• Journal of Technology Innovation
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• v.24 no.4
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• pp.127-158
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• 2016

Multinational corporations' overseas R&D activities bring host countries positive effects such as knowledge spillover, technology transfer, job creation and etc. For this reason, many countries have made efforts to attract foreign firms' R&D investment in their national territories. Korean government have also implemented some policy measures to expedite foreign firms operating in Korea to increase R&D activities. However, the firms' R&D investment in Korea has still been unsatisfactory, and only few studies have examined this issue. Therefore, this study attempts to explain the R&D investment of foreign firms operating in Kore, from the perspective Dunning's eclectic paradigm. Utilizing linear regression and Tobit model, this study analyzes the influence of OLI advantages on R&D intensity of foreign firms in Korea. The result shows that locational advantages of Korea (such as revealed technological advantage) had positive influences on foreign firms' R&D intensity. However, the influence of other OLI advantages were different by foreign firms' nationalities. For instance, internalization advantages had influences on R&D intensity, but the directions were different between Japanese and other nationalities. Based on the results, we provided some discussion and attempted to draw implications for Korean government's FDI and R&D policy.

• International Commerce and Information Review
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• v.14 no.1
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• pp.87-114
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• 2012

The purpose of this paper is to analyze the economic effects of Foreign Direct Investment(FDI) and human capital using VECM in Korea from 1970 to 2009. Empirical results through VECM show that the coefficients of GDP, GFO(gross fixed capital), LAB(total labor), EXO(export), PCDB(public and commercial loan) and FDI have had a positive impact on Korean economic growth. In contrast, the effects of PCDB and FDI were not as significant as the other variables. In particular, the interaction effect, $FDI^*EDU$(the college graduation variable), was more important than that of the FDI alone. However, the coefficient of $FDI^*EDU$ was not so big. Korean government needs to attract more FDI to enhance Korean economic growth rate by the improvement of investment environment. There are a big amount gap between notification FDI and arrival FDI in Korea. So Korean government and companies should actively persuade foreign investors to invest after their investment notification. Also the Korean college authorities should emphasize more on curriculum which adapts to company skill in the field work.

• KDI Journal of Economic Policy
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• v.37 no.sup
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• pp.87-121
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• 2015

To attract more FDI inflows, the Korean government has designated several special economic zones (SEZs), offering various advantages and support to the FDI. There is, however, a shared acknowledgement that those efforts have gained little reward. In this regard, this paper empirically analyzes company-level performances of labor productivity, operating profit ratio, propensity to invest and innovate, etc. and then conducts regression analysis and PSM analysis to see whether these performances are meaningfully different between foreign-invested firm and domestic firm and between foreign-invested firms. The main findings of this paper are as follows. First, in the aspects of labor productivity and operating profit ratio, no empirical evidence was found to support the hypothesis that foreign-invested firm outperforms domestic firm in efficiency and profitability, Second, in the aspects of propensity to invest, foreign-invested firms in foreign investment zones outperformed domestic firms. Third, in the aspect of R&D investment, overall, foreign-invested firms showed a stronger propensity to invest than domestic firms, but there is no empirical evidence that high propensity to invest was driven by the policy on special economic zones. In the aspect of investment in educational training, empirical evidences were found that the role of foreign-invested firms outside the special zones turned out to be the strongest and that among firms inside special zones, it was those in the free economic zone that outperformed domestic firms. Lastly, foreign-invested firms showed a stronger propensity to employ than domestic firms, but there is no empirical evidence that high propensity to employ was driven by the policy on special economic zones.

• Proceedings of the Korea Water Resources Association Conference
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• 2011.05a
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• pp.20-20
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• 2011

