KOR

Research Staff

Research Staff

Profile

Education
2006 Ph.D. in Finance, KAIST Business School
2001 M.S. in Finance, KAIST Business School
1999 B.A. in Industrial Management, KAIST
Professional Experience
2023-, Department Head of Capital Markets, Korea Capital Market Institute
2017-, Senior Research Fellow, Korea Capital Market Institute
2019-2020, Department Head of Capital Markets, Korea Capital Market Institute
2016, Visiting Scholar, San Diego State University
2007-2016, Research Fellow, Korea Capital Market Institute
2006-2007 Lecturer, KAIST Business School, Dankook University, Seoul Women`s University

Publications

A comprehensive study of retail investors in the Korean ETF markets Senior Research Fellow Kim, Joon-Seok and others / Jan. 24, 2024
File
Analysis of the effects of short selling restriction Senior Research Fellow Kim, Joon-Seok and others / Aug. 25, 2023
File

Opinion

A Thought on the Recent Incident of Stock Price Crash / Aug. 08, 2023
As the recent incident of stock price crash has become known to be related to market manipulation, financial authorities have come up with measures to eradicate unfair trading practices, such as market manipulation. Also, the National Assembly has passed an amendment to the Financial Investment Services and Capital Markets Act that strengthens punishment for unfair trading practices. However, the possibility of stock price crash will not disappear solely by eradicating market manipulation. Stock prices could be overpriced and may crash if negative information on a firm is not disclosed in a timely manner and accumulates for a long period of time, or if investors follow a trend of rising prices. The likelihood of overpricing increases with lower accounting transparency, weaker bases for market participants such as analysts, institutional investors, and short-sellers who are capable of discovering negative information. At the same time, those conditions could create conditions ripe for market manipulation. A more fundamental solution is to strengthen information efficiency of the stock market. This could effectively lower the possibility of stock price crash and market manipulation, both of which have a more serious negative impact on the stock market than individual investors' financial losses.
Need for Extending the Scope of Financial Instruments Eligible for Alternative Trading Systems / Feb. 07, 2023
In Korea, discussions about the alternative trading system (ATS) have centered around improving trading efficiency through competition between trading platforms for listed stocks. The scope of instruments eligible for the ATS is limited to listed stocks under the Financial Investment Services and Capital Markets Act. Notably, the ATS has been introduced to make securities trading efficient and achieve investor protection by applying regulatory requirements of transparency, accessibility and stability to trading venues. Its benefits are not confined to listed stock trading. ATSs being operated by major economies cover a wide range of instruments and transaction methods and handle a substantial proportion of trades involving financial instruments other than stocks such as exchange traded funds (ETFs), bonds and derivatives. In this respect, Korea needs to reform its ATS regulatory framework to ensure that the scope of instruments eligible for ATSs is extended and a different set of requirements apply to platforms depending on economic importance of trading venues and instrument-specific characteristics.
Treasury Stock Magic: Economic Distortions and Legal Contradictions / Aug. 24, 2022
Treasury Stock Magic refers to a phenomenon that reinforces controlling shareholders’ power by allotting new shares issued by a newly separated company to treasury shares of a parent company in a spin-off. This has come under fire in that it enables controlling shareholders to gain more control without making additional investments.In an analysis of a spin-off by Korean listed firms between 2000 and 2021, Treasury Stock Magic has been primarily utilized in conversion to the holding company structure. With a spin-off based on Treasury Stock Magic and the subsequent right offerings through in-kind contribution, the ownership share of controlling shareholders both in the parent and the spun-off companies surges by 15%p and 11%p, respectively, which considerably boosts their controlling power. On the other hand, the proportion of market capitalization represented by outside shareholders declines by 6%p after a spin-off is carried out, indicating that Treasury Stock Magic distorts distribution of wealth as well as controlling power. Treasury Stock Magic can exert its power in a spin-off because treasury shares that should not be deemed economic assets are recognized as assets under the relevant laws and regulations. This necessitates reducing potential abuse of treasury shares by controlling shareholders and accurately reflecting their economic nature. To this end, a coherent regulatory framework should be established to retire repurchased shares mandatorily.
Mobile Stock Trading by Retail Investors / Feb. 22, 2022
This article has analyzed listed stocks trading by 134,000 retail investors from March to October 2020 in Korea. According to the analysis result, mobile investors tend to have a higher turnover ratio and a larger day-trading proportion, buy stocks showing sharp price increases, and achieve poor performance, compared to investors using other trading platforms. Mobile stock trading by retail investors has been growing rapidly thanks to its benefits of greater accessibility and convenience. However, it also imposes costs such as irrational trading behaviors and poor investment performance. In this respect, it is necessary to prevent the accessibility and convenience of mobile trading systems from encouraging impulsive, speculative trading activities. Also, efforts should be exerted to create a mobile trading environment that can promote rational investment decisions.

