• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.2
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• pp.147-161
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• 2014

This paper's purposes is to study the effects of the strategic support of top management, the activities of quality management, the quality-oriented culture and the organizational citizenship behavior on business performance for Start-ups. In order to settle quality management activitiesa successfully in start-up companies, Concern and support of Top manangement for the quality is important. Although Top management's commitment to a strong, According to the employee's attitude, the quality performance of company may be much different. the quality performance of company that acceptace attitude for quality management is excellent will increase. And business performance will be affected positively. Also when the company has any problems with the quality, the employee's will trying to solve the problem voluntarily is the important factor for business performance. Through this study, the following statistically significant conclusions were drawn. First, If top management supports the resource strategically for the activation of the quality management, The quality and business performance of start-ups will be improved. Second, If the quality management is activated, The quality and business performance of start-ups will be improved. Third, if quality-oriented culture is matured, the quality and business performance of start-ups will be improved. Fourth, if the level of organizational citizenship behavior is getting higher, the quality performance of start-ups will be improved. Fifth, the quality performance has a mediation effect on the relationship between the quality management and business performance. So when strategic support of Top management, quality management, quality-orented culture and OCB are activated in the organization, the quality performance will be higher than before, so that the business performance will be higher too. To improve the quality performance and business performance in start ups, It is needed to understand the quality management in organization, to implement the quality management constantly. And top management should supports the resource strategically and the employee has to do his best to form quality-oriented culture in the company.

• KDI Journal of Economic Policy
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• v.12 no.1
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• pp.31-68
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• 1990

The concentration of economic power takes the form of one or a few firms controlling a substantial portion of the economic resources and means in a certain economic area. At the same time, to the extent that these firms are owned by a few individuals, resource allocation can be manipulated by them rather than by the impersonal market mechanism. This will impair allocative efficiency, run counter to a decentralized market system and hamper the equitable distribution of wealth. Viewed from the historical evolution of Western capitalism in general, the concentration of economic power is a paradox in that it is a product of the free market system itself. The economic principle of natural discrimination works so that a few big firms preempt scarce resources and market opportunities. Prominent historical examples include trusts in America, Konzern in Germany and Zaibatsu in Japan in the early twentieth century. In other words, the concentration of economic power is the outcome as well as the antithesis of free competition. As long as judgment of the economic system at large depends upon the value systems of individuals, therefore, the issue of how to evaluate the concentration of economic power will inevitably be tinged with ideology. We have witnessed several different approaches to this problem such as communism, fascism and revised capitalism, and the last one seems to be the only surviving alternative. The concentration of economic power in Korea can be summarily represented by the "jaebol," namely, the conglomerate business group, the majority of whose member firms are monopolistic or oligopolistic in their respective markets and are owned by particular individuals. The jaebol has many dimensions in its size, but to sketch its magnitude, the share of the jaebol in the manufacturing sector reached 37.3% in shipment and 17.6% in employment as of 1989. The concentration of economic power can be ascribed to a number of causes. In the early stages of economic development, when the market system is immature, entrepreneurship must fill the gap inherent in the market in addition to performing its customary managerial function. Entrepreneurship of this sort is a scarce resource and becomes even more valuable as the target rate of economic growth gets higher. Entrepreneurship can neither be readily obtained in the market nor exhausted despite repeated use. Because of these peculiarities, economic power is bound to be concentrated in the hands of a few entrepreneurs and their business groups. It goes without saying, however, that the issue of whether the full exercise of money-making entrepreneurship is compatible with social mores is a different matter entirely. The rapidity of the concentration of economic power can also be traced to the diversification of business groups. The transplantation of advanced technology oriented toward mass production tends to saturate the small domestic market quite early and allows a firm to expand into new markets by making use of excess capacity and of monopoly profits. One of the reasons why the jaebol issue has become so acute in Korea lies in the nature of the government-business relationship. The Korean government has set economic development as its foremost national goal and, since then, has intervened profoundly in the private sector. Since most strategic industries promoted by the government required a huge capacity in technology, capital and manpower, big firms were favored over smaller firms, and the benefits of industrial policy naturally accrued to large business groups. The concentration of economic power which occured along the way was, therefore, not necessarily a product of the market system. At the same time, the concentration of ownership in business groups has been left largely intact as they have customarily met capital requirements by means of debt. The real advantage enjoyed by large business groups lies in synergy due to multiplant and multiproduct production. Even these effects, however, cannot always be considered socially optimal, as they offer disadvantages to other independent firms-for example, by foreclosing their markets. Moreover their fictitious or artificial advantages only aggravate the popular perception that most business groups have accumulated their wealth at the expense of the general public and under the behest of the government. Since Korea stands now at the threshold of establishing a full-fledged market economy along with political democracy, the phenomenon called the concentration of economic power must be correctly understood and the roles of business groups must be accordingly redefined. In doing so, we would do better to take a closer look at Japan which has experienced a demise of family-controlled Zaibatsu and a success with business groups(Kigyoshudan) whose ownership is dispersed among many firms and ultimately among the general public. The Japanese case cannot be an ideal model, but at least it gives us a good point of departure in that the issue of ownership is at the heart of the matter. In setting the basic direction of public policy aimed at controlling the concentration of economic power, one must harmonize efficiency and equity. Firm size in itself is not a problem, if it is dictated by efficiency considerations and if the firm behaves competitively in the market. As long as entrepreneurship is required for continuous economic growth and there is a discrepancy in entrepreneurial capacity among individuals, a concentration of economic power is bound to take place to some degree. Hence, the most effective way of reducing the inefficiency of business groups may be to impose competitive pressure on their activities. Concurrently, unless the concentration of ownership in business groups is scaled down, the seed of social discontent will still remain. Nevertheless, the dispersion of ownership requires a number of preconditions and, consequently, we must make consistent, long-term efforts on many fronts. We can suggest a long list of policy measures specifically designed to control the concentration of economic power. Whatever the policy may be, however, its intended effects will not be fully realized unless business groups abide by the moral code expected of socially responsible entrepreneurs. This is especially true, since the root of the problem of the excessive concentration of economic power lies outside the issue of efficiency, in problems concerning distribution, equity, and social justice.

