Research Staff

Research Staff

Cho, Sung Hoon Senior Research Fellow Capital Markets


Ohio State University (Ph.D. in Business Administration)
Seoul National University (BA & MA in Business Administration)
Professional Experience
~ present Senior Research Fellow, KCMI
2009~2014.5 Vice President, KCMI
2008~2009 Vice President, KSRI
2001~2008 Research Fellow
1985~2000 Korea Telecom



Sustainability, Stakeholder Capitalism, ESG and the Public Market: Implications of the Long-Term Stock Exchange / Sep. 27, 2022
Long-term sustainability, stakeholder capitalism and ESG are the issues that have been in the spotlight in the capital market for the last decade. In the US, the Long-Term Stock Exchange (LTSE), a new public market, was launched in May 2019 after gaining approval from the Securities and Exchange Commission (SEC) with the aim of supporting companies and investors who advocate such values. To serve its intended purpose, the LTSE requires companies seeking to list shares on the LTSE to prepare earnings reports linked to the long-term business plan, ban the compensation plan for executives that rewards short term performance and introduce the tenure voting system that awards greater voting power to shares held for a longer duration. Since the initial listing of two companies in August 2021, any other company has yet to join the LTSE. The LTSE offers an interesting test bed that could be used to understand how founders and managers of companies as well as public market investors view long-term sustainability and stakeholder capitalism. If specific data on the LTSE is accumulated going forward and measuring the success of the LTSE model becomes feasible, it would be possible to provide an answer to the question of whether such values can be incorporated into the public market or be better achieved in the private market.
Competition Policy for Big Techs and their Entry into Financial Services / Apr. 05, 2022
As big techs, large technology companies that have established and operated digital platforms, are actively expanding into financial services, competition issues regarding them have come to the fore in the financial services industry. The source of big techs’ competitive advantage rests on data collected from direct interactions among users and network effects of platforms. Considering these features, some have raised concerns that the current competition policy is ineffective for big techs. Under the circumstances, the US and the EU have introduced the ex-ante, entity-based regulatory framework to designate platform operators subject to regulation and define the do’s and don’ts for them. Another pillar of the new regulatory system is the prevention of data monopolies by large platform operators like big techs.If Korea wants to formulate and implement an effective competition regulatory framework for big techs’ entry into financial services, the following should be fully taken into consideration. First, a close cooperative relationship should be established between financial and competition regulators and a clear demarcation should be fixed for regulatory responsibilities. Second, careful consideration is required for data governance issues. Lastly, a balanced approach is needed to forestall competition policies from undermining financial innovation.
A Thought on Directions for the Sound SPAC Market Development / Oct. 12, 2021
As SPACs have surged in popularity in the US since the Covid-19 spread intensified in 2020, Korea is also witnessing a growing interest in SPACs. There is a widespread perception that compared with traditional IPOs, SPACs offer a less-uncertain, low-cost alternative route to companies who plan to go public, and serve as a relatively safer investment target. However, researchers who analyzed the SPAC market found that going public via a SPAC merger is more expensive than traditional IPOs and in addition, can bring about investment losses. Furthermore, the structure of SPACs may give rise to conflicts of interest between SPAC sponsors and public investors. Therefore, SPACs need to perform a transparent and sufficient corporate disclosure to facilitate the growth and development of the sound SPAC market and to minimize concerns about investor protection. In this regard, the supervisory authorities should play a role in ensuring that such disclosures are properly implemented by SPACs. At the same time, investors who intend to invest in a SPAC should interpret disclosed information based on a thorough understanding of the structure and intrinsic features of SPACs, and also recognize the possibility of suffering losses from their investment in a SPAC before making any investment decisions.
Public vs. Private Corporation, Public vs. Private Market / Apr. 07, 2021
In the US, the number of public corporations (listed firms) is on the steady decline after reaching the peak in 1996. Some often-mentioned causes for the reluctance of founders and managers to go public include concerns about the loss of control over key decision making, short-termism of public market investors, and the costs listed firms bear to remain listed. However, a more fundamental cause is said to lie in the US public market’s failure to catch up with latest changes in new firm characteristics and business models for transforming itself into a marketplace more fitted for innovative start-ups. Another factor in play is the well-developed private market in the US via which start-ups can raise capital and early-stage investors can exit their investment without tapping into the public market. Surely, a well-functioning and active private market in terms of firms’ financing, early-stage investors’ exit, and corporate governance could broaden managers’ choices of whether to go public or not. However, from the perspective of investors—especially retail ones with limited access to the private market, the fall in the number of listed firms could have an adverse impact of reducing a set of investment opportunities. It would be a key policy challenge to strike an optimal balance between private and public markets, which should be preconditioned by objective research for accumulating sufficient knowledge and evidence.

Seminar Presentation