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An Empirical Study on the Effect of CRM System on the Performance of Pharmaceutical Companies (고객관계관리 시스템의 수준이 BSC 관점에서의 기업성과에 미치는 영향 : 제약회사를 중심으로)

  • Kim, Hyun-Jung;Park, Jong-Woo
    • Journal of Intelligence and Information Systems
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    • v.16 no.4
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    • pp.43-65
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    • 2010
  • Facing a complex environment driven by a decade, many companies are adopting new strategic frameworks such as Customer Relationship Management system to achieve sustainable profitability as well as overcome serious competition for survival. In many business areas, CRM system advanced a great deal in a matter of continuous compensating the defect and overall integration. However, pharmaceutical companies in Korea were slow to accept them for usesince they still have a tendency of holding fast to traditional way of sales and marketing based on individual networks of sales representatives. In the circumstance, this article tried to empirically address current status of CRM system as well as the effects of the system on the performance of pharmaceutical companies by applying BSC method's four perspectives, from financial, customer, learning and growth and internal process. Survey by e-mail and post to employers and employees who were working in pharma firms were undergone for the purpose. Total 113 cases among collected 140 ones were used for the statistical analysis by SPSS ver. 15 package. Reliability, Factor analysis, regression were done. This study revealed that CRM system had a significant effect on improving financial and non-financial performance of pharmaceutical companies as expected. Proposed regression model fits well and among them, CRM marketing information system shed the light on substantial impact on companies' outcome given profitability, growth and investment. Useful analytical information by CRM marketing information system appears to enable pharmaceutical firms to set up effective marketing and sales strategies, these result in favorable financial performance by enhancing values for stakeholderseventually, not to mention short-term profit and/or mid-term potential to growth. CRM system depicted its influence on not only financial performance, but also non-financial fruit of pharmaceutical companies. Further analysis for each component showed that CRM marketing information system were able to demonstrate statistically significant effect on the performance like the result of financial outcome. CRM system is believed to provide the companies with efficient way of customers managing by valuable standardized business process prompt coping with specific customers' needs. It consequently induces customer satisfaction and retentionto improve performance for long period. That is, there is a virtuous circle for creating value as the cornerstone for sustainable growth. However, the research failed to put forward to evidence to support hypothesis regarding favorable influence of CRM sales representative's records assessment system and CRM customer analysis system on the management performance. The analysis is regarded to reflect the lack of understanding of sales people and respondents between actual work duties and far-sighted goal in strategic analysis framework. Ordinary salesmen seem to dedicate short-term goal for the purpose of meeting sales target, receiving incentive bonus in a manner-of-fact style, as such, they tend to avail themselves of personal network and sales and promotional expense rather than CRM system. The study finding proposed a link between CRM information system and performance. It empirically indicated that pharmaceutical companies had been implementing CRM system as an effective strategic business framework in order for more balanced achievements based on the grounded understanding of both CRM system and integrated performance. It suggests a positive impact of supportive CRM system on firm performance, especially for pharmaceutical industry through the initial empirical evidence. Also, it brings out unmet needs for more practical system design, improvement of employees' awareness, increase of system utilization in the field. On the basis of the insight from this exploratory study, confirmatory research by more appropriate measurement tool and increased sample size should be further examined.

The Sociocultural Characteristics of Korean Ethnics in Central Asia (중앙아시아 한인의 사회문화적 특성과 과제)