• KDI Journal of Economic Policy
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• v.14 no.1
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• pp.89-119
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• 1992

This paper purports to analyze the economic rationale of compensating balance requirements and its impact on money supply. This practice has recently been severely criticized for artificially increasing the money supply and, therefore, limiting the nation's aggregate lending policy under the tight constraint of the given money supply target. A review of the existing literature implies that compensating balance requirements is a banking practice which leads to corrections in the distortion of financial resource allocation due to the imperfection of financial market stemming from asymmetric information and/or financial regulations on deposit and lending rates. Therefore, the economic rationale of this practice is deemed to improve the efficiency of financial resource allocation. On the other hand, the macroeconomic impact of compensating balance requirements on the money supply depends on the impact on the money multiplier, which in turn depends on the desired ratio of deposit that people wish to maintain on the money borrowed from the banking system, and on the desired reserve ratio that the banking system would like to hold for deposit withdrawal. If the compensating balance requirements could increase the desired ratio of deposit to borrowing (bank lending), it will increase the available amount of total reserve within the banking system and, in turn, the money multiplier. However, this channel has not been fully analyzed in the literature, and the direction of the effect is ambiguous. If the practice could reduce the turn-over rate of deposit and, thereby, reduce the desired reserve ratio of the banking system, then it will also increase the money multiplier. While this channel operates unambiguously toward increasing the money multiplier, this effect will be limited by the extent that the banking system holds the excess reserve over the required reserve because the excess reserve will set the maximum amount for the desired reserve to fall. This paper tries to determine the effect on the money supply by empirically estimating the multiplier and the desired ratio of deposit to lending equations as functions of the ratio of compensating balance to the related lending, which is not observable and is estimated for the regression purpose. The results suggest that the effect of compensating balance requirements on the money supply in Korea does not exist or is very tenuous even if it could operate. Therefore, this paper concludes that the well publicized policy of cross cancelling the compensating balance and the related lending will not be effective at controlling the money supply and increasing the amount of loans without expanding the money supply.

