• Korea Trade Review
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• v.44 no.6
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• pp.87-103
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• 2019

L/C(Letter of Credit) is a common payment term designed to prevent credit risk in international trade. However, most companies prefer T/T (Telegraphic Transfer) payment due to its time and cost efficiency. According to related statistics, more than 70% of international trade contracts are based on T/T rather than other payment terms. The time required from the export negotiation to the completion of the export transaction and collection in international trade is very long. In this process, disputes related to settlement are continuous, so caution should be exercised. Therefore, whether or not the export payment is recovered in a timely manner is the core issue of trade transactions for exporters. The purpose of this study is to identify problems that cause delayed payments during settlement by the remittance (T/T) method, which can lead to settlement risk, in order to investigate those factors which can lead to delays in payments and increased risk as well as to determine ways to prevent such factors in advance. According to empirical findings, trading experience, transaction duration, and contract contents can be important determinants in terms of payment delays. Industry uniqueness and market uncertainty were found to be in opposition to the hypothesized relationships. The results of this study will be useful for trading companies to reduce their payment risk.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.9
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• pp.446-453
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• 2018

This study analyzed the effect of related party transactions on the corporate value of Korean firms using panel data regression analysis. We tested the efficient transaction hypothesis and conflict of interests hypothesis which concern related party transactions. Five types of related party transactions were considered, including long term supply contracts, assets and business transfers, affiliate loans, equity investment, and credit offerings. If related party transactions were conducted for the purpose of enhancing corporate efficiency, results would have a positive effect on firm value. If related party transactions were conducted for the purpose of private profits of the controlling shareholders, the results would show a negative effect on firm value. Results were as follows. Firstly, it is confirmed that affiliate loans, equity investment, and credit offerings had negative effects on firm value. This implies that these types of related party transactions used by controlling shareholders for the purpose of their private profit, which supports the conflict of interests hypothesis. Secondly, it was found that long term supply contracts and assets and business transfers had no effect on firm value.

• Journal of Service Research and Studies
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• v.9 no.3
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• pp.39-60
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• 2019

The purpose of this study is to analyze the determinants of insurance product cross selling performance. For the study, 11 insurance managers and 2 sales managers belonging to A insurance agency were selected and in-depth interviews were conducted. The analysis of the research data was done by the open coding method suggested by Strauss & Corbin(2001). As a result, 84 concepts, 28 subcategories and 10 categories were derived. The ten categories that were determinants of insurance product cross-selling performance were personal characteristics, consultation method, cross-selling ratio, sales culture, education, customer change, customer DB provision, satisfaction, business support system, and customer service. In order to verify the qualitative results, quantitative analysis was emplyed to the actual performance data of insurance planners belonging to A insurance agency during April 2016~March 2019. As a result of the analysis, the age, position, and the number of months worked in the insurance company had a statistically significant effect on the number of life insurance contracts in total insurance contracts and life insurance contracts in total insurance contracts. In addition, the age, position, and the number of months worked in the insurance company had a statistically significant negative impact on the number of non-life insurance contracts in the total number of insurance contracts and the total amount of insurance contracts in total insurance contracts. The result of this study can be an important basic data for the development of educational programs and job support systems for the training of insurance planners. Insurance companies should refer to ten categories derived from qualitative research in order to increase the performance of insurance planners and to promote long-term service. Especially, it is necessary to develop specialized education programs and job support systems so that cross sales that increase the proportion of life insurance sales increase.

• Journal of Internet Computing and Services
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• v.15 no.4
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• pp.57-65
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• 2014

Risk factors are the reason behind cost overruns and delays in long-term large-scale IT service projects. Major risks originate from the integration of complex IT system components, including software, hardware, and solutions; the competitive bidding process; the turnkey and firm-fixed price nature of contracts; and the project execution environment. We have identified several risk factors such as delay in acceptance, low quality of deliverables, delay in payment, adding and changing requirements and scope, unclear definition of roles and responsibilities of the buyer and supplier, and unclear procedures of change and quality management during the project execution phase. One needs to manage risks proactively before signing the contract. In order to weed out or lower the risk factors well in advance, we need to identify and remove risk factors contained in contract clauses and attached contract documents. We propose a checklist for assessing IT service project contracts. To validate the checklist's utility, we applied it to an IT service project in the finance industry. The results show that the checklist is effective in identifying and removing risk factors pertaining to IT service projects.

• Journal of Korean Institute of Industrial Engineers
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• v.41 no.3
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• pp.259-266
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• 2015

Among many energy resources, natural gas has recently received a remarkable amount of attention, particularly from the electrical generation industry. This is in part due to increasing shale gas production, providing an environment-friendly fossil fuel, and high risk of nuclear power. Because South Korea, the world's second largest LNG importing nation after Japan, has no international natural gas pipelines and relies on imports in the form of LNG, the natural gas has been traditionally procured by long term LNG contracts at relatively high price. Thus, there is a need of developing an Asian LNG trading hub, where LNG can be traded at more competitive spot prices. In a natural gas spot market, the amount of natural gas to be bought should be carefully determined considering a limited storage capacity and future pricing dynamics. In this work, the problem to find the optimal amount of natural gas in a spot market is formulated as a Markov decision process (MDP) in risk neutral environment and the optimal base stock policy which depends on a stage and price is established. Taking into account price and demand uncertainties, the basestock target levels are simply approximated from dynamic programming. The simulation results show that the basestock policy can be one of effective ways for procurement of LNG in a spot market.

