Korea Institute of Finance

New Publications

Stock Market Stabilization Fund: Cases and Policy Suggestions
Compared to the bond market and foreign exchange market stabilization policy, there are differing opinions for and against the stock market stabilization fund as it has issues such as discretionary wealth redistribution and risks in the liquidation process of the fund. By analyzing past cases of Korea and related overseas policies, the policy performances of the fund are studied and related controversies are summarized. And various policy matters to be considered when executing the stock market ...
KIF Research Paper Min-Kyu Song
The Fit and Proper Test for Officers of Financial Institutions in Overseas Countries and Its Implications
In recent years, there has been ongoing social controversy concerning the qualifications of officers of financial institutions, particularly regarding the issues such as the CEO succession in financial holding companies, parachute appointments, and financial accidents. In order to ensure that qualified individuals who can best serve shareholder or societal interests are appointed as the officers of financial institutions, institutional measures should be put in place to support this goal. This p...
KIF Research Paper Young Kyung Lee
Dynamic analysis of household debt risk and macro factors
This paper identifies the macro factors that affect household debt risk, and forecasts household debt risk based on the estimation of the relationship between the risk and macro factors. The forecast results show that domestic banks’ household NPL is projected to reach around KRW 2.8-3.1 trillion in 2024 from KRW 1.6 trillion in 2022. In order to manage household debt risk in the short run, micro measures by each sector should be taken to ensure a soft landing for the real estate market. In t...
KIF Analysis Paper Jieun Lee

Financial Research Brief

23-23 Nov 24, 2023
Considerations and Recommendations for Long-Term Fixed-Rate Mortgages
Since mortgages account for a significant portion of the balance sheets of Korean households, its interest rate structure has a substantial impact on the economy. As mortgage borrowers face mounting repayment burdens due to the recent rise in market interest rates, a policy direction for expanding long-term fixed-rate mortgages by private financial institutions has been released. However, long-term fixed-rate mortgages also present several challenges as they could impair monetary policy transmis...
Financial Review Heung Jin Kwon
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Reports

  • Stock Market Stabilization Fund: Cases and Policy Suggestions새글
    Compared to the bond market and foreign exchange market stabilization policy, there are differing opinions for and against the stock market stabilization fund as it has issues such as discretionary wealth redistribution and risks in the liquidation process of the fund. By analyzing past cases of Korea and related overseas policies, the policy performances of the fund are studied and related controversies are summarized. And various policy matters to be considered when executing the stock market ...
    KIF Research Paper Min-Kyu Song DEC 2023
  • The Fit and Proper Test for Officers of Financial Institutions in Overseas Countries and Its Implications
    In recent years, there has been ongoing social controversy concerning the qualifications of officers of financial institutions, particularly regarding the issues such as the CEO succession in financial holding companies, parachute appointments, and financial accidents. In order to ensure that qualified individuals who can best serve shareholder or societal interests are appointed as the officers of financial institutions, institutional measures should be put in place to support this goal. This p...
    KIF Research Paper Young Kyung Lee NOV 2023
  • Dynamic analysis of household debt risk and macro factors
    This paper identifies the macro factors that affect household debt risk, and forecasts household debt risk based on the estimation of the relationship between the risk and macro factors. The forecast results show that domestic banks’ household NPL is projected to reach around KRW 2.8-3.1 trillion in 2024 from KRW 1.6 trillion in 2022. In order to manage household debt risk in the short run, micro measures by each sector should be taken to ensure a soft landing for the real estate market. In t...
    KIF Analysis Paper Jieun Lee OCT 2023
  • An analysis of problematic credit card debt in Korea
    Using the Korean personal loan data from 2012 to 2016, this paper analyzes how problematic credit card debt persists over time and the role of income. First, there is a group of consumers who carry potentially problematic card debt for a number of years. 7.2% of credit card holders in 2016 had credit card debt more than their income over past 12 months and this debt overhang problem persisted throughout the sample period. Meanwhile, credit card holders who missed repayments more than 90 days wer...
    KIF Research Paper Soo Jin Lee MAY 2023
  • A Study on the Advancement of the Human Resource Management System of Korean Domestic Banks
    In this paper, we studied ways to advance the human resource management system necessary for domestic banks to leap into a global financial group. Over the past decade, the average annual labor cost growth rate (3.3%) of domestic banks has significantly exceeded the profit growth rate (-0.03%). This is mainly due to the fact that while the profitability of domestic banks is weakening, the wage system maintains a salary system in which salaries automatically rise when the number of years of servi...
    KIF Research Paper Kim Woojin, Gu Bon-Sung, Lee Tai-Ki JUN 2023
  • Domestic Banks' Deposit and Asset Productivity: Focusing on Deposit Market Competition
    In this paper, I estimate the deposit and asset productivities of Korean domestic banks a la Egan, Lewellen, and Sunderam (2022). Deposit productivity is highest in internet-only banks, followed by commercial banks, specialized banks, and regional banks; deposit productivity has high persistence, indicating that it is heavily influenced by the unique characteristics and capabilities of each bank. Asset productivity is highest in internet-only banks, followed by regional banks, specialized banks...
    KIF Research Paper Heung Jin Kwon APR 2023
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