• Research in Community and Public Health Nursing
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• v.11 no.1
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• pp.289-316
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• 2000

우리나라의 경우 지역사회 재난 관리계획과 훈련이 보건의료적 모형이라기 보다는 민방위 모형에 입각하기 때문에 사고 현장에서의 환자 중증도 분류, 합리적 환자배분 및 이송, 병원 응급실에서의 대처 등이 체계적으로 이루어지지 못하고 있으며, 지역사회가 이에 즉각적으로 반응할 수 없다. 본 연구는 삼풍 붕괴사고 시에 대응방식과 그 후의 우리나라 응급의료 체계를 분석함으로써 대형사고 예방과 재난관리를 위한 우리나라 응급의료체계의 개선방안과 간호교육에서의 준비부분을 제시하고자 한다. 1 삼풍 사고 발생시에는 이를 관장할 만한 법적 근거인 인위적 재해에 관한 재난관리법이 없었다. 따라서 현장에서는 의학적 명령체계를 확보하지 못했기 때문에 현장에서의 응급 처치는 전혀 이루어지지 못하였다. 현장에서의 중증도 분류. 응급조치와 의뢰, 병원과 현장본부 그리고 구급차간의 통신 체계 두절, 환자 운송 중 의료지시를 받을 수 있도록 인력, 장비, 통신 체계가 준비되지 못하였던 점이 주요한 문제였다. 또한 병원 응급실에서는 재난 계획이 없거나 있었더라도 이를 활성화하여 병원의 운영 체계를 변환해가지 못하였다. 2. 삼풍백화점 붕괴사고 한달 후에는 인위적 재해에 대한 재난관리법이 제정되고, 행정부 수준별로 매년 지역요구에 합당한 재난관리 계획을 세우도록 법으로 규정하였다. 재난 관리법에는 보건의료 측면에서의 현장대응, 주민 참여, 응급 의료적 대처, 정보의 배된. 교육/훈련 등이 포함되어 있어야 한다. 그러나 법적 기반이 마련된 이후에도 한국 재난 계획 내에는 응급의료 측면의 대응 영역은 부처간 역할의 명시가 미흡하며, 현장에서의 응급 대응과정을 수행할 수 있는 운영 지침이 없이 명목상 언급으로 그치고 있기 때문에 계획을 활성화시켜 지역사회에서 운영하기는 어렵다. 즉 이 내용 속에는 사고의 확인 /공고, 응급 사고 지령, 요구 평가, 사상자의 중증도 분류와 안정화, 사상자 수집, 현장 처치 생명보존과 내과 외과적 응급처치가 수반된 이송, 사고 후 정신적 스트레스 관리, 사고의 총괄적 평가 부분에 대한 인력간 부처간 역할과 업무가 분명히 제시되어 있지 못하여, 사고 발생시 가장 중요한 연계적 업무 처리나 부문간 협조를 하기 어렵다. 의료 기관과 응급실/중환자실, 시민 안전을 책임지고 있는 기관들과의 상호 협력의 연계는 부족하다. 즉 현재의 재난 대비 계획 속에는 부처별 분명한 업무 분장, 재난 상황에 따른 시나리오적 대비 계획과 이를 훈련할 틀을 확보하고 있지 못하다. 3. 