• Proceedings of the KIEE Conference
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• 2009.07a
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• pp.357_358
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• 2009

According to the 4th BPE(Basic Plan for long-term Electricity Supply and Demand), Electricity demand of Jeju island in 2012 will be reached to 682MW. Jeju island will be faced with severe shortage of electricty, also needed to find transport route to supply green energy which will be made from "Carbon free island" energy policy toward land at that time. For that reason, The plan which construct 400MW size HVDC connection line was decided for potential supply stabilization and transportation of green energy. KEPCO organized special construction office not only to observe the successful project completion which aims 2011 December but also to build up professional manpower. KEPCO is putting spur to the HVDC project these days. Construction site of converter stations has been already confirmed and contracts of cable, converter have done as per turn-key early this year. On this report, we would like to discuss about project scheme, main characteristics of system, and the furture progress plan of "Jindo~Jeju HVDC construction project expecially converter station part" which is being pushed by KEPCO.

• Proceedings of the KIEE Conference
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• 2006.07a
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• pp.357-358
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• 2006

전력 산업이 자유화되고 경쟁을 통해 효율성을 증가시키려는 시도가 이루어지고 있다. 전력이 시장을 통해 거래되는 형태가 완전경쟁에 가까울수록 사회후생이 증가한다는 것이 알려져 있다. 하지만 발전 회사가 시장지배력을 행사하여 가격을 경쟁가격에서 벗어나게 함으로서 자신의 이익을 취하려 할 때 시장의 효율성은 감소하게 된다. 시장 지배력을 감소시키는 한 수단으로서 발전회사에 선도계약을 부과하는 방법이 있다. 발전 회사에 선도계약을 부과하는 방법을 사용할 때 어떤 회사를 선도계약 부과대상으로 삼을 것 인지와 계통의 송전제약 통에 대한 고려가 필요하다. 이에 대한 연구가 2모선 계통에 대해 게임이론의 혼합균형 개념을 통해 부분적으로 이루어져 있다. 본 논문에서는 3모선 계통에서 선도계약의 영향을 분석하고자 한다. 본 논문의 해석 결과에 의하면 3모선 계통에서도 선도계약은 상황에 따라 시장지배력의 감소 혹은 증가를 모두 불러올 수 있으며 기대사회후생에 부정적 영향 뿐 아니라 부정적 영향 역시 줄 수 있다.

• Convergence Security Journal
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• v.17 no.4
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• pp.31-37
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• 2017

This study compares the main features of the Act of National Contract with the Act of Defense Aquisition Program, which is the only one in Korea for long-term contracts. When applying the progress payments system to the defense R&D project, We can prevent disputes between parties and create a stable development environment through smooth partnerships. Smaller, direct and indirect losses can be alleviated, such as the waste of administrative power required to deal with disputes due to the payment of delayed prizes and restrictions on business activities due to the difficulty of forecasting the results of companies. In large measure, we will be able to procure a high-quality weapon system in a timely manner to support the security of the nation as well as international competitiveness through the growth of our defense industry.

• Proceedings of the KIEE Conference
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• 1995.11a
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• pp.117-119
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• 1995

For an effective application of the cogeneration system for commercial and industrial buildings, we need to develop a relevant model to determine the long-term based optimal sizing of the cogeneration system considering electrical and thermal load demands, buy and sell contracts with electric utility and the annual production cost. In assessing the optimal sizing of cogeneration, we have to consider both economic parameters and their capacity expansion for the increased electrical and thermals demand in the future. In this paper, we propose a mathematical model for the optimal sizing of cogeneration systems considering annual production costs and other economic parameter such as, lifetime of the equipment, time value of the capital, etc. In the case study, we thoroughly examine the effects of the economic parameters and determine the optimal size of the sample system. In addition, we calculate the payback period of the cogeneration investment.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2009.11a
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• pp.199-203
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• 2009

After the construction participants system is abolished, expectations are high for its consequences such as liquidating paper-companies, holding back low price contracts, and improving multi-stepwise subcontract structure. However, the professional construction firms have been took responsibilities and obligations as businessmen employing the chief workmen and construction workers. For this reason, it is expected that they will be charged a great deal of expenses such as increase in labor management services and laborers, the occurrence of an retirement grants, insurance fees, etc. Since the hold on power of field managers are getting weaker toward the construction workers, it is most likely to have loss in efficiency of production in the long term. Therefore purpose of this research is to analyze difficulties and the point at issues with which professional construction firms are undergoing after abolishing the construction participants system by investigating on the actual condition in the field management. For this research, we got a grip on the actual condition and analyzed the rise of a primary factor on reinforced concrete construction.