Since 2017, the Korea Institute of Nuclear Nonproliferation and Control (KINAC) has been implementing State System of Accounting for and Control of Nuclear Materials (SSAC) training courses for the nuclear Newcomer States. This IAEA SSAC course for Newcomer States aims to provide overall concepts and techniques, particularly on nuclear material accountancy and control systems, and address future challenges with regard to developing new nuclear power plants. Due to the restricted travels and limited in-person access to training and facilities from the COVID-19 pandemic, however, a new software was developed to substitute a technical tour on bulk handling facility (BHF) of the training course, and the course was favorably shifted to online in 2021. This newly built training software allows participants to follow each step of the technical process at a virtual bulk handing facility, and provides a video tour for such conditions where the software is found difficult to operate. Another feature of the development is a security function that prevents access of unauthorized users to the software. The achievement is expected to strengthen the SSAC of Newcomer States and ensure the practical implementation of safeguards from the initial stage of their novel nuclear power program through cooperation with IAEA. This contribution of the Republic of Korea (ROK) as one of the leading countries in the field of nuclear nonproliferation will further extend the partnership between IAEA and ROK and promote cooperation with the Newcomer States.

This case study investigates the KIKO currency option that has been a social issue in recent years among developing countries, especially Korea, where the financial derivatives market is in a state of rapid growth. The forward transaction which becomes a basis of derivatives is intended to hedge risks that may be caused by a future change in asset prices. Although it originates from a simple form of agricultural transactions, there currently exists a variety of derivatives in more sophisticated forms. In the Korean agricultural industry, the need to use such derivatives is great, as there is a huge risk of price fluctuation in agricultural products due to frequent adverse weather. In addition, many developing countries with export-led industrial structures similar to Korea’s, of necessity must resort to currency hedging as a method of reducing relevant risk. However, in most cases, the lack of understanding about financial derivatives results in an inappropriate application of these derivatives. The KIKO in this study represents such cases. Since 2007, KIKO has been sold in Korea to many small- and medium-sized export companies for the purpose of currency hedging when the exchange rate between the Korean won and the U.S. dollar was in a downward spiral. The main focus of this study is a case which is most representative of KIKO. As inflation rapidly increased during the financial crisis in the U.S. at the end of 2007, derivatives became a hot issue in the courts rather than in the financial markets. This case study investigates what KIKO and the fierce legal debates over it imply, from the perspective of the option of value evaluation in order to suggest not only a direction in which companies can utilize financial derivatives, but also a roadmap for the future derivatives market.