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

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.
Factors Influencing Retail Customer Choice of a Securities Firm and Their Implications / May. 08, 2019
This article explores the factors that influence retail customers’ choice and retention of securities firms through a simple survey and provides recommendations for marketing and sales strategies that securities companies should focus on. For brokerage service, the highest percentage of survey respondents replied that low commissions are the main reason for their choice and retention of a securities firm. The second most important factor is the competitive edges of online trading system. These findings suggest that securities companies cannot avoid price competition for customer acquisition and should make persistent efforts to provide easily accessible and user friendly online trading platforms to their customers. For investing in financial products, the largest portion of respondents said they consider product competitiveness as an important lever for choosing and retaining a securities firm. This result is not irrelevant to the emergence of product features and competitiveness as the crucial competitive advantages of a securities company. To enhance product competitiveness, more important than anything else are developing products that reflect evolving customer preferences with market changes and employing sales strategies that are tailored to customers and help build customer trust. With these strategies being put in place, successful long-term growth would come to the retail segment of the securities industry.

Seminar Presentation

Research performance

Measuring the Effect of Branch Network in the Korean Banking Industry