A Study on the Second Beneficiary's Legal Position under Transferred Letter of Credit

Ki-Moon Han,Sae-Woon Park 한국무역연구원 2013 貿易 硏究 Vol.9 No.5

This study is aimed to help second beneficiary to get right payment from issuing bank by legal analysis of its position under transferred letter of credit. Second beneficiary under a transferred credit is protected as the beneficiary. When the transferable LCis duly transferred, the issuing bank is obliged to honour a presentation of the second beneficiary that complies with the terms and conditions of a duly transferred credit even if the first beneficiary is unable to present complying documents. Moreover, the second beneficiary's rights under a transferred letter of credit are independent of those of the first beneficiary. The transfer of the letter of credit from the first beneficiary to the second beneficiary creates a separate undertaking, free of any defenses by the issuing bank against the first beneficiary. This study suggests some points for second beneficiary to make complying presentation through legal cases under transferred letter of credit operations.

Anti-Fraud in International Supply Chain Finance: Focusing on Moneual Case

Ki-Moon Han,Sae-Woon Park,Sunhae Lee 한국무역학회 2020 Journal of Korea trade Vol.24 No.1

Purpose – This study analyzes the scope of due diligence and risks of banks and K-Sure in trade finance covered by EFF focusing on Moneual case, one of the latest and biggest trade finance fraud cases in Korea. Also, we suggest anti-fraud measures in trade finance on the part of banks and K-Sure in order to give them a desirable way of due diligence and reasonable risk management of export insurance. Design/methodology – Based on Moneual case of trade finance fraud, this study employs the methodology of an extended literature review and analysis of court decisions. Findings – Seoul High Court of Korea failed to decide whether K-Sure was wholly obliged to pay the insurance against the banks’ EFF claims, but issued a compulsory mediation order, judging that both the banks and K-Sure were responsible by 50:50. The court may have judged that both the parties had lacked their due diligence in the trade finance. It is quite difficult for trade finance providers to manually investigate whether the transaction is suspected of trade finance fraud, so digitalization of trade finance which can facilitate the prevention and detection of trade fraud needs to be realized quickly. Since there has been no international rule available for open account trade finance up till now, clearly stipulated EFF terms on the exporter’s genuine export obligation might have protected K-Sure from the disaster. Originality/value – This study investigates the due diligence of the banks and K-Sure in Moneual case which few researchers have considered, to the best of our knowledge. This study also suggests several practical methods (including block chain) to prevent complicating trade finance fraud amid increasing use of an open account, and further offers reasonable risk management of EFF employing international factoring rule which is also related to problematic open account trade finance.

Establishing an ECA for a Vibrant Economy in Mongolia: Lessons Drawn from the Korean Experience

Ki Moon Han 한국무역연구원 2014 貿易 硏究 Vol.10 No.5

Despite being one of the fastest growing economies in the world, Mongolia suffers from a trade deficit and lagging FDI. With new investment-promoting legislation and cost-reducing infrastructure projects in the works, the country is expected to continue its successful growth track record for many years to come. This positive outlook is considered realistic, given the country s huge natural resources and the government s strong will to expand the economy. Such strengths, coupled with its geographic advantage in Northeast Asia since it has two of the world s biggest buyers, China and Russia, along its borders, put Mongolia on a growth trajectory. Other favorable support is seen in the stable ODAs coming from several countries including Korea. It would be a good idea for Mongolia to promote SME exports and adopt the K-Sure export credit model, which can be used in conjunction with ODAs, for sustainable economic growth of the country.

A Study on Preclusion Rule in Letter of Credit Operations

Ki-Moon HAN,Sae-Woon PARK 한국무역보험학회 2013 무역금융보험연구 Vol.14 No.1

UCP600을 따르면 개설은행은 서류가 신용장 조건과 일치하는 지를 심사하기 위해 최대 5은행 영업일을 갖는다. 제시가 일치한다면 개설은행은 소구권 없이 제시은행(자)에게 신용장 대금을 결제해야 한다. 개설은행이 결제를 하지 않기로 결정하였다면 서류거절 통지를 단번에 모든 하자를 가장빠른 수단으로 해야 한다. 하지만 UCP500의 '지체없이' 서류거절 통지를 하라는 문구를 UCP600에서는 삭제가 되었음에도 불구하고 '5은행 영업일이 지나기 전'이란 문구는 미국통일상법전 신용장편에서 의미하듯 개설은행의 서류거절 통지의 의무는 5은행 영업일까지 할 수 있음을 의미하지 않는다. 적시에 그리고 완벽한 서류거절을 하지 못한 개설은행은 제시가 불일치하였다고 주장하는 것이 확연히 배제된다. 따라서 미국의 수익자에게 신용장을 개설하는 한국의 은행은 서류거절 절차에 대해, 준거규정이 ISP98이거나 재판관할이 미국일 경우, 특별히 유의하여야 한다.

