• Journal of the Korean Institute of Gas
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• v.5 no.4 s.16
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• pp.8-20
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• 2001

Neoliberalism became a catch word of a post-cold war era. It began to develop in the middle of welfare state crisis in developed countries. It promoted both a unified world market through mutual penetration of national boundaries in International scene and maximization of efficiency through market competition in domestic scene. Privatization of public corporations is a major policy to pursue market efficiency through deregulation. Two reasons are often adduced to support the cause The socio-economic changes diminished the necessity to establish public corporation on the one hand. On the other hand gross inefficiency has been observed in the management of public corporation. 'Government failure' is an apt expression of the inefficiency. In analysing the experiences of privatization of utility industries of some other countries we found a couple of lessons for a Korean case. First, it is doubtful if privatization, that is a change in the form of ownership, is a necessary condition for achieving market efficiency. Because it is possible to operate a mechanism of market competition while maintaining competition among public corporations and with private actors. Second, the patron-agent dilemma is often cited as a major culprit of an inefficient management of public corporations. But it is without saying that the dilemma is also found in the management of private firms. So, the issue is not the privatization per se but to realize responsible management through discipline and incentives.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.8 no.4
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• pp.49-56
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• 2013

KakaoTalk, a Korean mobile instant messenger service launched by KAKAO Inc., has grown remarkably popular in a short period of time, with its number of subscribers exceeding 100 million as of July 2013. Today, KakaoTalk is an everyday communication tool among most Korean mobile users. Although KAKAO has been the subject of many business and consumer studies, the KakaoTalk platform strategy has not been studied thoroughly. In this study, we analyze its platform strategy through the lens of several widely utilized frameworks such as Platform Leadership (Gawer & Cusumano 2002, 2008), Winner-take-all dynamics (Eisenmann et al. 2006), and Open Service Innovation (Chesbrough 2011). Our results show that Eisenmann et al (2006)'s "Winner-Take-All" platform best explains how KakaoTalk dominated its rivals, Mypeople by Daum Communications and Line by Naver Corporation. In surpassing its rivals, KAKAO delivered a solution to the 'essential problem' that mobile social communication should be upgraded from mobile companies' paid "Short Message Service" (SMS). By doing so, KakaoTalk fulfilled the first requirement of Gawer & Cusumano (2008)'s "Coring" strategy, which explains how a new platform is created. KakaoTalk also satisfied the second requirement of "Coring" by providing economic incentives for KakaoTalk members to interact through its Games and Items store. Actively accepting its customers' ideas and upgrading its services, KAKAO reinforced its platform leadership to its customers and put Chesbrough (2011)'s "Outside In - Open Service" innovation strategy into practice.

• Journal of Digital Convergence
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• v.16 no.3
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• pp.275-289
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• 2018

It is necessary to develop a bridgehead port for trading with northern countries to promote trade through the East Sea because the East Sea Rim economic bloc around the Northeast Asia including South Korea, China, Russia, Japan, and North Korea has a high growth potential in the future. Therefore, this study aims to suggest a strategic direction to enhance the competitiveness of Donghae Port through reinforcement of container cargoes by conducting Importance-Performance Analysis (IPA) for stakeholders of Donghae Port. The analysis results suggest that it is necessary to improve the five evaluation factors: attractiveness of container and bulk volumes, appropriate ratio of export/import container quantities, frequency of vessel entry and diversity of sea routes, convenience of complex linked transportation, and competitiveness of cargo handling equipment. The implications of this study are as follows. First, it is necessary to continuously research the current status of container and bulk cargo volumes of the port and ways to increase the absolute cargo volume. Second, we need to consider realistic alternatives to improve the ratio of export/import container quantities. Third, in terms of network, we should establish a service improvement plan to increase the frequency of port calls and the diversity of sea routes. Furthermore, incentives should be provided to increase the trade volume of Donghae Port through strengthened complex linked transportation function. Finally, it is urgently necessary to provide investment support for container handling equipment as an essential requirement for the activation of the container cargoes in Donghae Port.

