• KDI Journal of Economic Policy
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• v.12 no.1
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• pp.93-110
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• 1990

The basic purpose behind the Korean government's policy toward the Korean deep sea fishing industry is to limit growth of the industry. Therefore, the regulations on the industry are generally restrictive and interventionist. The policy is intended to maintain high domestic fish prices in order to protect the domestic coastal fishing industry. Some regulations have also been introduced to maintain "industrial order." Each fishing vessel must obtain a government permit for operation. The permit specifies the kind of fish it can catch, the area of sea in which it can operate, and the port at which it can unload its catches. The number of permits government issues each year is based on the estimates of the demand increase calculated by government officials, and the government traditionally has been fairly conservative in its estimation, reflecting its concern for fish price stabilization, which actually implies a gradual increase of the prices. There is also a restriction on importing vessels from abroad. This regulation is intended to protect the domestic shipbuilding industry. However, this regulation has resulted in an unusually high average age of Korean fishing vessels, causing fishing costs to rise. These regulations and the inflexible response of the regulators to changing circumstances have resulted in many problems: i) high domestic fish prices, which are, to some extent deliberately, inflated to three or four times the level of international prices, resulting in huge consumer welfare losses; ii) over-exploitation of coastal fish resources; iii) provision of a hospitable environment for inefficient firms to survive, which is especially evident from the fact that, despite the high fish prices in Korea, most of the firms in the industry do not enjoy high profitability. It also must be pointed out that the actual beneficiaries of the high fish prices are the large operators, who are protected from competition and provide most of the fish for domestic consumption, rather than the low-income fishing households and small coastal operators whom the policy was originally designed to help. This study proposes a set of regulatory reforms and policy changes which could Promote competition and equity within the industry and allow firms to reduce costs and increase productivity. Such changes can make the industry more efficient and internationally competitive. Major proposals are, among others: minimization of bureaucratic discretion in issuing fishing permits and maintaining transparency in the governments' decision-making processes; reduction of the government permit specifications and simplification of the operational categories within the industry; and removal of the restrictions on importing foreign fishing vessels.

• KDI Journal of Economic Policy
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• v.13 no.2
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• pp.3-19
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• 1991

This paper attempts to identify key determinants of long run movements of real M2 by using the Johansen procedure for estimating and testing cointegration relations. It turns out that the real M2 equation has been stable over the long run despite rapid changes in financial structure since 1975. Moreover, the real M2 equation can be reduced to a velocity equation with the opportunity cost variable, expected inflation less the weighted average rate paid on M2 deposits, being the key determinant. However, it does not work to use a market interest rate such as the yield on corporate bonds in place of expected inflation for calculation of the opportunity cost. In the U.S., a market interest rate can be used, but not in Korea. Presumably, two somewhat different reasonings can be used to explain this result. One is that the yield on corporate bonds may not adequately reflect the inflationary expectations due to regulations on movements in interest rates. The other is that M2 deposits are not readily substitutable with such assets as corporate bonds because of market segmentations, regulations, and so on. From the policymaker's point of view, this implies that the inflation rate is an important indicator of a policy response. On the other hand, policymakers do not regard movements of the yield on corporate bonds as an important policy indicator. Altogether, the role of interest rates has been quite limited in Korea because of incomplete interest rate liberalization, an underdeveloped financial system, implementation procedures of policy measures, and so on. The result that M2 velocity has a positive cointegration relation with expected inflation minus the average rate on M2 implies that frequent adjustments of the regulated rates on M2 will be necessary as market conditions change. As the expected inflation gets higher, M2 velocity will eventually increase, given that the rates on M2 do not change. This will cause higher inflation. If interest rates are liberalized, then increases in market interest rates will result in lagged increases in deposits rates on M2. However, in Korea a substantial portion of deposit rates are regulated and will not change without the authority's initiatives. A tight monetary policy will cause increases in a few market interest rates. But the market mechanism, upward pressure for interest rate adjustments, never reaches regulated deposit rates. Hence the overall effects of tight monetary policy diminish considerably, only causing distortions in the flow of funds. Therefore, frequent adjustments of deposit rates are necessary as market conditions such as inflationary expectations change. Then it becomes important for the policymaker to actively engage in adjusting regulated deposit rates, because the financial sector in Korea is not fully developed.

