• Title/Summary/Keyword: Advanced Manufacturing

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Reduction of Carbon-Dioxide Emission Applying Carbon Capture and Storage(CCS) Technology to Power Generation and Industry Sectors in Korea (국내 전력 발전 및 산업 부문에서 탄소 포집 및 저장(CCS) 기술을 이용한 이산화탄소 배출 저감)

  • Wee, Jung-Ho;Kim, Jeong-In;Song, In-Sung;Song, Bo-Yun;Choi, Kyoung-Sik
    • Journal of Korean Society of Environmental Engineers
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    • v.30 no.9
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    • pp.961-972
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    • 2008
  • In 2004, total emissions of Greenhouse Gases(GHGs) in Korea was estimated to be about 590 million metric tons, which is the world's 10th largest emissions. Considering the much amount of nation's GHG emissions and growing nation's position in the world, GHG emissions in Korea should be reduced in near future. The CO$_2$ emissions from two sub-sections of energy sector in Korea, such as thermal power plant and industry section(including manufacturing and construction industries), was about 300 million metric tons in 2004 and this is 53.3% of total GHG emissions in Korea. So, the mitigation of CO$_2$ emissions in these two section is more important and more effective to reduce the nation's total GHGs than any other fields. In addition, these two section have high potential to qualitatively and effectively apply the CCS(Carbon Capture and Storage) technologies due to the nature of their process. There are several CCS technologies applied to these two section. In short term, the chemical absorption technology using amine as a absorbent could be the most effectively used. In middle or long term, pre-combustion technology equipped with ATR(Autothermal reforming), or MSR-$H_2$(Methane steam reformer with hydrogen separation membrane reactor) unit and oxyfuel combustion such as SOFC+GT(Solid oxide fuel cell-Gas turbine) process would be the promising technologies to reduce the CO$_2$ emissions in two areas. It is expected that these advanced CCS technologies can reduce the CO$_2$ avoidance cost to $US 8.5-43.5/tCO$_2$. Using the CCS technologies, if the CO$_2$ emissions from two sub-sections of energy sector could be reduced to even 10% of total emissions, the amount of 30 million metric tons of CO$_2$ could be mitigated.

A Research on Private apparel Brand's Product Strategy in Discounted Stores. (할인점의 의류PB 상품전략에 관한 연구)

  • Choi, Sung-Sik;Kim, Pan-Jin;Lee, Sang-Youn
    • The Journal of Industrial Distribution & Business
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    • v.2 no.2
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    • pp.25-38
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    • 2011
  • After the financial crisis, what has been the rapidly growth of large supermarkets, stores, and restaurants linked to concerns that have already reached saturation point, but the new opening large supermarkets is expected to continue into the future. The major supermarkets are continue to grow outward but growth slowed. And that is expected to continue differentiation of the product, acceptance the customer needs, acquiring high margin of sales products. Then the ongoing development of PB brand is to be positioned effective marketing strategy for overcoming the period of slow growth. In addition, big three local supermarkets continue to launch a clothing PB brand, expansion and operation strategy for the situation and based on this study and the success of the domestic large-Mart's PB and PB identifying problem and the need for differentiation and profit for the successful strategy is to discuss in this study. This research looks at the concept of major market's private brand, the strategy, the success example and the prospects, and views the globally rapid-growing private brands, not only having the limited role of distributing the products as retailers, but also having a control of the distribution channel as a manufacturing company. World's major advanced distribution companies, to differentiate their companies' products and increase the profitability, are putting a lot of efforts into private brand products, and there are many good examples that are globalizing, externally expanding, and creating high financial results. In this research, we presented three major domestic discount stores as examples to show that there is a need for a differentiated private brand management strategy in the saturated discount store industry in Korea. Also, we aim to provide a new product strategy for the future that has been saturated with discount stores to the limit, by providing suggestions that private brand products can be used as weapons with the strongest competiveness in the retail industry through pursuing store differentiations from thorough market analysis and product researches, meeting the customers' needs, and obtaining high margins. PB products, particularly clothing design, a thorough market analysis and product development trends and customer needs to reflect the acquisition of High margin differentiated powerful products and sustainable growth through the stores, large supermarkets, congested, a new breakthrough that can give a good opportunity to provide implications discount stores, new product strategy based on ways to limit proposed. This study discount the major three companies studied, the less strain is a generalization. In the future, domestic and local discount store brand PB, SPA brand that the multinational comparative analysis of the value of the PB expansion strategy centered on clothing, additional studies will be needed.

