How to Use Financial Derivatives Wisely - A case study of KIKO -

Shin, Jungsoon,Lim, Yejin Korean Society of Food and Agricultural Informatio 2012 Agribusiness and Information Management Vol.4 No.1

This case study investigates the KIKO currency option that has been a social issue in recent years among developing countries, especially Korea, where the financial derivatives market is in a state of rapid growth. The forward transaction which becomes a basis of derivatives is intended to hedge risks that may be caused by a future change in asset prices. Although it originates from a simple form of agricultural transactions, there currently exists a variety of derivatives in more sophisticated forms. In the Korean agricultural industry, the need to use such derivatives is great, as there is a huge risk of price fluctuation in agricultural products due to frequent adverse weather. In addition, many developing countries with export-led industrial structures similar to Korea's, of necessity must resort to currency hedging as a method of reducing relevant risk. However, in most cases, the lack of understanding about financial derivatives results in an inappropriate application of these derivatives. The KIKO in this study represents such cases. Since 2007, KIKO has been sold in Korea to many small- and medium-sized export companies for the purpose of currency hedging when the exchange rate between the Korean won and the U.S. dollar was in a downward spiral. The main focus of this study is a case which is most representative of KIKO. As inflation rapidly increased during the financial crisis in the U.S. at the end of 2007, derivatives became a hot issue in the courts rather than in the financial markets. This case study investigates what KIKO and the fierce legal debates over it imply, from the perspective of the option of value evaluation in order to suggest not only a direction in which companies can utilize financial derivatives, but also a roadmap for the future derivatives market.

How to Use Financial Derivatives Wisely : A case study of KIKO

Jungsoon Shin,Yejin Lim 한국농식품정보과학회 2012 Agribusiness and Information Management Vol.4 No.1

This case study investigates the KIKO currency option that has been a social issue in recent years among developing countries, especially Korea, where the financial derivatives market is in a state of rapid growth. The forward transaction which becomes a basis of derivatives is intended to hedge risks that may be caused by a future change in asset prices. Although it originates from a simple form of agricultural transactions, there currently exists a variety of derivatives in more sophisticated forms. In the Korean agricultural industry, the need to use such derivatives is great, as there is a huge risk of price fluctuation in agricultural products due to frequent adverse weather. In addition, many developing countries with export-led industrial structures similar to Korea’s, of necessity must resort to currency hedging as a method of reducing relevant risk. However, in most cases, the lack of understanding about financial derivatives results in an inappropriate application of these derivatives. The KIKO in this study represents such cases. Since 2007, KIKO has been sold in Korea to many small- and medium-sized export companies for the purpose of currency hedging when the exchange rate between the Korean won and the U.S. dollar was in a downward spiral. The main focus of this study is a case which is most representative of KIKO. As inflation rapidly increased during the financial crisis in the U.S. at the end of 2007, derivatives became a hot issue in the courts rather than in the financial markets. This case study investigates what KIKO and the fierce legal debates over it imply, from the perspective of the option of value evaluation in order to suggest not only a direction in which companies can utilize financial derivatives, but also a roadmap for the future derivatives market.

윌리엄 콘체스에게 있어서 신앙과 과학의 통합적 사유

신정순(JungSoon SHIN) 창조론오픈포럼 2013 창조론오픈포럼 Vol.7 No.2

William of Conches is a medieval theologian and scientist, who was working at the Renaissance of the early 12th century. William studied in Chartres school, was introduced in a manner reasonably rational observations on the natural philosophy for the first time. Through he insisted forming and shaping by nature, he upgraded nature position higher. So he is evaluated as the first modern scientist. But in the essay, I try to notice he made the new theology (theory) through integrating faith with science in the Platonic metaphysics.

지적 설계의 미학적 고찰

신정순(Jungsoon SHIN) 창조론오픈포럼 2015 창조론오픈포럼 Vol.9 No.1

Intelligent Design, which is said for the new version of the Teleological Argument or the Argument from Design, contributes to Christian worldview by insisting God as the intelligent designer is the origin of life and creation. On the other side, this is suspected of the natural theology from some evangelical scholars. So, this essay is written for supporting and making up for the weak point of Intelligent Design with the aesthetics arguments where contain with Beauty, Art, Aesthetic judgment, the aesthetic value, the meaning of aesthetic experience for human beings.

