• Journal of Korea Water Resources Association
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• v.30 no.4
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• pp.317-326
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• 1997

The Palmer Drought Severity Index has been ectensively used to quantitatively evaluate the drought severity at a location for both agricultural and water resources management purposes. In the present study the Palmer-type formula for drought index is drived for the whole country by analyzing the monthly rainfall and meteorological data at nine stations with a long period of records. The formula is then used to compute the monthly drought severity index at sixty-eight rainfall stations located throughout the country. For the past five significant drought periods the spatial variation of each drought is shown as a nationwide drought index map of a specified duration from which the relative severity of drought throughout the country is identifiable for a specific drought period. A comparative study is made to evaluate the relative severity of the significant droughts occurred in Korea since 1960's. It turned out that '94-'95 drought was one of the worst both in the areal extent and drought severity. It is found that the Palmer-type formula is a very useful tool in quantitatively evaluating the severity of drought over an area as well as at a point. When rainfall and meteorological forecast become feasible on a long-term basis the method could also be utilized as a tool for drought forecasting.

• Journal of Intelligence and Information Systems
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• v.20 no.1
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• pp.35-48
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• 2014

According to the 2013 construction market outlook report, the liquidation of construction companies is expected to continue due to the ongoing residential construction recession. Bankruptcies of construction companies have a greater social impact compared to other industries. However, due to the different nature of the capital structure and debt-to-equity ratio, it is more difficult to forecast construction companies' bankruptcies than that of companies in other industries. The construction industry operates on greater leverage, with high debt-to-equity ratios, and project cash flow focused on the second half. The economic cycle greatly influences construction companies. Therefore, downturns tend to rapidly increase the bankruptcy rates of construction companies. High leverage, coupled with increased bankruptcy rates, could lead to greater burdens on banks providing loans to construction companies. Nevertheless, the bankruptcy prediction model concentrated mainly on financial institutions, with rare construction-specific studies. The bankruptcy prediction model based on corporate finance data has been studied for some time in various ways. However, the model is intended for all companies in general, and it may not be appropriate for forecasting bankruptcies of construction companies, who typically have high liquidity risks. The construction industry is capital-intensive, operates on long timelines with large-scale investment projects, and has comparatively longer payback periods than in other industries. With its unique capital structure, it can be difficult to apply a model used to judge the financial risk of companies in general to those in the construction industry. Diverse studies of bankruptcy forecasting models based on a company's financial statements have been conducted for many years. The subjects of the model, however, were general firms, and the models may not be proper for accurately forecasting companies with disproportionately large liquidity risks, such as construction companies. The construction industry is capital-intensive, requiring significant investments in long-term projects, therefore to realize returns from the investment. The unique capital structure means that the same criteria used for other industries cannot be applied to effectively evaluate financial risk for construction firms. Altman Z-score was first published in 1968, and is commonly used as a bankruptcy forecasting model. It forecasts the likelihood of a company going bankrupt by using a simple formula, classifying the results into three categories, and evaluating the corporate status as dangerous, moderate, or safe. When a company falls into the "dangerous" category, it has a high likelihood of bankruptcy within two years, while those in the "safe" category have a low likelihood of bankruptcy. For companies in the "moderate" category, it is difficult to forecast the risk. Many of the construction firm cases in this study fell in the "moderate" category, which made it difficult to forecast their risk. Along with the development of machine learning using computers, recent studies of corporate bankruptcy forecasting have used this technology. Pattern recognition, a representative application area in machine learning, is applied to forecasting corporate bankruptcy, with patterns analyzed based on a company's financial information, and then judged as to whether the pattern belongs to the bankruptcy risk group or the safe group. The representative machine learning models previously used in bankruptcy forecasting are Artificial Neural Networks, Adaptive Boosting (AdaBoost) and, the Support Vector Machine (SVM). There are also many hybrid studies combining these models. Existing studies using the traditional Z-Score technique or bankruptcy prediction using machine learning focus on companies in non-specific industries. Therefore, the industry-specific characteristics of companies are not considered. In this paper, we confirm that adaptive boosting (AdaBoost) is the most appropriate forecasting model for construction companies by based on company size. We classified construction companies into three groups - large, medium, and small based on the company's capital. We analyzed the predictive ability of AdaBoost for each group of companies. The experimental results showed that AdaBoost has more predictive ability than the other models, especially for the group of large companies with capital of more than 50 billion won.