  • 정성호
    • Korea journal of population studies
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    • v.20 no.2
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    • pp.161-180
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    • 1997
  • There are about 400, 000 Korean ethnics living in Central Asia. Most of Koreans in Central Asia are leading a stable middle class life mostly engaged in farm work. With increase of educational attainment of their children, a number of Koreans are launching into political and academic circles as well as in the cultural world or the press. In recent years, however, the countries in this area(Uzbekistan and Kazakstan) for this study advocate an ethnic united policy to stabilize the politics and society and to carry out efficient transformation from the former socialistic economy to a market oriented economy. In addition, they are trying to recover the culture and the language of each nation which has been forgotten in the assimilation of Russia policy. Koreans have difficulty in adaption to this kind of change. In fact, a number of Koreans lost traditional culture and could not speak their mother language - Korean. Although they more or less maintain national consciousness, they recognize Uzbekistan or Kazakstan as their nation politically. They associated with North Korea unilaterally before the launching of the Perestroika policy. But after the Seoul Olympics held in 1998, there was movement to know and understand South Korea. There has been increased in the investment by Korean companies in Central Asia. Now, what is an alternative idea for Korean community consciousness\ulcorner It can be summarized as follows: 1) The increase of aid to Korean education institute : Considering the last few decades of Russia's strong racial assimilation policy, which leads most Koreans to lost their language and national culture, the priority should go to Koreans education. 2) Local Korean press support : Though Korean newspaper are published and Korean broadcasting is on the air currently in Uzbekistan and Kazakstan, they are suffering from qualified staff and poor financial status. Therefore, positive support should be established for these Korean mass communication media outlets to recover their own function and expand their dissemination powers quickly. 3) Research on the actual condition for Korean Community : It is essential to directly examine the local Korean community's regional distribution, population structure, Korean group's formation and operation, social and cultural understanding, racial consciousness, hope for their mother land and much more. 4) Increase of mother land and education opportunity : To stir up national culture and national consciousness within the Korean community, it is necessary to expand continuous opportunities for mother land visits and education training for local Koreans, especially for second and third generations.

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Effects of Cohort Size on Male Experience-Earnings Profiles in Korea (코호트 사이즈가 경력-임금 곡선에 미치는 영향)

  • 신영수
    • Korea journal of population studies
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    • v.10 no.1
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    • pp.50-69
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    • 1987
  • There are about 400, 000 Korean ethnics living in Central Asia. Most of Koreans in Central Asia are leading a stable middle class life mostly engaged in farm work. With increase of educational attainment of their children, a number of Koreans are launching into political and academic circles as well as in the cultural world or the press. In recent years, however, the countries in this area(Uzbekistan and Kazakstan) for this study advocate an ethnic united policy to stabilize the politics and society and to carry out efficient transformation from the former socialistic economy to a market oriented economy. In addition, they are trying to recover the culture and the language of each nation which has been forgotten in the assimilation of Russia policy. Koreans have difficulty in adaption to this kind of change. In fact, a number of Koreans lost traditional culture and could not speak their mother language - Korean. Although they more or less maintain national consciousness, they recognize Uzbekistan or Kazakstan as their nation politically. They associated with North Korea unilaterally before the launching of the Perestroika policy. But after the Seoul Olympics held in 1998, there was movement to know and understand South Korea. There has been increased in the investment by Korean companies in Central Asia. Now, what is an alternative idea for Korean community consciousness\ulcorner It can be summarized as follows: 1) The increase of aid to Korean education institute : Considering the last few decades of Russia's strong racial assimilation policy, which leads most Koreans to lost their language and national culture, the priority should go to Koreans education. 2) Local Korean press support : Though Korean newspaper are published and Korean broadcasting is on the air currently in Uzbekistan and Kazakstan, they are suffering from qualified staff and poor financial status. Therefore, positive support should be established for these Korean mass communication media outlets to recover their own function and expand their dissemination powers quickly. 3) Research on the actual condition for Korean Community : It is essential to directly examine the local Korean community's regional distribution, population structure, Korean group's formation and operation, social and cultural understanding, racial consciousness, hope for their mother land and much more. 4) Increase of mother land and education opportunity : To stir up national culture and national consciousness within the Korean community, it is necessary to expand continuous opportunities for mother land visits and education training for local Koreans, especially for second and third generations.

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Vietnam in 2016: The Situations and Prospects of Politics, Economy, and International Relations (베트남 2016: 정치, 경제, 대외관계의 현황과 전망)