• Environmental and Resource Economics Review
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• v.13 no.3
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• pp.519-547
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• 2004

This paper analyze problems about scope of specific trade obligations(STOs), principle of dispute settlement procedure, and non-parties in context of the Cartagena Protocol on Biosafety(POB), which based on sub-paragraph 31(i) of DDA WTO Ministrial Declaration. The implications based on result of this study are as follows. First, to accept the wider scope of STOs under POB in Korea, importing country, won't be harmful to LMOs and Bioindustry. Instead, it will ensure a high level of biosafety concerning the import of LMOs. Exporters can take different kinds of trade measures to countervail adverse effect on the export of LMOs in this case. Therefore importer will endure the aftereffect. However, if korea were in exporter's place, to accept the wider scope STOs under POB will not have a good influence on the export of LMOs. Korea, therefore, should devise scheme for responding to debate about the STOs in MEAs, which have to be based on cost-benefit analysis and scenarios taking into account of speed and level in biotechology progress, status and trend of LMOs R&D and production, and condition of other industries. Second, it is not easy to agree with applying to what's rule between the POB and WTO for settlement dispute. Because there is the incompatibility between the POB characterized according to social rationality and WTO's rules for safety and environmental protection characterized according to scientific rationality. This issue have to be discussed for long period due to gap like that. Accordingly Korea, one of major LMOs importing countries, should suggest continuously that the effort is needed to ensure an adequate level of protection in transboundary movements of LMOs and scientific, environmental and socio-economic study. Third, in case of dispute between party and non-party of the POB, the duties under the WTO of non-party of the POB(if WTO member country) is valid. The country, therefore, will try to settle dispute based on WTO's rules. However, international society have to ensure for sound and safe use of LMOs in the field of transboundary movements. Accordingly Korea should devise scheme for preventing the possibility of dispute between party and non-party of the POB(if WTO member country), which is supported by policy options under the POB.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.3
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• pp.301-308
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• 2018

This study explores an analytical mathematical model designed to estimate the optimal debt ratio of the Korean automobile industry, which has a more significant effect on the national economy than that of other industries, and attempts to estimate the optimal debt ratio based on objective data. The analytical model is based on ROA and ROE which uses the debt ratio as an independent variable and employs ROS, TAT, and NFCL as the related parameters. Regarding the NFCL, the optimal debt ratio is usually defined as the debt ratio that maximizes the ROA and ROE and is calculated using analytical procedures, such as by adding an equation that considers the debt ratio and the linearity relationship to the analytical model. This is because the optimal debt ratio can be calculated reliably by making use of an estimated value within a certain range, which is derived from more than two calculations rather than a single estimation starting from one calculation formula. In this study, for the estimation of the optimal debt ratio, the ROA and ROE are expressed as a quadratic equation with the debt ratio as the independent variable. Using this analysis procedure, the optimal debt ratio obtained using the data from the Korean automobile industry over a sixteen year period, which would optimize the profitability of the Korean automobile industry, was found to be 188% of the debt ratio in the ROA and 213% of the debt ratio in the ROE. This result was obtained by overcoming the problem of the reliability of the estimation value in spite of the limitations of the logical theory of this study, and can be interpreted as meaning that maintaining a debt ratio of 188% to 213% can enhance the profitability and reduce the risks in the Korean automobile industry. Furthermore, this indicates that the existing debt ratio of the Korean automobile industry is lower than the optimal value within the estimated range. Consequently, it is necessary for corporations to change their future debt ratio policies, given that the purpose of debt ratio management is to maintain safety and increase profitability, and to take into account the characteristics of the specific industry.

