Research Staff

Research Staff


Ph.D., Economics, Indiana University, 2004
M.A., Economics, Indiana University, 1998
B.A., Psychology, Korea University, 1992
Professional Experience
Research Fellow, Samsung Economic Research Institute, 2004 - 2006
Research Fellow, Korea Securities Research Institute, 2006 -



Korea’s Potential Inclusion in the WGBI: Significance and Expected Effects / Nov. 22, 2022
Korea is getting one step closer to joining the World Government Bond Index (WGBI). As a pre-WGBI inclusion stage, it has been added to the FTSE Fixed Income Country Classification Watch List, thanks to the government’s active efforts. It is expected to join the index as early as the first half of next year. Korea’s inclusion in the WGBI, a leading index for global treasury exposure, is likely to invite investment funds benchmarked against the index and stabilize the sovereign debt market and the FX market. With fewer incentives to attract foreign investors to Korea, the inclusion could provide a stable stream of funds to the sovereign debt market and thus, bring about greater economic benefits. In addition, this would help Korea overcome a discount for won-denominated bonds by improving international creditworthiness of the Korea Treasury Bond (KTB) market. However, index membership should entail adverse effects of raising susceptibility to external factors, which requires caution. As FTSE Russell, the operator of the WGBI, specifies conditions for the exclusion from the index, a trigger of the exclusion could lead to capital flight. In this respect, Korea should take measures to alleviate external shocks by expanding the domestic bond investor base while preparing for inclusion in the WGBI.
A Shift in Global Monetary Policy: Risk Factors and Implications / Jun. 14, 2022
As the US is entering a rate hike cycle, there is a growing concern about its adverse effects on Korea’s financial market. Recently, monetary policies of advanced economies are being decoupled from each other. Starting this year, the US and the UK are tightening monetary policy at a faster pace while the Eurozone and Japan still maintain the expansionary monetary policy stance. This phenomenon can be commonly observed in the US rate hikes during the early 2000s. A recent study has analyzed that monetary policy divergence between advanced economies partially offsets repercussions of the US monetary tightening such as greater capital outflow from the emerging market. Korea also has seen the effects of changing external factors diminishing since the global financial crisis. This is partly attributable to Korea’s improved external soundness and monetary policy divergence between advanced economies. In this respect, growing external uncertainties such as aggressive monetary policy tightening by the US is likely to have only a limited impact, compared to the past. However, a prolonged geopolitical conflict and a delayed recovery in global supply chains are raising the possibility that higher inflation becomes entrenched. Accordingly, thorough preparation should be made to deal with unprecedented risk factors such as simultaneous monetary tightening implemented by central banks of all advanced economies.
Thoughts on the Recent Surge in Cross-border Foreign Equity Investment by Retail Investors of Korea / Jan. 04, 2022
Korean investors’ outward equity investment has recently been growing rapidly, in particular, driven by retail investors through direct cross-border transactions. Direct investing in foreign equities issued and traded in foreign countries goes through complex routes via multiple financial institutions, due to its cross-border transaction nature. It entails additional risks arising from higher transaction costs and greater currency risk, compared to domestic trading. In general, these constraints serve as an obstacle to retail investors’ direct foreign equity investment in major economies. However, Korea has seen growing interest of retail investors in direct investing in foreign equity since the Covid-19 pandemic outbreak, mainly thanks to its relative advantages in terms of transaction convenience. In the Korean market, convenience in trading foreign equity brings about economic benefits such as low transaction costs but, at the same time, it poses additional risks especially in terms of investor protection. In particular, given the recent rise in foreign equity holdings through direct investment, retail investors seem to perceive outward equity investment as a high-risk, high-return investment strategy. This calls for a paradigm shift among investors to ensure that they recognize outbound equity investment as part of portfolio diversification to improve the risk-adjusted returns.
Electronic Trading in Global FX Market: Current State and Implications / Jun. 29, 2021
In the global foreign exchange market, the use of electronic trading has recently increased sharply, particularly in the dealer-to-customer market. Advancement in electronic trading systems has been shifting the structure of liquidity provision from the interbank market towards the dealer-to-customer market, and the emergence of diverse systems has helped the dealer-to-customer market participants to more actively engage in the FX market. By contrast, electronic trading in Korea’s FX market has been used limitedly in interbank transactions only, a trend starkly different from the global market. More recently, Korea sees the offshore won-dollar NDF transactions largely surpassing the onshore interbank spot exchange transactions, suggesting an impact of the changes in the global FX market on Korea. Given such changes and impacts of the global FX market, it is advisable that Korea improve its electronic trading infrastructure for FX transactions in a way that could induce the use of electronic trading in the dealer-to-customer market segment. Especially, Korea’s advancement in electronic trading in dealer-to-customer transactions is expected to produce positive outcomes such as enhancing customer convenience, increasing FX market liquidity, and promoting the efficiency in banks’ FX risk management, which in the long run will diversify the FX business scope for developing Korea’s financial services industry and the financial markets. However, the won currency’s partially international aspect requires a more cautious approach. One idea for market prudence would be to build a risk management system that could secure stability for the increased use of electronic trading in the FX market.