지방 정부 수준의 재난 계획서에는 재난 발생시 보건의료에 관한 사항 전반을 공공 보건소가 핵심적 역할을 하며 재난 관리에 대처해야 된다고 규정하고 있다. 그러므로 보건소는 지역사회 중심의 재난 관리 계획을 구성하고 이를 운영하며, 재난 현장에서의 응급 치료 대응 과정은 구조/ 구명을 책임지고 있는 공공기관인 소방서와 지역의 응급의료병원에게 위임한다. 즉 지역사회 재난 관리 계획이 보건소 주도하에 관내 병원과 관련기관(소방서. 경찰서)이 협동하여 만들고 업무를 명확히 분담하여 연계방안을 만든다. 이는 재난관리 대처에 성공여부를 결정하는 주요 요인이다. 4 대한 적십자사의 지역사회 주민에 대한 교육 프로그램은 연중 열리고 있다. 그러나 대부분의 교육주제는 건강증진 영역이며. 응급의료 관리는 전체 교육시간의 8%를 차지하며 이중 재난 준비를 위한 주민 교육 프로그램은 없다. 또한 특정 연령층이 모여있는 학교의 경우도 정규 보건교육 시간이 없기 때문에 생명구조나 응급처치를 체계적으로 배우고 연습할 기회가 없으면서 국민의 재난 준비의 기반확대가 되고 있지 못하다. 5. 병원은 재난 관리 위원회를 군성하여 병원의 진료권역 내에 있는 여러 자원을 감안한 포괄적인 재난관리계획을 세우고, 지역사회를 포함한 훈련을 해야 한다. 그러나 현재 병원은 명목상의 재난 관리 계획을 갖고 있을 뿐이다. 6. 재난관리 준비도를 평가할 때 병원응급실 치료 팀의 인력과 장비 등은 비교적 기준을 충족시키고 있었으나 병원의 재난 관리 계획은 전혀 훈련되고 있지 못하였다 그러므로 우리나라 재난 관리의 준비를 위해서는 현장의 응급의료체계, 재난 대응 계획, 이의 훈련을 통한 주민교육이 선행되어야만 개선될 수 있다. 즉 민방위 훈련 모델이 아닌 응급의료 서비스 모델에 입각한 장기적 노력과 재원의 투입이 필요하며, 지역사회를 중심으로 대응 준비와 이의 활성화 전략 개발, 훈련과 연습. 교육에 노력을 부여해야 한다. 7. 현장의 1차 응급처치자에 대해서는 법적으로 명시하고 있는 역할이 없다. 한국에서는 응급구조사 1급과 2급에 대한 교육과 규정을 1995년 이후 응급의료에 관한 법률에서 정하고 있다. 이 교육과정은 미국이 정하고 있는 응급구조사 과정 기준과 유사하지만 실습실이나 현장에서의 실습시간이 절대적으로 부족하다. 덧붙여 승인된 응급구조사 교육 기관의 강사는 강사로서의 자격기준을 충족할 뿐 아니라 실습강사는 대체적으로 1주일의 1/2은 응급 구조차를 탑승하여 현장 활동을 끊임없이 하고 있으며, 실습은 시나리오 유형으로 진행된다. 그러므로 우리나라의 경우 응급 구조사가 현장 기술 인력으로 역할 할 수 있도록 교과과정 내에서 실습을 강화 시켜야하며, 졸업생은 인턴쉽을 통한 현장 능력을 배양시키는 것이 필요하다. 8. 간호사의 경우 응급전문간호사의 자격을 부여받게 됨에 따라, 이를 위한 표준 교육 지침을 개발함으로써 병원 전 처치와 재난시 대응할 수 있는 역량을 보완해야 한다. 또한 현 자격 부여 프로그램 내용을 고려하여 정규자격 간호사가 현장 1차 치료자(first responder)로 역할 할 수 있도록 간호학 교과과정을 부분 보완해야한다.

