• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.39
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• pp.143-175
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• 2008

The documentary letter of credit is the most preferred and frequently used method in International Payment System in Korea, as it has less possibility of occurring credit risks in export than any other payment system. That's because the exporter can get payment from the issuing bank(confirming bank) by delivering the goods and presenting documents following the required procedure under the letter of credit, as the payment is affirmed by the issuing bank(including the confirming bank in case of the confirmed letter of credit) regardless of the buyer's payment. However, the pattern of payment methods used in international trade of Korea is changing dramatically like the importance of the credit is decreasing continuously among the payment methods while the remittance is increasing. The increase of remittance has a positive aspect that International Payment System are changing into those of advanced countries, but the decrease of the credit also has a negative aspect that the exporter might have a greater credit risks. Therefore, we need a systematic device to deal with this. Exporters in Korea usually have used the export credit insurance to deal with the credit risks However, the export credit insurance also have a limitation as the policy finance due to the limitation based on the credit status of the business and the limitation of acceptance from the lack of financial resources of the government, etc. Korea, which is the 11th export power in the world, has a basic limitation to deal with the credit risks by depending on the export credit insurance only. So, in this thesis, I have studied on the international factoring, forfaiting, which are advanced export finances and widely used in advanced countries, as substitutes to deal with the credit risks. the international factoring is an trade financing in which a factor offers full services such as credit cover, offering prepayment, collection, account receivables, management, etc, instead of the exporter on the account receivables occurred by the exporter's delivering goods to the importer. This international factoring has a high possibility of using as a means to deal with the credit risks, because it offers prepayment without recourse. the forfaiting is another export financing in which a forfaiter purchases the draft, the promissory note and other negotiable instruments issued from the international trade, with fixed interest rate without recourse from the exporter or previous holder. By using this method, they can avoid foreign exchange risks, contingency risks as well as credit risks, as the conveyances like the promissory note, etc are issued with the note warranty so-called 'per aval' in business practice. These trade financing are good substitutes to deal with the credit risks in export, but they are not widely used in Korea. Though it can be explained with various reasons, the common reasons are the lack of understanding on the use of advanced export finance, the lack of experts to manage the advanced trade finance, the conservative way of thinking of domestic organizations related to trade financing, the lack of organizations supporting the trade financing, etc.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.7
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• pp.357-366
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• 2016

This study evaluated the standardization of the outpatient management process in several regions of South Korea. The hospital workers in the administration department of the different medical institutions that are registered with the Korean Hospital Association were surveyed. These institutions can be standard hospitals or hospitals greater in size. A summary of the research results are as follows. There was no significant correlation in their registration procedures in relation to the institution's founder, number of sickbeds, number of staff employed in the administration department, and average number of outpatients per day. On the other hand, the prepayment of medical fees occurred more frequently when the number of sickbeds was larger. In addition, there was no large difference in their appointment procedures in relation to those features. Nevertheless, the prepayment of medical fees accounted for 11.8 % of the entire payment in institutions with less than five hundred beds, while fifty percent of the payment was made in advance in larger institutions with five hundred or more beds. From this research, there was only a small difference among the institutions' outpatient management, but a notable difference was observed in their electronic data processing systems and facilities. Therefore, more financial support should be generated for the implementation of a more integrated process. As a follow-up study, to provide patients with quality medical services, it will be necessary to apply the standardized procedure to an actual medical institution and analyze the expected effect.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.353-358
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• 2001

Since the financial crisis broke out, liquidity has become the critical issue in housing construction industry. In order to secure liquidity, it is prerequisite to precisely forecast cash flow. However, construction companies have failed to come up with a systematic process to manage and forecast cash flow. Until now, companies have solely relied on the prediction of profits and losses, which is carried out as they review business feasibility. To obtain more accurate cash flow forecast model, practical pattern of payments should be taken into account. In this theory, basic model that analyzes practical housing payment collection pattern resulting from prepayments and arrears is described. This model is to complement conventional cash flow forecast scheme in the phase of business feasibility review. Analysis result on final losses in cash that occur as a result of prepayment and arrears is considered in this model. Additionally, in the estimation of construction cost in the phase of business feasibility review, real construction prices instead of official prices are applied to enhance accuracy of cash outflow forecast. The proportion of payment made by a bill and changes in payment date caused by rescheduling of a bill are also factored in to estimate cash outflow. This model would contribute to achieving accurate cash flow forecast that better reflect real situation and to enhancing efficiency in capital management by giving a clear picture with regard to the demand and supply timing of capital.

