• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.60
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• pp.213-234
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• 2013

e-Trade 3.0 era which means the expansion of seamless e-Trade process into global business has been come. e-Trade is in the evolution stage with the reflection of time changes and IT development. Furthermore e-Trade marketing method of SMEs has been generalized. However, SMEs have not utilized e-Trade marketing very actively even if it has much benefits in exploring overseas marketing. In this regard this paper has cautiously suggested the strategic using plan of e-Marketplace and SNS along with policy improvement in order to promote extensive diffusion of e-Trade marketing. First of all, a comprehensive evaluation system has to be developed for the assessment of overseas marketing program and provide organized guideline including SMEs support system. Also e-Marketplace operation company is necessary to invent management system for supervising and detecting risk factors of participating firms and business model to share information which each e-Marketplace possesses through mutual connection. Finally, the effective supports such as short-term education and acting operation of initial account to use SNS strategically are needed and continuous contents development to adopt SNS is absolute.

• Korea Trade Review
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• v.44 no.2
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• pp.127-141
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• 2019

In this study, the relationship between Baltic Dry Index(BDI) and maritime trade volume in the dry cargo market was verified using the vector autoregressive (VAR) model. Data was analyzed from 1992 to 2018 for iron ore, steam coal, coking coal, grain, and minor bulks of maritime trade volume and BDI. Granger causality analysis showed that the BDI affects the trade volume of coking coal and minor bulks but the trade volume of iron ore, steam coal and grain do not correlate with the BDI freight index. Impulse response analysis showed that the shock of BDI had the greatest impact on coking coal at the two years lag and the impact was negligible at the ten years lag. In addition, the shock of BDI on minor cargoes was strongest at the three years lag, and were negligible at the ten years lag. This study examined the relationship between maritime trade volume and BDI in the dry bulk shipping market in which uncertainty is high. As a result of this study, there is an economic aspect of sustainability that has helped the risk management of shipping companies. In addition, it is significant from an academic point of view that the long-term relationship between the two time series was analyzed through the causality test between variables. However, it is necessary to develop a forecasting model that will help decision makers in maritime markets using more sophisticated methods such as the Bayesian VAR model.

• International Commerce and Information Review
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• v.15 no.1
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• pp.259-283
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• 2013

In this study has been suggested on the basis of the Court of Audit's report on trade insurance issues presented and the Export Credit Guarantee Insurance Improvement. First, the improvement insurance underwriting standards and come up with measures to improve the soundness of the insurance fund trading. In order to do this, (1) warranty for a lower credit companies strengthen underwriting standards, (2) raise short-term solvency and the accuracy of financial statements Review criteria Borrowings calculated based, (3) trustee companies Warranty Terms for improvement, (4) for closure of businesses quickly take measures of bond conservation measures. Second, through improved risk management measures to strengthen risk management for export credit guarantees are to be provided.

• Journal of Korea Trade
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• v.27 no.1
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• pp.1-18
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• 2023

Purpose - Using a sample of Korean multinational corporations, we examine whether the relationship between tax risk and the implied cost of capital discriminates between the environmental, social, and corporate governance (ESG) of highly rated firms. Design/methodology - Firms with high tax risks have an increased uncertainty of future cash flows. Therefore, as the volatility of future cash flow increases, information asymmetry and the required return increases. Highly rated ESG firms can reduce information asymmetry, thereby weakening the positive relationship between tax risk and cost of capital. We employ the standard deviation of the cash effective tax rate as proxy of tax risk. We utilize the ESG rating data of the Korea Corporate Governance Service (KCGS). We use a PEG model, MPEG model, and GM model to measure the implied cost of capital. Findings - We find a positive association between the implied cost of capital and tax risk. The positive relationship between tax risk and the implied cost of capital weakens in highly rated ESG firms. Highly rated ESG firms prefer a stable tax position to invest after-tax cash flows into sustainable management. Therefore, the negative effects of tax risk on cost of capital can be reduced. Originality/value - This study provides empirical evidence that ESG activities can mitigate the negative impact of tax risk on the cost of capital for Korean multinational corporations. In a business environment where ESG activities are more important, the empirical results that ESG activities can reduce the corporate risk of Korean FDI companies are expected to provide implications for the ESG activities of multinational corporations.

