KOR

Research Staff

Research Staff

Profile

Education
2006 Ph.D. in Finance, KAIST Business School
2001 M.S. in Finance, KAIST Business School
1999 B.A. in Industrial Management, KAIST
Professional Experience
2017- Senior Research Fellow, Korea Capital Market Institute
2007- Research Fellow, Korea Capital Market Institute
2016 Visiting Scholar, San Diego State University
2006-2007 Lecturer, KAIST Business School, Dankook University, Seoul Women`s University

Publications

Opinion

Retail Investors during Covid-19 Pandemic / Mar. 09, 2021
After the outbreak of Covid-19, retail trading in Korea hit an all-time high, with the net buying and trading value soaring to unprecedented levels. The incredibly active trading of retail investors for the past year is estimated to add an extra KRW 13 trillion profit to the gains from their holdings purchased prior to the pandemic. However, the extra profit appears to underperform the market, and the sudden increase in trading value only pushed up the transaction costs such as transaction taxes and brokerage fees to KRW 13.7 trillion. It appears that high volatility and abrupt rebounds in stock prices during the pandemic era bolster retail investors’ over-confidence about their investment capability while fueling their expectations for extremely high returns, which altogether triggered those investors to trade excessively. Retail investors’ lack of investment capability and behavioral biases likely undermine their direct investment performance. A desirable approach is to encourage those investors to tap into more indirect investment vehicles and professional investment advice.
A Comparative Look at Global Stock Market Performance After Covid-19 Spread / Oct. 06, 2020
Hit hard by a synchronized plunge during the global spread of Covid-19, stock markets in major economies seem to be treading different paths depending on the size of shocks and market-specific characteristics. It is analyzed that the recovery was faster in a market with a lower decline in 2020 growth outlook, a higher IT sector weight, and more stock market liquidity. Meeting all of those three conditions, Korea’s stock market has been outperforming its peers. However, the real factor behind Korea’s solid growth outlook and quick recovery in the stock market could be the nation’s relative success in containing Covid-19. Hence, the possibility of another wave of the virus could be all the more threatening than anything else to Korea’s stock market.
Covid-19’s Impact on Korea’s Stock Market / Mar. 31, 2020
With the spread of a deadly new coronavirus from China to the globe and plunging international oil prices, the Covid-19 epidemic has now evolved into a new phase. As Covid-19 became a common threat to the global stock markets, stock bourses in major economies are showing a synchronized downturn. Under the circumstances, Korea’s stock price declines appear to be determined by individual stocks’ sensitivity to external factors. Faced with uncontrollable global risk factors, Korea’s stock market will be inevitably exposed to high volatility for the time being. The seemingly long-term nature of the economic shock from Covid-19 requires Korea to focus on seeking ways to help Korea’s listed companies cope with the shock, rather than turning to short-term action against panic selling by foreign investors.
Behavioral Biases and Protecting Derivative-linked Securities Investors / Mar. 03, 2020
In making a decision to invest in a complex financial product such as derivative-linked securities, investors often rely on selective information, a rule of thumb, or distributors’ solicitation instead of taking into account every piece of information. Financial firms that issue and distribute those securities have an incentive to capitalize on and profit from such behavioral biases. Although it’s certainly important to plug the loopholes in existing policy tools, equally critical towards a more effective investor protection in complex financial products would be a novel approach to minimize investors’ behavioral biases. More concretely, I propose three areas for improvement: Eradicating sales practices that mislead investors towards behavioral biases; enhancing the way of information provision with the aim to help investors better understand a risk-return profile of derivative-linked securities; and a shift away from today’s up-front fee scheme that is blamed to wrongfully induce financial firms to capitalize on investors’ behavioral biases.

