KOR

Research Staff

Research Staff

Profile

Education
Ph.D., The University of Chicago, 2004
M.A., The University of Chicago, 1996
B.A., The University of Chicago, 1992
Professional Experience
Korea Capital Market Institute , 2010 -
Samsung Research Institute of Finance, 2007 - 2010
SK Research Institute for SUPEX Management, 2005 - 2007
McKinsey Co., 2004 - 2005

Publications

Opinion

ESG Management in Financial Services Firms Illustrated in the Case of Goldman Sachs / Jun. 15, 2021
ESG management is a subject of keen attention in the corporate sector, and the financial services industry is no exception. For financial services firms, as a market intermediary, ESG management is even more complex, as it involves not only incorporating ESG factors in its own operations, but also includes ESG assessment and engagement of other firms, along with meeting the ESG demand of investors. Among global financial services firms, Goldman Sachs is among the leaders in actively implementing ESG management. Its ESG management is based on clearly-defined principles, with its organizational structures and processes that ensure ESG integration into its overall business operations. On the other hand, there are numerous challenges to be dealt with for ESG management to take hold more effectively. In particular, the relevant infrastructure and ecosystem should be in place, with qualitative and quantitative improvements in ESG data and disclosure. Furthermore, Korea’s financial services firms have an important role to play in shifting public perception by continuously providing information and facilitating discussion, in order to help expand the demand base for ESG financial products and services.
Assessment on Global Financial Groups’ 2020 Earnings / Jan. 05, 2021
Despite Covid-19’s shock to the global economy, many of the global financial groups are more than weathering the storm. The recently released third-quarter earnings show that major global financial groups posted a YoY increase in revenues. While Covid-19 negatively impacted the retail and commercial banking business of global financial groups, it was more than made up by the large increase in trading revenues, on the back of higher market volatility. As global uncertainties subside in 2021, trading revenues are expected to fall. On the other hand, investment banking fees are expected to increase as the global economies enter a recovery phase and corporate financing demand along with M&A and restructuring activities climbs.
Earnings of Global Investment Banks in Q1 2020: Impact of Covid-19 / Jun. 09, 2020
Global investment banks recently released their first earnings since the global outbreak of Covid-19. The 2020 first-quarter earnings showed a mixed picture highlighting both positive and negative aspects. The nine major investment banks that were looked at reported an average 4.2% year-on-year increase in revenue, and even those with negative revenue growth posted a somewhat mild decline. Behind those results appear to be two factors. First, first-quarter earnings only partially reflect Covid-19’s impact because it was only March 2020 when the virus began spreading on a global scale. Second, rising market volatility contributed to an earnings increase in some of areas such as investment banking and trading. However, major investment banks reported a 48% YoY fall in net earnings in the first quarter in 2020 primarily due to the 5.5-fold increase in their provisions for losses. This clearly shows investment banks are bracing for a full-blown impact of Covid-19 in the second quarter onwards. In contrast to the 2008 global financial crisis, the current crisis is spreading from the real economy to the financial sector. This time, global investment banks are expected to play a pivotal role in the economic recovery, a stark contrast to the earlier global financial crisis where investment banks were the main culprit.
The Catfish Effect of US Fintech Firms / Dec. 03, 2019
Recently, Charles Schwab, the largest retail brokerage firm in the US, announced the elimination of commissions for online trades of stocks, ETFs, and options. Its competitors such as E*Trade and TD Ameritrade also followed suit. What’s notable is that Robinhood, a small fintech firm, is behind the significant shift. Founded in Silicon Valley in 2013, Robinhood has been gaining sizable market share by offering zero commissions on stocks and ETF trading. It is actually becoming more common place in the financial services industry where a fintech firm disrupts the traditional competitive structure. The global financial industry is now in the mist of a shift from human capital towards technological capability. For existing players, fintech firms present a challenge as well as an opportunity at the same time. Technology is enabling the pioneering of new markets and changing the traditional competitive landscape. To stay ahead with the fintech trend and maintain a competitive advantage, Korean financial firms need to build a technological edge. Towards that end, they must develop a clear technology strategy and build a dedicated team with knowledge and expertise in the fintech industry. Going forward, Korean financial firms must be engaged in deepening Korea’s fintech ecosystem.

Seminar Presentation