Seminar Presentation

Research performance

Other Activities


[PUBLISHED PAPERS] 
 
  • - Kim, Jaemin and Joon-Seok Kim, 2022, Arrests and indictments of corporate insiders, ownership structure, and corporate governance: evidence from Korea, International Journal of Finance and Economics 27-3, 3580-3598.
  • - Kim, Byungmo, Joon-Seok Kim, 2017, Financial distress, uncertainty, and corporate investments, Korean Journal of Financial Studies 46-4, 809-837. (in Korean)
  • - Kim, Joon-Seok, Youngkyu Park, 2016, Earnings management and firm performance following backdoor listing in the KOSDAQ market, Korean Accounting Journal 25-2, 205-237. (in Korean)
  • - Kim, Jaemin, Joon-Seok Kim and Sean Sehyun Yoo, 2016, Regulatory overkill? short-sales ban in Korea, International Journal of Managerial Finance 12-5, 673-699.
  • - Kim, Joon-Seok, Youngkyu Park, Seokhoon Lee, 2014, Analysis on dysfunction of the backdoor listing in Korea, Asian Review of Financial Research 27-3, 493-528. (in Korean)
  • - Eom, Kyong Shik, Cheol-Ho Park, Joon-Seok Kim, Ki Beom Binh, 2014, Economic importance of the commodity-linked financial transactions and the foundation of the commodity exchange in Korea: a policy suggestion, Korean Journal of Financial Management 31-2, 193-242. (in Korean)
  • - Chung, Jaiho, Joon Ho Hwang and Joon-Seok Kim, 2014, Block premium and shareholder litigation, Asia-Pacific Journal of Financial Studies 43-3, 407-431.
  • - Hwang, Seiwoon, Joon-Seok Kim, Sam Ho Son, 2013, Evaluation on Korea’s money market benchmark interest rates and the related policies, Korean Journal of Financial Management 30-3, 231-259. (in Korean)
  • - Chung, Kee H., Joon-Seok Kim, Kwangwoo Park, and Taeyoon Sung, 2012, Corporate governance, legal system, and stock market liquidity: evidence around the world, Asia-Pacific Journal of Financial Studies 41-6, 686-703.
  • - Binh, Ki Beom, Kyong Shik Eom, Joon-Seok Kim, 2011, foreign Investors` short sales and individual stock prices in the Korean stock market, Korean Journal of Financial Management 28-3, 139-187. (in Korean)
  • - Chung, Kee H., Jangkoo Kang, and Joon-Seok Kim, 2011, Tick size, market structure, and trading costs, Review of Quantitative Finance and Accounting 36-1, 57-81
  • - Kim, Joon-Seok and Uk Chang, 2009, The effects of the sidecar on the stock market, Korean Journal of Financial Engineering 8-4, 91-126. (in Korean)
  • - Chang, Joon Kyung, S. Hun Seog, and Joon-Seok Kim, 2007, A study on the information effects of regulation fair disclosure on earnings, Journal of Money and Finance 12-1, 107-139. (in Korean)
- Kang, Jangkoo and Joon-Seok Kim, 2006, Private benefits of control and firm leverage: An Analysis of Korean Firms, Review of Quantitative Finance and Accounting 27, 439-463.

[OTHER PUBLICATIONS] 

Kim, Joon-Seok, 2015, The impact of widening the price limit, Capital Market Review 2015(fall).
  • Kim, Joon-Seok, 2015, Recent rise of KOSDAQ: a quantitative assessment, Capital Market Review 2015(summer).
  • Kim, Joon-Seok, 2015, Understanding dividend payout policy of the Korean listed companies, Monthly Korea Exchange Market 2015-01, Korea Exchange.
  • Kim, Joon-Seok, 2013, Multilateral trading facilities in the Europe: a case of BATS Chi-X Europe, EU Financial Market Focus 2013(summer).
  • Kim, Joon-Seok, 2013, The impact of financial transactions tax, IR FOCUS 2013-06, Korea Investor Relations Service.
  • Kim, Joon-Seok, 2013, SPAC merger vs. IPO, Capital Market Perspective 5-1.
  • Kim, Joon-Seok, 2011, High frequency trading in the KOSPI200 Futures market, Capital Market Perspective 3-3.
  • Kim, Joon-Seok, 2011, Introduction of ATS and market fragmentation, Sang Jang 2011-09, Korea Listed Companies Association.
  • Kim, Joon-Seok, 2010, The impact of short selling ban in the Korean stock market, Capital Market Perspective 2-1.
  • Kim, Joon-Seok, 2008, Listing of stock exchanges: a review and implications, Capital Market Forum 5-3.
  • Kim, Joon-Seok, 2008, Big bang in capital market, Edited by Korea Securities Research Institute and Korea Herald, Jimoondang.
 