• Journal of Global Scholars of Marketing Science
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• v.17 no.4
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• pp.113-139
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• 2007

This study aims to, looking from a standpoint of network, has investigated the shipping industry's B2B e-marketplace, the characteristics that can earn electronic trust from the users, and characteristics of the web-site. It has examined the mechanism whereby electronic trust be earned and how it affects web-site involvement and service transaction intention. Ultimately, The study attempts to make proposals whereby such trust can lead for a cooperative trading community in the shipping industry's B2B e-marketplace The Covalence structural equation modeling was designed and empirically tested for the shipping industry's B2B e-marketplace. The shipping industry employees were given questionnaires and data were analyzed. Except for perceived security of the three characteristic factors on the web-site, the perceived site quality and characteristics factors in operation only affected co-variables. Transaction Fairness was determined to be the most important factor among exogenous factors increasing electronic trust. With regards to transaction rules, if a transaction is beneficial only to one side, then no long term transaction will not take place. If the concerned parties properly recognize that transaction fairness is crucial to electronic transaction, then it will enormously contribute to successful operations of shipping e-marketplace. Also, Perceived efficiency in transaction also affects electronic trust. This reduces transaction costs and speeds up and simplifies the transaction process. It has reduced greater time and costs than existing off-line transaction, and would positively affect electronic trust. By making an open forum for participants to obtain information for transaction, they can gather useful information, and at the same time, the web-site operator can provide information, which, in turn, will increase electronic trust in electronic transaction. Furthermore, such formation of trust in electronic transaction influences shipping companies in such a way that they will want to continuously participate in the transaction, raising web-site involvement. The result of increased trust is that shipping companies in the future will do business with each other and form a foundation for continuous transactions amongst themselves. Consequently, the formation of trust in electronic transaction greatly influences web-site involvement and service transaction intention. The results of the study have again proved that in order to maintain continuous business relationship with the current clients, electronic trust in virtual space, which operates the shipping industry's B2B e-marketplace, is important for the interested parties.

• Korean Journal of Construction Engineering and Management
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• v.16 no.1
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• pp.52-63
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• 2015

Business facilities among domestic architectures have rapidly been constructed along with domestic economic development. It is an important facility taking the second largest proportion next to apartment buildings among current 31 building types of fire department classification of 2012 year for urban architectures. The expected service life of business facilities is 15 years, but 70% of those in urban areas have surpassed the 15 year service life as of the present 2014. Thus, the demand for urgent rehabilitation of such facilities is constantly increasing due to the aging and performance deterioration of the facilities'main finishing materials. Especially, the business facilities are being used for the lease of company office or private office, and such problems as aging and performance deterioration of the facilities could cause less competitive edge for leasing and real estate value depreciation for the O&M (Operation & Management) agent and the owner, respectively. Therefore, an effective planned rehabilitation as a preventive measure according to the standardized repair rate by the number of years after the construction is in need in order to prevent the aging and performance deterioration of the facilities(La et al. 2001). Nonetheless, domestic repair/rehabilitation standards based on the repair rate are mainly limited to apartment buildings and pubic institutions, resulting in impractical application of such standards to business facilities. It has been investigated and analyzed that annual repair rate data for each finishing material are required for examination of the applicability of the repair rate standard for the purpose of establishment of a repair plan. Hence, this study aimed at developing a repair rate computation model for finishing materials of the facilities and verifying the appropriateness of the annual repair rate for each finishing material through a case study after collecting and analyzing the repair history data of six business facilities. The results of this study are expected to contribute to the planning and implementation of more efficient repair/rehabilitation budget by preventing the waste of unpredicted repair cost and opportunity cost for the sake of the business facilities' owners and O&M agents.

• Information Systems Review
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• v.11 no.1
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• pp.161-179
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• 2009

Nowadays an increasing number of Internet users are running individual websites as Blog or Cyworld. As this type of personal media has a great influence on communication among people, business comes to care about Network Effect, Network Software, and Social Network. For instance, Cyworld created the web service called 'Minihompy' for individual web-logs, and acquired 2.4milion users in 2007. Although many people assumed that the popularity of Minihompy, or Blog would be a passing fad, Cyworld has improved its service, and expanded its Network with various contents. This kind of expansion reflects survival efforts from infinite competitions among ISPs (Internet Service Provider) with focus on enhancing usability to users. However, Cyworld's Network Effect is gradually diminished in these days. Both of low production cost of service vendors and the low searching/conversing costs of users combine to make ISPs hard to keep their market share sustainable. To overcome this lackluster trend, Cyworld has adopted new strategies and try to lock their users in their service. Various efforts to improve the continuance and expansion of Network effect remain unclear and uncertain. If we understand beforehand how a service would improve Network effect, and which service could bring more effect, ISPs can get substantial help in launching their new business strategy. Regardless many diverse ideas to increase their user's duration online ISPs cannot guarantee 'how the new service strategies will end up in profitability. Therefore, this research studies about Network effect of Cyworld's 'Minihompy' using System-Dynamics method which could analyze dynamic relation between users and ISPs. Furthermore, the research aims to predict changes of Network Effect based on the strategy of new service. 'Page View' and 'Duration Time' can be enhanced for the short tenn because they enhance the service functionality. However, these services cannot increase the Network in the long-run. Limitations of this research include that we predict the future merely based on the limited data. We also limit the independent variables over Network Effect only to the following two issues: Increasing the number of users and increasing the Service Functionality. Despite of some limitations, this study perhaps gives some insights to the policy makers or others facing the stiff competition in the network business.