Research performance

「A study on Korea-ASEAN financial cooperation」, 2019, (commissioned by National Research Council for Economics, Humanities and Social Sciences) 
「A study on OECD Codes of Liberalization of Capital Movements and Macro Prudential Policy」, 2018, (commissioned by Ministry of Economy and Finance) 
「A Review on OECD Codes of Liberalization of Capital Movements」, 2017, (commissioned by Ministry of Economy and Finance) 
「A study on FX market stability mechanism」, 2017, (commissioned by Ministry of Economy and Finance) 
「A study on Short Stock Selling」, 2017, (commissioned by Korea securities Finance Corporation) 
「KSP System Consulting: Support for Developing and Operating Corporate Bond Market System of Vietnam」, 2016, (commissioned by Ministry of Economy and Finance) 
「A study on Korea's Capital Market Infrastructure」, 2016, (commissioned by Council on International Financial Cooperation) 
「Asia-Pacific Financial Cooperation: Current Developments and Future Prospect」, 2013, (commissioned by Ministry of Economy and Finance) 
「A Study on Policy Tasks and Implications for Internationalization of Korean Currency」, 2012, (commissioned by Ministry of Economy and Finance)  
「A Study on Korea-China FTA: Issues on Financial Services Sector」, 2011, (commissioned by Ministry of Economy and Finance)  
「A Study on Korea-China FTA: Analysis of Macro Financial Risks」, 2011, (commissioned by Ministry of Economy and Finance) 
「A Study on Global Bond Market and Public Debt Management」, 2011, (commissioned by Ministry of Economy and Finance)   
「Examination of Major Sovereign Wealth Funds and its implications」, 2011, (commissioned by Ministry of Economy and Finance) 
「FDI in the Financial Services Sector: Evaluation and Policy Implications」, 2010, (commissioned by Ministry of Trade, Industry and Energy) 
「A Study on Recent Fluctuations in Korea’s Foreign Exchange Market: Examination of Connection between Foreign Exchange Market and Capital Market Movement」, 2009, (commissioned by Financial Supervisory Committee)
「Re-evaluation of Korea's Financial Hub Promotion Policies」, 2009, (commissioned by Financial Supervisory Committee)
「A study on OTC Derivatives Trading System」, 2009, (commissioned by Financial Supervisory Committee) 
「A study on Disclosure System Advancement for Foreign Companies」, 2008, (commissioned by Korea Exchange) 
「A study on Asset Management Sector development and its Implications on Financial Hub Promotion Act」, 2007, (commissioned by Korea Investment Corporation)
「Evaluation of the Competitive Position of Seoul as an International Financial Center」, 2007, (commissioned by Metropolitan Government of Seoul)  
「Examination of Recent Financial Reform in Australia and its Implication to Financial Hub Promotion Strategy」, 2006, (commissioned by Financial Supervisory Service)  
「Korea-US FTA: Evaluation of the Issues on Financial Services Sectors and its Implication to the Korea’s Capital Market」, 2006, (commissioned by Ministry of Economy and Finance)

Other Activities

- "Recent Emerging Market Financial Turmoil and its Implications 2018, (KCMI Issue Paper Series)
- "A study on Global Liquidity Reversal and its Implications", 2017, (KCMI Issue Paper Series)  
- "Current State and Determinants of Overseas Portfolio Investment", 2016, (KCMI Research Paper Series)
- "Internalization of Chinese RMB and its Impact on International Monetary and Financial Order", 2015, (KCMI Study Series)
- "A study on Global Imbalance and its Implications", 2013, (KCMI Research Paper Series)
- "Current Status of Islamic Finance and its Implications", 2012, (KCMI Research Paper Series)
- "Impact of European Sovereign Debt Crisis on Korean Economy, 2012, (KLCA Research Vol. 66, Korea Listed Companies Association)
- "A study on Sovereign Wealth Fund", 2012, (KCMI Research Paper Series)
- "The Changes in Strategies for International Financial Hub Promotion in Major Cities after Global Financial Crisis," 2011, (KCMI Policy Paper Series)
- "Seoul an International Financial Centre: Roadmap, Progress and Challenges, 2009, (Pacific Economic Cooperation Council, a chapter in "Competition among Financial Centers in Asia-Pacific: Prospects, Benefits, Risks and Policy Changes"(ISBN 978-981-230-930-3)

- "Re-evaluation of Korea’s Financial Hub Promotion Policies ", 2008, (KCMI Issue Paper Series)
- "Seoul's International Financial Environment", 2007, (KCMI Discussion Paper Series)
- "Impact of Twin Deficits of US on Won/Dollar Exchange Rate”, 2005, (SERI Research Paper Series, Samsung Economic Research Institute)
- "BRICs: Challenges and Opportunities", 2005, (SERI Publication Series( ISBN 89-7633-278-4), Samsung Economic Research Institute)
- "Essays on International Portfolio Diversification", 2004, (Ph.D. Thesis, Indiana University)