• The Journal of Fisheries Business Administration
• /
• v.49 no.1
• /
• pp.67-89
• /
• 2018

In fisheries, as well as in other natural resource-based industries, there is difference between profit and rent. The former is a basic indicator for gauging the business performance of firms, while the latter is for the evaluation of the contribution of resources and industry to economic welfare. Put simply, resource economists are mainly concerned about rent, including pure resource rent and producer surplus (intra-marginal rent [IMR]). In other hand, business economists are mainly concerned about the profitability of the firms comprising the industry. In the academic literature, there are not always clear definitions of the profit and rent concepts and their use in actual analyses. This article will mainly discuss and clarify differences and similarities in profit and rent concepts. In the classical fisheries economic model with one-dimensional homogenous effort and a constant cost per unit of effort, no rent exists in open-access equilibrium. A simple change in this model, for example by introducing heterogeneous effort, opens it to the existence of rent, specifically IMR, at open-access equilibrium. We estimated resource rent and profit from the data using SNA(system of national accounts) and accounting data methods. RR(resource rent) is composed of value-added, compensation of employees, consumption of fixed capital and normal profit in SNA. RR(resource rent) is composed of EBT, Depreciation of fishing rights, financial costs of fishing rights and calculated interests on equity in accounting data methods. We found that the result of two methods is equal. RR is composed of excess profit, rent and interest expenses. In Korea, the magnitude of RR and profit is not different significantly.

• The Journal of Fisheries Business Administration
• /
• v.33 no.2
• /
• pp.99-125
• /
• 2002

Fisheries cooperative requires dual characteristics in performing its original function. Economic characteristic as an business enterprise and democratic characteristic as cooperative entity need to complete its objectives and survive in the complex rapidly-changing environment. After IMF crisis, fisheries cooperative received enormous government's financial support and credit-business department is perfectly under government's control. Regional fisheries cooperative also faces business failure, therefore pure cooperative movement can't save the fisheries cooperative. Economic characteristic as an business enterprise is more emphasized than democratic characteristic as cooperative entity in recent years. The theory of corporate ownership and governance can be applied to explain the ownership and governance of fisheries cooperative because fisheries cooperative is now similar to an business enterprise. During the IMF crisis the board, the auditors and the minority shareholders in business enterprise were revealed to be powerless against the mighty influence of controlling shareholders. Unconstrained discretion exercised by those controlling shareholders not only led to the firms'insolvency, but also brought down the country's financial system. During the past few years, Korea has experienced many institutional changes regarding its corporate governance structure. The introduction of outside directors, the strengthening of minority shareholders' rights, and enhanced accounting transparency are achieved to improve the efficiency of economic system. Investors, including institutional and individual, also seem to be more aware of governance issues now. Credit-business department of fisheries cooperative is recommended to introduce the institutions same as the case of the corporate governance structure. Fisheries cooperative except economic and credit-business department requires other prescriptions because it is emphasized as democratic cooperative entity. But we should be careful to interpret the ownership and governance structure because they are products of nations, eras and organizations.

• The Journal of Fisheries Business Administration
• /
• v.26 no.2
• /
• pp.133-146
• /
• 1995

WTO system has just begun and the development for fishing industry is being carried out. The task of National Federation of Fisheries Cooperatives(NFFC ) is not only to support producers' competitive edge, but also to realize the efficiency embodied in the businesses of NFFC itself. Then it can continue to compete other firms and offer the comprehensive services only when it achieves its efficiency. The efficiency of NFFC is the economies of scale and scope. NFFC should achieve its scale and scope economies to be efficient. NFFC needs to expand its size in fish distribution and banking business to have scale economies. Also, the communication and coordination systems among member-supporting, fish distribution, and banking business need to be strengthened to get its scope economies. It is interesting theoretically and in policy making to test the hypotheses that cooperatives are capable of offering the comprehensive services such as distribution, credit, and insurance to the members. It is meaningful to their development for agricultural and small businesses cooperatives as well as fisheries cooperatives to survive the fierce competition under WTO system. National Federation of Agricultural Cooperatives(NFAC) is much greater in business size than NFFC. The estimation and test in the multiproduct cost function of NFAC will show interesting results.