• Korea Trade Review
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• v.45 no.1
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• pp.1-11
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• 2020

The maritime industry is important for Korean international trade, as more than 99 percent of its imports and exports are moved by maritime transportation. However, if maritime transportation is stopped in the event of an emergency, such as war or natural disaster, there is a danger that imports and exports may cease abruptly. Coping with this risk is why the Ministry of Oceans and Fisheries, manages the 'National Necessary Shipping System.' This system requires that the government estimates the size of ships necessary in the case of an emergency, and the ships designated as National Necessary Vessels should transport goods in the case of actual emergencies. This study seeks to estimate the appropriate size of ships required in an emergency using the latest data and applying a quantitative methodology. This study provides useful reference materials for policy authorities. In particular, it is meaningful that this study estimates the required number of ships of each vessel type, reflecting the recent trend of large-scale ships and expanding global trade.

• Journal of Distribution Science
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• v.20 no.3
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• pp.1-11
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• 2022

Purpose: This study aims at understanding the impacts of three omnichannel attributes (channel transparency, channel uniformity, channel convenience) and four customer perceptions (perceived innovativeness, perceived personalization, perceived risk, perceived credibility) on customer experience and channel selection decision. Research design and methodology: A quantitative online survey with 356 shoppers was executed. The partial least squares linear structural model (PLS-SEM) and Smart PLS were adopted to analyze the collected data and test the proposed hypotheses. Results: The research findings indicate four dominant results: (i) The customers' channel selection is directly determined by customer experience; perceived innovativeness; perceived personalization; perceived risk; and perceived credibility; and (ii) among these, the perceived risk shows negative impact on the customer's experience and customers' channel selection whereas others reveal the positive status; (iii) The customer experience represents the most decisive impact on the channel selection, then perceived personalization, perceived credibility, perceived innovativeness, and perceived risk. (iv) Three proposed channel attributes (transparency, uniformity, convenience) significantly influence the overall customer experience. Conclusions: This research adds to the body of knowledge in omnichannel retailing, customer experience, and customer channel selection. Furthermore, this research provides omnichannel retailers with practical implications for improving customer channel selection.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2022.06a
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• pp.201-203
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• 2022

Increasing global market of used electric vehicle (EV) battery encourages international firms to establish its subsidiary companies or business units specializing in battery recycling. Such kind of companies predominantly use closed loop supply chain (CLSC) for their operations of battery manufacturing and used battery recycling/reusing in global scale. However, EV battery recycling, as a relatively new industry, makes its global CLSC be exposed to various types of risks, which leads to inefficiency of supply processes and makes supply chains more complicated and vulnerable. Identifying, evaluating, and analyzing possible risks in CLSC has a great importance for optimization and increasing effectiveness for the global supply chain of used EV battery. Itwill assist to elaborate the efficient CLSC management and possible risk mitigation strategies to keep the global EV battery supply chain resilient and sustainable. This study aims to develop a conceptual framework for risk assessment in this new sector. Therefore, it will populate the framework with possible failure modes identified from various literature on EV battery recycling and closed loop supply chains so that future research can validate and utilize the conceptual framework.

• Korea Trade Review
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• v.45 no.5
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• pp.261-277
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• 2020

The purpose of this study is to analyze whether SMEs' technological capabilities and international marketing capabilities affect the export performance of the SMEs and to empirically test the moderating effect of the CEO's risk propensity on such a relationship. We obtained data from 190 SMEs located in Gwangju and Jeonnam Province in Korea through survey and performed a regression analysis for hypothesis testing based on these data. As a result of the analysis, it was found that SMEs' technological capabilities and international marketing capabilities had a significantly positive (+) effect on export performance, respectively. Also, the CEO's risk propensity was found to reinforce the relationship between technical competence and export performance, and the relationship between marketing capabilities and export performance was also found to be strengthened in the positive (+) direction. These results suggest that it is necessary for SMEs to continuously develop technological capabilities and international marketing capabilities to achieve successful export performance in overseas markets. Also, the CEO's propensity to promote these relationships may be important.

