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- [Maeil Business News] Stock transfer and financial tax system
- Professor Youngju Nielsen (Faculty Chair of AI MBA, Associate Professor of Finance) has written a column about the stock market on MK News (Maeil Business News). After becoming accustomed to the financial market and tax system in the United States, I found the Korean system similar but different, so it often presents surprises. Something new that I learned recently as stock transfer tax became a hot topic is that there is no wash sale in Korea. In the US, wash sales prevent paying less tax through loss in stock investment while reducing overall income. If a sale of stock records a loss, in order to re-purchase the same stock, the buyer must wait 30 days. The following is a detailed explanation of a fictional case. Let’s say that an investor bought Stock A for $100, and it is now trading for $75. There is a loss that has not been realized. On the other hand, in the same year, the investor bought Stock B for $50 and sold it for $75, so they realized profits. In this case, the investor has to pay capital gains tax. However, they can realize the loss by selling Stock A in order to reduce the total profits. If we take this case to the extreme, and they re-purchase Stock A after the loss is realized, then, they only reduce the tax without great changes to their whole portfolio. It is wash sales that prevent such underhand tax reduction. In Korea, capital gains tax is not imposed on domestic stocks, so the extreme case above is not possible with domestic stocks. However, similar cases are possible if an investor buys or sells American stocks. The US Internal Revenue Service (IRS) imposes a capital gains tax on stocks, and wash sales are related to the IRS, so Koreans who buy American stocks, but are not bound by IRS rules regarding wash sales, can avoid tax. In short, Korean investors can realize the loss on certain American stocks, and then re-purchase them immediately. Although this is feasible, few individual investors can generate great profit in this manner. In comparison, the earnings from long-term stock investment (more than a year) are subject to capital gains tax of 0%, 10%, or 20%, depending on the investor’s income level. The earnings from short-term investments follow the investor’s income tax rate, which varies from 10% to 37% as of 2021. It is, therefore, better not to proceed with ‘short orders’, especially for wealthy investors. For this reason, since the 1990s, asset management experts have been making tremendous efforts to maximize the tax effect and to increase the return on total assets without breaking the wash sale rule. This is because raising the return on all assets by about 1% using the tax effect is much easier and more reliable than raising the return by 1% through investment strategies. In addition, the biggest current topic in US fintech is hyper-personalized finance, and at the center of this is an algorithm that perfectly reflects the individual's finances and optimizes taxes. Even in the eyes of ordinary people who are not tax law experts, I think the US capital gains tax will almost equate profits from investment to those generated through other methods. Of course, there are devices that encourage long-term investment to prevent severe short-term investment. Since the last term, the Korean government has been in lengthy discussions about reforming financial tax laws. Capital gains tax is central to these, and the impact of capital gains tax on the capital market is under active discussion. I, therefore, hope that financial tax laws will be reformed after careful discussion and review of all aspects of Korean people's lives, including not only capital markets, but also various social problems, including ways to close legal loopholes. Original article in Korean: https://www.mk.co.kr/opinion/contributors/view/2022/06/496767/
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- 작성일 2022-06-30
- 조회수 11661
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- Full-Time MBA 2022 Applied Business Project Winners!
- Congratulations to the Full-Time MBA class of 2023 on completing the Applied Business Projects (ABP)! On the ABP course, students work on hands-on consulting projects with real client firms, doing research and analysis applying what they have learned at SKK GSB. Through the ABP, the students can visualize how to implement their knowledge strategically in practical business cases. They also improve effective communication skills both with teammates and clients. This year, the three top projects were announced as below. 1st place: eLoop Digital Marketing Jawahirul Mahbubi, Jawhara Al Haddad, Jaewon Shin, Minghan He, Pinyada Dechakunapong The eLoop Digital Marketing project developed a digital marketing strategy starting from brand identification, working through market and trend research, up to strategy formulation. One of the highlights was the pilot project in which the team implemented their strategies directly in eLoop’s LinkedIn account, and examined the effectiveness firsthand. This hands-on approach encouraged the client to assign staff to execute this strategy in the long term. 2nd place: Ecolab Celine The, Chanya Temkampol, Byungkee Park, Lingxin Fan, Mei Yang This project focused on market expansion. The client firm aimed to differentiate themselves in the Korean market by considering selling their products to the B2C market. Opening up this untapped market would bring the company new opportunities while enabling them to stand out from the competition. The team was able to deliver good results through accurate assessment of Korean market needs, and by providing the client with key insights. 3rd place: LG Smart Appliances Paul Heustadt, Siavash Jalali, In Sool Ryu, Rachel Stratton, Sungjun Kim In this project, the team intended to implement a new concept of Smart Appliances for the client. The client requested to focus on certain points: product perception, positioning, and customer value. The team strategized in two steps: first, business ideation, then formulating the new concept. The team’s innovative plan satisfied the client.