The purpose of this research aims to evaluate the emergence of new business mode in the Chinese water market since the mid-2000s - Transfer-Operate-Transfer(TOT) Projects. The study pays special attention to the case of the Hefei Wangxiaoying Wastewater Treatment TOT Project, which was awarded to the consortium of Berlin Water International and its Chinese partner in late 2004. The consortium secured an exclusive operating right for 23 years on the basis of a TOT scheme and would take responsibility of all the profits and losses in the operation of the plant. The total investment for the transfer amounted to RMB 491 million(US$70 million). The price was more than 288% of the original value, RMB 170 million (US$24 million). The project can be regarded as a successful case because of the following three causes. First, the Hefei government followed a series of standardized procedures in the international bidding, which ignited best-performed international players' competition for the project. Second, the project will bring in cutting-edge operation skills and management know-how. Third, the government succeeded in raising public asset values, and thanks to this, the government is able to consider other similar projects not only in the water sector but also other sectors in public utility services. Nevertheless, Berlin Water's point of view, there are several challenges. First, the company took a risk to pay such a large amount of cash to the Hefei government. Although such premium can be recouped in the operation period of 23 years, whether or not the company would be able to recover the initial investment and realize profits is in question due to an uncertainty of socio-political circumstances in China. Second, Berlin Water should expect a steep rise of water tariffs over the contract period in order to get the investment back. Water pricing is still a sensible matter to Chinese authorities, and therefore, it is uncertain if such rise of water tariffs would be possible. Third, the TOT mode leads to creation of a large amount of cash to government officials, which might have caused corruption between those who are involved in TOT deals. Then, the final contract fee would soar, which often results in the burden of normal customers. As discussed, the TOT mode has drawn much attention of foreign investors as a new alternative to enter into the Chinese water market. But it is important to note that foreign investors should be aware of possible risks in water TOT projects, which reflects some features of the Chinese political economy landscape and social norms. The Hefei case indicates that benefits can overshadow risks in TOT projects, which will continue to attract foreign investors that are dedicated to establishing their strongholds in the Chinese water market.

• Journal of Korea Port Economic Association
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• v.32 no.4
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• pp.29-39
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• 2016

As geopolitical, archaeological and strategic interests on cooperation with countries in the Far Eastern Area is gradually increased, countries are competing to attract or install a logistics or manufacturing hub in their countries. In this study, we investigated the relative importance of factors on the main three and nine detailed criteria from the domestic and overseas experts on Far Eastern Area. Using AHP(Analytic Hierarchy Process) analysis, priority importance of factors was derived. As a result, we find that the most important factor was economic factor. In detail, industrial complex creation was the highest factor and the institutional guarantees for the investment on policy and transportation network was second highest factor. Based on analysis result, specific competitiveness level in the 10 region of Far East was follows. Hunchun, Vladivostok, Yanji, Tumen, Rajin, Hassan, Ussuriysk, Cheongjin, Mihaylov Skiing, Nije Jeuchinski were showed in order. Hunchun showed the highest competitive level in location, topography, compliance to the around cities, transportation network, industrial complex, excellence in logistics facilities, long-term investment plans, institutional guarantees for investment, customs efficiency and political stability. However, in other factors such as population and number of households, public facilities, potential demand and resource utilization, Vladivostok showed the highest level.

• Knowledge Management Research
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• v.24 no.2
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• pp.87-115
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• 2023

This study aims to examine the causal relationships between sales and employment for public technology-based startups. Although there is a limit to statistical generalization due to the poor understanding of the actual conditions of public technology start-up companies, these companies were analyzed by classifying them into high-growth companise, potential growth companies, and other companies. In order to understand the causal relationship, and to estimate the time required to be effective, panel vector autoregression was applied. As a result, the performance creation mechanism was identified as government supoort and private investment was mutually causal with employment, sales did not cause employment, and employment caused sales. In other words, it was found that employment plays an mediator role in public technology based startups' performance mechanism. In addition, private investment had the effect of improving employment and sales in the short time than governments support, and showed that firms with high employment can attract government support and private investment. This study are academically meaningful in that they empirically revealed the process of performance creation, whereas previous studies had only shown whether there was an effect on performance. It also has a policy contribution by suggesting the need for effective policy promotion by considering the 'employment' factor, such as human resource support, as more important.