[RESEARCH PROJECTS]

- A global survey on the delisting rules and procedures, 2021, Korea Exchange.
- Algorithmic trading and transaction cost analysis for Korean institutional investors, 2021, Koscom.
- Corporate disclosure system for the pharmaceutical and biotech companies, 2020, Korea Exchange.
- Regulatory framework for algorithmic trading, 2019, Korea Exchange.
- An analysis on the stagnation of the KOSPI, 2017, Korea Exchange.
- Prospects of the KOSDAQ Index futures market, 2015, Korea Exchange.
- Enhancing liquidity of the KONEX market, 2014, Korea Exchange.
- Capital market ecosystem for the innovative economy, 2014, The Office of the President of Korea.
- Supporting growth companies through the KONEX, 2014, Prime Minister’s Secretariat.
- Medium risk-medium return investment products, 2013, Financial Services Commission.
- Informativeness of the corporate disclosure, 2013, Korea Exchange
- Establishment of consolidated trades and quotes tapes in the Korea Stock Markets, 2013, Koscom.
- Supporting start-up companies through capital markets, 2012, Korea Exchange.
- Market impact costs analysis in the Korea Exchange, 2011, Korea Exchange.
- The impact of the high frequency trading on the Korean stock market, 2011, Korea Exchange.
- Growth strategy of Korea Exchange, 2011, Korea Exchange.
- Algorithmic trading: trends and issues, 2010, Korea Exchange.
- KDB`s expansion strategy for Asian capital markets, 2010, Korea Development Bank.
- Growth strategy of the Korean capital market and the financial investment industry, 2010, Financial Services Commission.
- Strategy for the growth of the stock market IT infrastructure, 2010, Koscom.
- Regulatory reform for the reverse mergers in Korea Exchange, 2010, Korea Exchange.
- A preliminary study on the price manipulation detecting systems, 2009, Korea Exchange
- Stock exchange confidence index and competitiveness index, 2009, Korea Exchange
- Reform of the program trading regulation, 2009, Korea Exchange
- Korean capital market after global financial crisis: a policy direction, 2009, Financial Services Commission.
- Stabilization of the foreign exchange market, 2009, Financial Services Commission.
- Listing of growth engine companies on KOSDAQ, 2009, Korea Exchange.
- The plans for the introduction of SPAC to Korea Exchange, 2008, Korea Exchange.
- ELW market development in Korea Exchange, 2008, Korea Exchange.
- The globalization of disclosure system for foreign listed companies, 2008, Korea Exchange.
- Market value estimation for Korean private companies, 2007, Korea Bond Pricing.
- Credit risk management system development, 2006, Korea Credit Guarantee Fund.
- Default probability estimation for Korean private companies, 2004, eValue.

[PRESENTATIONS at PROFESSIONAL MEETINGS]
 