• Journal of Appropriate Technology
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• v.6 no.2
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• pp.136-145
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• 2020

Agriculture is the backbone of the economy of most developing countries. In these countries, agriculture or farming is mostly done manually with little integration of machinery, intelligent systems and data monitoring. Irrigation is an essential process that directly influences crop production. The fluctuating amount of rainfall per year has led to the adoption of irrigation systems in most farms. The absence of smart sensors, monitoring methods and control, has led to low harvests and draining water sources. In this research paper, we introduce a 433 MHz Radio Frequency and 2G based Smart Irrigation Meter System and a water prepayment system for rural areas of Tanzania with no reliable internet coverage. Specifically, Ngurudoto area in Arusha region where it will be used as a case study for data collection. The proposed system is hybrid, comprising of both weather data (evapotranspiration) and soil moisture data. The architecture of the system has on-site weather measurement controllers, soil moisture sensors buried on the ground, water flow sensors, a solenoid valve, and a prepayment system. To achieve high precision in linear and nonlinear regression and to improve classification and prediction, this work cascades a Dynamic Regression Algorithm and Naïve Bayes algorithm.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2007.06a
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• pp.76-79
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• 2007

RFID is issued as a core technology for Ubiquitous environment recently. Especially, Mobile RFID which is converged with RFID and wireless internet, provides new services to users, increased added-value to service providers. For commercial service of Mobile RFID, it needs an accounting service. The Diameter Base Protocol, mostly used for authentication, authorization, and accounting service, supports only deferred accounting service. For more variable accounting policy, Diameter Credit-Control Application which is capable of prepayment accounting, also should be considered. In this paper, a new accounting model with Diameter Credit-Control Application for Mobile RFID service is proposed.

• Journal of Arbitration Studies
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• v.21 no.2
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• pp.133-156
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• 2011

This paper is to analyze the legality in which the fraud rule allow the issuer of L/C or a court to disrupt the payment to the beneficiary under the deferred payment credit when the nominated bank for deferred payment undertaking made prepayment or negotiation before the maturity date and fraud is identified to be involved. Since the function of commercial L/C is to provide absolute assurance of payment to a beneficiary, the fraud rule based on fraud exception has been known as the negative factor which lead to the disruption of "principle of independence & abstraction" under the commercial L/C transactions. As a result, the fraud rule is necessary to limit the activities of fraudsters, but its scope must be carefully circumscribed so as not to deny commercial utility to an instrument that exists to serve as an assurance of payment. But the fraud itself has not been firmly established because it is inherently pliable in its concept. There are numerous contents to describe the application of fraud to the L/C transactions as a standard such as egregious fraud, intentional fraud, L/C fraud(omitted here), flexible fraud, and constructive fraud. And so the standard applicable to the commercial transaction as the fraud rule would be high or low depending upon the various standards of fraud.

• The Korean Journal of Financial Management
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• v.23 no.1
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• pp.165-191
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• 2006

I examine the relationship between values and security designs of MBS(mortgage-backed securities), using four different types of them. To this end I consider a pass-through and three different kinds of CMOs(collateralized mortgage obligations). It turns out that the pass-through has the lowest value and that, among CMOs, that of a senior-mezzanine-subordinate design has the highest value. This implies that CMOs of a simple and extreme design, like that of a senior-subordinate design, are not likely to be the best CMOs for risk averse buyers. Another critical finding is that the optimal security design of CMOs or MBS does exist in the form of an interior solution. This indicates that MBS issuers could charge higher prices of MBS given their underlying mortgages by tailoring MBS security designs to the needs or utilities of MBS buyers, usually by removing and combining risks of component tranches of MBS. Accordingly a thorough study of realistic utility functions of MBA buyers could enhance the values or prices of MBS to be issued.

