With Regard to Local Contents Rule (Non-tariff Barriers to Trade): After Announcing the Shanghai-Hong Kong Stock Connect, is the Chinese Capital Market Suitable for Korean Investors?

Yoonmin Kim,Gab-Je Jo 한국무역학회 2019 Journal of Korea trade Vol.23 No.7

Purpose - As the U.S.-China trade war has become considerably worse, the Chinese government is considering applying non-tariff barriers to trade, especially local contents rule. The main purpose of this research is to check whether it is suitable for Korean investors to invest in the current Chinese capital market. Design/methodology - In order to check the stability of the recent Chinese capital market, we investigated the behavior of foreign equity investment (including Korean equity investment) in the Chinese capital market after China announced the Shanghai-Hong Kong Stock Connect (SH-HK Connect). In this paper, we researched whether international portfolio investment would or would not contribute to an increase the volatility of an emerging market’s stock market (Chinese capital market) when foreign investors make investment decisions based on the objective of short-term gains by rushing into countries whose markets are booming and fleeing from countries whose markets are falling. Findings - The empirical results indicate that foreign investors show strong, negative feedback trading behavior with regard to the stock index of the Shanghai Stock Exchange (SSE), and when the performance of foreign investors in the Chinese stock market was fairly good. Also, we found evidence that the behavior of foreign investors significantly decreased volatility in SSE stock returns. Consequently, the SH-HK Connect brought on a win-win effect for both the Chinese capital market and foreign investors. Originality/value - It appeared that the Chinese capital market was very suitable for Korean investors after the China’s declaration of the SH-HK Connect. However, the win-win effect was brought on by the Chinese government’s aggressive capital control but the capital controls could possibly cause financial turmoil in the Chinese capital market. Therefore, Chinese reform in industrial structure and the financial sector should keep pace with suitable capital control policies.

Decision Making and Behavioral Biases in the Thai Foreign Exchange Market during the Global Financial Crisis

Yoonmin Kim,Sunggon Park 한국제도경제학회 2018 제도와 경제 Vol.12 No.4

本 논문은 사건연구(event study)를 통해 글로벌 금융 위기 동안 (2007년 8 월1일부터 2010년 3월31일까지) 태국 외환시장에서의 뉴스에 대한 시장의 반 응을 조사하였다. 각각의 뉴스에 대한 이상반응을 알아보기 위해 일단 뉴스 모 음(News Set)을 빅데이터 분석을 통해 수집하였으며, main trend인 Moody’s 社의 달러에 대한 35개국 환율종합 지수인 Broad Index에 비해 태국의 바트 對달러 환율이 어떠한 이상반응이 나타나는지에 관해서 통계분석을 하였다. 호 재와 악재를 분류하기 위하여, Baig and Goldfajn (1999) 논문에서의 Good News와 Bad News의 분류기준을 적용하였고, Momentum Feedback Trading을 분석하여 시장의 분위기를 정의하기 위해 외환거래의 위험지수인 바트貨의 CDS premium 지수가 하강한 상황에서는 Positive Momentum으로 정의 하였고, 상승한 상황에서는 Negative Momentum으로 정의하였다. 태국의 외환시장은 호재보다는 악재에 크게 반응 하였고, 악재에 대해서 확 증편향이 작용하였다. 즉, 시장이 좋은 분위기 에서는 호재와 악재에 관해 크게 다른 반응이 없었으며, 나쁜 분위기에서는 악재에만 크게 반응하였다. 결과적 으로 태국의 외환시장에서는 악재의 경우 정치적 이해관계나 비이성적 군집행 동으로 인해 확증편향이 크게 발생하는 것으로 결과를 분석하였다. 또한, 태국 의 외환 시장에서는 실제 뉴스나 정책 시행과 정부나 중앙은행장의 구두 개입 중 어느 한 가지 뉴스에 시장이 크게 반응하지 않았다. Employing a newly constructed data set of good and bad news, we investigated behavioral and efficient market hypotheses on Thai foreign exchange market responses to news during the global financial crisis. The major findings of this paper are as follows: First, the Thai foreign exchange market gives more weight to bad news than to good news during a crisis. Second, the Thai foreign exchange market responded considerably more strongly to bad news during negative momentum than bad news with positive momentum. Third, the Thai foreign exchange market does not particularly give more weight to soft news or hard news during a crisis. Therefore, it can be concluded that irrational behaviors and the biases of foreign exchange traders were definitely present in the Thai foreign exchange market during the global financial crisis.

