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The Effect on Air Transport Sector by Korea-China FTA and Aviation Policy Direction of Korea (한·중 FTA가 항공운송 부문에 미치는 영향과 우리나라 항공정책의 방향)

  • Lee, Kang-Bin
    • The Korean Journal of Air & Space Law and Policy
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    • v.32 no.1
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    • pp.83-138
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    • 2017
  • Korea-China FTA entered into force on the 20th of December 2015, and one year elapsed after its effectuation as the FTA with China, our country's largest trading partner. Therefore, this study looks at the trends of air transport trade between Korea and China, and examines the contents of concessions to the air transport services sector in Korea-China FTA, and analyzes the impact on the air transport sector by Korea-China FTA, and proposes our country's aviation policy direction in order to respond to such impact. In 2016 the trends of air transport trade between Korea and China are as follows : The export amount of air transport trade to China was 40.03 billion dollars, down by 9.3% from the last year, and occupied 32.2% of the total export amount to China. The import amount of air transport trade from China was 24.26 billion dollars, down by 9.1% from the last year, and occupied 27.7% of the total import amount from China. The contents of concessions to the air transport services sector in Korea-China FTA are as follows : China made concessions to the aircraft repair and maintenance services and the computer reservation system services with limitations on market access and national treatment in the air transport services sector of the China Schedule of Specific Commitments of Korea-China FTA Chapter 8 Annex. Korea made concessions to the computer reservation system services, selling and marketing of air transport services, and aircraft repair and maintenance without limitations on market access and national treatment in the air transport services sector of the Korea Schedule of Specific Commitments of Korea-China FTA Chapter 8 Annex. The impact on the air transport sector by Korea-China FTA are as follows : As for the impact on the air passenger market, in 2016 the arrival passengers of the international flight from China were 9.96 million, up by 20.6% from the last year, and the departure passengers to China were 9.90 million, up by 34.8% from the last year. As for the impact on the air cargo market, in 2016 the exported goods volumes of air cargo to China were 105,220.2 tons, up by 6.6% from the last year, and imported goods volumes from China were 133,750.9 tons, up by 12.3% from the last year. Among the major items of exported air cargo to China, the exported goods volumes of benefited items in the Tariff Schedule of China of Korea-China FTA were increased, and among the major items of imported air cargo from China, the imported goods volumes of benefited items in the Tariff Schedule of Korea of Korea-China FTA were increased. As for the impact on the logistics market, in 2016 the handling performance of exported air cargo to China by domestic forwarders were 119,618 tons, down by 2.1% from the last year, and the handling performance of imported air cargo from China were 79,430 tons, down by 4.4% from the last year. In 2016 the e-commerce export amount to China were 109.16 million dollars, up by 27.7% from the last year, and the e-commerce import amount from China were 89.43 million dollars, up by 72% from the last year. The author proposes the aviation policy direction of Korea according to Korea-China FTA as follows : First, the open skies between Korea and China shall be pushed ahead. In June 2006 Korea and China concluded the open skies agreement within the scope of the third freedom and fourth freedom of the air for passenger and cargo in Sandong Province and Hainan Province of China, and agreed the full open skies of flights between the two countries from the summer season in 2010. However, China protested against the interpretation of the draft of the memorandum of understanding to the air services agreement, therefore the further open skies did not take place. Through the separate aviation talks with China from Korea-China FTA, the gradual and selective open skies of air passenger market and air cargo market shall be pushed ahead. Second, the competitiveness of air transport industry and airport shall be secured. As for the strengthening methods of the competitiveness of Korea's air transport industry, the support system for the strengthening of national air carriers' competitiveness shall be prepared, and the new basis for competition of national air carriers shall be made, and the strategic network based on national interest shall be built. As for the strengthening methods of the competitiveness of Korea's airports, particularly Incheon Airport, the competitiveness of the network for aviation demand creation shall be strengthened, and the airport facilities and safety infrastructure shall be expanded, and the new added value through the airport shall be created, and the world's No.1 level of services shall be maintained. Third, the competitiveness of aviation logistics enterprises shall be strengthened. As for the strengthening methods of the competitiveness of Korea's aviation logistics enterprises, as the upbringing strategy of higher added value in response to the industry trends changes, the new logistics market shall be developed, and the logistics infrastructure shall be expanded, and the logistics professionals shall be trained. Additionally, as the expanding strategy of global logistics market, the support system for overseas investment of logistics enterprises shall be built, and according to expanding the global transport network, the international cooperation shall be strengthened, and the network infrastructure shall be secured. As for the strengthening methods of aviation logistics competitiveness of Incheon Airport, the enterprises' demand of moving in the logistics complex shall be responded, and the comparative advantage in the field of new growth cargo shall be preoccupied, and the logistics hub's capability shall be strengthened, and the competitiveness of cargo processing speed in the airport shall be advanced. Forth, in the subsequent negotiation of Korea-China FTA, the further opening of air transport services sector shall be secured. In the subsequent negotiation being initiated within two years after entry into force of Korea-China FTA, it is necessary to ask for the further opening of the concessions of computer reservation system services, and aircraft repair and maintenance services in which the concessions level of air transport services sector by China is insufficient compared to the concessions level in the existing FTA concluded by China. In conclusion, in order to respond to the impact on Korea's air passenger market, air cargo market and aviation logistics market by Korea-China FTA, the following policy tasks shall be pushed ahead : Taking into consideration of national air carriers' competitiveness and nation's benefits, the gradual and selective open skies shall be pushed ahead, and the support system to strengthen the competitiveness of air transport industry and airport shall be built, and entry into aviation logistics market by logistics enterprises shall be expanded, and the preparations to ask for the further opening of air transport services sector, low in the concessions level by China shall be made.

