A Study on the Export Characteristics of Open Account Transactions and the Minimization of Credit Risk by Changes in Distribution & Logistics Environment: The Partial Role of Bank's Financial Platform

In recent decades, export trends have rapidly changed. As building long-term relationships with clients, the preference for payment is changing from documentary credit transactions to remittances. Accordingly, an extensive study on credit risk assessment on Open Account (from now on O/A) from the perspective of exporters is essential to reduce credit risk. The purpose of our study is to analyze the relationship between the characteristics of O/A and credit risk management performance mediated by the level of risk. In addition, the moderated mediating effect of the overseas trading period on the relationship will be analyzed. Our research model and hypothesis were designed through an in-depth interview with a person in charge of practical affairs and previous literature. The target of the survey is shippers who perform general forms of exports through forwarders or shipping companies in Seoul, Gyeonggi-do, and Incheon. In order to secure objectivity of the questionnaire responses, simple random sampling was used with the list of members such as the Korea International Trade Association (KITA), Certified Trading Company, and Korea Certified Customs Attorneys Association. The analysis results are as follows: First, the characteristics of O/A had a positive effect on the level of risk. These results are consistent with the book by Harlaar & de Leeuw (2020). Considering that O/A is a deal on credit, it should be possible to increase the level of risk awareness through pre-negotiations. Second, the level of risk had a positive effect on credit risk management performance. These results are consistent with those of Niepmann & Schmidt-Eisenlohr (2017), Lee Jung-sun, and Huh Eun-sook (2021). In other words, the greater the recognition of risk, the lower the likelihood of credit risk. Third, the characteristics of O/A had a positive effect on credit risk management performance. This finding is consistent with those in the book of Lin (2022). In O/A, the exporter’s withdrawal of payment often depends only on the importer’s credit. Therefore, using appropriate insurance for each transaction can have a significant positive effect on credit risk management performance. Fourth, in the relationship between the characteristics of O/A and the level of risk, the overseas trading period had a significant moderated mediation effect. Our findings show that the longer the overseas transaction period, the lower the level of risk recognition due to accumulated transaction experience. This study is different from the study of Han Woo-jung and Cho Hyuk-soo (2019) in that trade experience and trading period are designed as moderating variables rather than independent variables.