  • LEE, Han Woo;CHAE, Su Hong
    • The Southeast Asian review
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    • v.27 no.1
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    • pp.163-191
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    • 2017
  • This article aims to review the recent, especially focusing on the year of 2016, situations and prospects of the Vietnamese politics, economy, and international relations. Politically, Vietnam completed the election of members for the National Assembly and organized new leadership at the 12th National Congress of the Vietnamese Communist Party in 2016. One characteristic of the new leadership is that the politicians, especially the members of politburo, from the North continue to occupy the position of majority. The other one is that the new leadership promised to carry out the restructuring of economy toward industries producing higher value-added commodities even though Vietnam industries admittedly need to accelerate present industrialization and modernization as a developing country under the seemingly contradictory slogan of "the development of market economy for socialism." The declared goals of the new leadership in Vietnam are inevitable in a sense since the development of Vietnamese economy has been heavily dependent upon Foreign Direct Investment(FDI) taking advantage of Vietnamese cheap labor and simultaneously it is evident that its future is unsecure if it maintains status quo. In fact, the Vietnamese economy has impressively showed high growth rate by the help of foreign capitals since 1990s despite the repetitive recessions of global economy but its growth is not likely to be sustainable anymore if it will not reduce foreign dependency and social economic inequality in a long term. In a short run, global economic recession, the financial and monetary policies of global powers, and recent protectionism and uncertainty of trade agreements will be three crucial variables to affect Vietnamese economy. In terms of international relations, Vietnam is continuously expected to practise the policy of checks and balances among the powerful countries. Vietnam has seriously disputed with China on islands sovereignty in the South China Sea and attempted to maintain close relationship with other powerful countries including especially America. However, mainly due to the new protectionism by the regime of American president Donald Trump, the Vietnamese government also need to keep close relationship with China increasingly for both economic and diplomatic security. Under the circumstances, Vietnam is expected to maintain more practical and balanced international relations.

A Plan for Activating Elderly Sports to Promote Health in the COVID-19 Era (코로나19 시대 건강증진을 위한 노인체육 활성화 방안)

  • Cho, Kyoung-Hwan
    • Journal of Korea Entertainment Industry Association
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    • v.14 no.7
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    • pp.141-160
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    • 2020
  • The purpose of this study was to devise a specific plan for activating sports to promote health in old age against the prolonged COVID-19 pandemic. Through literature review, it also analyzed the association between health status and COVID-19 in old age, suggested health promotion policies and projects for elderly people, and presented a plan for activating sport to promote health in old age against COVID-19 era. First, it is necessary to revise the relevant laws, including the Sport Promotion Act and the Elderly Welfare Act, partially or entirely, make developmental and convergent legislations for elderly health and sports, and establish an institutional device as needed. Second, it is necessary to build an integrated digital platform for the elderly and make a supporting system that links facilities, programs, information, and job creation as part of a New Deal program in the field of sports on the basis of the Korean New Deal. Third, it is necessary to train elderly welfare professionals. Efforts should be made to establish more departments related to elderly sports in universities and make it compulsory to place elderly sports instructors at elderly leisure and welfare facilities. Fourth, it is necessary to develop contents related to health in old age. This means performing diverse movements by manipulating them through a virtual reality (VR) simulation. Fifth, it is necessary to make a greater investment in research and development related to elderly sports and relevant fields. This means the need to conduct constant research on healthy and active aging in a systematic and practical way through multidisciplinary cooperation. Sixth, it is necessary to establish and operate an elderly management agency (elderly health agency) under the influence of the Office of the Prime Minister. This means the need to secure independence in implementing the functions related to health promotion in old age and make comprehensive operation, which involves all the issues of health promotion in old age, daily function maintenance and rehabilitation, social adjustment, and long-term care, by establishing an elderly management agency in an effort to give lifelong health management to the elderly and cope with the untact, New Normal age.

Pansori Patronage of Daewongun and His Influences on Park Yujeon's Jeokbyeokga (판소리 패트론으로서의 대원군과 박유전 <적벽가>의 변모)