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A Study of Cleaning Technology for Zirconium Scrap Recycling in the Nuclear Industry (원자력산업에서 지르코늄 스크랩 재활용을 위한 세정기술에 관한 연구)

  • Lee, Ji-Eun;Cho, Nam-Chan;An, Chang-Mo;Noh, Jae-Soo;Moon, Jong-Han
    • Clean Technology
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    • v.19 no.3
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    • pp.264-271
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    • 2013
  • In this study, we optimized the removal condition of contaminants attached on the scrap surface to recycle the scrap generated from the Zr alloy tube manufacturing process back to the nuclear grade. The main contaminant is remnant of watersoluble cooling lubricant that is used in the pilgering manufacture during the tube production, and it is assumed to be compressed and carbonized on the surface of tube. Zirlo alloy tube of ${\phi}9.50mm$, which has high occurrence frequency of scrap, was selected as the object to be cleaned, and cleaning abilities of reagents were evaluated by measuring the characteristics of contaminants remained and by analyzing the surface of the tube after cleaning process. For evaluation of each cleaning agent, we selected two types of sodium hydroxide series and three types of potassium hydroxide series. Furthermore, to confirm dependence on tempe-rature and ultrasonic intensities, cleaning at the room temperature, $40^{\circ}C$, and $60^{\circ}C$ was conducted, and results showed that higher the cleaning temperature and higher the ultrasonic intensity, better the cleaning effect. As a result of the bare-eye inspection, while the use of sodium hydroxide provided satisfactory condition on the tube surface, the use of potassium hydroxide series provided satisfactory condition on the tube surface only when the ultrasonic intensity was over 120 W. In the cleaning effect analysis using the gravimetric method, cleaning efficiency of sodium hydroxide series was as high as 97.6% ($60^{\circ}C$, 120 W), but since the tube surface condition was poor after the use of potassium hydroxide, the gravimetric method was not appropriate. In the analytical result of surface contaminants on the tube surface, C, O, Ca, and Zr were detected, and mainly C and O dominated the proportion of contaminants. It was also found that the degree of cleaning on the tube affected the componential ratio of C and O; if the degree of cleaning is high, or if cleaning is well-conducted, the proportion of C is decreased, and the proportion of O is increased. Based on these results, optimal cleaning for application in the industry can be expected by categorizing cleaning process into three steps of Alkali cleaning, Rinsing, and Drying and by adjusting cleaning parameters in each step.

Development of PCR Method for Rapid Detection of Allergic Materials in Foods (PCR을 이용한 식품 중 알레르기 유발물질 검출법 개발)

  • Park, Yong-Chjun;Kim, Mi-Ra;Shin, Jun-Ho;Kim, Kyu-Heon;Lee, Jae-Hwang;Cho, Tae-Yong;Lee, Hwa-Jung;Lee, Sang-Jae;Han, Sang-Bae
    • Journal of Food Hygiene and Safety
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    • v.28 no.2
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    • pp.124-129
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    • 2013
  • The method for detection foods containing allergenic materials by PCR was developed in this study. To detect allergenic raw material from processed food, species specific primer which up to 200bp for PCR product were designed or selected from advanced research. As target materials, 14 items were selected (12 target materials for allergen in Korea, 2 target materials for allergen in foreign countries). The amplicon size for eggs, milk, buckwheat, peanuts, beans, wheat, mackerel, crab, shrimp, pork, peach, tomato, almond, and sesame were confirmed 281, 131, 138, 120, 118, 127, 211, 174, 231, 138, 174, 132, 103, and 220bp, respectively. And any non-specific bands were not detected among each others. Detection method for allergenic material developed in this study could be used to investigate inaccurate goods for allergen labeling or non-intentional contaminant during processed foods manufacturing. In addition, the system will be usefully to detection accurate allergenic raw materials of export for other countries.

