• The Journal of Fisheries Business Administration
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• v.55 no.3
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• pp.1-13
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• 2024

The purpose of this study is to examine the determinants of management performance in the remaining offshore fishing industry after the resource management-oriented fisheries structure improvement policy by the fisheries vessel buy-back program and Total Allowable Catch (TAC). The results of the analysis of the determinants of management performance of offshore fishing can be summarized as follows. First, based on the management performance determinant model of offshore fishing, it is confirmed that the government's resource-managed fishing structure improvement policy, such as the fishing boat reduction project and the TAC policy, is improving the management performance of the resource-managed remaining fishing boat. Second, looking at the specific management performance determinants based on the management performance model of offshore fishing, the leverage ratio (TLTA), which is the total debt ratio, shows a statistically significant positive (+) relationship with management performance, which increases management performance directly proportional to the leverage ratio. The increase in the leverage ratio (total debt ratio) was expected to lead to a high interest cost burden, resulting in a reverse (-) financial leverage effect; however, rather a positive (+) financial leverage effect occurred with a high profit covering interest costs. The total catch (TCATCH) has a positive (+) relationship with management performance at a statistical significance level of less than 1%, indicating that an increase in catch is improving or increasing the management performance of fishing companies. The selling price (UPRICE) shows a positive (+) relationship with management performance at a very high statistical significance level of less than 1%, and it can be seen that high fishing prices are a major factor in improving or increasing the management performance of offshore fishing. On the other hand, fishing vessel tonnage (TON), fishing vessel horsepower (RHP), and operating days (WDAYS), which indicate have a statistically significant negative (-) relationship with management performance, which deviates from the existing fisheries common sense that the size of fishing vessel tonnage and fishing vessel horsepower and the increase in the number of operating days is proportional to management performance. As a result of the increase in fishing vessel tonnage, horsepower, and the number of operating days, it was confirmed that the higher the fishing cost, such as oil costs, is worsening the management performance of fishing companies. Participation in TAC has a statistically significant positive (+) value with management performance, indicating that the remaining offshore fishing companies participating in TAC are improving or increasing management performance compared to offshore fishing companies that do not. Third, there are conflicting results depending on the industry as a result of estimating the management performance determinants of offshore fishing by TAC participation, and TAC participation had a negative impact on management performance in anchovy boat seine and southern west sea bottom trawl in fishing industry while TAC participation had a positive impact on management performance in large stow nets on anchor in fishing industry.

• Journal of Global Scholars of Marketing Science
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• v.19 no.4
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• pp.24-31
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• 2009

Firms produce various products that differ by function, design, color, etc. Product proliferation occurs for three different reasons. When there exist economies of scope, the unit cost for a product is lower when it is produced in conjunction with another product than when it is produced separately. Second, consumers are heterogeneous in the sense that they have different tastes, preferences, or price elasticities. A firm can earn more profit by segmenting consumers into different groups with similar characteristics. For example, product proliferation helps a firm increase profits by satisfying various consumer needs more precisely. The third reason for product proliferation is based on strategy. Producing a number of products can not only deter entry by providing few niches, but can also cause a firm to react efficiently to a low-price entry. By producing various products, a firm can reduce niches so that potential entrants have less incentive to enter. Moreover, a firm can produce new products in response to entry, which is called fighting brands. That is, when an entrant tries to attract consumers with a low price, an incumbent introduces a new lower-quality product while maintaining the price of the existing product. The drawback of product proliferation, however, is cannibalization. Some consumers who would have bought a high-price product switch to a low-price product. Moreover, it is possible that proliferation can decrease profits when a new product is less differentiated from a rival’s than is the existing product because of more severe competition. Many studies have analyzed the effect of product line rivalry in the areas of economics and marketing. They show how a monopolist can solve the problem of cannibalization by adjusting quality in a market where consumers differ in their preferences for quality. They find that a consumer who prefers high-quality products will obtain his or her most preferred quality, but a consumer who has not such preference will obtain less than his or her preferred quality to reduce cannibalization. This study analyzed the effects of product line rivalry in a duopoly market with two types of consumers differentiated by quality preference. I assume that the two firms are asymmetric in the sense that an incumbent can produce both high- and low-quality products, while an entrant can produce only a low-quality product. The effects of product proliferation can be explained by comparing the market outcomes when an incumbent produces both products to those when it produces only one product. Compared to the case in which an incumbent produces only a high-quality product, the price of a low-quality product tends to decrease in a consumer segment that prefers low-quality products because of more severe competition. Prices, however, tend to increase in a segment with high preferences because of less severe competition. It is known that when firms compete over prices, it is optimal for a firm to increase its price when its rival increases its price, which is called a strategic complement. Since prices are strategic complements, we have two opposing effects. It turns out that the price of a high-quality product increases because the positive effect of reduced competition outweighs the negative effect of strategic complements. This implies that an incumbent needs to increase the price of a high-quality product when it is also introducing a low-quality product. However, the change in price of the entrant’s low-quality product is ambiguous. Second, compared to the case in which an incumbent produces only a low-quality product, prices tend to increase in a consumer segment with low preferences but decrease in a segment with high preferences. The prices of low-quality products decrease because the negative effect outweighs the positive effect. Moreover, when an incumbent produces both kinds of product, the price of an incumbent‘s low-quality product is higher, even though the quality of both firms’ low-quality products is the same. The reason for this is that the incumbent has less incentive to reduce the price of a low-quality product because of the negative impact on the price of its high-quality product. In fact, the effects of product line rivalry on profits depend not only on changes in price, but also on sales and cannibalization. If the difference in marginal cost is moderate compared to the difference in product quality, the positive effect of product proliferation outweighs the negative effect, thereby increasing the profit. Furthermore, if the cost difference is very large (small), an incumbent is better off producing only a low (high) quality product. Moreover, this study also analyzed the effect of product line rivalry when a firm can determine product characteristics by focusing on the issue of fighting brands. Recently, Korean air and Asiana airlines have established budget airlines called Jin air and Air Busan, respectively, to confront the launching of budget airlines such as Hansung airline and Jeju air, among others. In addition, as more online bookstores have entered the market, a leading off-line bookstore Kyobo began its own online bookstore. Through fighting brands, an incumbent with a high-quality product can increase profits by producing an additional low-quality product when its low-quality product is more differentiated from that of the entrant than is its high-quality product.

