KOR

Research Staff

Research Staff

Kwon, Min Kyeong Research Fellow Fund&Pension
Head of the Center, Digital Finance Research Center
Research Field

Profile

TEL
82-2-3771-0681
E-mail
mkkwon@kcmi.re.kr
Education
Ph. D. in Managerial Engineering (Finance), KAIST Graduate School of Management
B.A. in Mathematics, KAIST
Professional Experience
Research Fellow, Korea Capital Market Institute (2015~present)
Managing Fellow, KAIST Student Investment Fund (2010~2015)

Publications

Opinion

Growth of the Synthetic ETF Market and Investor Considerations / Nov. 21, 2023
The Korean synthetic ETF market is growing rapidly. This year alone, the sum of market capitalization has already increased by 121%, and a certain synthetic ETF has ranked first in the entire ETF market capitalization list, all of which has significantly enhanced the status of synthetic ETFs in Korea. Traditional ETFs hold constituents of the target index, while synthetic ETFs track the index by entering into swap agreements with brokerage firms. When investing in synthetic ETFs, investors need to understand the differences in investment strategies between the two ETF types and examine counterparty risk, the risk of tracking errors and the level of costs embedded in swap agreements. Additionally, it should be noted that among US-listed ETFs, some may act as synthetic ETFs although they do not include the term ‘synthetic’ in their names, which requires caution for investors. In the US, specific terms and conditions of swap agreements are disclosed, but this is not the case in Korea. For this reason, efforts should be made to increase disclosure items of swap agreements to help investors better understand ETFs and make informed decisions.
DeFi Services: Risk Factors and Global Regulatory Trend / Jan. 18, 2022
A blockchain network serves as a platform for the development and implementation of and subscription to DeFi services, which distinguishes DeFi from traditional financial instruments. What is also noteworthy is DeFi’s exposure to new risk factors. The greatest risk posed by DeFi is potential damages arising from security incidents. On top of that, DeFi service users should pay heed to other factors including the risk associated with service operating entities and failure to control the supply and demand for DeFi services. Against this backdrop, international regulators increasingly call for the introduction of DeFi regulations and have recently engaged in intensive discussions about specific regulatory policies. This implies that Korea’s financial authorities should closely observe global regulatory trends to come up with appropriate regulations for DeFi services.
A Proposed Improvement for How Leveraged and Inverse Products are Managed / Jul. 27, 2021
Several domestic and overseas studies point that frequent rebalancing transactions of leveraged and inverse products give rise to several problems as follows. First, unnecessarily frequent rebalancing causes a negative compounding effect and thus undermines long-term performance of investors. Second, they could amplify volatility of the Korean stock markets at times of crisis such as the Covid-19 pandemic. In response, this article proposes a new rebalancing mechanism that effectively reduces the trading volume of unnecessary rebalancing by leveraged and inverse products. Backtesting results confirm that the new mechanism is effective in reducing the adverse effects to a substantial extent.
Fractional Share Trading and Investor Access / Apr. 20, 2021
Fractional share trading that has been gaining popularity in overseas markets refers to a service that allows investors to trade a fraction of a share. With the rise of direct investment demand among retail investors, there has been a growing interest in fractional trading. By enhancing investor access that is currently limited by investment sizes and stock price levels, this type of trading is expected to contribute to providing small investors broader investment opportunity sets and more effective portfolio diversification. However, there are innate demerits and potential side effects in the current fractional share trading service. It would be wise, therefore, to benchmark overseas cases in improving current policy as part of effort to broaden services and customer experience in portfolio investment.

Seminar Presentation

관련 세미나 이미지
2019 Oct 02
Data and Financial Innovation
  • Presenter Research Fellow Kwon, Min Kyeong

Other Activities

Academic paper
- 「Investment horizon of shareholders and post-earnings-announcement drift」 with Tong Suk Kim 
- 「Does it matter who owns the stock?」 with Tong Suk Kim