• Journal of Fisheries and Marine Sciences Education
• /
• v.18 no.3
• /
• pp.244-260
• /
• 2006

The main objective of this study aims at analyzing the national roles of fisheries in the global economy from the constitutional view point. Globalization provides general firms and businessmen with great opportunities that allow them to be able to plan and operate their business strategies beyond the national boundaries. WTO and FTA negotiations must be important facilitators of such globalization. However, Korean primary industries like fisheries under comparative disadvantage have a high probability that there may have to be the trade-offs between the primary and the industrial sector to maximize national benefits in the process of bilateral and/or multilateral international trade deals. Since, moreover, fishermen face strong binding constraints under which they hardly carry out fishing operations standing aloof from national boarders, they have to manage fishing businesses within their own national territory, to maintain and develop fisheries culture, and to explore their own destiny for themselves. Because of such reasons, the constitution imposes upon the State the duty to support and develop fisheries and fishing villages. Considering its article and spirit associated with fisheries(i.e. article 123), it seems unnecessary at this point in time that Korean society makes debates over national consensus for supporting fisheries. The reason is because the explicit provisions of the constitution do not allow their arbitrary interpretation depending upon interests or policy situations. However, where national support to the particular sector could not meet the expected social value system, there would be a great deal of chance to invite serious societal debates over such national commitment to the fisheries. Therefore, whether using it efficiently and realizing the socially expected policy goals must be a responsibility of both fisheries administration and fishing industries.

• The Journal of Fisheries Business Administration
• /
• v.28 no.2
• /
• pp.1-18
• /
• 1997

The purpose of this study is to investigate empirically the characteristics of financial structure by using 76 fisheries corporations in Korea, and to suggest implications of the empirical results for government's financial policy for fisheries corporations. For the empirical test, we choose the following factors as the explanatory variables of cross-sectional regression analysis:firm-size(SIZE), collateral value of assets(TFATA), business risk(BRISK), growth(GROWTH), effective tax(ET), profitability(PROFIT). Two different debt ratios are used as dependent variables. One is defined as the ratio of total debt to total assets and the other is as that of long-term debt to total asset in terms of book value. The sample consists of 76 fisheries firms and sample period is 14 years from 1982 till 1995. From the results of cross-sectional regression analysis, the adjusted R$^2$values were high, 16∼79% and the overall F values indicated to be statistically significant. The results of cross sectional regression analysis show that the characteristics of financial structure fur fisheries corporations are as follows ; (1) Firm-size and collateral value of assets are the major factors of financial structure for fisheries corporations. That is, the larger firm-size the higher is debt ratio. This means that financial institutions conventionally lend more collateral loans with fixed assets like land, building rather than management capacities or credits. (2) To be consistent with a pecking-order theory, the higher is profitability the lower is debt ratio in fisheries corporations. (3) Corporations with high effective tax rate have lower financial leverage. Although the empirical results are inconsistent with traditional static trade-off theory, we think it would be attributed to government's various tax shelterings for fisheries which are likely to reduce tax shield effect of interests.

