[Research Highlights: March 2026 SK Awards Recipients]   Showcasing Korea University Business School’s Research Excellence through the SK Awards     The faculty of Korea University Business School has once again demonstrated its world-class research competitiveness through the 2026 SK Awards. The SK Awards are presented to authors of papers published in top-tier international journals listed in the “SK Awards Journal List”, designated by Business School.      In the March SK Awards, the recipients included Professors Baeho Kim, Daehoon Noh, Kyuhan Lee, Angela Aerry Choi, Thummim Cho, and Hyun Seok Lee and In Joon Noh. In particular, Professors Hyun Seok Lee and In Joon Noh were jointly recognized for their paper titled “Learning in Recovery from Disruption: Empirical Evidence from the U.S. Drug Shortages.”     The awarded studies span diverse fields such as finance, platforms, digital content, and artificial intelligence. Through data-driven analysis, these works address real-world market and social issues while offering meaningful practical implications. The Business School plans to further strengthen its global competitiveness by continuing to pursue research that combines academic rigor with solutions to real-world problems.    Detailed research summaries for each professor are available in the individual articles.    View Detailed Research by Each Awarded Professor     Professor Baeho Kim | Long-History Principal Component Analysis in a Dynamic Factor Model with Weak Loadings → [Link]    Professor Daehoon Noh | Evolution of Ride Services: From Ride Hailing to Autonomous Vehicles → [Link]    Professor Kyuhan Lee | Intent-Driven Machine Learning for Fake News Detection: A Referential Domain Adaptation Approach → [Link]    Professors Hyun Seok Lee · In Joon Noh | Learning in Recovery from Disruption: Empirical Evidence from the U.S. Drug Shortages → [Link]    Professor Thummim Cho | The Present Value of Future Market Power → [Link]    Professor Angela Aerry Choi | To Split or to Merge?: How Partitioning Affects Consumption and Engagement with Digital Content → [Link] 

[2026-1 New Faculty Interview]   “Accounting is the Language of Business” — Professor Jae-Young Kim on Reading the Meaning Behind Numbers   Beginning in the spring semester of 2026, Professor Jae-Young Kim has joined Korea University Business School. Having taught at Korea University for many years and built close relationships with students, Professor Kim uses this appointment as an opportunity to reemphasize the essence of accounting education. She argues that accounting should not be understood merely as a technical skill for preparing financial statements, but as the “language of business” through which one can understand a company’s condition and potential.   Professor Kim, who has been recognized for her teaching excellence by receiving the Seoktap Teaching Award multiple times, hopes that students will come to see accounting not as a difficult or tedious subject, but as an engaging field where they can think critically and ask questions. From the ability to interpret numbers, to an attitude of approaching fundamentals through inquiry, to the intuition for understanding accounting information, Professor Kim emphasizes a holistic approach to learning.   In this interview, Professor Kim shares her perspective on effective teaching and the future direction of accounting education.      Q. You have been teaching at Korea University for some time and have recently been appointed as a professor. Could you share your thoughts on your teaching experience so far and your feelings about this appointment?    It is personally very meaningful for me to begin my role as a professor at Korea University, which is where my academic journey began. Through teaching students, I find that I often learn even more myself, and it continually makes me want to become a better teacher. I hope that my research and practical experience so far can contribute, even in a small way, in that direction.   Accounting classes are often taught from the perspective of those who “produce” accounting information, but I believe that many students are more likely to be in positions where they use that information in the future. Therefore, rather than stopping at the preparation of financial statements, I believe it is more important to think about what those numbers actually mean and how they can be interpreted and used. If more classes can provide opportunities to truly experience this aspect, it would lead to more meaningful learning, and that is the direction I would like to take in my own teaching as well.    Q. You have received high evaluations for your teaching, including multiple Seoktap Teaching Awards. What do you think makes a “good lecture” from a student’s perspective, and what teaching philosophy do you consider most important?    Above all, I hope that students enjoy learning accounting. I believe a good lecture is not simply a way of delivering knowledge, but rather a dialogue in which the instructor and students exchange questions and responses and build understanding together. For students to naturally participate in class and expand their thinking, both the instructor and the students need to actively engage in that dialogue—and for that to happen, the conversation has to be enjoyable.   If students feel that “a class I expected to be difficult and boring is actually enjoyable,” I believe the lecture becomes much more effective. With that in mind, I try to bring energy and a sense of enjoyment into the classroom myself—though, to be honest, it’s not always easy.    Q. Many students have already taken your classes. For those who will take your courses in the future, what can they look forward to, and what key takeaways can they expect?    There is a well-known phrase: “Accounting is the language of business.” Warren Buffett once said this in an interview, and I think it captures the essence of accounting education very well.   If language is ultimately a tool for communication, then accounting should not stop at learning numbers and rules; rather, it is more important to understand the meaning embedded within them. Therefore, in my classes, I aim to spend a great deal of time interpreting what the numbers in financial statements are actually saying.   