  • - Kim, Joon-Seok, Transformation to a holding company structure and the magic of treasury stock. Presented at the KCMI Policy Seminar, February 2023.
  • - Kim, Joon-Seok, Explaining the Korea discount. Presented at the KCMI Policy Seminar, September 2022.
  • - Kim, Joon-Seok, Minki Kim, Individual investors in the era of COVID-19: investment behavior and performance. Presented at the KCMI Policy Seminar, April 2021
  • - Kim, Joon-Seok, Investor protection of structured products: behavioral economics approaches. Presented at the KCMI-KAFC Research Forum, December 2019.
  • - Kim, Joon-Seok, The 20 years of the holding company system: transformation of the large conglomerates to holding company structure. Presented at the KCMI Policy Seminar, November 2019.
  • - Kim, Joon-Seok, The role of finance for innovative growth: entrepreneurial capital exit market. Presented at the KCMI Policy Seminar, November 2017.
  • - Kim, Joon-Seok, Min Kyung Kwon, The role of capital markets for another leap forward: risk-return trade-off in the Korean capital markets. Presented at the KCMI 20th Anniversary Conference, September 2017.
  • - Kim, Joon-Seok, Seokhoon Lee, Structural changes in the Korean IPO markets. Presented at the KCMI Policy Seminar, October 2015.
  • - Kim, Joon-Seok, Analysis of the Global Exchange Competition Environment. Presented at the KCMI Policy Seminar, May 2015.
  • - Kim, Joon-Seok, Understanding corporate dividend policy. Presented at the KRX seminar commemorating the launch of new dividend index, October 2014.
  • - Kim, Joon-Seok, Structural Changes in the Korean Stock Market: Aspects and Causes. Presented at the KCMI 17th Anniversary Conference, September 2014.
  • - Kim, Joon-Seok, Changing trends in the global exchange industry. Presented at the KSA-KIF Policy Symposium, January 2014.
  • - Binh, Ki Beom, Kyong Shik Eom, Joon-Seok Kim, Choelho Park, Economic Importance of the Commodity-Linked Financial Transactions and the Foundation of the Commodity Exchange in Korea: A Policy Suggestion. Presented at the 2013 Korean Financial Management Association Annual Meeting, October 2013.
  • - Kim, Joon-Seok, Trading in the Korea: current landscape and future trends. Presented at the 2011 KCMI International Conference, September 2011.
  • - Chung, Jaiho, Joon Ho Hwang, Joon-Seok Kim, Block premium and shareholder litigation. Presented at the Midwest Finance Association 2011 Conference, March 2011.
  • - Chung, Jaiho, Joon Ho Hwang, Joon-Seok Kim, Block premium and shareholder litigation. Presented at the Fifth Annual Conference on Asia-Pacific Financial Markets of the Korean Securities Association, December 2010.
  • - Chung, Kee H., Joon-Seok Kim, Kwangwoo Park, Taeyoon Sung, Liquidity and corporate governance: evidence around the world. Presented at the Korea Academic Society of Business Administration Annual Meeting, August 2010.
  • - Chung, Jaiho, Joon Ho Hwang, Joon-Seok Kim, The dark side of private benefits: implications from block trades. Presented at the Korea Academic Society of Business Administration Annual Meeting, August 2009.
  • - Chung, Jaiho, Joon Ho Hwang, Joon-Seok Kim, The dark side of private benefits: implications from block trades. Presented at the European Financial Management Association Annual Conference, June 2008.
  • - Chung, Kee H., Jangkoo Kang, Joon-Seok Kim, Tick size, market structure, and trading costs. Presented at the Korea Allied Finance Associations Meetings, Spring 2007.
  • - Kim, Byungmo, Joon-Seok Kim, Stock splits: a market microstructure approach. Presented at the Korea Allied Finance Associations Meetings, Spring 2007.
  • - Kang, Jangkoo, Joon-Seok Kim, Private benefits of control and dividend policy. Presented at the Korean Financial Management Association Annual Meeting, Fall 2005.
  • - Kang, Jangkoo, Joon-Seok Kim, Private benefits of control and firm leverage: an analysis of Korean firms. Presented at the Eastern Finance Association 41st Annual Meetings, 2005 spring.
- Kang, Jangkoo, Joon-Seok Kim, Control benefit, ownership structure and firm leverage: an analysis of Korean firms. Presented at the Korean Finance Associations Annual Meeting, Fall 2003.

[HONORS & AWARDS] 

- 2022 Best Research Report, “An analysis of the effects of short selling restriction,” Korea Capital Market Institute.
  • - 2021 Best Research Report, “Individual investors in the era of COVID-19: investment behavior and performance,” Korea Capital Market Institute.
  • - 2021 Best Research Report, “The regulatory framework for virtual assets,” Korea Capital Market Institute.
  • - 2018 Best Research Report, “Transfer listing from the KOSDAQ to the KOSPI,” Korea Capital Market Institute.
  • - 2017 Best Paper Award (2nd prize), “Financial distress, uncertainty, and corporate investments,” Korean Journal of Financial Studies.
  • - Best Paper Award (2nd prize), “Economic importance of the commodity-linked financial transactions and the foundation of the commodity exchange in Korea: a policy suggestion,” Korean Financial Management Association 2013 Annual Meeting.
  • - 2012 Outstanding Paper Award (2nd prize), “Corporate governance, legal system, and stock market liquidity: evidence around the world,” Asia-Pacific Journal of Financial Studies.
  • - 2011 Nam-Gok Prize (1st prize), “Foreign investors` short sales and individual stock prices in the Korean stock market,” Korean Journal of Financial Management.
  • - Best Paper Award (1st prize), “Liquidity and corporate governance: evidence around the world,” Korea Academic Society of Business Administration 2010 Annual Meeting.
  • - Member of the Honor Society of Beta Gamma Sigma.
  • - Best Paper Award (2nd prize), “Private benefits of control and firm leverage: an analysis of Korean firms,” KAIST Business School 2004 Conference.