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 -



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.
Structural Shifts in US Dollar Funding Market and Implications / Jan. 19, 2021
Having borne the brunt of liquidity crunch during the global financial crisis, the US dollar funding market is going through diverse changes due to strengthened post-crisis prudence regulation in the banking sector. In the market, global megabanks used to act as significant intermediaries of US dollar transactions, which helped meet the global US dollar demand. More recently, however, there have been several structural shifts such as more dollar-denominated bonds issued by non-bank institutions, more money raised in the FX swap market, and lingering high-cost and low-liquidity conditions in the short-term dollar money market. Although Korea’s FX spot market has enjoyed sound liquidity thanks to Korea’s improved exports, demand has been higher than usual in Korea’s foreign currency money market whose liquidity comes from foreign bank borrowings. This appears to imply a possible impact of the structural shifts in the global dollar funding market on Korea’s foreign currency money market. Hence, it’s advisable that Korea closely monitor such structural shifts for the sake of FX market stability. Given that those structural shifts are reining in global bank’s capacity to supply dollar while increasing the imbalance in Korea’s FX swap market, continuous policy effort is needed to secure and stabilize foreign currency liquidity.
Korea’s Foreign Exchange Market under Covid-19: Current State and Implications / Apr. 28, 2020
A foreign currency liquidity crisis in the past used to stem from a disequilibrium in the financial markets. However, what we have today is fundamentally different. Covid-19’s fallout is first hitting the real economy to dampen firms’ ability repay their debt, which in turn raises uncertainties in the financial and foreign exchange markets. As it’s de facto impossible to predict when the pandemic will end, uncertainties around the size and period of the economic fallout could be amplified further. Under the context, signs of a crunch in the global dollar market are affecting Korea’s foreign exchange market, serving as a source of concern over the supply and demand of foreign currency. Although uncertainties surrounding Korea’s foreign exchange market are expected to linger for a considerable period of time, their destabilizing impact will be relatively limited given Korea’s external soundness and emergency liquidity sources such as currency swap lines, and the US Fed’s determination to expand its provision of offshore dollar liquidity. However, a recovery from today’s crisis relies entirely on how Covid-19 unfolds in the near future. Hence, Korea should ensure that its foreign exchange market is ready for the lengthening of the crisis. Furthermore, all-out effort is needed to closely monitor the conditions in the foreign exchange market as well as the global dollar market, and to step in to provide foreign currency liquidity whenever necessary.
Quick Assessment on Korea’s Foreign Equity Bias / Feb. 18, 2020
This article explores Korean investors’ foreign bias from the perspective of the efficiency of regional asset allocation. Recently, Korea’s outward equity investment rose abruptly to hit a record high, especially in major developed economies such as the US. However, if measured by a departure from the theoretical optimal asset allocation, Korea’s foreign equity bias towards each investment destination is still fairly high. More specifically, Korea’s outward investment in the US shows a underinvestment bias, although the US takes up a half Korea’s outward equity investment. Korea’s underinvestment bias is found in most of the major investment destinations, except for Vietnam. Another measure of foreign equity bias, Korea’s home bias also remains quite higher than that of major economics. What those results imply is that Korean investors fail to fully benefit from outward equity investment despite the recent rise in their foreign equity holdings. On the other hand, this also means an opportunity ahead of Korean investors. They still have a chance to improve the risk-adjusted returns by increasing their weight in foreign equity. Going forward, Korean investors should seek to improve the efficiency of asset allocation after fully taking into account the key variables behind risk distribution.

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)