KIKO계약의 구조에 관한 연구

A Study on the Structure of KIKO Contracts: In Relation to Article 104 and 109 of the Korean Civil Code

The study points out the lack of rationality of the KIKO contracts in the Supreme Court’s decision surrounding Article 104 of the Korean Civil Code. This study also explains, in regards to Article 109, despite the arguments that the banks have sold KIKO contracts as means of hedging and the buyers of the contracts intended to hedge foreign currency risk, why buyers of the contracts sustained tremendous loss. This study aims to look into the application of Article 104 and 109 of the Korean Civil Code as well as the cause of the social phenomenon by going over the history and fundamentals of option contracts and more specifically specifications and the structure of the KIKO contracts.