• Journal of Intelligence and Information Systems
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• v.27 no.1
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• pp.103-128
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• 2021

Recently, investors' interest and the influence of stock-related information dissemination are being considered as significant factors that explain stock returns and volume. Besides, companies that develop, distribute, or utilize innovative new technologies such as artificial intelligence have a problem that it is difficult to accurately predict a company's future stock returns and volatility due to macro-environment and market uncertainty. Market uncertainty is recognized as an obstacle to the activation and spread of artificial intelligence technology, so research is needed to mitigate this. Hence, the purpose of this study is to propose a machine learning model that predicts the volatility of a company's stock price by using the internet search volume of artificial intelligence-related technology keywords as a measure of the interest of investors. To this end, for predicting the stock market, we using the VAR(Vector Auto Regression) and deep neural network LSTM (Long Short-Term Memory). And the stock price prediction performance using keyword search volume is compared according to the technology's social acceptance stage. In addition, we also conduct the analysis of sub-technology of artificial intelligence technology to examine the change in the search volume of detailed technology keywords according to the technology acceptance stage and the effect of interest in specific technology on the stock market forecast. To this end, in this study, the words artificial intelligence, deep learning, machine learning were selected as keywords. Next, we investigated how many keywords each week appeared in online documents for five years from January 1, 2015, to December 31, 2019. The stock price and transaction volume data of KOSDAQ listed companies were also collected and used for analysis. As a result, we found that the keyword search volume for artificial intelligence technology increased as the social acceptance of artificial intelligence technology increased. In particular, starting from AlphaGo Shock, the keyword search volume for artificial intelligence itself and detailed technologies such as machine learning and deep learning appeared to increase. Also, the keyword search volume for artificial intelligence technology increases as the social acceptance stage progresses. It showed high accuracy, and it was confirmed that the acceptance stages showing the best prediction performance were different for each keyword. As a result of stock price prediction based on keyword search volume for each social acceptance stage of artificial intelligence technologies classified in this study, the awareness stage's prediction accuracy was found to be the highest. The prediction accuracy was different according to the keywords used in the stock price prediction model for each social acceptance stage. Therefore, when constructing a stock price prediction model using technology keywords, it is necessary to consider social acceptance of the technology and sub-technology classification. The results of this study provide the following implications. First, to predict the return on investment for companies based on innovative technology, it is most important to capture the recognition stage in which public interest rapidly increases in social acceptance of the technology. Second, the change in keyword search volume and the accuracy of the prediction model varies according to the social acceptance of technology should be considered in developing a Decision Support System for investment such as the big data-based Robo-advisor recently introduced by the financial sector.

• Journal of Korea Water Resources Association
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• v.54 no.spc1
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• pp.1095-1105
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• 2021

The advancement of dam operation is further required due to the upcoming rainy season, typhoons, or torrential rains. Besides, physical models based on specific rules may sometimes have limitations in controlling the release discharge of dam due to inherent uncertainty and complex factors. This study aims to forecast the water level of the nearest station to the dam multi-timestep-ahead and evaluate the availability when it makes a decision for a release discharge of dam based on LSTM (Long Short-Term Memory) of deep learning. The LSTM model was trained and tested on eight data sets with a 1-hour temporal resolution, including primary data used in the dam operation and downstream water level station data about 13 years (2009~2021). The trained model forecasted the water level time series divided by the six lead times: 1, 3, 6, 9, 12, 18-hours, and compared and analyzed with the observed data. As a result, the prediction results of the 1-hour ahead exhibited the best performance for all cases with an average accuracy of MAE of 0.01m, RMSE of 0.015 m, and NSE of 0.99, respectively. In addition, as the lead time increases, the predictive performance of the model tends to decrease slightly. The model may similarly estimate and reliably predicts the temporal pattern of the observed water level. Thus, it is judged that the LSTM model could produce predictive data by extracting the characteristics of complex hydrological non-linear data and can be used to determine the amount of release discharge from the dam when simulating the operation of the dam.