• Korea Real Estate Review
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• v.28 no.3
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• pp.21-35
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• 2018

The recent performance of residential mortgages demonstrated how default risk operated separately from prepayment risk. In this study, we investigated the determinants of the borrowers' decisions pertaining to early termination through default from the mortgage performance data released by Freddie Mac, involving securitized mortgage loans from January 2011 to September 2013. We estimated a Cox-type, proportional hazard model with a single risk on fundamental factors associated with default options for individual mortgages. We proposed a mortgage default model that included two specifications of delinquency: one using a delinquency binary variable, while the other using a delinquency probability. We also compared the results obtained from two specifications with respect to goodness-of-fit proposed in the spirit of Vuong (1989) in both overlapping and nested models' cases. We found that a model with our proposed delinquency probability variable showed a statistically significant advantage compared to a benchmark model with delinquency dummy variables. We performed a default prediction power test based on the method proposed in Shumway (2001), and found a much stronger performance from the proposed model.

• The Journal of Fisheries Business Administration
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• v.50 no.1
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• pp.1-15
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• 2019

Offshore trap fishery managers have payed in advance to attract excellent fishing crew in the minium grantee lay system. This practice can intensify competition among fishery management bodies and increase the burden of fishery manager about income tax and four social insurance programs. The purpose of this study is to identify the problems of advance payment practice in terms of fishery manager in offshore trap fishery. The main results of this study are as follows. First, under the TYPE 1 model, which is the current wage payment manner, there is a risk that fishery manager will not able to return the prepayment paid in advance when the income of fishery management bodies decrease. Second, the TYPE 2 or the TYPE 3 model which reduces or abolishes advance payment can alleviate the burden of fishery manager relative to the deduction of redemption amount, incentive to induce artificial expenses, income tax and four social insurance programs. In conclusion, advance payment practice in offshore trap fishery is placing a heavy burden on the fishery manager. In order to solve these problems in the future, we need to find solutions through similar case studies.

• Journal of Korea Trade
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• v.27 no.2
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• pp.1-21
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• 2023

Purpose - The bank payment obligation is a transaction method that combines the certainty of L/C transactions with the speed of remittance payments, so the main purpose of this study is to highlight the superiority of bank payment obligation, noting the difference between bank payment obligation and L/C transactions. In addition, we would like to examine how bank payment obligations can actually be applied to support various valuable proposals such as post-shipment and post-shipment finance according to the payment process.. Design/methodology - This study focused on literature based on data from ICC and SWIFT along with previous domestic and international studies. In terms of a research method, a literature review was adopted with electronic trade-related books and journals and policy-related reports from international trade-related agencies. Findings - Unlike L/C transaction, BPO transaction verify the data inquiry process based only on the combination result of the established baseline and dataset. Accordingly, it is superior to L/C transaction in that there is no confrontation between the parties over the results of the inquiry, and clear transactions are possible according to the principle of proof after prepayment. In addition, unlike credit transactions, data inconsistency acceptance procedures confirm payment obligations in consideration of importers' intentions. As a result, as long as trade documents are in the hands of exporting countries, flexible document disposition is possible in response to the situation after payment, which is more advantageous than L/C transaction. Originality/value - Specifically, from the importer's point of view, BPO transactions have the advantage of reducing the manpower required to prepare and review trade documents and processing transaction negotiations with exporters advantageously due to the strength of payment obligations. From the perspective of the exporter, it has the advantage of enabling rapid recovery of trade payments and reducing the risk of importer's cancellation of transactions or content change. From the perspective of participating banks, it is possible to strengthen relations with importer and obtain high commission income by increasing the role of bank reduced by reducing L/C transaction.