Managers use accounting information to explain what state their company is in, what it is doing well, and what possibilities lie ahead. I hope students can develop the ability to read the stories behind numbers through this “language” of accounting.    Q. For students considering a career in accounting, beyond simply preparing for exams, what attitudes or experiences are essential for developing practical accounting skills?    I hope students are not too afraid to ask questions. I believe the process of trying different things itself is important. We expand our thinking through questions, share different perspectives, and solve problems along the way. Especially in today’s environment, where AI can easily generate answers, I think it is important not to take those results at face value, but to question and verify them. Students should be able to ask whether there are errors or limitations in those answers. Ultimately, more than the technology itself, the ability to ask questions that get to the heart of the issue is becoming increasingly important.   I believe this kind of ability is built gradually through asking questions, engaging in discussion, and sometimes being wrong. In that sense, university is a great environment to ask questions and try new things, but students may sometimes feel hesitant to do so.  Professors do not have all the answers either. By thinking together and working through problems, we learn from one another—and that ultimately leads to better learning and better decisions.

Korea University Business School Completes EQUIS Reaccreditation Review… Results to Be Announced in May   In February, Korea University Business School completed the on-site review for EQUIS reaccreditation, an international accreditation awarded by the European Foundation for Management Development (EFMD). This review was conducted as part of the Special Reaccreditation process, following three consecutive five-year accreditations. Over two days, the review panel visited the Business School and conducted a comprehensive evaluation across all EQUIS standards. The results are scheduled to be announced in May.      EQUIS accreditation is one of the leading international accreditations for business schools worldwide and is known for its rigorous and highly selective evaluation process. A five-year accreditation is granted when an institution meets all ten EQUIS standards—including program quality, faculty, research and academic activities, internationalization, and social responsibility and sustainability—and demonstrates a high level of strategic stability. A three-year accreditation may be awarded if the standards are met but there remain areas requiring improvement. If there are structural deficiencies that prevent the institution from meeting core standards, accreditation may not be granted.    Korea University Business School first obtained EQUIS accreditation in 2007, becoming the first institution in Korea to do so, and has since achieved three consecutive five-year reaccreditations. This latest review represents an important opportunity to reassess the School’s international competitiveness and educational quality and is expected to reaffirm the School’s commitment to continuous innovation and its global-standard educational capabilities.    During the review period, the evaluation panel conducted interviews with a wide range of stakeholders, including the School’s leadership, full-time faculty, undergraduate, graduate, and MBA students, alumni, and corporate partners, to examine the School’s operations and educational outcomes from multiple perspectives. The visit was conducted based on a self-assessment report submitted in advance, and the panel comprehensively reviewed the School’s strategic direction, research competitiveness, student experience, corporate engagement, and degree of internationalization. In particular, the process of gathering diverse stakeholder perspectives provided an opportunity to highlight the School’s strengths and assess its future potential.    Byung Cho Kim, Associate Dean for Planning at Korea University Business School, who oversaw the EQUIS reaccreditation process, stated, “This review was a meaningful process to comprehensively evaluate the educational and research capabilities of Korea University Business School, as well as its global network and industry collaboration achievements,” adding, “We will continue to strengthen our position as a world-class business education institution through ongoing innovation.”

Professor Emeritus Shin, Soosik of the Korea University Business School has passed away… Aged 84   Professor Emeritus Shin, Soosik of the Korea University Business School passed away on March 21, 2026, at the age of 84.   Professor Shin was a distinguished scholar who devoted more than four decades to education and research at Korea University Business School after joining Korea University as a lecturer in the College of Commerce in 1968.   He is widely regarded as a leading figure in the development of insurance studies in Korea, dedicating his life to research in business administration, particularly in the fields of insurance and social security. During his tenure, he served as Dean of the Business School, Director of the Institute of Business Research and Education (IBRE), and Dean of the Graduate School of Labor Studies. Through these roles, he made significant contributions not only to academic advancement but also to the development of university administration and institutional systems.   The funeral was held at Room 301 of the Korea University Anam Hospital Funeral Hall, and the funeral service took place at 5:20 a.m. on March 24. He was laid to rest at Yeraewon. He is survived by his wife, Mrs. Yoon Hye-suk; his son, Shin Dae-yu; and his daughter, Shin Ryeong.   Following the funeral service, the procession passed by the Dean’s Office of Korea University Business School and Hyundai Motor Hall, where final respects were paid. As the hearse carrying the bereaved family and the portrait of the deceased moved through campus, members of the Business School—where he had devoted his life—expressed their deep condolences and honored his lifelong academic journey.  