Seminar Presentation

Research performance

- Default probability estimation for Korean private companies, 2004, eValue. 
- Credit risk management system development, 2006, Korea Credit Guarantee Fund. 
- Market value estimation for Korean private companies, 2007, Korea Bond Pricing. 
- The globalization of disclosure system for foreign listed companies, 2008, KRX. 
- ELW market development in KRX, 2008, KRX. 
- The plans for the introduction of SPAC to KRX, 2008, KRX. 
- Listing of growth engine companies on KOSDAQ, 2009, KRX. 
- Stabilization of the foreign exchange market, 2009, Financial Services Commission. 
- Reform of the program trading regulation, 2009, KRX 
- Stock exchange confidence index and competitiveness index, 2009, KRX 
- A preliminary study on the price manipulation detecting systems, 2009, KRX 
- Regulatory reform for reverse mergers in KRX, 2010, KRX. 
- Growth strategy of the Korean capital market IT infrastructure, 2010, Koscom. 
- Growth strategy of the Korean capital market and financial investment industry, 2010, Financial Services Commission 
- KDB`s expansion strategy for Asian capital markets, 2010, KDB. 
- Algorithmic trading: trends and issues, 2010, KRX. 
- Growth strategy of KRX, 2011, KRX. 
- HFT in the Korean market, 2011, KRX. 
- Market impact cost analysis in the KRX, 2011, KRX. 
- Supporting strart-up companies through captial markets, 2012, KRX. 
- Establishment of Consoliated Trades and Quotes Tape in the Korea Stock Market, 2013, Koscom. 
- Medium risk-medium return investment products, 2013, Financial Services Commission. 
- Capital market ecosystem for the innovative economy, 2014, The office of the president of Korea. 
- Enhancing KONEX market liquidity, 2014, KRX. 

Other Activities

[PUBLISHED PAPERS] 
- Kang, Jangkoo and Joon-Seok Kim, 2006, Private benefits of control and firm leverage: An Analysis of Korean Firms, Review of Quantitative Finance and Accounting 27, 439-463. 
- Chang, Joon Kyung, S. Hun Seog, and Joon-Seok Kim, 2007, A study on the information effects of regulation fair disclosure on earnings, Journal of Money and Finance 12 1, 107-139. 
- Kim, Joon-Seok and Uk Chang, 2009, The effects of the sidecar on the stock market, Korean Journal of Financial Engineering 8 4, 91-126. 
- Chung, Kee H., Jangkoo Kang, and Joon-Seok Kim, 2011, Tick size, market structure, and trading costs, Review of Quantitative Finance and Accounting 36-1, 57-81 
- Binh, Ki Beom, Kyong Shik Eom, Joon-Seok Kim, 2011, Foerign Investors` short sales and individual stock prices in the Korean stock market, Korean Journal of Financial Management 28-3, 139-187. 
- Chung, Kee H., Joon-Seok Kim, Kwangwoo Park, and Taeyoon Sung, 2012, Corporate Governance, Legal System, and Stock Market Liquidity: Evidence Around the World, Asia-Pacific Journal of Financial Studies 41-6, 686-703. 
- Hwang, Seiwoon, Joon-Seok Kim, Sam Ho Son, 2013, Evaluation on Koreas Money Market Benchmark Interest Rates and the Related Policies, Korean Journal of Financial Management 30-3, 231-259. 
- Chung, Jaiho, Joon Ho Hwang and Joon-Seok Kim, 2014, Block Premium and Shareholder Litigation, Asia-Pacific Journal of Financial Studies 43-3, 407-431. 
- Eom, Kyong Shik, Cheol-Ho Park, Joon-Seok Kim, Ki Beom Binh, 2014, Economic Importance of the Commodity-linked Financial Transactions and the Foundation of the Commodity Exchange in Korea: A Policy Suggestion, Korean Journal of Financial Management 31-2, 193-242. 
- Kim, Joon-Seok, Youngkyu Park, Seokhoon Lee, Analysis on Dysfunction of the Backdoor Listing in Korea, Asian Review of Financial Research 27-3, 493-528. 
- Jaemin Kim, Joon-Seok Kim and Sean Sehyun Yoo, 2016, Regulatory overkill? Short-sales ban in Korea, International Journal of Managerial Finance 12-5, 673-699. 
- Youngkyu Park and Joon-Seok Kim, 2016, Earnings management and firm performance following backdoor listing in the KOSDAQ market, Korean Accounting Journal 25-2, 205-237. 
- Byungmo Kim and Joon-Seok Kim, 2017, Financial distress, uncertainty, and corporate investments, Korean Journal of Financial Studies 46(4), 809-837.


[OTHER PUBLICATIONS] 
- Listing of exchanges: reviews and implications, 2008, Capital Market Forum 5-3. 
- Big Bang in Capital Market, 2008, Edited by Korea Securities Research Institute Korea Herald, Jimoondang. 
- The impact of short selling ban in the Korean market, 2010, Capital Market Perspective 2-1. 
- High frequency trading in the KOSPI200 Futures market, 2011, Capital Market Perspective 3-3. 
- Alternative trading systems and market fragmentation, 2011, KLCA Monthly Journal 2011-09, Korean Listed Companies Association.
- Financial transactions tax, 2013, IR FOCUS 2013-06, Korea Investors Relations Service.
- SPAC merger vs. IPO, 2013, Capital Market Perspective 5-1. 
- Multilateral Trading Facilities in the Europe: A case of BATS Chi-X Europe, 2013, EU Financial Market Focus (Summer). 
- Understanding divident payout policy, 2015, KRX Market 2015-01, KRX. 
- Can KOSDAQ rally be rationalized?, Capital Markets Review, Summer 2015.
- Impact of the change in price limits system, Capital Markets Review, Fall 2015.