The Effect of Body Image and Interest in Looks Perceived by Female College Students on the Empathy of Overcoming Disaster

Minkyoung Shin,Jungsoon Choi,Munkhtsetseg Luvsan J-INSTITUTE 2022 International Journal of Human & Disaster Vol.7 No.1

Purpose: In the present time, the interest in looks has rapidly increased regardless of gender and age, and we are living through the age of priority over looks. An individual s looks is not merely a simple caring, but has also become a social competitiveness, which increases the interest in looks and enhances the body image and self-esteem. The purpose of this study is to examine and understand the effect of the body image and the interest in looks perceived by female college students on the empathy of overcoming disaster targeting the female college students. Method: As for the research method, a questionnaire was used targeting female college students in Seoul, Gyeonggi, Incheon, and other areas. The questionnaire was consisted of body image, interest in looks, and interpersonal variables, while the frequency analysis was performed to examine the general characteristics of the re-search subjects, and the multiple regression analysis was performed to examine the interpersonal relationship between the body image and the interest in looks. Results: First, in terms of the effect of the female college student s body image on the empathy of overcoming disaster, it turned out that among the body images, the interest in looks turned out to have an effect on cognitive empathy, emotional empathy, and attitude empathy, and among the body images, the body satisfaction turned out to have effect on the emotional empathy and attitude empathy. Second, in terms of the effect of the female college student s body image on the empathy of overcoming disaster, aesthetic orientation turned to have effect on the cognitive empathy, emotional empathy, and the attitude empathy among the interest in looks, and self-expression among the interest in looks turned out to affect the emotional empathy only. Conclusion: Given the current ‘COVID-19’ crisis, many problems have ravaged the world, and as disasters pro-long, the interest in overcoming disasters has also grown. At the same time, the interest in looks is rapidly increasing due to the priority over looks. Hence, this study has examined the effect of body image and interest in looks perceived by the female college students on the empathy of overcoming disaster, and recognizes the importance of empathy for the interest in looks, and hence, more research would be required.

The Information Value of Credit Rating Changes and Insider Trading

Taekyu Kim,Jungsoon Shin 한국재무학회 2011 한국재무학회 학술대회 Vol.2011 No.11

This paper examines the relationship between credit rating changes, insider trading, and future stock returns. We find that prior insider trading is negatively related to credit rating changes. Insiders are more likely to purchase shares before a downgrade rather than before an upgrade. Thus, an investor is likely to face information signals that seem to systematically disagree on the value of the firm simultaneously: for example, insider purchases and downgrades. We also document that both insider trading and credit rating changes have additional power to explain market-adjusted stock returns, regardless of the negative relationship between credit rating changes and insider trading. Finally, we show that the information value of insider trading is mainly coming from insider purchases, while that of credit rating changes is mostly driven by credit rating downgrades.