  Professor Baeho Kim of Korea University Business School received the SK Award for March 2026 for his research that improves the accuracy of risk estimation in high-dimensional portfolios using long-history data.     Acceptance Remarks by Professor Baeho Kim    This paper, for which I served as the corresponding author, was first conceived during my first sabbatical at UC Berkeley in 2016. After returning to Korea, I took on administrative roles as part of the Business School administration and later assumed responsibilities related to the Business Analytics program. While dedicating myself to these duties, financial data analysis techniques relevant to this research topic advanced rapidly, and I faced the challenge of having to fundamentally revise the study’s direction and core methodology.   Nevertheless, thanks to the understanding and support of my co-authors, I did not give up and continued my research efforts. Ultimately, through my second sabbatical in 2023, which allowed me to revisit UC Berkeley, and with the support of Korea University’s flexible semester system, I was able to bring the research to fruition. I would like to express my sincere gratitude to Korea University Business School for providing opportunities for sustained international collaborative research.     Research Overview   Title of Paper : Long-History Principal Component Analysis in a Dynamic Factor Model with Weak Loadings   Journal : Operations Research   Publication Date : March 11, 2026 (online publication; Articles in Advance, forthcoming in print)   Summary of Key Findings :    This study proposes an innovative framework to address the persistent issue of “second-order risk (SOR)” bias in high-dimensional portfolio management. Second-order risk refers to the discrepancy between a portfolio’s predicted risk and its realized performance, which is primarily driven by estimation errors in the covariance and precision matrices of asset returns.   In traditional financial practice, it has been standard practice to use relatively short data histories—typically around one year (approximately 250 days)—to capture rapidly changing market conditions and industry dynamics.   However, this study shows that such conventional approaches can misinterpret random noise as genuine market signals, thereby inducing “excess dispersion bias” in estimated factor loadings. As a result, optimized portfolios may appear safer than they actually are, exposing investors to unforeseen risks and ultimately undermining risk management.   This study formally demonstrates this mechanism through a mathematical theoretical model. Specifically, even in dynamic environments where factor loadings vary over time, or in “weak loadings” settings where effects are concentrated in specific sectors, the study proves that extending the data history for covariance estimation to six years (approximately 1,500 days) and applying a Long-History PCA approach ensures the statistically consistent convergence of covariance and precision matrix estimates. In other words, sufficiently long historical data act as a crucial stabilizer that helps mitigate market instability.   These theoretical findings are strongly supported by both Monte Carlo simulations and empirical analyses using real stock market data from the United States and Europe. In simulations designed to reflect realistic volatility structures and sector-specific risk factors, LH-PCA achieved a substantial reduction in SOR bias compared to conventional PCA methods based on one-year data, the Ledoit-Wolf shrinkage estimator, and GPS correction techniques. Empirical results from the U.S. (CRSP) and European (EURO) markets further confirm that the use of long data histories substantially improves the accuracy of covariance structure estimation and portfolio volatility prediction.   In conclusion, the LH-PCA framework proposed in this study provides a robust and rigorous foundation for constructing more resilient and well-diversified portfolios in modern data-driven risk management.    ▶ Read the full paper: Long-History Principal Component Analysis in a Dynamic Factor Model with Weak Loadings 

[2026-1 New Faculty Interview]    “Understanding the Capital Providers Behind the Market” Professor Ji Yeol Jimmy Oh’s Research and Perspective on Financial Markets   In the first semester of 2026, Professor Ji Yeol Jimmy Oh joined Korea University Business School as a faculty member in Finance. Having experienced financial crises firsthand, he has shaped the direction of his research with a focus on “capital providers” who drive the market, exploring the structure of financial markets and investor behavior.   In today’s rapidly changing capital markets, he continues to confront unanswered questions and seeks to share these insights with his students. We spoke with Professor Oh, who hopes to cultivate students with a deep understanding through both research and teaching.      Q. How does it feel to join Korea University Business School?   Hello everyone at Korea University Business School. I am Ji Yeol Jimmy Oh, a new faculty member in Finance this semester. It is a pleasure to meet you all. I am honored to be working alongside so many distinguished colleagues who are producing outstanding research across various fields. I am also deeply grateful for the support and consideration that allow me to focus on the two most essential pillars of being a professor—research and teaching—as I continue to settle in.     