The New Silk Road Leads Through the Arab Peninsula: Mastering Global Business and Innovation

( Yoonmin Kim ) 계명대학교 실크로드중앙아시아연구원 2019 Acta Via Serica Vol.4 No.2

Efficient Market Testing of the Korean Foreign Exchange Market During the Global Financial Crisis

Yoonmin Kim,Yoonseock Lee 한국국제경영관리학회 2017 국제경영리뷰 Vol.21 No.2

외환시장의 버블과 버블의 붕괴는 투자행동의 효율성에 관한 관심을 증대 시키고 있다. 또한, 세계 금융위기와 행동경제에 관한 논문들은 효율적 시장가설에 관한 의문을 증대시키고 있다. 본 논문의 연구기간은 세계금융위기 기간으로써 효율적 시장가설이 반영되지 않을 가능성이 있다. 하지만, 한국 주식시장은 랜덤워크가 성립되며 효율적이었다. 따라서, 고환율 정책 (weak Won policy)과 같은 환율시장 개입 정책은 소기의 목적을 달성할 수 없다. 한국의 외환시장은 정보에 신속하게 반응 했으며, 향후 원-달러 환율을 예측하는 것은 불가능하다. 또한, 한국 외환시장에서 환 거래자는 시장을 이길 수 없으며, 초과 수익 창출은 불가능하다. 원-달러 환율은 모든 입수 가능한 정보를 반영하며, 이전의 환율 변동과는 독립 사건이다. Recent economic bubbles and bursts have generated interest in foreign exchange market behavior efficiency. Since the efficient market hypothesis (EMH) was challenged by the global financial crisis, a research period was chosen for this study coinciding with the global financial crisis when the standard EMH was less likely to hold. The Korean foreign exchange market behavior was efficient passing standard efficient market tests for random walk. It means that the Korean government and the Bank of Korea are impossible to intervene in the Korean foreign exchange market. The Korean foreign exchange market responds quickly to new information, and it is very hard to predict market movement other than randomly in the Won/Dollar exchange rates. Moreover, “Today’s” Won/Dollar exchange rate reflects today’s news and is independent of yesterday’s rate changes. No abnormal returns should be experienced by foreign exchange traders when no news shocks are reflected in Won/Dollar exchange rates.

Sukuk (an Islamic Bond) Utilization for One Belt One Road

Yoonmin Kim 한국무역연구원 2020 The International Academy of Global Business and T Vol.16 No.1

Purpose – Islamic finance is one of the most rapidly growing segments of the global financial system. This is especially so due to Sukuk, an Islamic bond that holds the highest influence in Sharia (Islamic law) because it meets the requirement of a financial instrument in both the conventional and Islamic financial markets. The bonds were utilized for One Belt One Road (OBOR) projects and when analyzing several leading Islamic, finance-related stock markets. Design/Methodology/Approach – Due to the vernacular used in Sharia, a subsequent language barrier persisted whereby Sukuk bonds were analyzed and standardized in this paper indirectly. This author indirectly analyzed and standardized Sukuk bonds from several leading Islamic finance-related stock markets, such as the Indonesia Stock Exchange (IDX), The Bursa Malaysia exchange, Tadawul (the Saudi Stock Exchange), The London Stock Exchange (LSE), The Luxembourg Stock Exchange, The Irish Stock Exchange (ISE), and NASDAQ Dubai. Findings – The findings are that Sukuk would be able to play a central role in supporting and advancing the financing needed for OBOR projects while also enabling the mobilization of capital for initiatives that would maintain a net positive impact socially for all countries involved. Research Implications – The principles of Islamic finance are grounded in the timeless values of social justice and the betterment of humankind that provides a broader moral arc for ethical and equitable business practices. Given the prudent decision of Chinese leadership to significantly expand environmentally sustainable and climate-friendly infrastructure projects, there is a distinct opportunity to unlock combined synergies through the convergence of Islamic financing and funding for the OBOR.

