KOR

Research Staff

Research Staff

Kang, Sohyun Senior Research Fellow, Head of Capital Markets
Research Field

Profile

TEL
82-2-3771-0821
E-mail
sohyun.kang@kcmi.re.kr
Education
2007 ~ 2011 KAIST Business School Seoul, Korea
Ph.D. in Management Engineering (Finance concentration)
2005 ~ 2007 KAIST Business School Seoul, Korea
M.S. in Management Engineering (Finance concentration)
2003 ~ 2005 Seoul Natioanl University Seoul, Korea
M.A. in Economics (Macroeconomics concentration)
1998 ~ 2003 Seoul National University Seoul, Korea
B.A. in German Language Education and Economics
Professional Experience
2011~ Research Fellow, Korea Capital Market Institute
2009 ~ 2010 Lecturer, Kyung Hee University

Publications

Opinion

Treasury Stock Disclosure System for Listed Companies in Korea and Relevant Improvements / May. 28, 2024
The role of treasury shares is becoming increasingly important for shareholder returns in the Korean stock market. The number of companies engaging in the repurchase and cancellation of treasury shares has been steadily rising, and investors’ interest in stable returns is also growing as the population ages. In addition, government policy support, such as the Corporate Value-Up Program, is encouraging companies to establish value enhancement and shareholder return plans and to voluntarily disclose these plans to the market.Disclosure serves as a critical tool for reducing information asymmetries between companies and investors and transparently conveying a company’s key policies and plans. In this respect, the current disclosure system regarding treasury shares has limitations in accurately communicating the policy and status of treasury shares, which requires improvement. First, since a share repurchase trust contract can be extended for a prolonged period, it is necessary to regularly disclose treasury stock changes until the contract is terminated, and to specify the reasons for the extension and the repurchase rate. Second, comprehensive information should be provided to enable investors to understand the status of disposal and net purchases, as well as the repurchase and cancellation of treasury shares. Third, as voluntary disclosures by companies are increasingly required and emphasized, it is advisable for companies to explain in detail the appropriate size of treasury shares and the relevant rationale, the reasons for choosing between direct and indirect repurchases, and the cancellation plan and its expected effects. These improvements will be essential for companies not only to fulfill their disclosure obligation but also to effectively communicate corporate value and enhance relationships with shareholders.
Female Participation in the Labor Market and Fertility Rates: Insights from the Research of a Nobel Laureate in Economic Sciences / Dec. 05, 2023
The 2023 Nobel Prize in Economic Science was awarded to Professor Claudia Goldin for her contributions to enhancing understanding of the factors influencing female labor force participation and the gender earnings gap. Over the past century, the gender earnings gap has stemmed from various factors such as discriminatory laws, stereotyped gender roles, limited educational opportunities and, constraints on job choices. However, even after these factors are controlled, the gender earnings gap still exists. Professor Goldin attributes this persistent disparity to the division of labor between men and women after childbirth and the intrinsic characteristics of jobs. Men tend to choose high-intensity jobs accompanied by high income, while women often take greater childcare responsibilities and opt for flexible work arrangements. This structural imbalance has resulted in the gender earnings gap. Korea experiences the highest gender earnings gap among OECD countries while suffering from lowest-low fertility. Selection of flexible works or career interruptions can widen such a gap and increase the opportunity costs associated with childbirth, further accelerating the decline in fertility rates. The current situation urgently calls for the reform of the labor incentive structure to effectively address intertwined issues such as the gender earnings gap, career interruptions for women and fertility rates. In other words, there is a growing need to transform the labor market structure that highly values long working hours and excessive workloads. This reform is not only essential to improve gender equality but also serves as a crucial task for efficiently deploying national talent and ensuring economic sustainability.
Best Execution Obligations for Retail Investors in Major Countries and Implications / Jun. 27, 2023
The best execution obligation provision under the Financial Investment Services and Capital Markets Act prescribes that a financial investment business entity should establish the best execution criteria and execute a client’s order on the best terms. In the current single trading market structure, the process of finding the most favorable conditions for clients hardly makes any meaningful difference, and the best execution compliance policies for each financial investment business entity has not yet been put in place. After the transition to a multi-market structure, however, best execution will serve as an important factor in affecting the level of investor protection and determining the quality of the entire market. For this reason, it is necessary to prepare for a multi-market environment by clearly understanding the duty of best execution and devising a specific compliance plan. In particular, considering a high share of retail investors and their active investment in the Korean securities market, the major challenge is to establish the best execution criteria that can protect retail investors and, at the same time, reduce the burden on financial investment business entities. In this regard, it is worth referring to the regulation of major countries that distinguishes retail clients from professional clients and establishes the best execution policy for retail clients with a focus on price and direct costs.
Japan’s Best Execution Policy: Reform and Implications / Dec. 06, 2022
This year the plan of establishing Korea’s first Alternative Trading System (ATS) is underway. The arrival of the ATS is expected to facilitate the progressive evolvement of trading markets. But it is notable that the ATS itself hardly guarantees brisk competition and greater market efficiency. Japan adopted the Proprietary Trading System (PTS) earlier than Korea but experienced a lack of transactions executed via PTSs for more than 20 years after the new system was introduced. Discriminatory regulations on PTSs may hamper the development of alternative trading venues including the 5% takeover-bid regulation, the ban on auction-based price discovery and restrictions on margin trading. But a greater problem lies in the best order execution criteria prepared by securities firms which has encouraged them to focus on transactions via the traditional exchange. In response, Japan’s Financial Services Agency has come up with the revised Best Execution Policy this year to ensure meaningful competition between trading markets, which is set to come into force in January 2023. The case of Japan could offer implications for Korea’s trading market that is about to see the emergence of the first ATS. The Best Execution Policy to be devised by each securities firm in preparation for market fragmentation would have a significant impact on the market share of the ATS and competition between trading venues. In this respect, securities firms should design the Best Execution Policy to help enhance services through fair and efficient competition among trading markets and provide benefits to market participants.