• Journal of Korea Technology Innovation Society
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• v.13 no.1
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• pp.68-98
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• 2010

This study was conducted to analyze the results of the implementation of next-generation growth engine program that was promoted across all government agencies for five years from 2004 as part of a range of initiatives aimed at expanding the nation's economic growth potential. The results were analyzed in this study using five indices: program purpose and design; strategic planning; program management; program results; and pan-governmental agency cooperation and coordination. The results of the study include the following. First, regarding program purpose and design, it was found that consistent leadership in the promotion of the programs was insufficient as the relevant program promotion systems and financial resources were dispersed among governmental agencies, even though the objectives and validity of the programs were recognized. Second, with regard to strategic planning, it was found that although the program objectives and technical development strategy had been established at the beginning of the program, they were biased toward the technical objectives and mainly implemented by the technology suppliers. Third, regarding program management, it was found that the responsibility for general administration, ranging from task planning to policy improvement, was given to the appointed program director but that the system of cooperation among the agencies was insufficient to carry out the relevant tasks. Fourth, regarding the results of the program, it was difficult to understand the results consistently as the economic objectives were not clearly presented, even though the technical objectives were achieved despite the short implementation period of the program. Fifth, with regard to pan-governmental agency cooperation and coordination, it was found that the coordination organization whose remit was to implement the program was established pursuant to the Basic Law on Science and Technology, but that no detailed regulations or guidelines on the operation of the organization were drawn up. To efficiently plan and execute future pan-governmental agency R&D programs that are similar to the next-generation new growth engine program, various requirements should be met, namely, 1) joint planning and consistent program design among governmental agencies, 2) clarification of the program objectives and budget allocation system, 3) establishment of a pan-governmental agency program operation and assessment system, 4) formulation of a strategy for linking R&D with standardization, and 5) enactment of pan-governmental agency joint operation rules.

• Journal of Intelligence and Information Systems
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• v.18 no.4
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• pp.43-57
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• 2012

To enhance the competitive advantage in a constantly changing business environment, an enterprise management must make the right decision in many business activities based on both internal and external information. Thus, providing accurate information plays a prominent role in management's decision making. Intuitively, historical data can provide a feasible estimate through the forecasting models. Therefore, if the service department can estimate the service quantity for the next period, the service department can then effectively control the inventory of service related resources such as human, parts, and other facilities. In addition, the production department can make load map for improving its product quality. Therefore, obtaining an accurate service forecast most likely appears to be critical to manufacturing companies. Numerous investigations addressing this problem have generally employed statistical methods, such as regression or autoregressive and moving average simulation. However, these methods are only efficient for data with are seasonal or cyclical. If the data are influenced by the special characteristics of product, they are not feasible. In our research, we propose a forecasting framework that predicts service demand of manufacturing organization by combining Case-based reasoning (CBR) and leveraging an unsupervised artificial neural network based clustering analysis (i.e., Self-Organizing Maps; SOM). We believe that this is one of the first attempts at applying unsupervised artificial neural network-based machine-learning techniques in the service forecasting domain. Our proposed approach has several appealing features : (1) We applied CBR and SOM in a new forecasting domain such as service demand forecasting. (2) We proposed our combined approach between CBR and SOM in order to overcome limitations of traditional statistical forecasting methods and We have developed a service forecasting tool based on the proposed approach using an unsupervised artificial neural network and Case-based reasoning. In this research, we conducted an empirical study on a real digital TV manufacturer (i.e., Company A). In addition, we have empirically evaluated the proposed approach and tool using real sales and service related data from digital TV manufacturer. In our empirical experiments, we intend to explore the performance of our proposed service forecasting framework when compared to the performances predicted by other two service forecasting methods; one is traditional CBR based forecasting model and the other is the existing service forecasting model used by Company A. We ran each service forecasting 144 times; each time, input data were randomly sampled for each service forecasting framework. To evaluate accuracy of forecasting results, we used Mean Absolute Percentage Error (MAPE) as primary performance measure in our experiments. We conducted one-way ANOVA test with the 144 measurements of MAPE for three different service forecasting approaches. For example, the F-ratio of MAPE for three different service forecasting approaches is 67.25 and the p-value is 0.000. This means that the difference between the MAPE of the three different service forecasting approaches is significant at the level of 0.000. Since there is a significant difference among the different service forecasting approaches, we conducted Tukey's HSD post hoc test to determine exactly which means of MAPE are significantly different from which other ones. In terms of MAPE, Tukey's HSD post hoc test grouped the three different service forecasting approaches into three different subsets in the following order: our proposed approach > traditional CBR-based service forecasting approach > the existing forecasting approach used by Company A. Consequently, our empirical experiments show that our proposed approach outperformed the traditional CBR based forecasting model and the existing service forecasting model used by Company A. The rest of this paper is organized as follows. Section 2 provides some research background information such as summary of CBR and SOM. Section 3 presents a hybrid service forecasting framework based on Case-based Reasoning and Self-Organizing Maps, while the empirical evaluation results are summarized in Section 4. Conclusion and future research directions are finally discussed in Section 5.