News and the Behavior of the Korean Stock Market during the Global Financial Crisis

Yoonmin Kim,Thomas D. Willett 한국경제연구학회 2014 Korea and the World Economy Vol.15 No.3

Employing a newly constructed data set of good and bad news, we investigated behavioral and efficient market hypotheses on Korean stock market responses to good and bad news during the global financial crisis. Standard efficient market tests passed and several interesting behavioral aspects of market behavior emerged. Optimism and confirmation biases pay less attention to bad news during rising periods; KOSPI investors reacted more strongly to bad news in both rising and falling markets, and unexpected news in negative and positive momentum except for bad hard policy news. Efficient market and behavioral finance hypotheses can be useful explaining market behavior.

P-STATCOM 병렬 운영 개발

이윤민(Yoonmin Lee),조인준(Injoon Joe),박기우(Kiwoo Park),강호현(Hohyun Kang),김희중(Heejung Kim) 전력전자학회 2022 전력전자학술대회 논문집 Vol.2013 No.11

Efficient Market Testing of the Chinese Stock Market During the COVID-19 Recession

Chao Sun,Yoonmin Kim 동아시아무역학회 2022 Journal of East Asian Trade(JEAT) Vol.4 No.1

Purpose – The purpose of this paper is exploring whether Chinese stock market (SSEC) is effective during the COVID-19 recession. Recent asset market bubbles and bursts have generated interest in the efficiency of stock market behavior. Efficient market hypothesis (EMH) has been challenged by the COVID-19 recession. Design/Methodology/Approach – Based on Efficient market hypothesis, this research will present results of nonparametric tests employed in an econometric investigation of stock market efficiency in China during COVID-19 recession. To test this hypothesis, the Augmented Dickey-Fuller (ADF) test, Autocorrelation Function (ACF) test, Runs test, and Variance Ratio Test were used to assess the behavior of the SSEC. Findings – This paper studies the Chinese stock market’s (SSEC) behavior passed weak form efficient market tests for random walk. According to Variance Ratio Test, a certain group of SSEC investors could experience abnormal returns since there is a possibility that they could know something about a shock that is not already reflected in the stock's price. Research Implications – In the management of this paper, this study will provide help for stock market investors when investing or provide reference significance for the state to manage the stock market.

배전급 역률 보상 및 전압 보상을 위한 P-STATCOM 개발

윤선재(Sunjae Yoon),이윤민(Yoonmin Lee),박기우(Kiwoo Park),강호현(Hohyun Kang),김희중(Heejung Kim) 전력전자학회 2021 전력전자학술대회 논문집 Vol.2021 No.7

Importance of Political Elements to Attract FDI for ASEAN and Korean Economy

Monthinee Teeramungcalanon,Eric M.P. Chiu,Yoonmin Kim 한국무역학회 2020 Journal of Korea trade Vol.24 No.8

Purpose – Recent empirical studies have shown that FDI is expected to be strongly associated with democratic governance, political stability, and sound macroeconomic conditions of the host country. We attempt to take it a step further to see if governments implement a major change in institutional characteristics, will the institutional reform toward better governance have a substantive effect in enhancing FDI inflows. This paper thus aims to analyze the importance of good governance as an important factor in the attractiveness of FDI inflows in ASEAN+3 (Korea, China, Japan) countries. Design/methodology – To determine the effects of good governance on FDI inflows across ASEAN+3 countries recorded between 1996-2018, the Worldwide Governance Indicators (WGI) are used to investigate the impact of good governance on FDI inflows. The model has been estimated by using fixed effects to show the robustness of the results. Findings – Our main findings can be summarized as follows: Political Stability, Rule of Law, and Voice and Accountability have a statistically significant impact on the inflow of FDI in the ASEAN+3 Countries, especially for Korean economy. Moreover, GDP growth continue to exert their positive influence. However, Regulatory Quality, Government Effectiveness and Control of Corruption, though equally important, are insignificant to attract FDI inflows. The key finding is that good governance has a significant impact on inward FDI in the ASEAN+3 countries. Originality/value – Existing studies focus on the impact of political factors on FDI across countries. This paper instead attempts to investigate which type of good governance is the most important in promoting FDI inflows across ASEAN+3 countries, which is essential for multinationals to consider when choosing a foreign site as a possible FDI destination.