• 사회경제평론
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• v.31 no.3
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• pp.1-27
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• 2018

We evaluate the income-led growth policies introduced in the first year of 'the Moon Government', and try to find ways to extend policy packages. We emphasize the expansion of fountain effects, reinforcing trickle-down effects, and fiscal expansion. Nevertheless, we still face two deep problems. It is hard to reverse the long-run downward growth trend due to population decline. It is also hard to overcome the chronic inefficiency in resource allocations originated from the Korea-specific monopolistic structure. We still can take advantage of income-led policy, but the growth effect will be limited if our efforts just remain in mild improvement of income distribution. We have to challenge the broader reform agenda if we really aim at great paradigm shift.

• KDI Journal of Economic Policy
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• v.13 no.1
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• pp.3-33
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• 1991

Since the early 1980's, the Korean government has gradually been widening the Korean market to foreign consumer goods. This, combined with the increased purchasing power of the Korean consumers resulting from the continued economic growth of the country, has sparked a spectacular influx of foreign consumer goods into Korea, ranging from BMW's to chopsticks. Import of foreign consumer goods amounted to more than 6 billion dollars in 1989 and is continuing to grow at a rapid rate. The increased import of foreign consumer goods doubtlessly improved the overall welfare of the Korean consumers by providing them with a wider range of options to choose from, by lowering the prices of some of the consumer goods domestically produced, and also by forcing the producers of some Korean goods to face competition with better foreign goods, thus giving them an incentive to raise the quality of their products. However, it is agreed by most economists that this increase in general welfare has been much smaller than what they had expected at the outset. Consumer prices of most imported consumer goods are easily double the import price, and in some cases, more than treble the import prices. Further, there has not been a noticeable drop in the prices of domestically produced consumer goods. Much of the blame has been attributed to the distribution sector of Korea. The objective of this paper is to analyze the imported consumer goods distribution sector of Korea, focusing on the possible sources of the poor performance of that sector, and to make policy suggestions that could potentially increase the welfare. This paper differs from all the previous research by others on this subject in that it analyzes the imported consumer goods distribution sector of Korea as a vertical structure. The distribution sector of an imported consumer good is a vertical structure since it consists of an international market, an import stage, and domestic wholesale and retail markets, in that order vertically. Our study naturally includes the analysis of the vertical restraints as well as the analysis of the industrial organization of each horizontal stage in the vertical structure. Each horizontal component of the imported consumer goods distribution sector is basically a monopolistically competitive market differentiated by characteristics of goods and by the locations and the services of firms. Further, restrictive dealership and resale price maintenance are found to be widely in use. Our main findings are the follwing; First, most consumer goods are imported monopolistically or oligopolistically through restrictive dealership contracts between foreign producers and domestic importers. Such restrictive dealership gives importers market power in the domestic market and explains many of the large discrepancies betwen the consumer prices and the import prices of many goods. Korean anti - trust law does not cover the issues arising from the market power of an importer resulting from a restrictive dealership contract. Second, some major producers of Korean goods are also importers of foreign goods that are substitutes of their products. The import of substitutes by major domestic producers is anti - competitive because it tends to raise the prices of both domestic goods and foreign goods, and also because it reduces the incentive of the domestic producers to raise the quality of their products. Third, wholesalers and retailers widely use resale price maintenance as a price fixing mechanism, and while this is against the anti- trust law, it seldom gets noticed. Fourth, the high level of rents of real estate for commercial use works as an entry barrier to the distribution sector and results in reduced competition by the firms in that sector. Finally, there are information problems. Consumers have inferior information to firms about the quality of a foreign consumer good that they have not tried before. Such information asymmetry often enables firms to raise prices. In addition, information asymmetry between importers frequently delays the import of cheaper substitutes. In order to alleviate the problems indentified above, we suggest the following policy changes. The government should strengthen the anti - trust law and its enforcement to regulate restrictive import contracts, import of competing goods by major domestic producers, and RPM by wholesalers and retailers that is aimed at price fixing. In addition, the government should loosen its tight real estate policy to encourage investment in the distribution sector. Finally, we suggest that the import price revelation policy that has been in use for some items since 1990 be expanded to most imported consumer goods that are introduced for the first time to give consumer better information and be used only for the period of time needed to inform sufficient number of consumers.