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A Study on Establishment and Operation of International Arbitration Center within Incheon Free Economic Zone (인천경제자유구역 국제중재센터 설립 및 운영방안)

  • Kim, Sang-Ho
    • Journal of Arbitration Studies
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    • v.18 no.1
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    • pp.121-145
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    • 2008
  • Northeast Asia is increasingly making a transition to distinctive and crucial region in the 21st Century and growing into one of world's top three economic spheres along with the EU and NAFTA. In 2003, Korean government announced the Northeast Asian economic hub country plan as an important agenda. As a means of coping with the changing global environment, Korean government designated Incheon in 2003 as the country's first Free Economic Zone ahead of Busan and Gwangyang Bay in the south of the country because Incheon has a geographical advantage linking North America and Europe with Incheon International Airport and Incheon Seaport. The purpose of this paper is to make research on establishment and operation of an arbitral body entitled ${\ulcorner}International Arbitration Center{\lrcorner}$ (IAC) within Incheon Free Economic Zone(IFEZ). For the purpose of this, the writer in this paper, reviewed the necessity of the IAC's establishment and its legal basis as well as the role and function of the Center. Also, the writer presented plans for how to operate the IAC and how to cooperate with the key arbitral organizations of foreign countries for the settlement promotion of commercial disputes including trade and investment. With development of the IFEZ, world-renowned enterprises will invest in the Incheon economic bloc and conduct economic activities, business operation, marketing, logistics, financing, etc. In this connection, diverse types of commercial disputes are expected to occur between foreign companies entering the IFEZ and Korean firms. In this connection, the Korean Commercial Arbitration Board(KCAB) has been operating its liaison office in the IFEZ since 2004. However, in view of the increasing arbitration demand, the IAC should be set up in the IFEZ in the near future by the positive support of the government in the respect of both administration and finance because the free economic zone-related law provides for the installation of arbitration organization. For the success of the IAC, the Center will have to provide not only good quality of arbitral services that can satisfy arbitration parties but also need to conduct researches and make efforts so that arbitration can be utilized well in the IFEZ. If the IFEZ can provide advantageous business environments to those multinational enterprises intending to the Incheon economic bloc, the IAC will also contribute to the settlement of commercial disputes arising from the Gaeseong Industrial Complex in North Korea in view of the geographical advantage and logistic benefit of the IFEZ. Finally, this paper also suggests a new model for a joint dispute resolution system by the initiative of Korean government and Korean arbitral organizations for the settlement of commercial disputes within Northeast Asia, for which the CAMCA(Commercial Arbitration and Mediation Center for the Americas) of NAFTA can be a good example.