[PRESENTATIONS at PROFESSIONAL MEETINGS] 
- Kang, Jangkoo and Joon-Seok Kim, Control benefit, ownership structure and firm leverage: an analysis of Korean firms, Korean Finance Associations Annual Meeting, Fall 2003. 
- Kang, Jangkoo and Joon-Seok Kim, Private benefits of control and firm leverage: an analysis of Korean Firms, Eastern Finance Association 41st Annual Meetings, 2005 spring. 
- Kang, Jangkoo and Joon-Seok Kim, Private benefits of control and dividend policy, Korean Financial Management Association Annual Meeting, Fall 2005. 
- Kim, Byungmo and Joon-Seok Kim, Stock splits: A market microstructure approach, Korea Allied Finance Associations Meetings, Spring 2007. 
- Chung, Kee H., Jangkoo Kang, and Joon-Seok Kim, Tick size, market structure, and trading costs, Korea Allied Finance Associations Meetings, Spring 2007. 
- Chung, Jaiho, Joon Ho Hwang, and Joon-Seok Kim, The Dark side of private benefits: implications from block trades, European Financial Management Association Annual Conference, 2008 Spring. 
- Chung, Jaiho, Joon Ho Hwang, and Joon-Seok Kim, The Dark side of private benefits: implications from block trades, Korea Academic Society of Business Administration Annual Meeting, August 2009. 
- Chung, Kee H., Joon-Seok Kim, Kwangwoo Park, and Taeyoon Sung, Liquidity and corporate governance: evidence around the world, Korea Academic Society of Business Administration Annual Meeting, August 2010. 
- Chung, Jaiho, Joon Ho Hwang, and Joon-Seok Kim, Block premium and shareholder litigation, The Fifth Annual Conference on Asia-Pacific Financial Markets of the Korean Securities Association, December 2010. 
- Chung, Jaiho, Joon Ho Hwang, and Joon-Seok Kim, Block premium and shareholder litigation, Midwest Finance Association 2011 Conference, March 2011. 
- Joon-Seok Kim, Trading in Korea: Current landscape and future trends, 2011 KCMI International Conference, September 2011. 
- Ki Beom Binh, Kyong Shik Eom, Joon-Seok Kim, Choelho Park, Economic Importance of the Commodity-Linked Financial Transactions and the Foundation of the Commodity Exchange in Korea: A Policy Suggestion, Korean Financial Management Association Annual Meeting, October 2013. 
- Joon-Seok Kim, Changing trends in the global financial exchange industry, KSA-KIF policy simposium, January 2014. 
- Joon-Seok Kim, Structural Changes in the Korean Stock Market: Aspects and Causes, KCMI 17th Anniversary Conference, September 2014. 
- Joon-Seok Kim, Understanding corporate dividend policy, KRX seminar commemorating the launch of new dividend index, October 2014. 

[HONORS & AWARDS] 
- Member of the Honor Society of Beta Gamma Sigma. 
- Best paper award, 2004 KAIST Business School Conference, Private benefits of control and firm leverage: an analysis of Korean firms. 
- Best paper award, Korea Academic Society of Business Administration 2010 Annual Meeting, Liquidity and corporate governance: evidence around the world. 
- 2011 Nam-Gok prize (1st prize), Korean Financial Management Association, Foerign Investors` short sales and individual stock prices in the Korean stock market. 
- 2012 Outstanding paper award (2nd prize) in Asia-Pacific Journal of Financial Studies, Corporate Governance, Legal System, and Stock Market Liquidity: Evidence Around the World. 
- Best paper award (2nd prize), 2013 Korean Financial Management Association Annual Meeting, Economic Importance of the Commodity-linked Financial Transactions and the Foundation of the Commodity Exchange in Korea: A Policy Suggestion. 
- 2017 Best paper award (2nd prize) in Korean Journal of Financial Studies. Financial Distress, Uncertainty, and Corporate Investments. 
- 2018 KCMI Best Research Report, Analysing Listing transfer from the KOSDAQ to the KOSPI.