• The Journal of Industrial Distribution & Business
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• v.11 no.2
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• pp.25-31
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• 2020

Purpose: The AEO (Authorized Economic Operator) program, created in 2001 in the United States due to 9.11 terrorist's attack, fundamentally changed the trade environment. Korea, which introduced AEO program in 2009, has become one of the world's top countries in the program by ranking 6th in the number of AEO certified companies and the world's No. 1 in MRA (Mutual Recognition Agreement) conclusions. In this paper, we examined what trade-economic and non-economic effects the AEO program and its MRA have in Korea. Research design, data and methodology: In this study we developed a model to verify the impact between utilization of AEO and trade-economic effects of the AEO and its MRA. After analyzing the validity and reliability of the model through Structural Equation Model we conducted a survey to request AEO companies to respond their experience on the effects of AEO program and MRA. As a result, 196 responses were received from 176 AEO companies and utilized in the analysis. Results: With regard to economic effects, the AEO program and the MRA have not been directly linked to financial performance, such as increased sales, increased export and import volumes, reduced management costs, and increased operating profit margins. However, it was analyzed that the positive effects of supply chain management were evident, such as strengthening self-security, monitoring and evaluating risks regularly, strengthening cooperation with trading companies, enhancing cargo tracking capabilities, and reducing the time required for export and import. Conclusions: When it comes to the trade-economic effects of AEO program and its MRA, AEO companies did not satisfy with direct effects, such as increased sales and volume of imports and exports, reduced logistics costs. However, non-economic effects, such as reduced time in customs clearance, freight tracking capability, enhanced security in supply chain are still appears to be big for them. In a rapidly changing trade environment the AEO and MRA are still useful. Therefore the government needs to encourage non-AEO companies to join the AEO program, expand MRA conclusion with AEO adopted countries especially developing ones and help AEO companies make good use of AEO and MRA.

• International Commerce and Information Review
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• v.17 no.2
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• pp.151-171
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• 2015

Recent companies have introduced AEO (Authorized Economic Operator) system for a smooth and fast customs clearance to meet the conflicting objectives of trade security and trade facilitation in international trades. The present study was to verify 150 companies that have acquired Korea's AEO certification and its impact from the government and financial support, the effects of AEO certification post management, and the AEO system's utilization satisfaction to seek ways to further activate the AEO system. The research hypothesis and model was derived on the basis of existing theory and empirical research, and obtain the following results. First, government policy supporting the AEO system after certification post management showed positive (+) effect for the AEO satisfaction. Second, AEO certification post management showed positive (+) effect for AEO satisfaction. Third, government funded factor showed negative (-) effect for AEO certification post management. The present study is differentiated from previous research information. The study evaluated the company's satisfaction with the AEO certification, and the government support has empirically evaluated the relationship between the post management and the satisfaction. Academic contribution was conducted for Korea's AEO system's post follow-up research while a practical contribution suggested the direction for our country's organization to take advantage of the AEO system.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.47
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• pp.263-298
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• 2010

The global trading system is vulnerable to terrorist exploitation while the international trade is an essential element for the economic development. Customs has a unique role in the international trade to provide increased security while ensuring facilitation of the legitimate flow of goods and the role of Customs has become more and more indispensable these days. In response to this trend, the World Customs Organization(WCO), the organization of more than 170 Customs administrations all over the world, adopted an international framework("SAFE Framework") in 2005, which includes the Authorized Economic Operator(AEO) concept, whereby a party involved in the international movement of goods would be approved by Customs as complying with the supply chain security standards, and given benefits, such as simplified Customs procedure and less Customs intervention. In this stream, the Japanese government has developed and promoted AEO Program in close cooperation with the business sector, aiming at ensuring security while facilitating legitimate trade. For that purpose, Japan Customs, as a main entity in the field of international trade, has developed comprehensive AEO program with combination of programs for importers, exporters, warehouse operators, Customs brokers and logistics operators, such as forwarders and carriers, which are consistent with the "SAFE Framework" developed by the WCO. The purpose of this paper aims to analyse the introduction plans of AEO program for the trade security and trade facilitation with Japanese AEO system.

• Journal of Navigation and Port Research
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• v.38 no.3
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• pp.317-325
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• 2014

The government of South Korea has introduced various security measures in the supply chain, such as CSI (including a 24-hour rule) and AEO (Authorized Economic Operator), in compliance with global security trends and the war on terror. However, many participants in the import and export process are still unfamiliar with the purposes and functions of CSI, the 24-hour rule, and AEO. As such, considering these risks as obstacles or as factors that interfere with the import and export process, this study suggests proper management schemes, which can identify, measure and evaluate these risks.