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A study on the directions for the development of industrial design in Incheon -in Incheon international design competition- (인천산업디자인의 발전방향에 관한 연구 -인천국제디자인공모전의 필요성에 대하여-)

  • Kim, Young-Hee;Kim, Ji-Ho;Kim, Boo-Chi
    • Archives of design research
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    • v.17 no.4
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    • pp.201-210
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    • 2004
  • This study is to analyze the present situation of Incheon design and to research Incheon industrial design with the special character of the city. Next, the final purpose is to apply this study for the Incheon International Design Competition event that will be held first time sponsored by Incheon Metropolitan. Incheon is Metropolitan which has 2.6 million people and the entrance of seoul Metropolitan which is the center of export industry and one of the greatest industrial city. It is growing the hub of International trade city of the twenty-first centry due to the opening of Incheon International Airport and the new development of Song-do city. The industrial structure of Incheon is mostly consist of small industry centered which has a lack of design development capacity, and it has a little insufficient design-related institutes which can educate the design personnel. It has only two universities and six junior colleges. Especially, design-related academics and exhibitions are rare nearby Seoul area. I will contribute the study which makes the industrial character and the necessity of design that can be possible through the Incheon International Design Exhibition, and it will promote the backward design industry and economy of Incheon that compared to other regions of Korea. And, I am going to utilize as basic data bases for exercising advanced Incheon Industrial Design Competition. Furthermore, I would like to contribute the image improvement of new International Incheon Metropolitan through the training of excellent design experts and finding design-related personnels which can be accomplished the cooperation among local autonomy, industries and schools.

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A Study on the Determinants of Demand for Visiting Department Stores Using Big Data (POS) (빅데이터(POS)를 활용한 백화점 방문수요 결정요인에 관한 연구)

  • Shin, Seong Youn;Park, Jung A
    • Land and Housing Review
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    • v.13 no.4
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    • pp.55-71
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    • 2022
  • Recently, the domestic department store industry is growing into a complex shopping cultural space, which is advanced and differentiated by changes in consumption patterns. In addition, competition is intensifying across 70 places operated by five large companies. This study investigates the determinants of the visits to department stores using the big data concept's automatic vehicle access system (pos) and proposes how to strengthen the competitiveness of the department store industry. We use a negative binomial regression test to predict the frequency of visits to 67 branches, except for three branches whose annual sales were incomplete due to the new opening in 2021. The results show that the demand for visiting department stores is positively associated with airport, terminal, and train stations, land areas, parking lots, VIP lounge numbers, luxury store ratio, F&B store numbers, non-commercial areas, and hotels. We suggest four strategies to enhance the competitiveness of domestic department stores. First, department store consumers have a high preference for luxury brands. Therefore, department stores need to form their own overseas buyer teams to discover and attract new luxury brands and attract customers who have a high demand for luxury brands. In addition, to attract consumers with high purchasing power and loyalty, it is necessary to provide more differentiated products and services for VIP customers than before. Second, it is desirable to focus on transportation hub areas such as train stations, airports, and terminals in Gyeonggi and Incheon. Third, department stores should attract tenants who can satisfy customers, given that key tenants are an important component of advanced shopping centers for department stores. Finally, the department store, a top-end shopping center, should be developed as a space with differentiated shopping, culture, dining out, and leisure services, such as "The Hyundai", which opened in 2021, to ensure future growth potential.