• Journal of Intelligence and Information Systems
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• v.26 no.1
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• pp.119-133
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• 2020

Fama asserted that in an efficient market, we can't make a trading rule that consistently outperforms the average stock market returns. This study aims to suggest a machine learning algorithm to improve the trading performance of an intraday short volatility strategy applying asymmetric volatility spillover effect, and analyze its trading performance improvement. Generally stock market volatility has a negative relation with stock market return and the Korean stock market volatility is influenced by the US stock market volatility. This volatility spillover effect is asymmetric. The asymmetric volatility spillover effect refers to the phenomenon that the US stock market volatility up and down differently influence the next day's volatility of the Korean stock market. We collected the S&P 500 index, VIX, KOSPI 200 index, and V-KOSPI 200 from 2008 to 2018. We found the negative relation between the S&P 500 and VIX, and the KOSPI 200 and V-KOSPI 200. We also documented the strong volatility spillover effect from the VIX to the V-KOSPI 200. Interestingly, the asymmetric volatility spillover was also found. Whereas the VIX up is fully reflected in the opening volatility of the V-KOSPI 200, the VIX down influences partially in the opening volatility and its influence lasts to the Korean market close. If the stock market is efficient, there is no reason why there exists the asymmetric volatility spillover effect. It is a counter example of the efficient market hypothesis. To utilize this type of anomalous volatility spillover pattern, we analyzed the intraday volatility selling strategy. This strategy sells short the Korean volatility market in the morning after the US stock market volatility closes down and takes no position in the volatility market after the VIX closes up. It produced profit every year between 2008 and 2018 and the percent profitable is 68%. The trading performance showed the higher average annual return of 129% relative to the benchmark average annual return of 33%. The maximum draw down, MDD, is -41%, which is lower than that of benchmark -101%. The Sharpe ratio 0.32 of SVS strategy is much greater than the Sharpe ratio 0.08 of the Benchmark strategy. The Sharpe ratio simultaneously considers return and risk and is calculated as return divided by risk. Therefore, high Sharpe ratio means high performance when comparing different strategies with different risk and return structure. Real world trading gives rise to the trading costs including brokerage cost and slippage cost. When the trading cost is considered, the performance difference between 76% and -10% average annual returns becomes clear. To improve the performance of the suggested volatility trading strategy, we used the well-known SVM algorithm. Input variables include the VIX close to close return at day t-1, the VIX open to close return at day t-1, the VK open return at day t, and output is the up and down classification of the VK open to close return at day t. The training period is from 2008 to 2014 and the testing period is from 2015 to 2018. The kernel functions are linear function, radial basis function, and polynomial function. We suggested the modified-short volatility strategy that sells the VK in the morning when the SVM output is Down and takes no position when the SVM output is Up. The trading performance was remarkably improved. The 5-year testing period trading results of the m-SVS strategy showed very high profit and low risk relative to the benchmark SVS strategy. The annual return of the m-SVS strategy is 123% and it is higher than that of SVS strategy. The risk factor, MDD, was also significantly improved from -41% to -29%.