• The Korean Society of Law and Medicine
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• v.23 no.1
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• pp.81-119
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• 2022

Medical device market is strongly related with health care market. Public regulation in medical device market tends to be more lenient than health care market. In this market, competition law, administrative law and intellectual property law are intertwined, and thereby a variety of legal issues could be developed. Recently, dominant undertaking's abuse case was dealt with KFTC(Korea Fair Trade Commission) and Seoul High Court. The issues were whether dominant undertaking discriminated trading partners and this discrimination was anticompetitive. In this case, Seoul High Court revoked the KFTC's decision, holding that the undertaking did not harm competition, though it has dominant power in the relevant medical device market. This decision would be a meaningful precedent, not only that there have been small numbers of dominance abuse cases in Korea, but also that this case happened in medical device market. This case dealt with various issues like market definition, market power, alleged abuse and its anticompetitive effect. The court held that medical device markets are distinguished from medical device repairing market. However, the court did not clarify that medical device repairing market is a single branded market only for repairing the plaintiff's medical devices. Second, plaintiff's dominance is based on the lock-in effect, which means that hospitals could not switch devices like CT or MRI from plaintiff to other competitors. This could be supplemented from the fact that medical devices are expensive and the using period are significantly long. However market definition based on single branded market theory could be applied in rare and exceptional cases. Therefore the general application of single branded market theory might result in overestimate of market power. This type of abuse pattern requires improper condition contrary to resonable trade practice. KFTC asserted free charge for plaintiff's copy right. However, it is not clear whether the cases for free charge are general or not. Even if so, the intention and motive of providers for free charge should be proved. The main issue of anticompetitive effect was whether plaintiff raised rival's cost. Competitor's cost was increased due to plaintiff's copy right and its license fee. However the charge for license could be within the scope of fair and legal exercise of copy right. If competitors are excluded due to legal exercise of copy right or efficiency, the exclusionary abuse could not be proved.

• The Journal of Engineering Geology
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• v.29 no.1
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• pp.51-68
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• 2019

This study performs to evaluate adaptability of seashore filtering type seawater-intake which adapts dua1 filter well alternative for direct seawater-intake. This study varies filter condition of seashore free surface aquifer which is composed of sand layer then installs real size dual filter well and single filter well to evaluate water permeability and proper pumping amount according to filter condition. According to result of step aquifer test, it is analysed that 110.3% synergy effect of water permeability coefficient is happened compare to single filter since dual filter well has better improvement. dual filter has higher water permeability coefficient compare to same pumping amount, this means dual filter has more improved water permeability than single filter. According to analysis result of continuous aquifer test, it is evaluated that dual filter well (SD1200) has higher water permeability than single filter well (SS800) by analysis of water permeability coefficient using monitoring well and gauging well, it is also analysed dual filter has 110.7% synergy effect of water permeability coefficient. As a evaluation result of pumping amount according to analysis of water level dropping rate, it is analysed that dual filter well increased 122.8% pumping amount compare to single filter well when water level dropping is 2.0 m. As a result of calculating proper pumping amount using water level dropping rate, it is analysed that dual filter well shows 136.0% higher pumping amount compare to single filter well. It is evaluated that proper pumping amount has 122.8~160% improvement compare to single filter, pumping amount improvement rate is 139.6% compare to averaged single filter. In other words, about 40% water intake efficiency can be improved by just installation of dual filter compare to normal well. Proper pumping amount of dual filter well using inflection point is 2843.3 L/min and it is evaluated that daily seawater intake amount is about $4,100m^3/day$ (${\fallingdotseq}4094.3m^3/day$) in one hole of dual filter well. Since it is possible to intake plenty of water in one hole, higher adaptability is anticipated. In case of intaking seawater using dual filter well, no worries regarding damages on facilities caused by natural disaster such as severe weather or typhoon, improvement of pollution is anticipated due to seashore sand layer acts like filter. Therefore, It can be alternative of environmental issue for existing seawater intake technique, can save maintenance expenses related to installation fee or damages and has excellent adaptability in economic aspect. The result of this study will be utilized as a basic data of site demonstration test for adaptation of riverside filtered water of upcoming dual filter well and this study is also anticipated to present standard of well design and construction related to riverside filter and seashore filter technique.

