggest that the effective and region-specific control measures should be implemented in disease endemic foci.

• The Korean Journal of Applied Statistics
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• v.29 no.7
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• pp.1201-1212
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• 2016

Value at Risk (VaR) for market risk management is a favorite method used by financial companies; however, there are some problems that cannot be explained for the amount of loss when a specific investment fails. Conditional Tail Expectation (CTE) is an alternative risk measure defined as the conditional expectation exceeded VaR. Multivariate loss rates are transformed into a univariate distribution in real financial markets in order to obtain CTE for some portfolio as well as to estimate CTE. We propose multivariate CTEs using multivariate quantile vectors. A relationship among multivariate CTEs is also derived by extending univariate CTEs. Multivariate CTEs are obtained from bivariate and trivariate normal distributions; in addition, relationships among multivariate CTEs are also explored. We then discuss the extensibility to high dimension as well as illustrate some examples. Multivariate CTEs (using variance-covariance matrix and multivariate quantile vector) are found to have smaller values than CTEs transformed to univariate. Therefore, it can be concluded that the proposed multivariate CTEs provides smaller estimates that represent less risk than others and that a drastic investment using this CTE is also possible when a diversified investment strategy includes many companies in a portfolio.

• Management & Information Systems Review
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• v.36 no.3
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• pp.203-217
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• 2017

This study aims to verify the effects of unrealized gain or loss, that is the fair value evaluation item of insurance company's assets and liabilities, to capital markets focusing on fair value evaluation of insurance company's liabilities, which is the core of IFRS 17 that will be implemented in 2021. For this purpose we carried out regression analysis to verify the effects of changed other comprehensive income(OCI) and accumulated OCI, published in quarterly financial statements of listed insurance companies, on stock price utilizing Ohlson(1995)'s extended test model. The results of the empirical analysis are as follows. First, changed OCI showed a significant negative(-) effects on stock price. Second, accumulated OCI revealed a significant positive(+) effects on stock price. Furthermore, extended test model classifying changed OCI and accumulated OCI in a basic model represented the highest $R^2$ number and public announcement policy of OCI, a kind of unrealized gain or loss item, implied that it could give positive impact on accounting information. But still the direction that unrealized gain or loss affects on firm value must be carefully reviewed and considered in the future via more detailed study by the user of information. Therefore this study is meaningful in that it can predict usefulness of information on insurance company's fair value evaluation via empirical test accompanied by introduction of newly established IFRS 17 and it also can suggest direction of information production suitable for capital market.

• Journal of the Korean Society of Safety
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• v.34 no.1
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• pp.115-121
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• 2019

Background: Due to the diversification and advancement of research, researchers have become to deal with a variety of chemical and biological harmful materials in the laboratories of universities and research institutes and the risk has increased as well. Therefore, it is necessary to strengthen the social safety net for laboratory accidents by strengthening the compensation to the level comparable to that of Korean Workers' Compensation & Welfare Service, when the researchers become physically disabled by laboratory accidents. The purpose of this study is to secure researchers' health rights and to create a research environment where researchers can work with confidence by strengthening the compensation to the level comparable to that of Korean Workers' Compensation & Welfare Service. Method: We analyzed the laboratory accidents by year, injury type, severity of accident and disability grade with the 6 year data from 2011 to 2016, provided by Laboratory Safety Insurance. Based on the analysis result, we predicted the financial impact on Laboratory Safety Insurance if we introduce a compensation annuity by disability grade which is similar to Injury-Disease Compensation Annuity of Korean Workers' Compensation & Welfare Service. Result :As of 2011, the insured number of Laboratory Safety Insurance was approximately 700,000. The Average premium per insured was KRW 3,339 and there were 158 claims. Total claim amount was KRW 130 million, whereas the premium was about KRW 2.3 billion. The loss ratio was very low at 5.75%. If we introduce a compensation annuity by disability grade similar to Injury-Disease Compensation Annuity of Korean Workers' Compensation & Welfare Service, the expected benefit amount for 1 case of disability grade 1 would be KRW 1.6 billion, assuming 2% of interest rate. Given current premium, the loss ratio, the ratio of premium income to claim payment, is expected 41.4% in 2017 and 151.6% in 2026. The increased loss ratio due to the introduce of the compensation annuity by disability grade is estimated to be 11.0% in 2017 and 40.4% in 2026. Conclusion: Currently, laboratories can purchase insurance companies' laboratory safety insurance that meets the standards prescribed by Act on the Establishment of Safe Laboratory Environment. However, if a compensation annuity is introduced, it would be difficult for insurance companies to operate the laboratory safety insurance due to financial losses from a large-scale accident. Therefore, it is desirable that one or designated entities operate laboratory safety insurance. We think that it is more desirable for laboratory safety insurance to be operated by a public entity rather than private entities.

• The Journal of the Korea Contents Association
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• v.21 no.6
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• pp.588-597
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• 2021

In Korea, the standard for calculating the profit of a general insurance, which constitutes the loading in the premium, is not specified, and most of the non-life insurance companies reflect 2~5% of the premium as profit margin. Although the transparency of pricing is required due to the nature of insurance products, there are insufficient standards and empirical studies on the determination of insurance price factors in the domestic insurance industry. In this study, we propose a method of calculating the expected profit margin of general insurance. A way for calculating the expected profit margin of the general insurance is to reflect the shareholder demand on the capital that the insurance company should secure against the risk of loss due to the profit/loss volatility, as a ratio to the insurance premium. Shareholders should be compensated for the risks associated with their insurance operations, and the opportunity cost of these shareholders is to be reflected in premiums. In this study, we calculate the amount of capital that the company should accumulate to prepare insurance risk for each product, and insurance risk is defined as the volatility of insurance operating profit/loss. And insurance risk is calculated using stochastic simulation based on Dynamic Financial Analysis (DFA) methodology. Finally, we calculate the expected profit margins for 25 products and analyzed the difference between those and the profit ratio of domestic general insurance.