• KDI Journal of Economic Policy
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• v.12 no.1
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• pp.3-29
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• 1990

Korean input-output tables for 1975 and 1985 are first deflated into 1975 constant domestic prices(hypothetical terms), and the constant price I-O data are used to decompose the sources of industrial growth and structural change during the 1975-85 period. Using the same methodology, our results for the 1975-85 period are then linked to the results for the earlier period(1955-75) in order to analyze and evaluate the "demand-side" sources of industrialization over the past three decades. The results from the decomposition of the whole economy indicate that over three decades(1955-85) the relative contribution of domestic demand expansion (DDE) to growth and structural change has continuously declined while the contribution of export expansion(EE) has generally continued to rise. The contribution of import-substitution(IS) which had been significantly higher than that of EE during 1955-63 declined substantially, remaining at an insignificantly low level during the period following 1963. Although it is well known that the government's industrial policy in the 1970s emphasized import-substitution in heavy and chemical industries, no significant changes in the export-oriented growth pattern could be observed even for that period, except for a minor decline in the relative contribution of EE. This may be attributed to the substantially larger, backward-linkage effects of EE than that of IS. The sources-of-growth decompositions for major branches of the manufacturing sector generally support the major conclusions derived from the decomposition for the whole economy. The IS contribution which had been significantly high in almost all manufacturing branches during the 1955-63 period declined to low levels in all but two branches, heavy industry and machinery, during the following period. On the other hand, the relative contribution of EE showed a continuous rise in almost all manufacturing branches(except food processing). Finally, the sources of growth for 1975-85 which were decomposed by detailed sub branches, are analyzed by correlating them with changes in relative prices and industrial protection rates by sub-branches for the same period. A major result is that contrary to general expectations, the EE contributions by sub-branch are not negatively correlated with the nominal rates of protection and/or the effective rates of protection for the same sub-branches. It is also found that no statistically significant, positive correlation exists between IS contributions and nominal protection rates or effective protection rates. These unexpected results may be explained by the peculiar nature of the Korean system of industrial incentives for the past period.

• Journal of the Korea Institute of Building Construction
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• v.10 no.5
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• pp.11-20
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• 2010

With the amendment to the Building Act in November of 2005 that offered incentives in terms of floor area ratio and number of stories to apartment buildings adopting the Rahmen structure to facilitate remodeling, the construction industry is paying more attention to PC structures. As connections between PC columns and beams require complex design, it is very difficult to install and remove forms. Since forms made of plywood for such connections are fabricated and installed on site, a significant amount of labor is required, and constructability is low. Furthermore, after concrete casting, the forms are removed in a state in which they cannot be recycled, which leads to a significant amount of construction waste. For this reason, a solution to address such issues needs to be studied. However, many researchers have focused only on the structural performance of PC structures in Korea and elsewhere, ignoring the need for research on the forms used in building PC structure connections. Therefore, this research aims to develop a form that can improve the productivity of PC structure connection construction, and compare it with conventional forms to highlight its contribution to gains in productivity and economic viability.

• KDI Journal of Economic Policy
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• v.28 no.1
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• pp.145-191
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• 2006

This paper studies implications of financial conglomeration for both financial risk of individual conglomerates and systemic risk potential in post-crisis Korea. Our analyses suggest that we cannot conclude that financial conglomerates are taking on higher risks relative to non-conglomerate independent institutions. We also find that larger financial institutions show a significantly higher profitability and lower variability in profitability operating on a superior efficient frontier. However, it turns out that the consolidation has raised systemic risk potential as direct and indirect interdependencies among large banking institutions have substantially increased. Furthermore, financial conglomerates have become more vulnerable to contagion risks from non-bank sectors and capital markets. In the face of the shifting risk structure, financial supervisory and regulatory systems must be upgraded toward a more risk-based, consolidated supervision. Prompt corrective action provision for financial conglomerates must be based upon fully consolidated group risks, and effective supervisory devices need to be introduced to avoid inadvertent extension of public safety net to cross-sectoral activities of financial conglomerates. It is also critical to strengthen internal control and risk management capacities at financial conglomerates, and to establish strong market discipline by improving information transparency and monitoring incentives in the financial market.