• Korean Journal of Social Welfare
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• v.57 no.3
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• pp.5-30
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• 2005

Globalization has conflicting effects on pharmaceutical policies. A change into a 'populist competitive nation' due to globalization strengthens policies to reduce drug manufacturing costs while the WTO's TRIPS Agreement that is affected by multinational pharmaceutical companies increases drug manufacturing costs by bolstering the patent rights on new drugs. Currently, the independency of populist nations' policies to reduce drug manufacturing cost is being compromised because multinational organizations(such as the European Union) which represents the interests of the multinational pharmaceutical companies put restrictions on the pharmaceutical policies of populist nations for purposes of promoting the industrial goals of the multinational companies. Korea is no exception. Up until the late 1990s, the main feature of the pharmaceutical policies in Korea was keeping the drug price at the cost level based on a growth-driven ideology, and this was Korea's unique policy tools as a developing nation. However, the increase in the power of multinational pharmaceutical companies currently infringes on the independency of Korea's pharmaceutical policies. Expensive imported drugs were originally covered by the national health insurance plan, but starting from 1999 such drugs began to be covered by the plan. After separation of medical and pharmaceutical services, the use of expensive drugs was increased, and the Korean government planned to introduce the reference price policy in order to contain the cost of the national health insurance plan. However, due to pressures from the U.S. government as well as multinational pharmaceutical companies, implementation of the policy has been postponed. In addition, due to a pressure from the U.S. government, a working group was created which would affect the health care policy of the Korean government. Discussions so far on globalization was about whether the change into populist competitive nations due to globalization resulted in the reduction of welfare spending. However, this study shows not only the reduction of health care cost through policies to reduce drug manufacturing costs but increase in welfare spending by raising the strengths of multinational pharmaceutical companies that are for-profit providers of welfare service. While focusing on the contradictory effects of globalization on pharmaceutical policies of a nation, this study looked at how these conflicting effects end up promoting the interests of multinational pharmaceutical companies by examining the Korean case.

• Journal of Korean Society of Transportation
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• v.26 no.1
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• pp.37-49
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• 2008

In general, most of the firms do not settle down in one place for their pursuit of profit. There are many reasons for the relocation of the firms; procurement of raw material, market area, transportation cost and housing cost. The aspect of national policy, firm relocation has been systemically promoted for the purpose of logistics system efficiency. Nowadays balanced regional development has been issue. Another aspect, many countries have struggled for the preoccupancy of new place because of its production cost saving and curtailment of expenditure. The aim of this article is qualitative and quantitative analysis of relocation influence factors of domestic goods firms in Korea. This article dynamically analyzed the relocation influence factors for domestic goods firms in Korea. For the analysis this article made use of complementary survey (2006) out of the 3rd national logistics survey (2005). The complementary survey conducted pre-business district, business period, relocation reason, etc. This article dynamically analyzed from the three aspects; observation of average residence time in one business district, relocation factors, influence of market area. Analysis shows that relocation of firm is very high rate and the reasons of relocation play compositeness role. The results of determinants of location, firms approach the established market area closely and the firm's relocation is influenced by market area.

• Cartoon and Animation Studies
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• s.6
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• pp.152-171
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• 2002

