KOR

Research Staff

Research Staff

Profile

Education
Ph.D. in Economics (2006), The University of Texas at Austin
M.A. in Economics (1999), Sogang University
B.A. in Economcis (1997), Sogang University
Professional Experience
2006. 7 ~ Research Fellow, Korea Capital Market Institute
2018. 1 ~ Senior Research Fellow, Korea Capital Market Institute

Publications

Opinion

Internal Controls of US Broker-Dealers: Evolvement and Characteristics / May. 18, 2021
In the wake of the recent cases related to internal controls of financial firms, both financial authorities and the industry appear to agree on the need for regulatory improvement. An effective compliance program is certainly one of the essential elements to internal controls of financial firms. This article takes a brief look at the case of the US, a country that boasts its advanced compliance program for securities firms. The compliance program of US securities firms evolved thanks to sanctions based on sentencing guidelines (the USSG), and supervisory duty set forth under the Securities Exchange Act, instead of regulatory mandates. Among others, this could be largely attributable to an effective incentive mechanism that offers tough sanctions combined with a penalty mitigation policy, and supervisory duty backed by safe harbor provisions. It is worth closely studying the case of the US that lays stress on those firms’ action such as self-reporting and cooperation with investigation, instead of fully focusing on formulating a perfect compliance program. Admittedly, Korea and the US are starkly different in terms of the legal framework and internal controls of securities firms. Still, however, the US case could serve as an important reference in discussions about improving Korea’s internal controls going forward.
Increasing Retail IPO Investors and Importance of IPO Pricing / Dec. 22, 2020
Recently, Korea’s IPO market has seen a surge of retail investors. In November 2020, Korea’s Financial Services Commission unveiled its plan to give broader investment opportunities to retail investors in IPO shares, which desirably should be supplemented by further plans to shape a sound IPO market. This article tries to assess why retail investors are flocking to the IPO market, and to review the positive and negative aspects. What’s found is the increasing importance of IPO pricing that is helping the IPO market to better protect investors and to stably form demand for IPO stocks. More concretely, it is needed to improve the bookbuilding process, to facilitate over-allotment, and make the market more oriented by underwriter reputation, all of which could help form a sound IPO market.
Default Funds from the Perspective of Behavioral Economics / Sep. 01, 2020
Default funds have been widely regarded in other countries as an effective tool that helps DC plan members overcome their behavioral biases. Although Korea has long discussed about the need for default funds, the issues related to DC plan holders’ behavioral biases have yet to come to the fore. Against the backdrop, it’s worth shedding another light to the need for default funds from the behavioral economics perspective. Korea’s retirement pension plans have been long invested in principal-protected products. One of the primary reasons could be plan members’ behavioral biases arising from the complex management process and their lack of long-term investment strategies, not to mention other reasons such as the pension regulation and high interest rates when Korea first shifted to the retirement pension scheme. Default funds could properly tackle those behavioral biases. Amid today’s low interest rate trend, many plan members are more likely to consider or actually choose investment products. However, a significant number of them could be affected by behavioral biases in managing their investment in the long run. Those biases could be effectively dealt with by default funds as well.
Information Barriers: Overseas Cases and Implications / Sep. 24, 2019
In May 2019, Korea’s Financial Services Commission unveiled its plan to ease rules on the Chinese Wall as part of its wider reform on the capital markets. If Korea switches to the proposed principal-based rule, this is expected to allow securities firms to head towards more reasonable self-regulation, and thereby fix the problems under the current rule-based regulation. However, this, at the same time, poses securities firms formidable challenges and burden because instead of merely following the existing regulation they will have to work hard for designing their own information barrier that is fitted for their own business structure and ensures proper legal defenses. Against the backdrop, the industry and the Korea Financial Investment Association should work together to form a consensus about what kind of information barrier would be suitable for Korea. Concerted efforts and sufficient discussion will help lower legal uncertainties around the principle-based regulation. Hopefully, such regulatory development helps Korea’s securities firms shift towards an effective Chinese Wall fitted for their own business structure as in the case of the U.S.

Seminar Presentation

Research performance

Measuring the Effect of Branch Network in the Korean Banking Industry