A Study on North Korea’s International Trade Policy in the Middle of International Sanctions

Ki-Moon Han,Jae-Heun Choi 한국무역연구원 2019 貿易 硏究 Vol.15 No.5

Purpose - Despite a UN sanction is in place, North Korea has shown signs of a new change since Kim Jong-un took power. This study conducts in depth study on N Korea’s new trade policy amid international sanctions and suggest suitable trade directions in doing business with North Korea Design/methodology/approach - This study is based on North Korea’s latest revised trade law and their politic movements amid UN and US sanctions. The methodology used in this work is an extended literature review, analysis of UN sanctions and its effects on North Korea’s economy. Findings - Tougher sanctions against the North were implemented in mid-2017. The denuclearization and the realization of the peace economy have now emerged as major issues surrounding the Korean Peninsula. The country’s economy will further open to the world when the nuclear issue is settled to some extent Research implications or Originality - The achievements of reform measures in the North’s foreign trade sector is a bit remarkable but it is still remained at state control system. Difficulties in getting resources including the country’s reliable statistics gave us limitations for empirical approach. Once more valuable data or information are obtained, a further study will be followed.

Korean ODA for International Trade Development of Laos

Ki-Moon HAN 한국무역학회 2017 한국무역학회 국제학술대회 Vol.2017 No.7

A Study on Price Reduction under CISG and Issues

Ki Moon HAN 한국무역상무학회 2016 貿易商務硏究 Vol.69 No.-

Price reduction under CISG Art. 50 is advantageous to a buyer because it is a self-help remedy to the buyer. It is the buyer that has the option and the power to reduce the price paid or to be paid to the seller. Price reduction is indispensable in such cases where the seller is relieved of liability. In such cases the remedy of price reduction is the only one giving the buyer monetary relief. Another special role of price reduction is to determine how much the buyer owes the seller for non-conforming goods when special circumstances relieve the seller of liability for damages. In any event, price reduction has been designed both as an alternative to damages and for cases where the non-performing party is excused from liability for damages. The price reduction remedy however leaves several issues for clarification and application in several respects.

A Study on Exports Receivables Financing for SMEs

Ki-Moon Han 한국무역연구원 2016 貿易 硏究 Vol.12 No.6

SME’s working capital requirement is growing because of increasing open accounts in international trade payments. Further, new BIS set of regulation, which allows a lower credit rating for SMEs compared to old BIS and therefore low credit worthy SMEs will experience hard times in getting bank loans. To this forfeiting and factoring could be an answer as these two financing tools are structured toward non-recourse financing. This means that exporters can sell or assign their export receivables without recourse bases to a bank, SME exporters further can get lower financing if the buyer’s credit standing is good. Also the advances from the bank are not recognized as bank borrowing in respect of accounting principle. Therefore the SME exporters’debt ratio is not deteriorated and the SMEs can easily accommodate open account or term credit based orders from buyers overseas. This study also suggests that Korean Civil Law shall be modified to protect factor’s position as a right creditor to debtor and protect factor’s position in accordance with International Conventions regulating factoring. The Korean Civil Law currently bans receivable assignment when the ban is agreed in the sales contract between and sellers and buyers.

A Study on the Internationalization of the RMB and Korea’s countermeasure

Ki-Moon Han 한국무역학회 2023 한국무역학회 학술대회 Vol.2023 No.8

Microwave Dielectric Properties of (Pb0.4Ca0.6)[(Fe1/2Nb1/1)1-X(Mg1/3Nb2/3)X]O3 Ceramics

EungSooKim,KiMoonHan,JongHeeKim,KiHyunYoon 한국세라믹학회 2003 한국세라믹학회지 Vol.40 No.4

Microwave dielectric properties of (Pb0.4Ca0.6)[(Fe1/2Nb1/2)1-x(Mg1/3Nb2/3)x]O3 (PCFMN) ceramics were investigated as a function of (Mg1/3Nb2/3)4+ content (0.1x0.8). A single perovskite phase with the cubic structure was obtained through the given composition range. The unit cell volume was increased with (Mg1/3Nb2/3)4+ content, due to the larger average ionic size of (Mg1/3Nb2/3)4+ than that of (Fe1/2Nb1/2)4+ for B-site ion. Dielectric constant (K) and temperature coefficient of resonant frequency (TCF) of PCFMN ceramics were dependent on (Mg1/3Nb2/3)4+ content due to the decrease of ionic polarizability and B-site bond valence, respectively. Qf value was decreased with (Mg1/3Nb2/3)4+ content due to the decrease of grain size. Typically, K of 73.56, Qf of 5,074 GHz and TCF of -6.45 ppm/ oC were obtained for the specimens with x=0.4 sintered at 1250 oC for 3 hr.Corresponding author e-mail: eskim@kyonggi.ac.kr