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- 작성일 2022-06-27
- 조회수 10790
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- 2022 EMBA Immersion at Kelley School of Business by Injae Chung (Class of 2023)
- Executive MBA Immersion I Indiana University Kelley School of Business SKK GSB's Executive MBA includes the Immersion Programs at IU Kelley School of Business every year. This year, the first program took place in April in Bloomington, Indiana, and the main theme was "Leading in an Era of Continuous Change." Injae Chung (Executive MBA, 2023) shared his experience as follows. EMBA students started the first day at IU Kelley School of Business in excitement and anticipation. This was the first immersion program for the 13th cohort, and our first leadership training. As if the professors prepared for any jetlag after traveling from Seoul, the session involved a lot of physical movements such as blindfolded block building. The session proceeded under two different conditions: one with a leader, an observer, and others blindfolded with one free hand; and the other with one observer and all others free. The session might sound easy, but in the end, I found it impressive in that this simple activity reflected what we go through at work. The first condition was a metaphor for a lack of vision sharing and effective communication. Having one restricted hand meant that the team couldn’t utilize all its resources. The second condition, meanwhile represented what happens when the team improves all those deficiencies, i.e., when the leader shares the vision and direction clearly and lets all the members use their full capabilities. Leadership begins when the leader encourages the team to move toward a shared vision.
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- 작성일 2022-06-22
- 조회수 10630
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- Master in Management Studies (GETT) students on Company Visit and Alumni Talk: Samsung Innovation Museum
- SKK GSB's Master in Management Studies students' third company visit occurred in April. The students toured Samsung Innovation Museum virtually, and learned about Samsung’s history and values. Alumnus Prakhar Hora (Full-Time MBA, 2011) joined the virtual session; he shared his valuable experience working in Samsung Electronics HQ as a foreigner, and his insights on global leadership. The Master in Management Studies program, also called GETT (Global Economic Transformation & Technology) offers students opportunities to acquire critical skill sets that they will need as future global business leaders, and it incorporates residential studies in Paris, Seoul, and Berkeley. The program is run jointly by SKK GSB, EDHEC Business School, and UC Berkeley's Haas School of Business.
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- 작성일 2022-06-15
- 조회수 11376
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- 2022 EMBA Immersion at Kelley School of Business by Yunsu Lee (Class of 2023)
- Executive MBA Immersion I Indiana University Kelley School of Business SKK GSB's Executive MBA includes immersion programs at IU Kelley School of Business every year. This year, the first program took place in April in Bloomington, Indiana, and the main theme was "Leading in an Era of Continuous Change." Yunsu Lee (Executive MBA, 2023) shared his experience as follows. The first immersion program was meaningful and memorable for the 13th cohort in that the students went to Bloomington, Indiana, after bearing the long-lasting chaos of the pandemic. The Executive MBA program usually starts with the first immersion, but the 13th cohort finally went after the second term. Nevertheless, the students then understood each other much more deeply, which helped us get the most from their sessions. We started the program by eating breakfast altogether, which energized us for the all-day learning. I admired Professor Douglas's passionate lecture on Leadership Challenge throughout the program. During his session, the students shared their at-work experiences and feedback. After classes, we walked around the Indiana University campus, reviewed the lessons, and chatted. Doing this, we reminisced about our old academic life and embraced our new MBA student life. One of the precious memories of the immersion program must be the unforgettable dinner discussions and bar talks every evening. We talked over dinner with professors in fabulous restaurants and deeply with classmates in cozy bars. These heated, passionate discussions were all insightful and inspiring. Now that the third term has started, the students feel more confident and motivated as the immersion program provided such cherishable memories that we all share. I look forward to the upcoming immersion program in Washington, D.C., and seeing how far the 13th cohort will have developed then. I have no doubt about the promising future awaiting the 13th cohort of SKK GSB - Executive MBA!