• Journal of the Korean Geographical Society
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• v.41 no.1 s.112
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• pp.106-120
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• 2006

Natural or man-made disaster has been expected to be one of the potential themes that can integrate human geography and physical geography. Typhoons like Rusa and Maemi caused great loss to insurance companies as well as public sectors. We have implemented a natural disaster management system for a private insurance company to produce better estimation of hazards from high wind as well as calculate vulnerability of damage. Climatic gauge sites and addresses of contract's objects were geo-coded and the pressure values along all the typhoon tracks were vectorized into line objects. National GIS topog raphic maps with scale of 1: 5,000 were updated into base maps and digital elevation model with 30 meter space and land cover maps were used for reflecting roughness of land to wind velocity. All the data are converted to grid coverage with $1km{\times}1km$. Vulnerability curve of Munich Re was ad opted, and preprocessor and postprocessor of wind velocity model was implemented. Overlapping the location of contracts on the grid value coverage can show the relative risk, with given scenario. The wind velocities calculated by the model were compared with observed value (average $R^2=0.68$). The calibration of wind speed models was done by dropping two climatic gauge data, which enhanced $R^2$ values. The comparison of calculated loss with actual historical loss of the insurance company showed both underestimation and overestimation. This system enables the company to have quantitative data for optimizing the re-insurance ratio, to have a plan to allocate enterprise resources and to upgrade the international creditability of the company. A flood model, storm surge model and flash flood model are being added, at last, combined disaster vulnerability will be calculated for a total disaster management system.

• The Journal of the Korea Contents Association
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• v.12 no.9
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• pp.156-171
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• 2012

It is the time of the Korean Wave booming throughout the world, placing Korean culture in the center of the world and its added value is unaccountable. At this prosperity, the preserving of the archetype of Korean dancing and digital contents making is becoming a task not only for the government but also for the private sector because culture industry has enormous added values. To achieve such goals, contents development is an urgent matter but establishing the value of the archetype of Korean traditional dancing must have priority. The public has to take an active role in rediscovering the values of traditional culture, and as the representative of Korean identity traditional dancing must be the object of a systematic art policy. This study will review the current status of 'digital contents program of the archetype of culture' for traditional dancing and will reconsider the modern value of preserving the archetype of culture to make a suggestion to the direction of culture art policies in the near future. The study acknowledged the lack of technical personnel majoring in the archetype of traditional dancing and the need of reviewing the credibility of historical research procedures. Even with the studies by industry-university collaboration and positioning of specialists, effective policies that will form the foundation for private firms to train personnels is in urgent need. In other words, training personnels, allocation of resource, securing funds, policies promoting collaboration between private and individual businesses, and the commercial recognition at private firms are still far from establishing. This is due to the fact that archetype of culture is not a business that creates revenue immediately, therefore the recognition of traditional dancing as an investable item by business-oriented firms or movements are difficult to find. To overcome such situation, software oriented policies that establish open communication and sharing with the public should be done at first rather than the quantity oriented hardware policies of contents development. Through this process the public can change the attitude on traditional dancing and traditional dancing could be newly recognized as a creative repository of culture and as public businesses giving birth to economic value.

• KDI Journal of Economic Policy
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• v.14 no.2
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• pp.29-54
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• 1992