• Industry Promotion Research
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• v.5 no.4
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• pp.15-28
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• 2020

In this study, the methodology for measuring the structure of the Korean defense market and the competition status, and the characteristics of the Korean defense industry and the market are examined. To analyze the structure of the Korean defense market and the competition status, the market share, concentration ratio, and the Herfindal-Hirschman index are employed based on the annual sales of major Korean defense companies. On a basis of the result of the analysis, the suggestions for the Korean defense market to escape from the monopolistic market to be a competitive geographical market are presented. To present the suggestions, markets that have a similarity with the dense market are analyzed. The government's support policy, the selection of the companies led by the government, and the cost of the military are suggested for the defense market on a basis of analyzing similar markets. With the suggestions, when the government pursues the policies, the defense market sticking to principles and fairness is created and the efficiency of the companies operation is achieved, by enhancing the structure of the market fundamentally and the development of the policies in the industry's perspective.

• Korean Business Review
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• v.17
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• pp.27-52
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• 2004

The miraculous growth of Korean economy and its business corporations during 1960' s and 1970's are mainly due to the government leadership and its market intervention. We can find the reasons why the government initiated economic growth plan was so successful in Korea in its efficient bureaucratic government system and fair discipline to the corporations based on its contribution to the economy. During 1960's, the primary factors for the growth of business entities and the formation of business groups were the financial special favor, the preferential treatment in the new industry entrance and the merge & acquisition, lavish export incentives from the government, and the export explosion to Vietnam. During 1970's, the substantial deduction of corporations' private debt, enormous support in heavy industry investment, special benefits to general trading companies by the government, and the construction export to the Middle-East were the main causes of the business growth and the business groups formation. Also, the economic rent for the big companies had still been effective since 1960's. However, the preferential benefit to the big companies made them to diversify into the unrelated business ares and to be in very vulnerable financial position. The governmental support brought about the monopoly as well.

• Journal of Digital Convergence
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• v.18 no.6
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• pp.17-32
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• 2020

This study analyzes the regulatory issues of stakeholders, the firm, the government, and the individual, in the data industry using the principal-agent theory. While the importance of data driven economy is increasing rapidly, policy regulations and restrictions to use data impede the growth of data industry. We applied descriptive case analysis methodology using principal-agent theory. From our analysis, we found several meaningful results. First, key policy actors in data industry are data firms and the government among stakeholders. Second, two major concerns are that firms frequently invade personal privacy and the global companies obtain monopolistic power in data industry. This paper finally suggests policy and strategy in response to regulatory issues. The government should activate the domestic agent system for the supervision of global companies and increase data protection. Companies need to address discriminatory regulatory environments and expand legal data usage standards. Finally, individuals must embody an active behavior of consent.

• 한국경영정보학회:학술대회논문집
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• 2008.06a
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• pp.909-920
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• 2008

기술이 급속도로 발전하고 과거 자연 독점을 이루고 있던 많은 서비스 산업의 규제가 완화되면서 경쟁이 더욱 치열해지고 있다 기존 기업들은 신규 시장 진입 기업들을 방해하기 위하여 진입장벽을 높이기도 하고 기존의 인프라를 이용하여 더욱 뛰어난 기술력을 선보이기 위하여 노력한다 하지만 대부분의 서비스 기업들의 경우 이동통신 산업처럼 새로운 서비스가 시장에 진입하게 되면 많은 사람들의 관심이 늘어나고 이로 인해 기존 서비스가 시장에서 퇴출되는 둥의 어려움도 가지고 있다. 또한 독과점 형태를 이루고 있던 기업들은 시장 진입 기업에 대해 방심하고 있다. 갑작스러운 경쟁 체제에 미숙한 대응 방안으로 인하여 더욱 어려움을 겪기도 한다 반면에, 소비자의 경우 신규 서비스 초반 많은 관심을 가지고 이용 서비스를 신규 서비스로 옮기기도 하지만 서비스 품절, 이용용이성, 유용성에 의하여 지속적으로 이용하기도 하고 다시 기존 서비스를 이용하기도 한다. 따라서 경쟁 체제에서의 시장 환경에서 고객 만족도를 높여 결과적으로 고객 충성도를 높이는 전략은 기존 기업뿐만 아니라, 신규 진출 기업에게도 매우 중요한 과제가 되고 있다. 최근 유료방송시장의 기술이 발전하고 IPTV라는 새로운 서비스가 출시됨에 따라 기존의 Cable TV 는 시장 점유율이 잠식당하고 있다 IPTV 의 유료방송 시장으로의 진출로 인해 Cable TV 의 많은 가입자들이 IPTV 로 이용서비스를 옮기는 것을 방지하기 위하여 고객 만족을 높여 결과적으로 고객 의 충성도를 높여 기존 고객의 이탈을 방지하기 위한 전략이 필요하다. 유료방송서비스 외에도 많은 서비스 산업 내에서 경쟁이 치열해지면서 기존 기업들이 고객의 이 탈을 방지하기 위하여 고객 만족도를 높이는 방안에 대한 연구가 필요하다 본 연구에서는 유료방송 시장을 분석하여 서비스 산업에서 고객만족을 높이기 위한 방안에 대하여 연구해보고자 한다. 기존 연구의 서비스 품절, 이용용이성, 유용성에 대한 연구를 기초로 하여 고객 성향, 신규 서비스의 효용성이라는 변수를 추가하여 분석한 결과 고객 성향 및 신규 서비스의 효용성이라는 변수도 역시 고객 만족도와 고객 충성도에 많은 영향을 주는 것으로 나타났다.