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- 작성일 2022-06-09
- 조회수 10158
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- Professional MBA: Gangneung Residency in May 2022
- SKK GSB's Professional MBA offers residency programs for intensive learning.The 10th and 11th went to a beautiful beach city, Gangneung and studied Human Resources Management with Professor Jaepil Choi. "Face-to-face and in-depth learning like residency programs are exactly what I have been craving during a long-lasting 'untact' period." Byeonggwon Yoo (PMBA, Spring 2023) shared his experience as follows. At SKK GSB, Professional MBA students are offered to attend two residency programs every year. This year's first residency trip took place in Gangneung over three days. Led by Prof. Jaepil Choi, the program focused on human resources management. "Thanks to the residency program, I had the chance to discuss deep professional thoughts with the professor and my classmates almost overnight. In particular, with Prof. Jaepil Choi's moderation, we learned how to build a more organized and scientific framework for managing human resources. I believe that his lessons helped us forge a desirable mindset that we can apply at work."
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- 작성일 2022-06-08
- 조회수 9599
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- 2022 SKK GSB Night
- On May 9, 2022, SKK GSB celebrated the annual GSB night, bringing together the entire MBA community which includes Executive MBA, Professional MBA and Full-time MBA classes of 2023. Students had dinner together along with professors to get to know each other and talk about the successful academic year despite the challenges during the pandemic. The event was a great way to celebrate the end of the academic year and create fond memories within the SKK GSB community. Everyone at SKK GSB is greatly looking forward to the next events, especially with the ease of the restrictions!
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- 작성일 2022-06-02
- 조회수 9922
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- 2022 EMBA Immersion at Kelley School of Business by Jungkyu Han (Class of 2023)
- Executive MBA Immersion I Indiana University Kelley School of Business SKK GSB's Executive MBA includes immersion programs at IU Kelley School of Business every year. This year, the first program took place in April in Bloomington, Indiana, and the main theme was "Leading in an Era of Continuous Change." Jungkyu Han (Executive MBA, 2023) shared his experience as follows. At the Beginning: Model the Way I was surprised as I learned so much about leadership in block-building activities, which were rather playful. I saw that a leader doesn't have to be the most intelligent person, and that all members can contribute new ideas as long as the team communicates effectively and actively. This helped me remind myself to look around my colleagues and teammates for fresh ideas. After the activities, I realized that everyone is a leader. It also made me reflect on how I have communicated within my team and organization. And, of course, during the activities, I had so much fun learning about my classmates' characteristics. It may sound simple and easy, but block building was great way of learning about planning, preparation, and communication. I was happy to join the journey of exemplary leadership! Dive into Kelley School: Inspire a Shared Vision In an outdoor session, we had the chance to share our work experiences, and a classmate told us about when he was motivated by his boss's appeal for 'being new eyes, ears, and voice' as a leader. I empathized with his feelings, and was inspired to apply the same ideas myself. Sometimes we doubt ourselves, questioning whether we have the right leadership style or even qualifications to be a leader, yet the more work experience we shared, the more valuable know-how we learned. Learning by heart: Globaltech Simulation & Personal Leadership Development Globaltech Simulation is a leadership simulation session with roleplay. Through this session, EMBA students learned various approaches to leadership, and saw the butterfly effect triggered by a leader’s decisions. Now that everything can be challenging and uncertain, this was an experience that encouraged me to move forward, not as an unprepared leader, but as a prepared, self-motivating, and growing leader. We discussed ‘good’ leadership, and from that, we all became reassured that even just this kind of discussion was leading us towards more ‘sophisticated’ leadership. And I have come to realize that the best way to build true leadership skill is to develop it continuously through practice and self-feedback. Together with others in the 13th cohort, I decided to become a true leader who can move others' hearts and overcome limitations by building action-oriented and valuable human relationships and by cultivating positive communication skills. "YES, WE CAN!"