Recent studies on the economic effects of trade liberalization and economic integration have emphasized the significant gains associated with product differentiation and scale economies. Securing access to markets in other countries will make it possible to increase product variety and capture scale economies, thus, expanding the gains from trade. Liberalization is also expected to introduce foreign competition into the previously closed market. Concurrently, the liberalization will improve the competitive market environment for firms selling in the domestic market. Firms will be pressed to either exit or reduce cost. The output per firm, then, will increase due to the exit of rival firms, and the average total cost will decline due to the economies of scale. 'Rationalization' of the production process will eventually follow. This paper addresses the economic effects of (counterfactual) bilateral tariff elimination between Korea and Japan. It computationally assesses the gains from liberalization as well as the resource allocations and welfare effects associated with the tariff reduction. The endogenous determination of the key parameters distinguishes this paper from others. The firm's perceived elasticity of demand and elasticity of substitution in the present model are calibrated to be consistent with the base year data. Korea, Japan, and the rest of the world are modeled explicitly. The sectoral coverage of the model includes twenty-three tradable product categories based on three-digit SITC industries and seven nontradable categories based on one-digit SITC industries. Product categories are also classified into perfectly competitive and imperfectly competitive ones. In the imperfectly competitive industries, product differentiation exists at the firm level, while the perfectly competitive industries are characterized by national product differentiation. The simulation results of bilateral tariff reduction are reported. Tariff elimination tends to increase intra-industry trade flows so that the total amount of exports and imports of both countries expand. Yet, Japan is expected to increase the bilateral trade surplus in the wake of the mutual tariff reduction. Terms-of-trade for Korea will not change, while for Japan it will deteriorate. Equivalent variations reflecting the change in consumer surplus (welfare) will favor Korean consumers. Total output, however, will not change substantially, recording 0.5 and 0.6% for Japan and Korea, respectively. An interesting finding in the analysis is that the gains from increased competition and scale efficiency are not as prevailing as expected in theory.

• KDI Journal of Economic Policy
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• v.12 no.2
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• pp.135-149
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• 1990

Housing owners in Korea have a variety of tax advantages such as income tax exemption for the imputed rent of owner-occupied housing, exemption from the capital gains tax and deduction of the estate tax for one-house households. These tax reliefs for housing owners not only conflict with the principle of horizontal and vertical equity, but also lead to resource misallocation by distorting the housing market, and thus bring about regressive distribution effects. Particularly in the case of Korea with its imperfect capital market, these measures exacerbate the inter-class inequality of housing ownership as well as inequalities in wealth, by causing the affluent to demand needlessly large housing, while the poor and young experience difficulties in purchasing residential properties. Therefore, the Korean tax system must be altered as follows in order to disadvantage owner-occupiers, especially those owners of luxury housing. These alterations will promote housing-ownership, tax burden equity, efficiency of resource allocation, as well as the desirable distribution of income. First, income tax deductions for the rent payments of tenants are recommended. Ideally, the way of recovering the fiscal equivalence between the owner-occupiers and tenants is to levy an income tax on the former's imputed rents, and if necessary to give them tax credits. This, however, would be very difficult from a practical viewpoint, because the general public may perceive the concept of "imputed rent" as cumbersome. Computing the imputed rent also entails administrative costs, rendering quite reasonable, the continued exemption of imputed rent from taxation with the simultaneous deduction in the income tax for tenants. This would further enhance the administrative efficiency of income tax collection by easing assessment of the landlord's income. Second, a capital gains tax should be levied on the one-house household, except with the postponement of payments in the case that the seller purchases higher priced property. Exemption of the capital gains tax for the one-house household favors those who have more expensive housing, providing an incentive to the rich to hold even larger residences, and to the constructors to build more luxurious housing to meet the demand. So it is not desirable to sustain the current one-house household exemption while merely supplementing it with fastidious measures. Rather, the rule must be abolished completely with the concurrent reform of the deduction system and lowering of the tax rate, measures which the author believes will help optimize the capital gains tax incidence. Finally, discontinuation of the housing exemption for the heir is suggested. Consequent increases in the tax burden of the middle class could be mitigated by a reduction in the rate. This applies to the following specific exemptions as well, namely, for farm lands, meadows, woods, business fields-to foster horizontal equity, while denying speculation on land that leads to a loss in allocative efficiency. Moreover, imperfections in the Korean capital market have disallowed the provision of long term credit for housing seekers. Remedying these problems is essential to the promotion of greater housing ownership by the low and middle income classes. It is also certain that a government subsidy be focused on the poorest of the poor who cannot afford even to think of owning a housing.