내부자거래 초과수익의 결정요인

김태규(Taekyu Kim),신정순(Jungsoon Shin) 한국증권학회 2014 한국증권학회지 Vol.43 No.2

본 연구는 내부자거래의 초과수익이 외부 투자자들에게 알려지지 않은 내부정보의 사용에서 기인하는 것인지, 내부자의 반대투자전략을 이용한 마켓타이밍에서 기인하는 것인지를 실증 분석하였다. 2003년부터 2009년까지 유가증권시장과 코스닥시장에서의 내부자거래를 분석한 결과 내부 정보 이용과 반대투자전략 두 요인 모두가 내부자거래에 영향을 미치는 것으로 나타났다. 이는 내부자가 미공개 내부정보를 자기회사 주식거래에 사용함과 동시에 반대투자전략을 이용한 마켓타이밍으로 초과이익을 달성하는 것으로 해석된다. 또한, 내부자거래에 비대칭효과가 존재한다는 것을 발견하였다. 내부자가 미공개 좋은 뉴스를 보유하는 경우 주식을 매수하는 비율이 미공개 나쁜 뉴스를 보유하는 경우 주식을 매도하는 비율보다 높고 반대투자전략의 경우에도 자기회사의 주식이 과소평가되었다고 판단될 때 주식을 매수하는 비율이 과대평가되었다고 판단될 때 매도하는 비율보다 높게 나타났다. 본 연구는 내부자가 미공개 내부정보와 반대투자전략을 자기회사 주식거래에 사용한다는 실증적 증거를 제시함으로써 두 요인 모두를 고려한 내부자거래 규제제도의 필요성을 시사한다. This paper investigates whether corporate insiders earn excess profits by using private information unknown to outside investors or by trading their own firms` stock based on contraian belief. Examining insider trades in the Korea stock market from 2003 to 2009, we document that both the use of private information and insiders` contraian investment strategy have effect on insider trading. This implies that insiders time the market with contraian investment strategy and at the same time exploit private information to earn abnormal returns. We also find the asymmetric effect of insider trading. Insiders trade shares more heavily when they possess good news about future firm value or feel that their companies are undervalued than when they possess bad news or feel that their companies are overvalued. Providing new evidence that insider trading profits are affected by both the use of private information and contraian investment strategy, we suggest that regulators should consider both factors in the regulation of insider trading.

Market response to the credit rating announcements

Kee H. Chung,Jungsoon Shin 한국재무학회 2009 한국재무학회 학술대회 Vol.2009 No.05

신용등급과 기업의 투자의사결정

김태규(Taekyu Kim),신정순(Jungsoon Shin) 한국증권학회 2017 한국증권학회지 Vol.46 No.4

본 연구는 신용등급이 기업의 투자의사결정에 미치는 영향을 조사하였다. 2000년부터 2013년까지 유가증권시장 상장기업을 대상으로 분석한 결과 신용등급이 상승(하락)한 기업은 자본투자를 증가(감소)시키는 것으로 나타났다. 특히 동일연도 신용등급 변경뿐만 아니라 직전연도 신용등급 변경도 기업의 자본투자에 대해 유의한 설명력을 보였다. 또한 신용등급 상승과 하락이 기업의 자본투자에 미치는 영향에 차별적 효과가 존재함을 확인하였다. 신용등급 하락의 경우 동일연도 하락만이 유의한 효과를 보인 반면 상승의 경우 동일연도와 직전연도 상승 모두가 유의한 설명력을 보였다. 이는 신용등급 상승은 하락에 비해 기업의 투자정책에 그 효과가 느리게 반영됨을 시사하는 것이다. 고성장기회기업의 경우 저성장기회기업에 비해 신용등급 변경과 자본투자 간 관계가 더 강하게 나타났으나 이는 신용등급 상승에 국한된다. 본 연구는 신용등급이 기업의 투자의사결정에 유의한 영향을 미친다는 실증분석 결과를 제시함으로써 신용등급의 역할에 대한 이해를 제고할 것으로 기대된다. This paper investigates the effects of credit ratings on corporate investment decisions. Examining investment decisions of firms on the Korea stock market from 2000 to 2013, we document that upgraded (downgraded) firms tend to increase (decrease) capital investment. In addition we confirm that credit rating upgrades and downgrades have differential effects on corporate investment decisions. Credit rating downgrades only affect capital investment in the same year, whereas upgrades have effects on capital investment in the next year as well as in the same year. Moreover the impact of credit rating upgrades on capital investment in the next year is stronger than in the same year. High-growth-opportunity firms show greater effects of credit rating upgrades on capital investment than low-growth-opportunity firms. For downgrades, however, we do not find the differential effects between high-growth-opportunity and low-growth-opportunity firms. This study would provide us new insights on the effects of credit ratings on corporate investment decisions.

Association of dynamic Hb change and renal recovery in patients with severe AKI requiring CRRT

( Areumsongi Nam ),( Sung Joon Shin ),( Jang Wook Lee ),( Jungsoon Kim ),( Jiyun Jung ),( Dha Woon Im ),( Yong Chul Kim ),( Sung Woo Lee ),( Jae Yoon Park ) 대한내과학회 2023 대한내과학회 추계학술발표논문집 Vol.2023 No.2