• Journal of Korea Trade
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• v.23 no.8
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• pp.110-131
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• 2019

Purpose - This paper investigates the implications for facilitating trade in the products of Industry 4.0. To identify the issues caused by the conflicts of policy objectives such as applying the tariff concession under the ITA and imposing the export control, by exploring the case of classification of drones. Design/methodology - We adopted a single case study method to gain a deeper understanding of the complex and multifaceted issues of Customs classification in the context of facilitating trade in the products of Industry 4.0. This study employs the case of drones to explore how these issues of Customs classification affect trade facilitation. We ensured the internal validity of the study by confirming the pattern of the results with the existing theories. Findings - Our main findings can be summarised as follows: the intrinsic nature of the products that converge several technologies causes issues in the classification. The inconsistency in product classification delays customs clearance by hindering the Customs risk-management system that pinpoints products subject to controls. To address the issues, therefore, we proposed fundamental reforms of Customs to empower themselves with management roles. Facilitating trade in the products of Industry 4.0 requires more enhanced Customs capability. Therefore, the reforms should include comprehensive capacity-building activities, such as changes in staff-trainings, promotion system, organisation and culture. Customs also need roles in robust designing of cooperative systems to compensate for the lacks of controls and to ensure concrete risk management for expedited Customs procedures. As well, by equipping the Single Window of Customs with crucial control functions of other ministries, Customs need to support the cooperation. The role of harmonising various preaudits of other ministries with its own is another essential role that ensures predictability of clearance procedure. Originality/value - There are scanty studies in the field of knowledge about what obstacles exist and what solution is available in the course of transforming to 'Industry 4.0'. In filling out the gap of knowledge, this paper is of academic significance in that it applies the research theory on trade facilitation for the specific cases of classification of the product of Industry 4.0 to verify its effectiveness and to extend the subject of the studies to the scope of Industry 4.0. It also has practical significance in that the results have provided implications for reforms of Customs procedures to facilitate trade in the products of Industry 4.0.

• Journal of Korea Trade
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• v.24 no.1
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• pp.1-34
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• 2020

Purpose - In this study, we investigate determinants of hedging with derivatives and its effect on firm value and firm risk for Korean firms. Design/methodology - To avoid the endogeneity problem pointed out in previous studies, we use a two-stage analysis by using gains and losses from derivatives as instrument variable for hedging with derivatives. Findings - Our analysis on the determinants of hedging shows that firms that are more leveraged and less profitable, and with more growth opportunities are likely to hedge through derivatives. Additionally, large firms, firms less diversified into industry, and firms more diversified geographically are likely to use derivatives. Our two-stage analysis shows that indicators of hedging with derivatives have an insignificant effect on firm value, and the indicator of futures/forwards use and of swaps use have significant negative effect on firm value. Whereas, the extent of hedging with derivatives has positive effect on firm value for all types of foreign currency derivatives, which suggests that moderately low hedgers use derivatives inefficiently, but extensive hedgers use derivatives properly. With regard to firm risk, hedging with derivatives increases market-based risk, but decreases accounting-based risk. Thus, we conclude that Korean firms use derivatives to manage operational volatility rather than to manage market risk, and accounting-based risk reduction through hedging is not directly translated into higher firm value. Originality/value - This is not the first study to investigate hedging behavior of Korean firms, but the sample period that that this study analyzed is the longest and various method are used to control the endogeneity problem. We investigate not only total foreign currency derivatives but also by types of derivatives, including futures/forwards, options, and swaps.