This study analyses the avatar service, which is recognized as an alternative strategy of animation industry. The research questions of this study are following: (1) How have the avatar services been developed and what are the present dominant types? (2) Which structural characteristics of e-business environment are needed for the success of avatar services? (3) What is the economic characteristics of avatar business model? To solve these research questions, the basic conditions and the structural characteristics of avatar services have been investigated. In the first place, two forms of avatar service are classified. One is the internet service site whole primary service is to provide chatting service based on avatar service. The other is the portal site in which many kinds of products and services are presented as bundles to meet the needs of internet users. So avatar service is one of bundles which those portal sites are providing with. In this study, the big five internet service sites are selected based on the profits they earned through the sales of avatar service. The result of analysis is that the pricing strategy of those big five sites is very different from those of traditional off-line markets. The pricing mechanism are based on the value which internet users endow with the avatar items, not based on the costs of making the products. Avatar is the representative informative goods. The informative goods have the original cost structures, constant fixed costs and zero marginal costs, so the providers of avatar services make much of the subjective values of consumers. The sayclub, which is the most successful avatar service site and earn the average sales of 3 billing won a month, takes the aggressive strategy of pricing avatar items at highest price in the industry. The avatar service providers which make lots of profits are planning of making differentiate the services, introducing well-known brand items and star-named items. Nevertheless, the fact that the members of the sayclub are not decreasing means that the network effect of the site is so strongly manifest. Moreover, the costs the members have paid for the avatar items are so big not as to switch from one site to the other site, it can be very costly. These switching costs are endemic in high-technology industries and digital contents industries. It can be so large that switching suppliers is virtually unthinkable, a situation known as 'lock-in'. When switching costs are substantial, competition can be intense to attract new customers, since, one they are locked in, they can be a substantial source of profit. The consumers of avatar items have switching costs if they subscribe for the new avatar service site. The switching costs can be subscription costs as well as the costs of giving up the items they already paid for. One common example of switching costs involves specialized supplies, as with inkjet printer cartridges. In this example, the switching cost is the purchase of a new printer. The market is competitive ex ante, but since cartridges are incompatible, it is monopolized dx post. So the providers of printer/cartridges set pricing printer so cheap and cartridges expensive. On the contrary, since the avatar service can be successful with the strong network effect, the providers of avatar services have to compete aggressively for new customers. So they allow the subscription at a low price(almost marginal cost) in the early market. The network effect can be maximized when the members are sufficiently growing. The providers which have the monopoly power with sufficient subscribers. begin to raise the prices over the lifetime of the product and make profits.

• Journal of Korean Society of Forest Science
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• v.85 no.2
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• pp.158-171
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• 1996

In Korea, 80,616 ha in 139 places have been designated as recreation forests by the end of 1994. Among these places, 64,547 ha in 76 places were designated in the national forest, 9,937 ha in 25 places were designated in the public forest, and 6,132 ha in 38 places were designated in private forest. Designs of 10 places and plans of 6 places in 14 places of recreation forest in Chonbuk province were compared and analyzed. The results are as follows: 1. Sixty four types of convenient facilities, 15 types of athletic facilities, 13 types of sanitation facilities, 22 types of education facilities were designed in 10 places of the recreation forest. 2. The material cost was the highest in construction costs in Waryong recreation forest. However, the labor cost was the highest one in construction costs in 5 places of recreation forest ; Dokyu-san, Hoimoon-san, Saesim, Seongsu, and Sokgeum-san And the total construction cost was much higher in private recreation forest than in both of national and public recreation forest. 3. Hoimoon-san was the only recreation forest which makes profit among 14 recreation forests in Chonbuk province. The uses of this recreation forest are increasing, and seasonal uses significantly fluctuate. 4. There are several problems for the public in enjoying these recreation forest places. The access to these places by public transportations is inconvenient. The time required for construction of many places are too long after they are designated as recreation forest, and the management of the established recreation forest is poor. 5. To improve the method of facility design in recreation forest, easy access to nature should be promoted such as recreation forest places and understanding of public concerning nature are needed. Recreation forest places themselves need to offer good facilities, and convenient access. And to make frequent use of recreation forest places, a system of information and excellent service to the public are strongly recommended.

• KDI Journal of Economic Policy
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• v.13 no.1
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• pp.135-149
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• 1991

The economic policy of decreasing the electricity price is widely understood to have the effect of stabilizing the general price level and improving the income distribution. However, the impact of electricity price decrease on the income distribution is not quite sure although the electricity price decrease would increase the disposable income of all households. The electricity price change would affect the income distribution through three channels. The first impact on the income distribution is made through the electricity price sructure; Korean electricity price structure is designed to subsidized the industrial sector at the cost of household consumption sector in the sense that the price per unit electricity for industrial sector is much lower than that for household consumption sector. The second impact on the income distribution is created through the disposable household income effect of the price decrease; Relative disposable income effect among households appeared higher to lower income household group and this relative disposable income effect seem to improve the income distribution although the net effect is very small. The third impact on the income distribution is formulated through the net profit effect of entreprise sector; This unearned net profit increase to the already rich industrial entrepreneurs group could create a negative income distribution effect. A simulation of 10% electricity price decrease with all the price structure given was attempted to calculate the net effect of income distribution and it was found the net income distribution effect of flat electricity price decrease to be negative contrary to the general understanding. The income distribution effect would only be one criterion among many other criteria considered in the electricity price making process. The electricity price decrease would be helpful to the price stabilization and price competitiveness of industrial sector. However, it does not improve the general income distribution status by the electricity price decrease with the price structure given.

