• International Commerce and Information Review
• /
• v.13 no.4
• /
• pp.229-249
• /
• 2011

The exchange rate change has been increased since the time when the floating exchange rate system was introduced in Korea. As a result, the increase of the exchange rate changes raised the risk in international trades in Korea. Also after Bretton Woods System broke down, the increasing exchange rate fluctuation raised the risk in international trade. The purpose of this dissertation is to study whether this incomplete pass-through exists in Korean export industry and furthermore to measure the markup rate of the export price using real data since Global Financial Crisis. The estimation results of the export price determination model by Error Correction Model shows that the export price of Korea has been greatly influenced by the export prices and exchange rates against U.S. Dollar of rival countries, domestic producer price as well as the Korean Won-U.S. Dollar exchange rate and also business coincidence index of U.S. in demand. Particularly, the pass-through rate of Korean Won-U.S. Dollar exchange rate to export price is estimated to be incomplete, which contrasts with the propositions of traditional exchange rate determination approach, e. g. elasticity approach, monetary approach, etc.

• Journal of the Economic Geographical Society of Korea
• /
• v.25 no.4
• /
• pp.641-656
• /
• 2022

This article investigates how Baedal Minjok(BaeMin) has grown to be a dominant mobility platform operator in food delivery sector in South Korea and what roles its brand and branding have played in the process, drawing on the idea of origination. For the purpose, BaeMin is considered as a typical platformized mobility service provider and origination is framed to be an appropriate analytical lens for the business sector. For the origination conception, unlike mainstream neoclassical theory and concepts, is able to deal fairly well with the issues of imperfect competition, imperfect information, and monopolistic brand rent, which are apparent in today's platformized mobility services. Drawing evidence from textual data, empirical analysis pays particular attention to discursive and symbolic dimensions of BaeMin's socio-spatial biography. It is found that national origination underpinning ethnicity comprises an important pillar of BaeMin's brand and branding. Another form of place-based origination is also observed to matter, especially in the varied relation between the mobility service brand's owner and consumers. However, this configuration of BaeMin's brand origination has yet to be fully stabilized, as it has faced with serious challenges including brand vandalism and anti-brand movement especially since its merger to German food delivery platform giant Delivery Hero in 2020. This origination crisis moment appears to be associated with a series of contractions intrinsic to so-called 'platform capitalism'.

• KDI Journal of Economic Policy
• /
• v.14 no.2
• /
• pp.55-75
• /
• 1992

At the outset of import liberalization, most economists expected a significant drop in the prices of domestic goods that faced foreign competition. However, it is now generally acknowledge that a significant drop in prices of those goods has not occurred. A common claim is that the prices did not drop significantly because the major importers of many imported goods were also the domestic producers of competing goods. The objective of this paper is to analyze the welfare effect of importation by domestic firms that produce competing goods, to identify the factors that facilitate such business practices, and to formulate a policy that could improve the welfare. We proved that importation by competing domestic firms definitely raises the prices of both imported and domestic goods compared to the situation where foreign goods are imported by non-producers, ceteris paribus. The intuition behind this result is that since a producer-importer is essentially a cartel, its overall profit maximization requires reduced competition between the products that it sells. On the other hand, if a producer-importer is more efficient at distrinbution than a simple importer, the comparison between the two cases is a priori indeterminate. We also find that the industries in which domestic producers are actively involved in importing competing goods are the ones in which the distribution channels are tightly controlled by importer-producers. This finding suggests that exclusive dealing contracts, which work as an entry barrier, may be the source of importing by domestic producers. We argue that in a country such as Korea, where financial market is highly incomplete, tight control of the distribution channels by oligopolistic manufacturers is likely to be an effective entry barrier that leads to importing by domestic producers of similar goods. We further argue that seemingly superior distribution costs of importer-producers is likely to be a result of market foreclosure which would disappear once the entry barrier of exclusive dealing contracts is removed. Above findings suggest that market imperfections are the source of importation by domestic competitors, which in turn constitutes a market imperfection in itself and reduces consumer welfare. As potential remedies, we considered three alternatives; direct price control by the government over the imported goods sold by major domestic producers, regulation of trade itself between major producers, and regulation of exclusive dealing contracts. For reasons both theoretical and pratical, we find that the last alternative is the most attrative. Prohibiting exclusive contracts between manufacturers and dealers in industries where exclusive dealing contracts are a significant entry barrier is expected to break up the importer-producer cartel and improve the welfare.