• The Journal of Fisheries Business Administration
• /
• v.50 no.2
• /
• pp.41-56
• /
• 2019

The aim of this study is to analyze the productivity change of pollock enterprise by applying a mutually quadratic hyperbolic model and a bootstrapping model. This study used 20 units of pollock firms data (from 2013 to 2017). As a result of total productivity analysis of twenty pollock enterprises, total factor productivity was estimated to have decreased by 24.9% over the last five years (2013~2017). The main cause of this productivity decline was analyzed by technical change. In terms of annual productivity change, it showed decrease 3.0% in 2013~2014, 7.8% in 2014~2015, 4.5% in 2015~2016 and 4.7% in 2016~2017 respectively. In the analysis of productivity by corporation type, total factor productivity showed a significant decrease in both general corporation and external corporation, and productivity decrease (-29.3%) was larger than general corporation (-23.0%). In the productivity analysis by type of business, total factor productivity decreased significantly in the order of wholesale and commodity brokerage (-26.3%), food manufacturing (-25.1%) and fisheries (-15.3%). This decrease in productivity was caused by the technological change which indicates a downward shift in the production curve that is significant in all sectors.

• Journal of Fisheries and Marine Sciences Education
• /
• v.13 no.1
• /
• pp.1-18
• /
• 2001

The purpose of this research was to develop curricula for the department of marine products marketing in fisheries high schools. The specific objectives were as follows; 1) To investigate the demand of students, teachers in fisheries high schools, and workers in marine products marketing for the educational program. 2) To analyze the jobs of the marine products marketing fields. 3) To develop curricula for the department of marine products marketing on the basis of the theoretical background and the result of the objective 1) and 2). In order to achieve these objectives, domestic and foreign literatures, research reports, and theses were referred to in order to know the academic classification of fisheries economics and curricula of junior colleges and universities were collected and analyzed. To achieve the first objective, the degree of the students' knowledge of marine products marketing through fisheries management textbook was investigated. And the questionnaire survey of the demand was conducted on the subject of professors at the departments of fisheries management, teachers in the charge of the related courses and those who work for marine products marketing-related firms. The questionnaire was composed of 22 items about the knowledge of marine products marketing and 27 items about the job capacity. To achieve the second objective, the occupations were surveyed on the subjects of the works who work for marine products marketing. They were sampled randomly among the marine products buyers, wholesalers, auctioneers and salespersons. The results of this research were as follows; Taking grades and credits at each subject were made out on the consultation of the experts in marine products marketing. The curriculum of the professional subjects related to marine products marketing in fisheries high schools is suggested as follows; General Fisheries(10th grade, 6 credits, curricular discretionary class), General Oceanography(10th grade, 4 credits, curricular discretionary class), Fisheries Marine Transportation Information(11th grade, 8-12 credits), Marine Products Marketing(11th grade, 8-12 credits), Fishery Sale and Management(11th grade, 8-12 credits), General Fisheries Management(11th grade, 6-8 credits), Accounting Principle(11th grade, 4-6 credits), Marine Products Processing(12th grade, 4-8 credits), Commercial Law(12th grade, 4-6 credits), Management Practice(12th grade, 4-6 credits), Computer Practical Business(12th grade, 4-6 credits), Marketing(12th grade, 4-8 credits), General Marketing Management(12th grade, 6-8 credits), Marketing Information Practical Business(12th grade, 4-6 credits) Marketing Management I(12th grade, 4-6 credits), Marketing Management II(12th grade, 4-6 credits). If this curriculum is adopted, it will meet the demands of the educational aims and the industrial society.

• The Journal of Fisheries Business Administration
• /
• v.39 no.1
• /
• pp.133-162
• /
• 2008

In 1970, direct overseas investment in Korean fisheries started to sell the frozen marine products to Singapore with establishing local subsidiary. Direct overseas investment in China has carried out since Korea and China established diplomat relationship in 1992. the former day, The Korea invested indirectly in China via Hong Kong. It has reported that 253 local subsidiaries applied to China government permit at the end of 2004. The results will make a decision on whether to invest continuously. The results of actual proof analysis has announced that a successful investment of fishery company is mainly influenced in its own government policy. Many advantages of tax and administration for foreign company in China have been changed and vanished comparing to the beginning time of entering china. So. it is imperative for Korean government to take measures to changing policy of Chinese government. The early days, investment of fishery company is type of resources and abundant resources will affect succeeding investment. Nowadays, the type of the investment is the production oriented investment. And then many direct investment linked the production oriented investment have been conducted in many area in China. So. the production oriented investment will affect logistics and successful investment in China. And, The factor of Market potential in Market Factors in the middle of changing market oriented investment will conclude whether to invest. As the china exchange system changed from the fixed exchange system to the fluctuating exchange system. Risk of exchange rate will affect corporate's parent business. The local risk (regulation of import and export, remittance) will affect succeeding investment of corporate's parent.

