Research Staff

Research Staff


Ph.D. Economics, University of Michigan, Ann Arbor, August 2007
M.A. Economics, University of Michigan, Ann Arbor, April 2001
M.B.A. Business Administration, Yonsei University, Seoul, August 1999
B.B.A. Business Administration, Yonsei University, Seoul, February 1997
Professional Experience
August 2012 ~ present, Research Fellow, Korea Capital Market Institute
Sept. 2011 ~ July 2012, Assitant Professor, Sangmyung University
August 2007 ~ August 2011, Research Fellow, Korea Capital Market Institute



Concerns about Liquidity Shortage in Korea’s CP and ESTB Markets Under Covid-19 / Apr. 22, 2020
Even when a firm cannot finance itself in the corporate bond market, it can often tap into shorter-term instruments such as commercial paper and electronic short-term bonds. This is why a default tends to hit the CP and ESTB markets first before it grows to a crisis and quickly spreads into the overall corporate bond market. Given this particular nature of CP and ESTB markets, it’s critical to closely monitor the prices and fund flows in those markets in times of crisis such as now. Should any unrest increase abruptly, policy authorities need to ensure that liquidity is immediately provided for stabilizing the market. Given the size of CP and ESTB outstanding, it’s hard to see the liquidity in those markets drying up seriously. However, in terms of yields-another price indicator, there is an evident contraction in market liquidity. As of April 1, 2020, the yields on A1-rated 3-month CP and ESTB remained 127bp and 148bp higher than the base interest rate, which increased concerns about short-term corporate financing. What’s worrisome in particular is that an absolutely large part of CP and ESTB is issued by financial and insurance firms. More specifically, the two sub-sectors take up 63.5% of CP, 59.3% of ESTB, and almost all asset-backed CP and asset-backed ESTB in terms of the amount outstanding. This implies that the financial sector will bear the largest brunt of any potential liquidity crunch in the CP and ESTB markets. Korea’s March 24 financial market stabilization measures include a CP and ESTB purchase program that is expected to help stabilize the corporate bond and money markets. Such a policy action is viewed as appropriate given the roles of CP and ESTB in corporate financing. However, some details on management principles may need adjusting for the program to fully achieve intended policy effects.
Global Regulatory Trends on Virtual Assets and the Implications for Korea / Jan. 07, 2020
Facebook’s recent attempt to issue Libra, a global stablecoin, is a reminiscent of the imminent commercialization of virtual assets in our everyday life despite lingering regulatory uncertainties. Although the uncertainties regarding the potential risks inherent in virtual assets have become a deterrence, virtual assets including global stablecoins are expected to play a crucial role in commercial and financial transactions going forward. This calls for Korea’s regulatory authorities to accelerate its overhaul on the regulatory framework governing overall virtual assets including stablecoins. Given overseas regulatory moves, it’s advisable for regulators to consider the followings in devising Korea’s virtual asset regulatory framework. First, it’s desirable to give virtual assets a clear legal basis that enables stable operations of relevant economic activities. Second, full, holistic consideration should be made to build up a regulatory framework that is consistent with global regulations. Third, the central bank should positively consider whether it’s proper to issue the central bank digital currency (CBCD) given the expansion of virtual assets.
Japan’s Taxation of Capital Gains from Financial Investment products: Its Characteristics and Implications / Jul. 02, 2019
Reforming capital gains tax on financial investment products, coupled with a cut in securities transaction tax, has come under increasingly heated discussion. It is important to delve into the direction tax changes in other countries are heading in, when discussing the direction of the tax reform. We can draw out useful implications from Japan in particular because of similarities between Japan and Korea. Japan divides financial investment products into three categories and allows loss deduction and loss carryforward between financial investment products within the same category. Through comprehensive loss deduction against different types of income from financial investment products and three-year loss carryforward, Japan’s tax regime for financial investment products seeks to achieve diverse objectives, that is, investment diversification, entrepreneurial capital accumulation, and citizens’ wealth increase via capital markets. The characteristics of Japan’s capital gains taxation would provide some insights into how Korea should continually develop its tax regime for the capital markets.
Rationalizing Collective Investment Vehicle Taxation for Koreans’ Wealth Growth / Feb. 12, 2019
Given that collective investment vehicles (CIVs) can play a vital role in the wealth growth of people, the rationalization of the relevant tax regime is important to ensure that CIVs perform their function properly. The acceleration of population ageing leads to a sharp rise in demand for asset accumulation to prepare for retirement. A rational taxation system is increasingly necessary to smoothly and vibrantly channel the funds aimed at wealth increase for retirement into the area of indirect investment. Problems observed in the current CIV taxation are the non-taxation of certain CIV profits and losses, prohibition against loss deduction among CIVs and loss carry-forward, and the tax treatment of gains from the trade or redemption of units in a CIV as dividend income. To rationalize the CIV taxation, it is worth considering allowing loss deduction and loss carry-forward for CIVs. Loss deduction and loss carry-forward could incentivize investors to leverage the diversification effects of indirect investment. Furthermore, it is also worth considering re-defining profits from the redemption or trading of units in a CIV as capital gains rather than dividend income. It seems desirable to recognize the income distributed from CIVs as dividend income as it is today, and to convert income from the redemption or trading of units in CIVs into capital gains, not dividend income, because it is deemed to be of a capital gains nature. This change would bring about positive impacts such as lower tax unfairness between direct investment and indirect investment through a CIV, and reduced tax imbalance between CIVs (that is, between investment trusts and investment companies). In addition, it is required to revise the tax-exemption rules for certain CIV profits and losses and the existing tax calculation method using tax bases.

