[New Professor Special] 'College life is an important time to decide your career.' <Professor Kim Dae-jin>
- bizskk
- Hit440
- 2021-12-28
Our college of Business is strengthening its core values of education and research, and is striving to nurture talents for student success and future value creation. To this end, three new teachers were appointed in the second semester of the 2021 school year, their majors were marketing(1 person), management information(1 person), and FinTech(1 person), and they were invited to be teachers with excellent competence in each field. This time, we met Professor Kim Dae-jin of <Finance Major>, a new teacher who became a family member of business school, and listened to 'major research activities, majors, and future plans'
Q1. Hello, professor. Nice to meet you like this! Please introduce yourself, professor.
Hello, I'm Kim Dae-jin, majoring in Fintech Convergence and Finance from the 2nd semester of 2021. I worked at UNIST in Ulsan until the last semester and then I became Sungkyunkwan University. I graduated from the Department of Trade in Business School. After graduation, I worked as a bond fund manager for Hyundai Investment Trust Management and Kyobo Investment Trust Management for seven years, and decided to study abroad in 2005, earning a master's degree in statistics at Stanford University and a doctorate in business administration at Vanderbilt University. And I was appointed to UNIST in 2014 and worked until last semester.
Q2. Please briefly introduce your major, and what made you choose your major?
I am currently a member of the Fintech Convergence Major and Finance Division, and I study market microstructure, derivatives, and portfolio management in the field of finance, as well as corporate governance and corporate finance. Recently, I am interested in studying various problems of finance using machine learning and natural language processing techniques. The reason I became interested in this field was that I was most interested in finance since I was undergraduate student, and after graduation, I naturally became interested in the field of research after working as a bond fund manager in the market for a long time. Also, while working at science and technology institution such as UNIST, I became interested in the field of fintech by conducting convergence research and education on engineering and finance.
The market microstructure my most basic research field, is a research field in finance that studies the mechanisms of the market, the pricing process, and the behavior of market participants. In general, the price and value of an asset should be the same, but market prices may not reflect the value properly due to various factors and systems in the market. Typically, many asset pricing models assume that investors can immediately buy and sell the assets they want regardless of size
However, that's not the case with the real market. For example, the price gap between the buyer and the seller always exists and is not constant, sometimes there is an upper and lower limit system, and the securities market we trade in cannot be traded 24 hours a day. In other words, liquidity does not always exist in the market, and in many cases, investors bear direct or indirect transaction costs. Therefore, my study analyzed how these various factors affect the price of assets or the behavior of investors and conducted a study on how to create a fair and efficient stock market.
In addition, recent technological advances are promoting the convergence of traditional financial and IT industries. Traditional financial companies are changing through the development and launch of new products and services using various technologies, and non-financial companies are also attempting to provide various advanced financial services based on new technologies. Therefore, my research direction is also very interested on how various artificial intelligence and newly introduced machine learning techniques can solve various problems dealt with in existing finance, and how technological advances affect investor protection and fair market formation.
Q3. Please tell us how you feel about starting anew at Sungkyunkwan University's business school and your future plans.
First of all, I am very honored to be a professor at a prestigious university such as Sungkyunkwan University. Above all, I think it is most important to raise the reputation of the school and cultivate great students through good research and lectures. If the status of the school increases through good research, we will be able to invite better researchers, and if good students are produced through good education, we will create an environment where better students can come. After all, I think providing good research and good education, which is my original mission, will help the development of the school.
Q4. Professor, please briefly introduce your class.
I'm in charge of investment theory in the undergraduate department and financial machine learning in the graduate school. The most important content of undergraduate investment theory is portfolio composition and asset pricing theory. Basically, the portfolio composition starts with determining the ratio of risk-free and risky assets. So, while dividing risk-free and risky assets is simple, at what rate should we organize numerous assets in the market? In particular, can we use numerous risky assets to create one representative risky asset that all investors can agree on? So how, is the return on such risky assets or the risk premium determined? These have been studied by many financial economists, including Markowitz, Sharpe, Merton, Scholes, and Fama, who won the Nobel Prize in Economics. The investment theory will learn the content easily. In addition, graduate school subjects teach various machine learning techniques and how to apply the contents to financial data.
Q5. What are the future research plans of the professor?
Professor Zingales, a professor at the University of Chicago In 2015, Zingales, a professor at the University of Chicago, gave a keynote speech titled 'Does Finance Benefit Society?' in which 57% of people disagree when asked if financial innovation leads economic development. Although the financial industry is a very important industry among national industries, the public's perception of financial institutions or the financial industry is not favorable. Looking at the recent series of financial scandals, I don't think Korea will be very favorable either. Professor Zingales' argument is that academia should conduct research and education to reduce this difference.
The mission of the U.S. Securities and Exchange Commission (SEC) aims to protect investors, promote capital formation, and maintain a fair, orderly and efficient market. In other words, the financialist's research goal is not much different. Through my research, I will find problems that can harm investor protection, create a financial market that can facilitate capital raising and investment functions of companies and individuals, and find systems and rules to create a more efficient and fair market.
Recently, the financial market has been changing from a market that relied on the judgement and ability of traders and operators in the past to a market where new trading techniques and portfolio composition based on various high-tech artificial intelligence techniques are generalized. In line wiht these changes, My research field is also expanding to research on unfair trade detection in market usin artificial intelligence, suggesting the development direction of ETF and derivatives markets through index development using text and image data, and research to resolve market information imbalances through the use of various markets and corporate-related big data.
The development of artificial intelligence technology can lead to new findings of phenomena that have not been observed in the financial market or new implications in the financial market due to the use of artificial intelligence, so there is a growing need for research that can look at new topics that have been studied in finance and suggest directions. Therefore, my research direction aims to design a fair and transparent market according to the changes in various financial markets caused by new techniques such as artificial intelligence, suggest directions for asset management or trading techniques, and create a fair and transparent market through new types of investment behavior analysis.
Q6. Please tell us about the ideal educator you think of.
In many cases, I try to emphasize understanding and utilization rather than memorizing. With the development of the internet and information and communication today, it is not that difficult to learn much about finance. However, it seems to be a different problem to use various theories in combination with actual data.
For example, when calculating stock volatility, standard deviation is usually used using past yield data. By the way, how should we use the data for which period? There are many formulas in finance. But how will it be used in the real market? Many formulas are all over the internet. Even if you look up complicated formulas, you'll find them all. The question is, what variable should be calculated and how to obtain a desirable A? And for what economic reasons should the formulas be derived and only do so? I think it is important for ideal educators to use it and provide education that can induce students to think their better in addition to delivering knowledge.
Q7. If you have anything to say to students studying hard at Sungkyunkwan University's College of Business, please tell them.
I think I understand the concerns and goals of business school students as I graduated from business school and worked for a long time in a financial institution. Business schools enter various industries compared to other majors. In a way, business majors are very wide, so it may not be easy to focus on a specific field. It's very important to understand what the company you're working for is doing and what products and services you sell. I hope you develop your expertise accordingly. Imagine what kind of talent you want to work as in society or business after graduation.
If you get a job in a specific industry after graduation, it's not easy to move to another industry. It is not easy for friends who went to the financial sector to move to the manufacturing sector or for friends who went to the manufacturing sector to move to the financial sector. It's possible to move to a company in the same industry (of course, you have to have excellent expertise), but it's not easy to change industries. Therefore, your first job after graduation will be a very important decision to determine the rest of your life. As college is an important time to decide on the rest of your career, please clearly set your career goal and boldly pursue it. Finally, my lab is open at any time, so students who want counseling or who are interested in financial institutions are always welcome.