• Korean Journal of Poultry Science
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• v.6 no.1
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• pp.12-23
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• 1979

This experiment was carrid out to investigate the interaction between boilelr strains and nutrition levels, and the performances of four broiler strains such as Han Hyup 603, Hubbard, Anak and Filch when they were fed by four different nutrition levels (High Protein and energy; HP. HE., Medium Protein and energy; MP. ME., Low Protein ana energy; LP. LE., and low protein and energy; LLP. LLE.). The data used in this study were obtained from a total of 1200 broiler type chicks in Poultry Testing Station, Korean Poultry Association from June 16, to August 11, 1978. Differences of all characters among four nutrition levels were significant except viability and carcass rate. HP. HE and MP. ME treatments showed nearly the same performances in body weight, feed efficiency and point, spread but they were significantly superior to those of LP. LE and LLP. LLE. There were not significant differences among four strains in feed efficiency and viability but other characters, body weight, point spread and carcass rate were observed that the performance of the best strain B was significantly superior to strain D but it was not recognized significance compared with strain A, C in tile result of statisticel analysis. In the interaction between strains and nutrition levels, body weight at high and levels showed significantly differences but at low and low nutrition levels were nearly same among four strains. Therefore this study demonstrated that comparision of body weights between strains should be performed at medium nutrition level or above. Also point spread calculated as index of body weight and feed efficiency was observed that strain B at low nutrition level is excellently higher than other strains and there were little differences at low nutrition level among all strains. It was found that ]it tie differences between performances of high arid medium levels seemed to be as the reason of high fat addition for energy source to high mutrition feed, and in general superior strain showed good performance at all the nutrition levels in$.$all characters but in body weight and point spread there were significantly different responses with different nutrition level, The most superior strain B among four strains earned the most profit per bird, Although performances of high and medium nutrition levels were nearly the same, medium nutrition level also showed the most profit because the feed cost of high nutrition level was higher than that of medium nutrition level.

• Asian-Australasian Journal of Animal Sciences
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• v.27 no.10
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• pp.1443-1451
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• 2014

Increasing cost and scarcity of maize has stimulated the use of alternative feed sources (AFS) in the diets of cattle. In this study, we investigated the effects of partial or total replacement of maize on nutrient digestibility, growth performance, blood metabolites, and economics in Limousin crossbred feedlot cattle. Forty-five $Limousin{\times}Luxi$ crossbred bulls were randomly assigned to the three treatment groups, orthodox diet (OD; 45.0% maize), partial replacement diet (PRD; 15% maize, 67% AFS), total replacement diet (TRD; 0% maize, 100% AFS). The growth feeding trial lasted for 98 days. Dry matter intake (DMI) and average daily gain (ADG) were recorded. The digestion trial was carried out after the end of the growth trial. Total faeces and feed samples were measured daily. Digestibilities of dry matter (DM) and organic matter (OM), crude protein (CP), neutral detergent fiber (NDF) and acid detergent fiber (ADF) were calculated. After the feeding trial, blood metabolites were measured in 12 animals from each group. Initial and final body weights did not differ significantly among treatment groups (p>0.05). The ADG and DMI were 1.72 and 8.66, 1.60 and 9.10, and 1.40 and 9.11 kg/d for OD, PRD, and TRD, respectively. The PRD and TRD exhibited lower ADG (p<0.01) and higher DMI (p<0.01) than OD. The DMI (%body weight) was comparable between groups (p>0.5). Feed efficiency of PRD and TRD were lower than OD (p<0.01). The DM digestibility decreased with reduced level of maize (p = 0.10), OM digestibility was higher in OD (p<0.05), and CP, NDF and ADF digestibilities were similar for all groups (p>0.05). Blood urea nitrogen (mg/dL) in PRD and TRD was higher than OD (p<0.01), while other blood parameters did not differ significantly. Feed costs ($/head/d) were 1.49, 0.98, and 0.72 for OD, PRD, and TRD, respectively (p<0.01). Feed costs per kg gain ($) were significantly lower for PRD (0.63) and TRD (0.54) than OD (0.89; p<0.01). Overall profit ($/head) and daily profit ($/head/d) did not differ significantly between treatments (p>0.05), although TRD showed the highest economic benefits overall (p<0.01). While a traditional diet maximized the growth rate, partial or total replacement of dietary maize with AFS proved economically feasible due to their lower costs and comparable nutrient digestibilities of DM, CP, NDF, and ADF. Partial replacement may prove economically competitive in the current situation of China.