• Korean journal of applied entomology
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• v.55 no.2
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• pp.139-148
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• 2016

A seasonal outlook for crop insect pests is most valuable when it provides accurate information for timely management decisions. In this study, we investigated probable tele-connections between climatic phenomena and pest infestations in Korea using a statistical method. A rice insect pest, brown planthopper (BPH), was selected because of its migration characteristics, which fits well with the concept of our statistical modelling - utilizing a long-term, multi-regional influence of selected climatic phenomena to predict a dominant biological event at certain time and place. Variables of the seasonal climate forecast from 10 climate models were used as a predictor, and annual infestation area for BPH as a predictand in the statistical analyses. The Moving Window Regression model showed high correlation between the national infestation trends of BPH in South Korea and selected tempo-spatial climatic variables along with its sequential migration path. Overall, the statistical models developed in this study showed a promising predictability for BPH infestation in Korea, although the dynamical relationships between the infestation and selected climatic phenomena need to be further elucidated.

• The Korean Journal of Applied Statistics
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• v.31 no.1
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• pp.77-96
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• 2018

A reverse mortgage provides a pension until the death for the insured or last survivor. Long-term risk management is important to estimate the contractual period of a reverse mortgage. It is also necessary to study prediction methods of mortality rates that appropriately reflect the improvement trend of the mortality rate since the extension of the life expectancy, which is the main cause of aging, can have a serious impact on the pension financial soundness. In this study, the Lee-Carter (LC) model reflects the improvement in mortality rates; in addition, multiple life model are also applied to a reverse mortgage. The mortality prediction method by the traditional LC model has shown a dramatic improvement in the mortality rate; therefore, this study suggests mortality projection based on the projection of the skewness for the mortality that has been applied to appropriately reflect the improvement trend of the mortality rate. This paper calculates monthly payments using future mortality rates based on the projection of the skewness of the mortality. As a result, the mortality rates based on this method less reflect the mortality improvement effect than the mortality rates based on a traditional LC model and a larger pension amount is calculated. In conclusion, this method is useful to forecast future mortality trend results in a significant reduction of longevity risk. It can also be used as a risk management method to pay appropriate monthly payments and prevent insufficient payment due to overpayment by the issuing institution and the guarantee institution of the reverse mortgage.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.8
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• pp.392-402
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• 2018

Citrus fruits can be classified as field citrus, greenhouse citrus, citrus produced by rain proof cultivation and late-harvested citrus such as Hallabong, Chunhaehyang, and Jinjihyang according to cultivation method or variety in Jeju province of Korea. The consumption of late-harvested citrus has been increasing steadily since 1990 because the sugar content of the fruits is ordinary higher than field citrus. The cultivation land of citrus produced by rain proof cultivation has been also enlarged continuously aided by Korean government support program and quality increasing effect of this cultivation method. However, the cultivation land of field citrus has been decreasing since 2010. In spite of such a decrease of cultivation land, recently the price of field citrus rather declined according to increasing of yield per 10a. For the estimation and forecast of the long-term supply-demand model in the field citrus, we constructed a partial balance model for the individual field citrus and estimated individual equation in each item's model by using the econometric method. As a result of the production storage scenario analysis, the cultivation area is expected to store 5%(14.49ha), 10%(14.97ha). 15%(15.50ha) of citrus production in 2027. This study reviews the structure of storage, and storability in Jeju field citrus and suggest several policy implications.

• The Korean Journal of Financial Management
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• v.23 no.1
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• pp.49-67
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• 2006

This study examines whether won/dollar futures have price discovery function and volatility spillover effect or not, using intraday won/dollar futures prices, volumes, and spot rates for the interval from March 2, 2005 through May 30, 2005. Futures prices and spot rates are non-stationary, but there is the cointegration relationship between two time series. Futures returns, spot returns, and volumes are stationary. Asymmetric effects on volatility in futures returns and spot returns does not exist. Analytical results of mean equations of the BGARCH-EC (bivariate GARCH-error correction) model show that the increase of futures returns raise spot returns after 5 minutes, which implies that futures returns lead spot returns and won/dollar futures have price discovery function. In addition, the long-run equilibrium relationship between the two returns could help forecast spot returns. Analytical results of variance equations indicate that short-run innovations in the futures market positively affect the conditional variances of spot returns, that is, there is the volatility spillover effect in the won/dollar futures market. A dummy variable of volumes does not have an effect on two returns but influences significantly on two conditional variances.