Q. What goals would you like to achieve here in terms of research and teaching?   At many pivotal moments in my life, the shadow of financial crises has loomed large. I experienced the IMF crisis as an elementary school student, and just weeks after beginning my doctoral studies in the fall of 2008, I witnessed the global financial crisis unfold, with major institutions like Lehman Brothers and AIG collapsing almost overnight. These experiences led me to pursue a deeper understanding of financial markets.   I’ve been doing research for over a decade, but there are still many unanswered questions. Moving forward, I would like to further explore the role of capital providers—such as insurance companies, funds, and pension funds—and how the characteristics of these institutional investors influence the market. Ultimately, I hope this research will contribute to helping Korea’s capital markets function more effectively.   At the same time, I hope to share these insights with my students. It would be very rewarding if, after graduation, my students are recognized as individuals who have a deep understanding of financial markets and who think critically about what is happening within them.   Q. Your research focuses on institutional investors, funds, bond markets, and investor behavior within financial market structures. What recent trends or developments in financial markets have you found particularly interesting?   Over the past 20 years, one of the most significant changes in the U.S. capital markets has been the transformation of the retirement pension system alongside the explosive growth of mutual funds and ETFs. As of 2025, this market exceeds KRW 7 quadrillion at current exchange rates. The quantitative and qualitative expansion of capital supply has been evident across the entire corporate lifecycle, acting as a catalyst for innovation—from early-stage startups brainstorming ideas in garages to large-scale companies like NVIDIA and Tesla.    Korea has also recently seen various efforts to drive similar changes in its capital markets. The KOSPI has more than doubled compared to early last year, and as a result, it often feels like nearly half the people on the subway during the morning commute have their brokerage apps open. However, for this kind of rally to translate into sustainable, high-quality growth rather than a temporary surge, many challenges still remain. Addressing these challenges will require collective reflection and effort from all of us.    Q. What is your teaching style, and what do you hope students will gain from your courses?    Before I answer, I would like to express my sincere appreciation to the students who have attended my 9 a.m. classes on Tuesdays and Thursdays over the past few weeks. Their enthusiasm and focus so early in the morning make me reflect on whether I was ever that focused as an undergraduate.    My classes emphasize interaction. In an era where AI tools like Gemini and Claude can handle many tasks, the ability to clearly articulate one’s thoughts through direct human communication has become more important than ever. I hope that by actively engaging—asking questions, making brief comments, and participating in discussions—students can develop these skills. My goal is to run my classes as closely as possible to a Western-style, discussion-based format.    Q. Many business students aspire to careers in finance or investment. What skills or study methods would you recommend they develop during their undergraduate years?    As I briefly mentioned earlier, the explosive growth of generative AI may be raising many concerns, and I can certainly relate to that, as I actively use AI in my research, teaching, and other activities. Of course, traditional core certifications, such as the CFA, should still be an important part of your preparation. However, beyond these, you need to be able to clearly articulate the depth of your thinking in interviews. You need to bring something that AI cannot yet replace. Communication skills are part of this, and it is especially important to stay up to date on financial issues through reliable sources.    In that regard, consistently reading reputable English-language financial newspapers can be very helpful. I often get research ideas from articles in the Financial Times and The Wall Street Journal. You might ask yourself this question: if you were to have a coffee chat with someone working in finance, could you sustain a conversation about current market issues for more than 20 minutes? If your answer is “yes,” then you can feel confident going into interviews.     Q. Lastly, a personal question—what are your hobbies or recent interests outside of research and teaching?    About two years ago, a personal turning point led me to become more focused on my health. I try to stay active with various forms of aerobic exercise—running, cycling along the Han River when the weather is nice, and hiking whenever I have time. I’ve climbed close to 40 of the peaks in the Black Yak “100 Famous Mountains” challenge.    In fact, until high school, I had been preparing to pursue a degree in music, specializing in clarinet performance. Even now, when pieces I practiced for entrance exams unexpectedly come up on my classical playlist during my commute, I instinctively skip to the next track—maybe a bit of lingering stress from those days. With the demands of raising children, I haven’t had the chance to practice for quite some time, but if the opportunity arises, I would love to start playing again.