• Journal of Chest Surgery
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• v.32 no.5
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• pp.448-455
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• 1999

Background: Recent developments in techniques of video-assisted thoracic surgery(VATS) and endoscopic equipment has expanded the application of video-assisted surgical procedures in the field of thoracic surgery. Especially, it will probably become the treatment of choice of spontaneous pneumothorax(SP). There is, however, a high recurrence rate, high cost, and paucity of long-term results. We report the results of postoperative follow-up and analyze perioperative parameters affected to recurrence, retrospectively. Material and Method: From march 1992 to march 1997, 276 patients with spontaneous pneumothorax underwent 292 VATS procedures. Conversion to open thoracotomy was necessitated in eight patients, and this patients excluded from the study. Result: The sex distribution was 249 males and 31 females. The mean age was 28.1 12.2 years(range, 15 to 69 years). Primary SP was 237cases(83.5%) and secondary SP was 47cases(16.5%). The major underlying lung diseases associated with secondary SP were tuberculosis 27cases(57.4%) and emphysema 8cases (38.3%). Operative indications included Ipsilateral recurrence 123(43.9%), persistent air-leak 53(18.9%), x-ray visible bleb 40(14.3%), tension 30(10.7%), contralateral recurrence 21(7.5%), uncomplicated first episode 8(2.9%), bilateral 3(1.1%), complicated episode 2(0.7%). Blebs were visualized in 247cases(87%) and 244cases(85.9%) performed stapled blebectomy. Early postoperative complications occurred in 33 cases(11.6%): 16 prolonged air-leak more than 5 days(four of them were required a second operation and found missed blebs); 5 bleeding; 5 empyema; 2 atelectasis; 1 wound infection. No deaths occured. The mean operative time was 52.8 23.1 minutes(range, 20 to 165 minutes). The mean d ration of chest tube drainage was 5.0 4.5 days(range, 2 to 37 days). The mean duration ofhospital stay was 8.2 5.5 days (range, 3 to 43days). At a mean follow-up 22.3 18.4 months(range, 1 to 65 months), 12 patients(4.2%) were lost to follow-up. There were 24 recurrences and seven patients underwent second operation and 6 patients(85.7%) were found the missed blebs. 12 perioperative parameters(age, sex, site, underlying disease, extent of collapse, operative indication, size of bleb, number of bleb, location of bleb, bleb management, pleural procedure, prolonged postoperative air-leak) were analyzed statistically to identify significant predictors of recurrence. The significant predictors of recurrence was the underlying disease[17.0%(8/47): 6.8%(16/237), p=0.038], prolonged postoperative air-leakage[37.5%(6/16): 6.7%(18/268), p=0.001], and pleural procedure [11.4%(19/167): 4.3%(5/117), p=0.034]. Blebectomy has less recurrence rate then non-blebectomy [8.2%(20/244) : 10.0%(4/40), p>0. 5]. However, this difference was not statistically significant(p=0.758). Conclusion: We conclude that it is important that we shoud careful finding of bleb during VATS due to reducing of recurrnece, and cases of no bleb identified and secondary spontaneous pneumothorax were indicated of pleurodectomy. VATS is a valid alternative to open procedure for the treatment of spontaneous pneumothorax with less pain, shorter hospital stay, more rapid return to work, high patient acceptance, less scar and exellent cosmetics. But, there is high recurrence rate and high cost, and than it is necessary to evaluate of long-term results for recurrence and to observate carefully during VATS.