Research Staff

Research Staff


Ph.D. Finance, KAIST College of Business, 2019.01
B.S. Mathematics, KAIST, 2013.02
Professional Experience
Research Fellow, Korea Capital Market Institute, 2019.03 ~ current
Part-time Lecturer, Hansung University, 2018.03 ~ 2018.08


Analyses on Year-end Retail Net Selling in Korea’s Stock Market, and the Implications / Nov. 24, 2020
A massive inflow of retail investors to Korea’s stock market this year has raised concern about the impact of their possible year-end net selling in the market. According to a series of empirical analyses in this article, their year-end net selling could have been affected by not only retail selling for realizing returns as part of their tax strategies, but also institutional buying for dividend arbitrage. Also, the retail net selling impacts on stock prices depend on the level of institutional demand: Price declines by retail net selling are not observed in the stocks for which institutional investors have high year-end demand. However, economic shocks and the expected dividend decrease in listed companies in Korea are expected to drag down institutional demand at year-end. It’s important to note that this—combined with retail investors’ continuous risk preference—could possibly derail the way net selling used to impact the market.
A Thought on Covid-19 and Rising Demand for Stocks / Jul. 21, 2020
More and more retail investors have flocked to the stock market amid increased market volatility due to the Covid-19 pandemic this year. A quick look at retail investors’ recent stock purchases reveals an increase in buying of high-risk stocks during the path of stock market recovery from the Covid-19 shock. Also found during the same period is an increase in margin buying of high-volatility, high-skewness stocks. Although investment in risky assets is essential to asset accumulation of households in the low interest rate environment, it’s desirable for investors to properly spread out their risk or avoid excessive leverage as the market is faced with downside risks due to internal and external uncertainties.
Relationship between Controlling Shareholders and Group-affiliated Firm Performance: Evaluation and Implications / Oct. 08, 2019
Large-scale business groups in Korea have a governance structure where minority controlling shareholders with a small stake have an overwhelming controlling power over the whole business group. Such an ownership-control disparity inevitably could result in conflicts of interests, and opportunism by the controlling shareholders at the expense of other shareholders. Empirical analysis on firms within business groups in Korea for a period between 2000 and 2018 shows that the financial performance of group-affiliated firms is strongly related to the interests of controlling family shareholders. Among others, the average performance of group-affiliated firms with small ownership of the controlling family shareholders has been bad over the whole sample periods, and this phenomenon cross-sectionally deepens in business groups with high ownership-control disparity.The overall results imply that the governance mechanism is not properly functioning in Korea’s business groups. In order to rectify this issue, the role of shareholders who can practically keep controlling shareholders in check must be improved. The FSC’s recently released plan for a reform on FSCMA’s Enforcement Decree is closely linked to the rising demand for institutional investors’ shareholder activities. Also necessary is a reform in minority shareholder regulation, which is expected to substantially improve the roles of shareholders across the board.

Seminar Presentation

Research performance

「Proposal for Improvement of Pricing Method of Final Settlement Price of KTB Futures」, 2020.10, Korea Exchange
「Case Study and Implication of Global Innovative Financial Services」, 2020.10, FinTech Center Korea
「Analysis of the Operation of Market-making system and Suggestions for Strengthening the Capabilities of Market Makers」, 2020.09, Korea Exchange
「Economic Outlook and Tax Projection for 2020」, 2020.05, National Research Council for Economics, Humanities and Social Sciences
「A Study on Listing Process for Derivatives and ETP」, 2019.12, Korea Financial Investment Association
「A Study on Guideline for Active Exercise of Shareholders' Rights by Nation Pension Fund of Korea」, 2019.10, National Pension Fund


Other Activities

Academic Research
[ Publication ]
- Investor Sentiment and Bond Risk Premia: Evidence from China (with Kiryoung Lee), 2019. Emerging Markets Finance and Trade, 55(4), 915-933. 

- Do Hedge Funds Time Market Tail Risk? Evidence from Option-implied Tail Risk (with Jung-Soon Shin, Dongjun Oh, and Tong Suk Kim), 2019. Journal of Futures Markets, 39(2), 205-237. 
- Measuring Chinese Economic Uncertainty and Predictability of the Great China Stock Market Volatility (with Kiryoung Lee), 2018. Korean Journal of Finance and Knowledge Studies, 16(3), 55-83. 
- Dissecting Profitability Premium in Korean Stock Markets (with Jinsoo Jung and Tong Suk Kim), 2018. Korean Journal of Financial Management, 35(4), 69-108. 
[ Working Papers ]

- Re-Interpreting the Profitability Premium 
- Resurrecting Lottery-related Anomalies 
- V-shaped Disposition Effect, Stock Prices, and Post-Earnings-Announcement Drift: Evidence from Korea 
- Why Does Trading Volume Predict Stock Returns? Evidence from a Decomposition Approach 

- Outstanding Paper Award, Joint Conference hosted by Allied Korea Finance Association, 2017