Seminar Presentation

Research performance


ㅇ “Increasing Foreign Investment Shares in Korean Bond Markets: Is This Good or Bad? ,” Capital Market Forum, Vol. 5, 2008
ㅇ “Transitioning to the Electronic Securities and Its Effects to Korean Financial Market,” (with P. Kim, S. Lee, Y. Kim, and I. Cho), Research Paper, 09-01, Korea Capital Market Institute, 2009 
ㅇ “Development of the Mortgage Pricing Models in the US Financial Institutes and Its Implications,” Housing Finance Monthly, Vol. 56, 2009 
ㅇ “Implementing Exit Strategies and Its Impact on the Financial Markets in Korea,” Capital Market Perspective, Vol. 2, No. 2, 2010 
ㅇ “Cohort Effects in Promotions and Wages: Evidence from Sweden and the United States,” (with I. Kown and E.M. Milgrom), Journal of Human Resources, Vol. 45, No. 3, 2010 
ㅇ “Launching the Qualified Institutional Buyers and Its Effect on the Korean Capital Markets,” Securities Finance, Vol. 361, 2010 
ㅇ “Introduction of the Korean Treasury Bills and Its Impacts,” Capital Market Perspective, Vol. 3, No. 3, 2011 
ㅇ “Business Cycle Implication of Long-Run Risk Consumption CAPM: Korean Stock Market Evidence,” (with K. Binh and S. Son), Korean Journal of Futures and Options, Vol. 20, No. 3, 2012 
ㅇ “Adoption of Financial Transaction Taxes in Europe and Its Implication to Korean Financial Market,” (with J. Kim), Issue and Policy Paper, 13-01, 2013 
ㅇ “Evaluation on Koreas Money Market Benchmark Interest Rates and the Related Policies,” (with J. Kim and S. Son), Korean Journal of Financial Management, Vol. 30, No. 3, 2013 
ㅇ “Introduction of the New Securities Settlement System and Its Effect for Korean Capital Market,” Capital Market Perspective, Vol. 5, No. 2, 2013 
ㅇ “Volatility in the Korean Bond Market: Evaluation and Implications,” (with I. Baek), Issue and Policy Paper, 13-06, 2013 
ㅇ “Does Government Bonds Issuance Affect Interest Rate and Private Sector Capital Investment in Korea?” (with K. Binh and E. Seo, Journal of Korean Economic Studies, Vol. 31, No. 3, 2013 
ㅇ “The Policy Characteristics of Foreign Government Bond Markets and Their Implications on KTB Market,” (with I. Baek and P. Kim), Investigation Paper, 14-01, 2014 

[Conference Presentations] 

ㅇ “The Corporate Bond Market in Korea,” South Asian Domestic Debt Markets Study Workshop, World Bank and KSRI, December 2007. 
ㅇ “Development of Korean Bond Markets and Lessons for Asia: Government Bond,” Asian Bond Market Outlook, Asian Development Bank and KSRI, November 2008. 
ㅇ “CP Market Reforms,” KSA Seminar Series, Korea Securities Association, April 2009. 
ㅇ “Replacing CP with the Short-term Corporate Bond,” KCMI Policy Seminar, Korea Capital Market Institute Financial Services Commission, October 2009. 
ㅇ “Exit Strategies and Their Impacts on the Financial Markets in Korea,” KFA Symposium, Korean Finance Association, May 2010. 
ㅇ “The Bond Markets in Korea,” Asian Bond Market Forum, Asian Development Bank KCMI, November 2010. 
ㅇ “Launching Qualified Institutional Buyer Securities in Korea and Its Impacts on SME Financing,” KCMI Policy Seminar, Korea Capital Market Institute Financial Services Commission, November 2010. 
ㅇ “Corporate Bond Markets in Korea,” Asian Bond Monitor Forum, Asian Development Bank, 2012. 
ㅇ “Current Issues of Korean Capital Market and the Implications on Indonesian Capital Market,” Indonesia-Korea Capital Market Forum, KDB Daewoo Securities, 2013. 

[Ph.D. Dissertation] 

Tax Burden and Compensation Practices in the Financial Service Industry