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- 작성일 2022-05-30
- 조회수 9026
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- SKK GSB Professor Suil Pae publishes study on Career Concerns, Investment, and Management Forecasts
- Professor Suil Pae's paper, "Career Concerns, Investment, and Management Forecasts," has been accepted for publication in The Accounting Review, the premier journal for publishing articles reporting the results of accounting research and explaining and illustrating related research methodology. Abstract A firm manager is concerned about both the firm value and the market assessments of his abilities. When investing in a project, he has private knowledge of his project-related ability that interacts with the project investment, and his general ability that produces a cash flow independent of the project cash flow. The concerns about the general (project-related) ability assessment create a signaling incentive to decrease (increase) investment. In the presence of underinvestment (overinvestment), higher-quality earnings information reduces (improves) equilibrium efficiency. When the manager issues an earnings forecast as an additional signaling device, the forecast is upwardly biased, and the equilibrium investment is smaller than that without a forecast. The latter is because the signaling incentive to decrease investment is strengthened. When the manager’s concerns about the general ability assessment are relatively large, he is better off by committing to no forecast. Novel empirical predictions about investment and earnings forecast emerge. Keywords Career concerns, investment, earnings forecasts, Efficiency
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- 작성일 2022-05-23
- 조회수 9403
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- [Dong-a Ilbo] SKK GSB, raising global MBA graduates to lead business innovation
- Sungkyunkwan University’s SKK GSB, raising global MBA graduates to lead business innovation All courses include data science and analytics. New course open: Business Analytics MBA SKK GSB is again ranked 1st in Korea in the Financial Times (FT) Global MBA rankings. Among top 100 global MBAs, the school ranked 30th for investment value, 29th for promotion, and 15th in international experience. This is also the school’s 11th consecutive year among the world's top 100 MBAs. As SKK GSB Dean Eric Shih says, “In recent years, business has changed more rapidly than ever before, digitalization has progressed in most fields, and data is now the language of business. We have been raising global MBA students who can lead this continuing business innovation.” SKK GSB updates all programs’ curricula every year, enhancing digital competitiveness; the school has also introduced new courses such as the Business Analytics MBA and AI MBA. Chaewon Yoon (Full-Time MBA) is pursuing both a management track and a business analytics track. His objective is to cultivate a broad understanding of data and business analysis, and acquire professional knowledge on the latest management strategies and issues. He chose this path because these are considered the key factors to improve competitiveness in today’s job market. In fact, Sangyeol Kim, an alumnus working in a smart manufacturing solution company, was pleasantly surprised when he contacted SKK GSB to recruit skilled graduates. A decade since his graduation, the Full-Time MBA now covers various data and analytics subjects such as database management, business analytics, marketing, and financial analysis, in addition to previous course content. Mr. Kim says, “These days, it is very difficult to find skilled people who understand data and AI, and who have global business capabilities, not only in Korea but also elsewhere.” He welcomed the change in the curriculum as there will be greater need for such hybrid skills in the near future. The Full-Time MBA program (daytime) is a high-ranking global MBA program in which 58% of freshmen and about 70% of the faculty are from overseas. The program offers dual degree programs with Indiana University Kelley School of Business (US), Maurer School of Law (US), and EDHEC Business School (France). There are tracks in four areas一marketing, finance, strategy, and business analytics一and students can expect to improve their expertise and career competitiveness. The Indiana Kelley-SKK GSB Executive MBA program (weekends) is operated jointly by both schools. Faculty from IU Kelley School of Business teach 55% of the programs, and students obtain two MBA degrees一one from each university. This program is for working professionals with at least eight years’ work experience. The Professional MBA program (evenings) focuses on fundamental business management knowledge in the first year. Students then select specialist courses in marketing, finance, or management strategy. In this program, students can take either a one-year online MS program from IU Kelley School of Business, or a one-year on-site MBA program (daytime) at IU Kelley’s campus in Indiana. The Business Analytics MBA course (weekends) simultaneously develops data analysis competency and related MBA knowledge. The course involves intensive study in specialized data fields such as programming, big data, cloud computing, and digital and social media analysis. The MMS (Master in Management Studies, weekend) is a two-year program operated jointly by SKK GSB, EDHEC Business School in France, and UC Berkeley Haas School of Business in the United States. Graduates obtain two Master of Business Administration (MS) degrees from SKK GSB and EDHEC. The AI MBA course (weekends) is a contract course for companies developing in-house AI experts. AI subjects are taught in Korean, while business subjects are taught in English. SKK GSB is accepting applications for the 2022 freshmen until May 20 for programs other than the Business Analytics MBA. More details can be found on the SKK GSB website or by phone. (gsb.skku.edu, Tel. 02-740-1520, 1530, 1533). Related article: Dong-a Ilbo on April 21st https://www.donga.com/news/Society/article/all/20220420/112982376/1
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- 작성일 2022-04-28
- 조회수 15113