Research Staff

Research Staff

Chang, Jung-moh Research Fellow Financial Services Industry


Ph.D., Economics, University of California, Berkeley, May 2007
B.A., Economics, Sogang University, February 2001
Professional Experience
Research Fellow, Korea Capital Market Institute, March 2009~



Facebook’s Digital Currency Libra and Its Implications / Jul. 17, 2019
Facebook announced plans to launch its new digital currency, Libra, in the first half of 2020 and create the Libra Association with 27 institutes. Facebook’s Libra project can be summed up in three points. First, Libra blockchain will be switched from a permissioned to permissionless one within five years. Although it is uncertain what the ultimate platform will look like, whether the Libra project is successful will be the key to Libra’s long-term differentiation strategy. Second, Libra is different from existing stablecoins in that Libra’s value is tied to major currencies, more specifically the US dollar, British pound, euro, Swiss franc, and Japanese yen. Third, Facebook will support smart contracts using its own programming language called Move. These characteristics suggest that Facebook presents a new blueprint for building a financial platform which enables a number of users to easily enjoy the benefits of existing digital currencies. Moreover, the Libra launch will reduce psychological hurdles to overall digital currencies, and catalyze the launch of new digital currencies developed by other corporations. This will provoke a much livelier debate about whether it would be desirable for private-sector companies to issue their own currencies and compete with central banks. Meantime, central banks are expected to discuss the adoption of central bank digital currency (CBDC) to replace cash.
Changes in the Revenue Structure of Japanese Securities Firms and Their Implications / Mar. 26, 2019
As Japan moved towards a market-based financial system, it became essential for Japanese securities companies to break away from their traditional business model relying on brokerage commissions. Changes in the revenue structure of the Japanese securities industry over the last 15 years show that the proportion of brokerage commissions in total revenues plummeted whereas the proportions of trading revenue and other commissions grew rapidly over the same period. The change in the share of other commissions indicates that the main source of revenue for asset management business has been being shifted from sales commissions to fees that are based on client assets under management. Meantime, the increase in trading revenue was attributable mainly to the expansion of capital-intensive business by large securities firms, underpinned by their capital strength and high leverage. Recent competition among Japanese securities companies for retail asset management advice and services is directed at maximizing client assets under management with considering their total assets. A comprehensive approach needs to be taken for the elderly given the vast majority of financial assets held by older people in Japan. Large securities firms are in a more advantageous position than smaller or online peers because large independent securities firms have more points of contract with the elderly, and securities subsidiaries of mega banks can benefit from customer referral by their affiliates. It is worth watching how independent securities firms will respond to such move from the megabank subsidiaries.
Korea’s Securities Industry: Changes Resulting from The Pursuit of Large Size and Their Implications / Oct. 02, 2018
The Korean securities industry’s assets totaled KRW 411 trillion early this year, showing a 52.1% increase over the past five years. The primary reason for the industry’s asset increase is large securities firms’ relatively rapid growth compared to smaller securities firms’. Nevertheless, the capital and revenue structures of the large firms are not greatly different from those of small-and medium-sized peers. Due to the early implementation stage of policy measures that incentivize securities firms to grow their size, differences in the revenue structure between the large firms and the small-and medium-sized firms may not be currently visible. But the industry trends in the degree of competition more clearly reflect the impacts of the size growth in securities firms. In most business segments of the securities industry, market concentration began declining shortly before the global financial crisis and turned upward rapidly in 2013. In this situation, it is highly likely that smaller securities firms’ positioning in the industry will become more challenging. Hence, smaller securities firms should come up with specialization strategies to maximize their advantages. For niche markets, it should be considered that small-sized firms could play a role in offering appropriate products to consumers. To encourage sound development of the industry, consideration needs to be given to what should be long-term survival strategies for small securities firms.
Competition and Its Recent Changes in the Japanese Securities Industry / May. 04, 2018
Japan’s securities industry has experienced marked shifts in its competitive landscape with the emergence of new players over the past two decades after the licensing system was replaced by the registration system in 1998. Megabank-owned securities companies grew into large full-service firms. The deregulation of brokerage commissions paved the way for the emergence of online securities firms. From 2006 onwards, the securities industry saw an increase in securities companies owned by regional banks. A noteworthy characteristic of the industry in Japan is a relatively good market segmentation by clientele and by region, which resulted from the entry of new types of players into the industry. Recently, the industry has been undergoing changes that could affect its stable competitive landscape. First, growing interest in customer-oriented business conduct is highly likely to alter securities firms’ commission structure. Second, securities companies have started to offer extra services such as inheritance and tax advice in response to the ageing of their customer base. Third, the competition between traditional brick-and-mortar and online securities firms is getting intense as traditional securities firms are making inroads into the young investor segment. We need to watch attentively to see how these changes wrought by the ageing population will reshape the Japanese securities industry.

Seminar Presentation

Research performance

Essays on Incomplete Markets, Ph.D. Dissertation, UC Berkeley