KOR

Research Staff

Research Staff

Kwon, Min Kyeong Research Fellow Fund&Pension

Profile

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

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.
New Incentive Structure Needed in Mutual Fund Distribution Market / Feb. 02, 2021
It is the duty of mutual fund distributors to select and recommend products in the best interest of their customers. On another hand, however, those financial firms also have an incentive to act in their own interest to sell funds that would offer them the largest profit. Recent studies have found that conflicts of interest have actually arisen between financial product distributors and customers, and that this has undermined customers’ investment performance. To address the issue, several nations including the UK, the Netherlands, Australia, and South Africa introduced one after another a new policy for reshaping the market’s incentive structure, which would prevent financial firms from preferring a specific product to another for their own interest. Such a policy is worth considering for Korea as it is expected to bring about positive outcomes, for example, immediately addressing the issue of conflicts of interest between distributors and customers, facilitating competition between distributors, and enhancing customer access to low-cost products.
Impact of Rebalancing on Leveraged and Inverse Funds / Jun. 09, 2020
Leveraged and inverse funds have many characteristics that are different from ordinary funds. Among others, this article places a particular focus on rebalancing transactions carried out by leveraged and inverse funds, and tries to explore the resultant fall in investment returns. Investors in those funds need to clearly understand such characteristics, and to take fully into account the inherent risks.

Seminar Presentation

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