Seminar Presentation

관련 세미나 이미지
2014 Jun 12
Dividend Policy and Investment (Korean)
  • Presenter Senior Research Fellow Kang, Sohyun
관련 세미나 이미지
2014 Jan 15
Capital Market Trends and Outlook: Stock Market (Korean)
  • Presenter Senior Research Fellow Kang, Sohyun
관련 세미나 이미지
2013 Nov 08
Financial Support Policy for Female Entrepreneurs: Current State and Challenges (Korean)
  • Presenter Senior Research Fellow Kang, Sohyun

Research performance

[PUBLICATIONS] 
1. Information Content of Adjusted Implied Volatility in the KOSPI 200 Index Options Market (with Byung Jin Kang and Sun-Joong Yoon), 2009. Korean Journal of Futures and Options, 17 (4), 75-103. 

[WORKING PAPERS] 
1. Who is the Best Contributor to Recovery of Market Efficiency in the Korean Stock Market? (with Jangkoo Kang) 
Presented at the Eurasia Business and Economics Society Conference, 2010 
2. Does Trading Volume matter to Price Discovery? (with Jangkoo Kang and Robert I. Webb) 
Presented at the Korean Finance Association Joint Conference, 2011 
3. The Information Content of Treasury Auctions for Treasury Futures Prices (with Jangkoo Kang and Robert I. Webb) 
4. The effect of Order imbalances on Individual Stock returns of KOSPI200 (with Hokyung Park and Jangkoo Kang) 
Presented at the Korean Finance Association Joint Converence, 2010 
5. ITMs versus OTMs (with Sun-joong Yoon) 
Presented at the Asia-Pacific Association of Derivatives Meetings, 2010 
6. Common and Local Factors in Volatility Risks: Evidence from S&P 500 and KOSPI 200 Index Options (with Sun-Joong Yoon)