• The Korean Journal of Air & Space Law and Policy
• /
• v.35 no.1
• /
• pp.153-180
• /
• 2020

This study is meaningful in finding out what legal and policy issues need to be improved in order to foster the aircraft industry, which is relatively underdeveloped compared to the fact that some heavy industries, such as the automobile industry and shipbuilding industry, have achieved a high level of production and technology globally. Korea's aircraft industry has been growing at a slower pace than other industries, largely due to the country's economic growth and the lack of a market structure to properly use variables such as the level of development in related industries, aircraft technology and demand for aircraft manufacturing. While most industries are privately led by the market structure of the competition system, heavy industries such as the aircraft industry generally grow under the market structure of the incomplete competition system, because only by securing huge initial investment costs, high technology, and sufficient demand, they can maintain minimum economic feasibility. The Korean aircraft industry was focused on developing and mass-producing military aircraft focusing on military demand, but it sought to turn the tide by signing the BASA (Bileral Aviation Safety Agreement) with the U.S. A preliminary feasibility study was conducted in 2010 to develop next-generation medium-sized aircraft, but was cancelled due to differences in position with Canada's Bombardier, which is subject to the concourse, and Korea Aerospace Industries (KAI) is pushing for the production of Bombardier's Q400 license on its own. Compared to the mid-to-large sized civil aircraft that are facing difficulties in development, KAI and KARI are successfully developing technologies to unmanned aerial vehicles and civil helicopters. In addition, the unmanned aerial vehicle sector is not yet suitable for manufacturers that have an exclusive global influence, so we believe that it is necessary to pursue government-led research and development projects with a focus on the areas of commercial helicopters and unmanned aerial vehicles in order to foster the aircraft industry in the future. In addition, since military aircraft such as KT-1 and T-50 are currently being exported smoothly, and it cannot be overlooked that the biggest demand for aircraft manufacturing in the Korea is the military, it is necessary to push forward national R&D projects and defense R&D program simultaneously to enable both civilian-military development. However, there are many differences between the two projects in the way they are implemented, the department in charge and the royalty system. Through this study, we learned about the technology ownership and implementation rights of national R&D projects and defense R&D programs, as well as the royalty system. In addition, problems with the system were identified and improvement measures were derived.

• Journal of the Korea Society of Computer and Information
• /
• v.16 no.2
• /
• pp.267-278
• /
• 2011

This study examines the relationship among stock options, pay equity, organizational commitment. Employees who received stock options tend to perceive their pay more equitable and the tendency shows a positive relationship among the amount of stock options and the equity perception. Also employees who received stock options perceive greater procedural equity, as they recognize stock options are awarded to many employees. However, the perception of stock options was not significantly associated with organizational commitment, turnover intention, and pay satisfaction. In 2003, the study surveyed 115 employees who received stock options in 10 publicly owned Korean firms that introduced stock option plans. The statistical analysis leads to the conclusions as follows. First, as the number of stock options increases, the receiver tends to perceive that pay system is more distributively equitable. Second, as the number of stock option receivers increases, the employees perceive the pay system more procedurally equitable. Third, stock option payments don't ensure that it improves pay satisfaction, turnover intention, and organizational commitment. This study shows a positive relationship that stock options work favorably in terms of pay equity, but the effect doesn't seem to be widely positive. The reason is that the introduction of stock options in domestic firms has been made only recently after the foreign exchange crisis in the late 1990s. More experiments and design issues should be discussed for the future.

• Journal of Intelligence and Information Systems
• /
• v.28 no.3
• /
• pp.237-258
• /
• 2022

As the global market environment changes, the domestic ICT industry has a growing influence on the world economy. This industry is regarded as an important driving force in the national economy from a technological and social point of view. In particular, small and medium-sized enterprises (SMEs) in the ICT industry are regarded as essential actors of domestic economic development in terms of company diversity, technology development and job creation. However, since it is small compared to large-sized enterprises, it is difficult for SMEs to survive with a differentiated strategy in an incomplete and rapidly changing environment. Therefore, SMEs must make a lot of efforts to improve their own capabilities, and the government needs to provide the desirable help suitable for corporate internal resources so that they can continue to be competitive. This study classifies the types of ICT SMEs participating in government support programs, and analyzes the relationship between resources and performance creation of each type. The data from the "ICT Small and Medium Enterprises Survey" conducted annually by the Ministry of Science and ICT was used. In the first stage, ICT SMEs were clustered based on common factors according to their experiences with government support programs. Three clusters were meaningfully classified, and each cluster was named "active participation type," "initial support type," and "soloist type." As a second step, this study compared the characteristics of each cluster through profiling analysis for each cluster. The third step carried out in this study was to find out the mechanism of R&D performance creation for each cluster through regression analysis. Different factors affected performance creation for each cluster, and the magnitude of the influence was also different. Specifically, for "active participation type", "current manpower", "technology competitiveness", and "R&D investment in the previous year" were found to be important factors in creating R&D performance. "Initial support type" was identified as "whether or not a dedicated R&D organization exists", "R&D investment amount in the previous year", "Ratio of sales to large companies", and "Ratio of vendors supplied to large companies" contributed to the performance. Lastly, in the case of "soloist type", "current workforce" and "future recruitment plan", "technological competitiveness", "R&D investment", "large company sales ratio", and "overseas sales ratio" showed a significant relationship with the performance. This study has practical implications of showing what strategy should be established when supporting SMEs in the future according to the government's participation in the startup program and providing a guide on what kind of support should be provided.