In this research, we analyze the role of credit risk in the structured product markets, represented by Korean Equity Linked Securities (ELS). We find empirical evidences that the credit risk of the issuer is incorporated in the returns of the ELS. ELS that is issued by higher credit risk issuer...

This paper empirically analyzes the market for Jeonse and housing finance in South Korea, from multiple angles. Jeonse, a unique lease contract in Korea, is essentially a repurchase agreement where the owner borrows from the tenant, with the house as collateral. As a lease contract for the...

We examine how the political events represented by government regime changes affect the equity market as a systematic risk factor in Korea. We first identify the risk realized by the political event (government regime changes) using simple consumption-based general equilibrium model, and show...

This paper examines the effect of global investor sentiment on capital inflows in the Korean stock and bond markets. First, we conclude that global investor sentiment about Korea causes capital inflows to the Korean stock market to fluctuate. Second, we find that global investor sentiment about...