• Proceedings of the Korea Water Resources Association Conference
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• 2011.05a
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• pp.18-18
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• 2011

Climate change is impacting and will increasingly impact both the quantity and quality of the world's water resources in a variety of ways. In some areas warming climate results in increased rainfall, surface runoff, and groundwater recharge while in others there may be declines in all of these. Water quality is described by a number of variables. Some are directly impacted by climate change. Temperature is an obvious example. Notably, increased atmospheric concentrations of $CO_2$ triggering climate change increase the $CO_2$ dissolving into water. This has manifold consequences including decreased pH and increased alkalinity, with resultant increases in dissolved concentrations of the minerals in geologic materials contacted by such water. Climate change is also expected to increase the number and intensity of extreme climate events, with related hydrologic changes. A simple framework has been developed in New Zealand for assessing and predicting climate change impacts on water resources. Assessment is largely based on trend analysis of historic data using the non-parametric Mann-Kendall method. Trend analysis requires long-term, regular monitoring data for both climate and hydrologic variables. Data quality is of primary importance and data gaps must be avoided. Quantitative prediction of climate change impacts on the quantity of water resources can be accomplished by computer modelling. This requires the serial coupling of various models. For example, regional downscaling of results from a world-wide general circulation model (GCM) can be used to forecast temperatures and precipitation for various emissions scenarios in specific catchments. Mechanistic or artificial intelligence modelling can then be used with these inputs to simulate climate change impacts over time, such as changes in streamflow, groundwater-surface water interactions, and changes in groundwater levels. The Waimea Plains catchment in New Zealand was selected for a test application of these assessment and prediction methods. This catchment is predicted to undergo relatively minor impacts due to climate change. All available climate and hydrologic databases were obtained and analyzed. These included climate (temperature, precipitation, solar radiation and sunshine hours, evapotranspiration, humidity, and cloud cover) and hydrologic (streamflow and quality and groundwater levels and quality) records. Results varied but there were indications of atmospheric temperature increasing, rainfall decreasing, streamflow decreasing, and groundwater level decreasing trends. Artificial intelligence modelling was applied to predict water usage, rainfall recharge of groundwater, and upstream flow for two regionally downscaled climate change scenarios (A1B and A2). The AI methods used were multi-layer perceptron (MLP) with extended Kalman filtering (EKF), genetic programming (GP), and a dynamic neuro-fuzzy local modelling system (DNFLMS), respectively. These were then used as inputs to a mechanistic groundwater flow-surface water interaction model (MODFLOW). A DNFLMS was also used to simulate downstream flow and groundwater levels for comparison with MODFLOW outputs. MODFLOW and DNFLMS outputs were consistent. They indicated declines in streamflow on the order of 21 to 23% for MODFLOW and DNFLMS (A1B scenario), respectively, and 27% in both cases for the A2 scenario under severe drought conditions by 2058-2059, with little if any change in groundwater levels.

• Journal of Korean Society of Coastal and Ocean Engineers
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• v.29 no.4
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• pp.180-188
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• 2017

Recently, as the strength of winds and waves increases due to the climate change, abnormal waves such as swells have been also increased, which results in the increase of downtime events of loading/unloading in a harbour. To reduce the downtime events, breakwaters were constructed in a harbour to improve the tranquility. However, it is also important and useful for efficient port operation by predicting accurately and also quickly the downtime events when the harbour operation is in a limiting condition. In this study, numerical simulations were carried out to calculate the wave conditions based on the forecasted wind data in offshore area/outside harbour and also the long-term observation was carried out to obtain the wave data in a harbour. A forecasting method was designed using an auto-regressive (AR) and artificial neural networks (ANN) models in order to establish the relationship between the wave conditions calculated by wave model (SWAN) in offshore area and observed ones in a harbour. To evaluate the applicability of the proposed method, this method was applied to predict wave heights in a harbour and to forecast the downtime events in Pohang New Harbour with highly complex topography were compared. From the verification study, it was observed that the ANN model was more accurate than the AR model.