• Environmental and Resource Economics Review
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• v.26 no.4
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• pp.577-612
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• 2017

In response to climate change, Korea is attempting to shift the paradigm of energy and climate change policies by introducing carbon pricing based on market mechanisms. While policy adoption is proceeding at a rapid pace, the introduction of carbon pricing has been faced with great opposition from industry. This study measures to what extent Korean companies understand and accept carbon pricing, using data from a questionnaire survey covering energy consuming companies in 2012, when discussions between the government and such companies about the introduction of a domestic emission trading system were active. It further identifies how preparations and practices for carbon and energy management of companies correlate with their policy understanding and acceptance. The analysis results show that the surveyed companies indicate moderate understanding of, as well as resistance to carbon pricing policies, while appreciating the economic incentives and accepting the mandatory regulations in this phase. Companies' understanding is more related to characteristics, i.e., sector, size, etc. than external pressures. This study found that the extent to which companies understand policy is the essential factor in their policy acceptance and related practices. In particular, understanding of carbon policy significantly influences their managerial practices and voluntary activities for carbon and energy practices. This study substantiates the correlation between the level of policy understanding of a company and its carbon and energy practices - something that all countries seeking to introduce carbon pricing in response to climate change should consider prior to policy actually being implemented; in other words, enhancing the understanding of major policy subjects of the new instrument is a key policy strategy that should be elaborated as it will lead to better performance of companies and smoother policy implementation.

• KDI Journal of Economic Policy
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• v.12 no.2
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• pp.121-134
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• 1990

This paper examines the redistributive potential of capital taxations within the two-class overlapping generations model, where only capitalists are intergenerationally linked through heritable capital stocks. In particular, the dynamic welfare incidence of two different capital taxations is examined; first a capital income tax levied uniformly on interest earnings, and second, an estate tax levied on the intergenerational transfers of capital stock within the capitalists' families. Redistributive effects are measured by examining how the permanent and unanticipated changes in proportional capital income tax and estate tax rates affect workers' welfare when the proceeds in each period are distributed, in a lump-sum fashion, among young workers. It is shown that, except for in the short run, both the capital taxes are ineffective and may actually lower the workers' steady state welfare through the shifting of tax burden toward workers from capitalists. Differential incidence analysis shows that redistributive potential is diminished further when the lump-sum transfers are financed by the estate tax rather than by the capital income tax. Although the model examined in this paper is based on simple and strong assumptions, this study suggests that redistributive policy using the capital taxations may only have distortionary effects in the long run, without improving workers' welfare, by incurring dead-weight loss unless additional fiscal measures are implemented to increase the investment incentives.

• Journal of Korean Society of Transportation
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• v.22 no.6
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• pp.17-33
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• 2004

Korea's economic development plans instituted in the 1970's, affected by the growth centered policy and rapid industrialization, have prevailed without having aviation safety management system, along with the safety of the other various means of transportation, settled in its place, and subsequently, the aviation accidents occurred until the beginning of year 2000 have incurred an enormous social expense, not to say of a massive loss of human lives. Especially, with regard to the causal factors of accidents, most of recent accidents have been associated with human factor of airmen, thus, only if this can be detected in advance and prevented, the aircraft accident rate will be reduced by a large margin. Therefore, in order to develope improvement methods on the safety system of civil aviation, in this study, safety management system has been divided into three stages: an advance preventive system, a handling system at an accident's occurrence and a post accident handling system, and thereby improvement methods on aviation safety have been suggested for each stage. The threatening factors agatinst aviation safety have been found to be the absence of management standards and regulations, the indifference to or the lack of the law abiding apirit as major factors, and in order to improve on which, it is required that the settlement of the institutional safety management system should precede, and that the Government and the aviation industry should also make a continuous effort to identify the threatening factors against aviation safety, and to provide incentives for the law abiding spirit and the attitude of giving top priority to safety to spread among all the employees.

• The Journal of the Convergence on Culture Technology
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• v.5 no.4
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• pp.277-282
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• 2019

This study analyzed the determinants of the financial Soundness of savings banks. In particular, empirical analysis was carried out on how the loan deposit ratio correlates with financial soundness after restructuring. As the restructuring of savings banks was finalized in 2014, asset management changed and it is time to analyze the financial characteristics of savings banks. In summary, the relationship between the savings bank lending rate and the NPL ratio is estimated to have a negative value at the 1% significance level. In other words, the higher the mortgage rate, the lower the substandard and below ratio. It can be said that it is not easy for a savings bank to build an aggressive loan portfolio. In other words, the more difficult it is to finance loans through savings deposits, the more likely the risk aversion tends to be. The higher the corporate loan ratio, average interest expense, and economic growth rate, the higher the risk index. The larger the asset size and the higher the loan growth rate, the lower the risk index. Increasing the mortgage rate may reduce risk-seeking behavior, but it does not mean that it is unconditionally positive for savings banks. Therefore, the loan deposit rate regulation should reduce the incentives for excessive asset expansion and manage preemptive soundness through lending portfolio management.