• Journal of Korea Trade
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• v.23 no.3
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• pp.52-67
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• 2019

Purpose - This study analyzes the effect of the authorized economic operator-mutual recognition arrangement (AEO-MRA) on the performance of Korean exporters and importers. The effect of the import-export companies' characteristics, such as annual sales, the number of foreign markets, and overseas experience, on the AEO-MRA is deduced; the relationship between this effect and firm performance is analyzed. Design/methodology - An empirical research model was constructed and analyzed using structural equation modeling. The effect of AEO-MRA on logistics and operational performance was derived from the aforementioned characteristics as leading factors of the AEO-MRA. The regulatory influence of cooperation with logistics companies was analyzed in the AEO-MRA effect on logistics performance. Thus, 172 valid samples were obtained from import-export companies certified by the AEO-MRA. Findings - Among the aforementioned characteristics, only "annual sales" has a positive effect on the AEO-MRA, whose effect enhances logistics and operational performances. The AEO-MRA effect did not directly affect operational performance. Owing to the adjustment effect analysis, the AEO-MRA effect and logistics performance relationship is strengthened if the cooperative relationship with the logistics company is higher than a certain level. If this cooperation falls below a certain level, the AEO-MRA effect on logistics performance reduces. Thus, logistics cooperation is an important factor in the AEO-MRA effect and logistics performance relationship. Originality/value - Hinging on the resource-based theory and relational viewpoint, an empirical model that explains the relationship between the AEO-MRA effect and firm performance is established.

• Proceedings of the Korean Society for Quality Management Conference
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• 2009.10a
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• pp.40-47
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• 2009

911테러 이후, 세계 무역환경은 물류의 안전과 원활화를 요구하게 되었고, 이런 패러다임의 변화에 따라 우리나라도 '09년 4월 AEO공인 제도를 도입하였다. 무역공급망(Supply Chain) 기업은 AEO 공인을 받기 위하여 내부통제시스템을 구축하여야 하며, 그 중 적정한 위험관리절차를 갖추어야 하는 바, 동 절차에 대한 특별한 방법론이 아직 제시되지 않은 상태이다. 따라서, AEO와 관련된 위험관리방법론을 연구하고, 이를 기업에 확산되어 있는 6시그마 방법론과 접목시켜 기업의 AEO 공인을 지원하고 기업활동의 효율성을 높이고자 함이다.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.49
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• pp.167-188
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• 2011

The World Customs Organization (WCO) has designed standards to secure and to facilitate the ever-growing flow of goods in international commerce since 9.11 terrorism in U.S.A. These standards are set forth in the SAFE Framework of Standards, which was adopted by the WCO Council at its 2005 Sessions and the SAFE Framework incorporates the concept of the Authorized Economic Operator (AEO), and the Council directed the WCO to develop more detailed implementing provisions for the AEO concept. It is considered to be reliable in customs-related operations and ensures an equivalent level of protection in customs controls for goods brought into or out of the customs territory, whereas it is difficult for many Korean companies to make a decision of introducing the AEO certification programs because of a lack of cost and benefit information. In this article, We have reviewed the definition and the developing status of an AEO programmes and have studied the benefit and expected effect through documentary research methods. Therefore, it is essential for Korean companies to be certified the AEO programmes from Korea customs service for increasing security in international supply chains through risk management and customs compliance, in addition, the key-driver in the future will be expectations from the business community to work with AEO partners.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.58
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• pp.287-311
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• 2013

In this study, the scope of previous logistics security were focused only on port and ship. Because of it now extends to the overall (export and import) supply chain areas and in regards with supply security programs in the international level, it reviewed supply chain security programs categorized them into 'ships and port security system', 'container screening system', 'logistics chain authorization system' which are expanded to be adopted in the international level. The major features of those programs are summarized as in building risk management system, providing information ahead, selectivity test and benefits to AEO authorized companies in the customs administration level. The government and companies which are to ensure supply chain security and trade facilitation in order to cope actively with international customs administrative atmosphere need to do the followings : First, they need to build an intra-government integrated supply chain security and make efforts to conclude AEO MRA in order to increase trade competitiveness among major trading countries. Second, they need to build supply chain risk management system in order to enhance management performance through overseas market and company level strategy to obtain and maintain AEO authorization in the company level.

• Korea Trade Review
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• v.41 no.4
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• pp.269-291
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• 2016

This study suggests an improvement for stable and effective management of the Compliance Program of strategic trade(CP) by comparing and analyzing the program and other similar systems in Korea, the authorized economic operator(AEO) system and the Fair Trade Compliance Program. To improve the CP, training requirements should be materialized, evaluation of companies' ability to judge strategic materials should be intensified, and incentives should be offered to the companies that actively adopt the program. Moreover, the current designation system should be changed to the designation-after-registration system to strengthen and spread out the CP, and the follow-up management should be reinforced for successful management of the program.