• KDI Journal of Economic Policy
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• v.46 no.1
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• pp.91-129
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• 2024

The Bank of Korea, through a legal amendment in 2011 following the financial crisis, was entrusted with the additional responsibility of financial stability beyond its existing mandate of price stability. Since then, concerns have been raised about the prolonged increase in household debt compared to income conditions, which could constrain consumption and growth and increase the possibility of a crisis in the event of negative economic shocks. The current accumulation of financial imbalances suggests a critical period for the government and central bank to be more vigilant, ensuring it does not impede the stable flow of our financial and economic systems. This study examines the applicability of the Integrated Inflation Targeting (IIT) framework proposed by the Bank for International Settlements (BIS) for macro-financial stability in promoting long-term economic stability. Using VAR models, the study reveals a clear increase in risk appetite following interest rate cuts after the financial crisis, leading to a rise in household debt. Additionally, analyzing the central bank's conduct of monetary policy from 2000 to 2021 through DSGE models indicates that the Bank of Korea has operated with a form of IIT, considering both inflation and growth in its policy decisions, with some responsiveness to the increase in household debt. However, the estimation of a high interest rate smoothing coefficient suggests a cautious approach to interest rate adjustments. Furthermore, estimating the optimal interest rate rule to minimize the central bank's loss function reveals that a policy considering inflation, growth, and being mindful of household credit conditions is superior. It suggests that the policy of actively adjusting the benchmark interest rate in response to changes in economic conditions and being attentive to household credit situations when household debt is increasing rapidly compared to income conditions has been analyzed as a desirable policy approach. Based on these findings, we conclude that the integrated inflation targeting framework proposed by the BIS could be considered as an alternative policy system that supports the stable growth of the economy in the medium to long term.

• Journal of Environmental Impact Assessment
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• v.18 no.4
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• pp.235-243
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• 2009

Wetlands considered to be an important natural resources because they provide biodiversity and habitat for species to breed and survive. In this regard, many countries in the world provide wetlands and have policies and laws to protect them. In Korea we hosted RAMSAR COP-10 at Changwon in 2008 representing Korea's endeavor to wetland protection. But, in the process of development Wetlands are easy target to be lost due its easy access and the laws and regulations to protect them are relatively weak. Thus, this research focused on the introduction of No Wetland Loss(NWL) and we can achieve wetland protection in the economy market ways. Thus, NWL should consider 1) a clear definition of NWL and harmony and consensus of introduction of NWL, 2) considering most wetlands be private we need a financial support for securing wetlands, 3) inventories for wetlands in Korea, draw a line of demarcation, technic to evaluate wetlands, 4) wetland restoration considering function of ecosystem not total amount of wetlands. Wetland protection should be a part of Basic Law of Water Management which in its progress and we need further studies on wetland protection because of watershed management, deserted agricultural paddies, etc.

• Asian Journal of Business Environment
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• v.7 no.3
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• pp.17-22
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• 2017

Purpose - Clarifying one of the biggest public Hospital Costs and incomes according to patients' case mix. It leads to prepare financial information about pubic medical tariffs and hospital operational costs. Research design, data, and methodology - This study calculates the costs both, with and without taking into account capital costs. This holds for comparison of hoteling based on case mix in all medical procedures. The checklists were reviewed and filled by reviewing accounting documents of the hospital, warehouse exclusion list, and daily books of laundry and CSR. Data was analyzed descriptively by using Excel. Results - In both cases, the hospital is losing in terms of hoteling. Because the buildings and equipment are new, this loss is not tangible. However, this will be revealed when costs of reconstruction and replacement of equipment. The loss rate per day of hospitalization was 569318 Rials for Coronary Care Unit (CCU), 528171 Rials for Post Intensive Care Unit (Post ICU), 474570 Rials for ICU, 233183 Rials for Post CCU and 204803 for Surgical ward. Conclusions - Income of hoteling was lower than its costs. ANOVA showed a strong relationship between case mix and hospital costs as well as case mix and its income. This suggests that optimal case mix can minimize the costs and maximize income.

• Journal of The Korean Digital Architecture Interior Association
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• v.9 no.3
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• pp.69-76
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• 2009

The importance of efficient construction site management has been growing as the amount of construction information increases which is used in the growing construction site. Accordingly in this study, we are trying to find out the application situation and possibility of BIM through theoretical examination and domestic & overseas case study of BIM and we are trying to suggest the way of efficient construction site management formulation through implementation phase-oriented and cooperation entity-oriented analysis in the construction site. We found out that it was possible to minimize time loss and financial loss by visualizing 2D drawings through 3D modeling of target building by applying BIM and that it was possible to improve accuracy of budget planning with quantitative information of 3D model, to plan construction process with more confidence due to accurate architectural information of drawings and quantitative information, and to manage cost and quality through process management based on construction information acquired by BIM including object information by part. It is concluded that we can improve efficiency of construction management between field and each cooperating entity by integrating and linking BIM information through this process.

• The Journal of the Institute of Internet, Broadcasting and Communication
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• v.12 no.3
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• pp.195-200
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• 2012

Smart Phone devices offer convenience for users, but present a new set of security issues due to loss or malicious code. In this paper, a mobile cloud system environment is used with existing smart phones in an attempt to solve the problems in a banking environment. In order to prevent financial damages due to loss or personal information leakage by malicious code, a mobile cloud computing service that provides control and protection of personal information in environment that ensures individual authentication is used. Existing ID / Password with certificate, with the way smart phone dual password authentication scheme using the gyro sensors proposed.