• The Journal of the Korea Contents Association
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• v.7 no.5
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• pp.128-137
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• 2007

Digital cinema industry in Korea is developing very fast. It makes the structure of Korea film industry being changed with outstanding D.I process, reduction of production cost, the convenience of distribution & screening and easy transferring to other platforms. The main reason of this fast development is due to Korea film industry monopoly structure by a few companies. In addition, Huge Korea mobile communication companies are pushing Digital cinema industry to go faster with their own net work and platforms. However, Korea digital cinema industry still has problems like standardization in releasing, the lake of data in post-production and overuse in production. It is the time that we have to think about best way for the healthy development of Korea digital cinema industry more than the fast development of it.

• Journal of Digital Convergence
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• v.12 no.7
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• pp.11-20
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• 2014

This paper finds that the ultimate source of problems facing Korean mobile telecommunications such as excessive subsidies of handsets, waste of resources, and a vicious circle of expensive handsets and high prices for services, is bundling of handset and subscription. The analysis suggests that bundling causes consumers to confuse about prices of handsets and services, and firms focus on handset subsidy competition rather than on upgrading service qualities and lowering prices due to anti-competitive effects of bundling. Because most of the cost of bundling is passed on to consumers, the welfare of consumers decline. In particular, equality among consumers worsens due to price discriminations. To resolve these problems, unbundling of handset and subscription is a necessity. Mixed bundling allowing separate selling of handsets under bundling does not seem to work as a cure because bundling tends to be a dominant strategy. The best regulatory policy is a complete separation of handset and subscription.

• KDI Journal of Economic Policy
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• v.29 no.1
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• pp.79-112
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• 2007

Opening domestic market to international trade may enhance not only actual competition but also potential competition from foreign competitors. It seems that the competition authority has focused mainly on the actual competition (measured by the current market share) and has paid less attention to the potential competition. In this regards, this paper investigated the relation between potential foreign competition and domestic market structure. Using dynamic panel regression model, we analyzed the dynamic response of import penetration to the changes of domestic market condition in Korea as a proxy for the degree of potential foreign competition. The empirical results suggests that potential foreign competition does exist in the Korean manufacturing sector and this tendency is more stronger when the market is more concentrated. Thus, in order to effectively implement competition policy, it is necessary to consider both actual and potential competition.

• International Commerce and Information Review
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• v.16 no.5
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• pp.3-25
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• 2014

The megatrends of the Korean distribution industry market in 2014 reflect opportunities in parallel import & overseas direct purchase. Korean government addressed that "Monopoly & Oligopoly consumer goods import improvement plan" to stabilizing importing goods prices and domestic consumers' burden relief through accelerating market competition. and moreover it is to improving distribution channel and promoting parallel import market business. The Korean market is very unique in that consumers' real sensory index of open up importation effect level is low, but nominal open up importation effect level is high. This is due to difficulties in creating a proper importing goods distribution market and alternative importing routes are very rare. Thus, the purpose of this study is to analyze the market situation and parallel import to improve Korean government's "Monopoly & Oligopoly consumer goods import improvement plan" policy for the revitalization of the domestic market economy and to boost up a new growth engine industry.