• The Journal of Fisheries Business Administration
• /
• v.22 no.2
• /
• pp.101-148
• /
• 1991

The fisheries cooperative (FC) performs the economic and nonprofitable activity to get the fundamental objective of enhancing cooperative members' economic and social position. The internal control system fitted for a local FC should be required for not only solving the resulting problem from the complexity of FC environment nowaday but also delegating authorities and performance from FC Federation to a local FC by implementing the local autonomy. The methodology of this study is to empirically test and to analyze the condition of FC internal control system (FCICS) by the questionnaire survey. The actual condition of FCICS in Korea is analyzed by the questionnaire and the detailed contents are as follows : (1) sending 208 questionnaire consisting of 162 questions, and receiving 92 replies from 39 manufactures (business firms) and 15 banks in Gyungnam and Pusan area and 25 FC and 13 agricultural cooperative (AC) in Korea, (2) the analyzed results of FC and AC are treated simultaneously. In the fundamentals of above analyzed results, the evaluation model of FCICS is tried to construct from the relationship between the financial condition of FC and the internal control elements through the stepwise regression method. (1) By the stepwise regression method, the number of FC officials $(X_1)$, the experimental number of regular auditing $(X_7)$, and auditing duty years $(X_8)$ are finally accepted as independent variables, (2) and the final model becomes $Y=-1.53526+0.34455X_1+0.24513X_7+0.16585X_8$/ and this model explains to the extent of 47.826%. From the above study, following proposals are to be suggested: (1) The function and problem of internal control in FCICS is able to be improved by enforcing the function of FCICS and enriching the management's recognition of FCICS (2) The cooperative president can bring up good FC by the rational operation of FCICS according to the size and the performance pattern of FC, adding up to enhance members' economic and social position.

• The Journal of Fisheries Business Administration
• /
• v.35 no.2
• /
• pp.31-51
• /
• 2004

The reduction of fishing grounds due to the establishment of EEZ system among China, Japan and Korea together with the depletion of fish resources by pollution of waters and successive reclamation projects along the east and the south coastal lines has made many problems in coastal communities including the decrease of population, the deepening aging phenomenon in the fishery society and the fall of relative income level compared with those of rural and urban residents. Especially, the income level of a fishing household is 90%. of a rural resident and 70% of a urban resident. The income of a fishing household consists of 55% of fishing income, 20% of a agricultural source, 20% of income from non-fishing areas, and 10% of transferred income. Compared with that of a Japanese fishing household which has more diverse income sources such as 62% of income coming from non-fishing areas through being hired in manufacturing firms, etc., that of Korean ones is highly dependent upon fishery and agriculture, so that the diversification of income sources is urgently needed, especially in non-fishing areas. This paper shows that as a model to upgrade fisherman's income level, firstly, it is necessary to enhance the value-added of fishing products through processing and new innovation of distribution process and, secondly, to promote tourism in fishing villages. To ascertain this model, a questionnaire survey to fishermen was carried out and showed that they expressed a strong support for the increase of income by the value-added process through processing and innovative distribution system and the active introduction of tourism in fishing villages. A case study on Gosan cooperative in Jeju was also introduced to identify the rationale of the suggested model and this study proved the validity of the model again. Conclusively speaking, to level up the fisherman's income requires the value- added activities through the introduction of product processing and new distribution system together with the introduction of marine tourism in fishing villages.