A Research on Effect of Corporate's Competitive Advantage to the R&D Investment in Small and Medium Enterprise (중소기업 유형별 연구개발투자의 영향요인에 관한 실증연구)

  • Choi, Su-Heyong;Choi, Chul-An
    • Management & Information Systems Review
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    • v.33 no.1
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    • pp.191-217
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    • 2014
  • The Purpose of this study is to find the effect factors of R&D investment in SMEs which plays an important role in the national economy, and the differences of the effect factors by the type of SMEs. The subject of this study is about 3,400 SMEs mentioned in "The survey of technical statistics on SMEs in 2007" by Korea Federation of Small and Medium Business. The effect factors are related with the size of business, the infrastructure of R&D and the activities of R&D which have been studied by many researchers. The methods of analysis are regression analysis, moderating effect analysis and the software package used is SPSS 12.0. The results of the study are as fallow. First, it was found that unlike in previous studies which show the effect of the elements of business's size, research infrastructure, research activities on R&D investment, one element alone can't be considered for meaningful result but the various elements have effect on R&D investment at the same time. In other words, the number of employees and the sales as the elements of business's size, the ratio of researchers, the technical ability, the ratio of equipment possession and the intellectual properties as the elements of R&D infrastructure, the activity of ideas and joint research as the elements of R&D activities have positive(+) effect, whereas the participation of CEO in the activity of R&D as the elements of R&D activities activity has negative(-) one. The number of employees, the ratio of researchers, and the sales had relatively high influence whereas equipment possession, technical ability, intellectual properties, the participation of CEO in the research, the activity of idea, joint research had relatively low influence. Next, it was also found that there are differences of the effect factors over the types of SMEs. SMEs were classified into 19 types by eight criteria such as start-ups and existing business by business age; small business and medium business by size; manufacturing business and service business by product type;independent business and subcontractor business by dealing type; businesses in the entering, growing, maturing and restructuring stage by growth stage; businesses with low, medium and high technology by technological level; pioneering business and non-pioneering business by industrial type; and businesses with state-of-the-art technology and non-advanced business by the level of business activities. The meaning of this study lies in the fact that it found the various effect factors should be considered at the same time when conducting study on SMEs' R&D investment, and the differences by the type should be acknowledged. This study surpassed the limitations of the previous studies which focused on a couple of factors and types. This study result can also be considered for other studies on achievement, organization, marketing and others. Moreover, it shows that a differential policy by business type is needed when formulating SME policy.

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Experimental Study on Structural Behavior of Precast PSC Curved Girder Bridge (프리캐스트 PSC 곡선 거더교의 구조거동에 대한 실험적 연구)

  • Kim, Sung Jae;Kim, Sung Bae;Uhm, Ki Ha;Kim, Jang Ho Jay
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.34 no.6
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    • pp.1731-1741
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    • 2014
  • Recently, many overpasses, highway, and advanced transit systems have been constructed to distribute the traffic congestion, thus small size of curved bridges with small curvature such as ramp structures have been increasing. Many of early curved bridges had been constructed by using straight beams with curved slabs, but curved steel beams have replaced them due to the cost, aesthetic and the advantage in building the section form and manipulating the curvature of beams, thereby large portion of curved bridges were applied with steel box girders. However, steel box girder bridges needs comparatively high initial costs and continuous maintenance such as repainting, which is the one of the reason for increasing the cost. Moreover, I-type steel plate girder which is being studied by many researchers recently, seem to have problems in stability due to the low torsional stiffness, resulting from the section characteristics with thin plate used for web and open section forms. Therefore, in recent studies, researchers have proposed curved precast PSC girders with low cost and could secured safety which could replace the curved steel girder type bridges. Hence, this study developed a Smart Mold system to manufacture efficient curved precast PSC girders. And by using this mold system a 40 m 2-girder bridge was constructed for a static flexural test, to evaluate the safety and performance under ultimate load. At the manufacturing stage, each single girder showed problems in the stability due to the torsional moment, but after the girders were connected by cross beams and decks, the bridge successfully distributed the stress, thereby the stability was confirmed. The static loading test results show that the initial crack was observed at 1,400 kN when the design load was 450 kN, and the load at the allowable deflection by code was 1,800 kN, which shows that the safety and usability of the curved precast PSC bridge manufactured by Smart Mold system is secured.