• Journal of Distribution Science
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• v.11 no.5
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• pp.43-53
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• 2013

Purpose - The purpose of this study is to analyze the effectiveness of customer relationship management (CRM) support policies for facilitating traditional markets, especially with respect to customer acquisition and maintenance, and to investigate the factors affecting CRM. Research design, data, and methodology - We analyzed the CRM efficiency of traditional markets in 16 cities and provinces in Korea on the basis of DEA analysis and Malmquist productivity analysis. The DEA model calculates a ratio of the weighted mean of various inputs to the weighted mean of various outputs and measures the efficiency of a specific decision making unit (DMU), which is compared to the reference group that has a similar input-output structure. The input variables are coupon, event, parcel service, premiums, while is the number of customers per day. Further, through regression analysis, we analyzed CRM-related factors affecting traditional markets' customer appeal and revenue growth. Results - We obtained the results of the efficiency of traditional markets in 16 provinces. The traditional markets in Seoul, Busan, and Jeju were found to be efficient in a model CCR that used the number of customers per day as an output variable, while Chungbuk, Jeonbuk Province, and According to the results of the DEA analysis and Malmquist productivity analysis, large cities such as Seoul, Busan, and Jeju showed efficiency in CRM-related investment businesses in traditional markets for attracting customers. The Malmquist analysis results confirmed that the productivity of traditional markets increased from 2008 to 2010. The results of the regression analysis revealed that the "customer acquisition/maintenance factor" and the "offering of customer convenience facility factor" were significant to the daily average number of customers, which is a dependent variable. The results of the test with the mediating variable, "number of customers," and the final dependent variable, "sales revenue," were rejected. However, the variable "customer acquisition /maintenance" was found to affect sales revenue positively. Conclusions - It is necessary to enhance the business not only for promotional activities to attract customers, but also to strengthen customer relationships among CRM businesses, such as through the management of key customers. The regression analysis results showed that CRM businesses have yet to produce an increase in sales revenues in traditional markets. Therefore, to help customers who visit traditional markets to keep buying products, it is necessary to prepare various investment methods and provide support to improve "customer loyalty." This study has a limitation in terms of CRM-related statistics. Therefore, in the future, it is necessary to conduct a survey of customers who use traditional markets to analyze the markets by type and size as well as the CRM-related factors. Based on the analysis, we will try to perform a variety of statistical analyses, including structural equations.

• International Commerce and Information Review
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• v.13 no.2
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• pp.235-258
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• 2011

Our country is operating designating the 6 free economic zones. Korea has designated fixed areas as economic special zones and made their management and living conditions equivalent to the level of advanced countries they are to support. One-Stop Service for the administrative demands that require the assistance at a national level in foreign investment, education, finance etc. However, these free economic zones are modified by regional development projects rather than inviting foreign capital. For the free economic zones to be operated effectively, the following methods should be followed: first, active management support activities should be constructed for the purpose of attracting foreign capital, second, a business model specifically designed to attract foreign capital should be implemented, third and finally, the independence and professionalism for the free economic zones should be strengthened.

• Land and Housing Review
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• v.5 no.4
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• pp.281-290
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• 2014

This comparative analysis on the project scheme of property-led regeneration of UK and Japan aimed to suggest the implications for economy-based urban regeneration of Korea. Property-led regeneration attract private capital by deregulation and public investment since 1980s' neoliberalism. Its effectiveness for creating job and economic growth is demonstrated through last decades. The cases of property-led urban regeneration of 2000s, such as Stratford, King's Cross, Otemach and Shinonome, show decrease of public direct investment, promoting deregulation. It also proved that property-led urban regeneration has a great ripple effect to local economy. And the partnership among central and local governments, public development corporations, private developers and other local interest groups is emphasized for delivering successful urban regeneration. Especially, human empowerment of local government and responsibility of public organization are also required to deliver urban regeneration.

• KDI Journal of Economic Policy
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• v.27 no.1
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• pp.123-156
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• 2005

Strengthening the competitive edge of SMEs has become one of the most important economic issues in Korea as the bipolarization between large firms and SMEs has deepened. Accordingly, small innovative firms (referred as 'venture firms' in Korea) attract keen attention both from policy makers and academia. Also, we can sufficiently observe how the growth environment for venture firms has evolved, since it has been almost ten years after the Korean government started its support policy for venture firms. Considering this, now is the appropriate time to carry out an analysis of venture firms. From this point of view, this study looks at growth factors for venture firms to draw out policy implications. The empirical analysis shows interesting results. Firms with the following features all showed higher growth rates: firms with high R&D intensity, younger firms, bigger firms, firms using more policy loans, and firms located within and around the Seoul region. However, the empirical analysis has some limitations. The data used in the study is limited in terms of firm information and so there are some insufficiencies. Thus it is of great importance to compile the required data on firms to enable further in-depth studies.