A Study on the Strategy of IoT Industry Development in the 4th Industrial Revolution: Focusing on the direction of business model innovation (4차 산업혁명 시대의 사물인터넷 산업 발전전략에 관한 연구: 기업측면의 비즈니스 모델혁신 방향을 중심으로)

  • Joeng, Min Eui;Yu, Song-Jin
    • Journal of Intelligence and Information Systems
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    • v.25 no.2
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    • pp.57-75
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    • 2019
  • In this paper, we conducted a study focusing on the innovation direction of the documentary model on the Internet of Things industry, which is the most actively industrialized among the core technologies of the 4th Industrial Revolution. Policy, economic, social, and technical issues were derived using PEST analysis for global trend analysis. It also presented future prospects for the Internet of Things industry of ICT-related global research institutes such as Gartner and International Data Corporation. Global research institutes predicted that competition in network technologies will be an issue for industrial Internet (IIoST) and IoT (Internet of Things) based on infrastructure and platforms. As a result of the PEST analysis, developed countries are pushing policies to respond to the fourth industrial revolution through cooperation of private (business/ research institutes) led by the government. It was also in the process of expanding related R&D budgets and establishing related policies in South Korea. On the economic side, the growth tax of the related industries (based on the aggregate value of the market) and the performance of the entity were reviewed. The growth of industries related to the fourth industrial revolution in advanced countries overseas was found to be faster than other industries, while in Korea, the growth of the "technical hardware and equipment" and "communication service" sectors was relatively low among industries related to the fourth industrial revolution. On the social side, it is expected to cause enormous ripple effects across society, largely due to changes in technology and industrial structure, changes in employment structure, changes in job volume, etc. On the technical side, changes were taking place in each industry, representing the health and medical sectors and manufacturing sectors, which were rapidly changing as they merged with the technology of the Fourth Industrial Revolution. In this paper, various management methodologies for innovation of existing business model were reviewed to cope with rapidly changing industrial environment due to the fourth industrial revolution. In addition, four criteria were established to select a management model to cope with the new business environment: 'Applicability', 'Agility', 'Diversity' and 'Connectivity'. The expert survey results in an AHP analysis showing that Business Model Canvas is best suited for business model innovation methodology. The results showed very high importance, 42.5 percent in terms of "Applicability", 48.1 percent in terms of "Agility", 47.6 percent in terms of "diversity" and 42.9 percent in terms of "connectivity." Thus, it was selected as a model that could be diversely applied according to the industrial ecology and paradigm shift. Business Model Canvas is a relatively recent management strategy that identifies the value of a business model through a nine-block approach as a methodology for business model innovation. It identifies the value of a business model through nine block approaches and covers the four key areas of business: customer, order, infrastructure, and business feasibility analysis. In the paper, the expansion and application direction of the nine blocks were presented from the perspective of the IoT company (ICT). In conclusion, the discussion of which Business Model Canvas models will be applied in the ICT convergence industry is described. Based on the nine blocks, if appropriate applications are carried out to suit the characteristics of the target company, various applications are possible, such as integration and removal of five blocks, seven blocks and so on, and segmentation of blocks that fit the characteristics. Future research needs to develop customized business innovation methodologies for Internet of Things companies, or those that are performing Internet-based services. In addition, in this study, the Business Model Canvas model was derived from expert opinion as a useful tool for innovation. For the expansion and demonstration of the research, a study on the usability of presenting detailed implementation strategies, such as various model application cases and application models for actual companies, is needed.

Comparison of Characteristics of Electrodeposited Lithium Electrodes Under Various Electroplating Conditions (다양한 전착조건에서 제작된 리튬 전극의 특성 연구)

  • Lim, Rana;Lee, Minhee;Kim, Jeom-Soo
    • Journal of the Korean Electrochemical Society
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    • v.22 no.3
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    • pp.128-137
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    • 2019
  • A lithium is the lightest metal on the earth. It has some attractive characteristics as a negative electrode material such as a low reduction potential (-3.04 V vs. SHE) and a high theoretical capacity ($3,860mAh\;g^{-1}$). Therefore, it has been studied as a next generation anode material for high energy lithium batteries. The thin lithium electrode is required to maximize the efficiency and energy density of the battery, but the physical roll-press method has a limitation in manufacturing thin lithium. In this study, thin lithium electrode was fabricated by electrodeposition under various conditions such as compositions of electrolytes and the current density. Deposited lithium showed strong relationship between process condition and its characteristics. The concentration of electrolyte affects to the shape of deposited lithium particle. As the concentration increases, the shape of particle changes from a sharp edged long one to a rounded lump. The former shape is favorable for suppressing dendrite formation and the elec-trode shows good stripping efficiency of 92.68% (3M LiFSI in DME, $0.4mA\;cm^{-2}$). The shape of deposited particle also affected by the applied current density. When the amount of current applied gets larger the shape changes to the sharp edged long one like the case of the low concentration electrolyte. The combination of salts and solvents, 1.5M LiFSI + 1.5M LiTFSI in DME : DOL [1 : 1 vol%] (Du-Co), was applied to the electrolyte for the lithium deposition. The lithium electrode obtained from this electrolyte composition shows the best stripping efficiency (97.26%) and the stable reversibility. This is presumed to be due to the stability of the surface film induced by the Li-F component and the DOL effect of providing film flexibility.

The Concentration of Economic Power in Korea (경제력집중(經濟力集中) : 기본시각(基本視角)과 정책방향(政策方向))

  • Lee, Kyu-uck
    • 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.

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Structural Adjustment of Domestic Firms in the Era of Market Liberalization (시장개방(市場開放)과 국내기업(國內企業)의 구조조정(構造調整))

  • Seong, So-mi
    • KDI Journal of Economic Policy
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    • v.13 no.4
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    • pp.91-116
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    • 1991
  • Market liberalization progressing simultaneously with high and rapidly rising domestic wages has created an adverse business environment for domestic firms. Korean firms are losing their international competitiveness in comparison to firms from LDC(Less Developed Countries) in low-tech industries. In high-tech industries, domestic firms without government protection (which is impossible due to the liberalization policy and the current international status of the Korean economy) are in a disadvantaged position relative to firms from advanced countries. This paper examines the division of roles between the private sector and the government in order to achieve a successful structural adjustment, which has become the impending industrial policy issue caused by high domestic wages, on the one hand, and the opening of domestic markets, on the other. The micro foundation of the economy-wide structural adjustment is actually the restructuring of business portfolios at the firm level. The firm-level business restructuring means that firms in low-value-added businesses or with declining market niches establish new major businesses in higher value-added segments or growing market niches. The adjustment of the business structure at the firm level can only be accomplished by accumulating firm-specific managerial assets necessary to establish a new business structure. This can be done through learning-by-doing in the whole system of management, including research and development, manufacturing, and marketing. Therefore, the voluntary cooperation among the people in the company is essential for making the cost of the learning process lower than that at the competing companies. Hence, firms that attempt to restructure their major businesses need to induce corporate-wide participation through innovations in organization and management, encourage innovative corporate culture, and maintain cooperative labor unions. Policy discussions on structural adjustments usually regard firms as a black box behind a few macro variables. But in reality, firm activities are not flows of materials but relationships among human resources. The growth potential of companies are embodied in the human resources of the firm; the balance of interest among stockholders, managers, and workers of the company' brings the accumulation of the company's core competencies. Therefore, policymakers and economists shoud change their old concept of the firm as a technological black box which produces a marketable commodities. Firms should be regarded as coalitions of interest groups such as stockholders, managers, and workers. Consequently the discussion on the structural adjustment both at the macroeconomic level and the firm level should be based on this new paradigm of understanding firms. The government's role in reducing the cost of structural adjustment and supporting should the creation of new industries emphasize the following: First, government must promote the competition in domestic markets by revising laws related to antitrust policy, bankruptcy, and the promotion of small and medium-sized companies. General consensus on the limitations of government intervention and the merit of deregulation should be sought among policymakers and people in the business world. In the age of internationalization, nation-specific competitive advantages cannot be exclusively in favor of domestic firms. The international competitiveness of a domestic firm derives from the firm-specific core competencies which can be accumulated by internal investment and organization of the firm. Second, government must build up a solid infrastructure of production factors including capital, technology, manpower, and information. Structural adjustment often entails bankruptcies and partial waste of resources. However, it is desirable for the government not to try to sustain marginal businesses, but to support the diversification or restructuring of businesses by assisting in factor creation. Institutional support for venture businesses needs to be improved, especially in the financing system since many investment projects in venture businesses are highly risky, even though they are very promising. The proportion of low-value added production processes and declining industries should be reduced by promoting foreign direct investment and factory automation. Moreover, one cannot over-emphasize the importance of future-oriented labor policies to be based on the new paradigm of understanding firm activities. The old laws and instititutions related to labor unions need to be reformed. Third, government must improve the regimes related to money, banking, and the tax system to change business practices dependent on government protection or undesirable in view of the evolution of the Korean economy as a whole. To prevent rational business decisions from contradicting to the interest of the economy as a whole, government should influence the business environment, not the business itself.

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