  • Yoo, Min-Hyung
    • (The) Research of the performance art and culture
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    • no.38
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    • pp.143-191
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    • 2019
  • This research argues that Pansori had patrons in its development. Patrons are commonly discussed aspect of history of any art form. Pansori is no exception. While Pansori originally began as the art of the common people, Yangban class became the primary audience. This paper examines the role of royal family of Choson dynasty in development of Pansori. Heungseon Daewongun (흥선대원군) in particular was a Pansori aficionado. The record around Daewongun's involvement to Pansori proves that heavy monetary investment was made. He hosted Pansori competitions and sponsored creation of Pansori tradition, Boseong Sori (보성소리) and Gangsanje (강산제). Also the aspect of Pansori patronage lies not just in Yangban class, but also in Jung'in class, which is roughly analoguous to European bourgeois in that they were not of Yangban class, but had gained monetary status, and had aesthetics of both Yangban and commoner class. I argue that Heungseon Daewongun's ties to the Jung'in class is reflected in his actions towards Pansori artists. The traditions he had sponsored have important characteristics, including sophisticated lyrics heavily utilizing Classical Chinese poetry, highly artistic musical composition, and conservative Confucian ethics. Those characteristics indicate that the Pansori traditions sponsored by the royal patrons have changed to cater to their artistic taste and philosophy. This paper conducts a textual comparative analysis between Gangsanje Pansori Jeokbyeokga (강산제 판소리 적벽가), Dongpyeonje's Pansori Jeokbyeokga (동편제 판소리 적벽가), and Seopyeonje Pansori Jeokbyeokga, who share the same plot yet offers a stark differences in tone, philosophy, and sense of humor. Daewongun was a primary sponsor of Pansori, which proves that Yangban class and the royal family have played important role as patrons of Pansori.

Analysis of the Time-dependent Relation between TV Ratings and the Content of Microblogs (TV 시청률과 마이크로블로그 내용어와의 시간대별 관계 분석)

  • Choeh, Joon Yeon;Baek, Haedeuk;Choi, Jinho
    • Journal of Intelligence and Information Systems
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    • v.20 no.1
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    • pp.163-176
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    • 2014
  • Social media is becoming the platform for users to communicate their activities, status, emotions, and experiences to other people. In recent years, microblogs, such as Twitter, have gained in popularity because of its ease of use, speed, and reach. Compared to a conventional web blog, a microblog lowers users' efforts and investment for content generation by recommending shorter posts. There has been a lot research into capturing the social phenomena and analyzing the chatter of microblogs. However, measuring television ratings has been given little attention so far. Currently, the most common method to measure TV ratings uses an electronic metering device installed in a small number of sampled households. Microblogs allow users to post short messages, share daily updates, and conveniently keep in touch. In a similar way, microblog users are interacting with each other while watching television or movies, or visiting a new place. In order to measure TV ratings, some features are significant during certain hours of the day, or days of the week, whereas these same features are meaningless during other time periods. Thus, the importance of features can change during the day, and a model capturing the time sensitive relevance is required to estimate TV ratings. Therefore, modeling time-related characteristics of features should be a key when measuring the TV ratings through microblogs. We show that capturing time-dependency of features in measuring TV ratings is vitally necessary for improving their accuracy. To explore the relationship between the content of microblogs and TV ratings, we collected Twitter data using the Get Search component of the Twitter REST API from January 2013 to October 2013. There are about 300 thousand posts in our data set for the experiment. After excluding data such as adverting or promoted tweets, we selected 149 thousand tweets for analysis. The number of tweets reaches its maximum level on the broadcasting day and increases rapidly around the broadcasting time. This result is stems from the characteristics of the public channel, which broadcasts the program at the predetermined time. From our analysis, we find that count-based features such as the number of tweets or retweets have a low correlation with TV ratings. This result implies that a simple tweet rate does not reflect the satisfaction or response to the TV programs. Content-based features extracted from the content of tweets have a relatively high correlation with TV ratings. Further, some emoticons or newly coined words that are not tagged in the morpheme extraction process have a strong relationship with TV ratings. We find that there is a time-dependency in the correlation of features between the before and after broadcasting time. Since the TV program is broadcast at the predetermined time regularly, users post tweets expressing their expectation for the program or disappointment over not being able to watch the program. The highly correlated features before the broadcast are different from the features after broadcasting. This result explains that the relevance of words with TV programs can change according to the time of the tweets. Among the 336 words that fulfill the minimum requirements for candidate features, 145 words have the highest correlation before the broadcasting time, whereas 68 words reach the highest correlation after broadcasting. Interestingly, some words that express the impossibility of watching the program show a high relevance, despite containing a negative meaning. Understanding the time-dependency of features can be helpful in improving the accuracy of TV ratings measurement. This research contributes a basis to estimate the response to or satisfaction with the broadcasted programs using the time dependency of words in Twitter chatter. More research is needed to refine the methodology for predicting or measuring TV ratings.

Rough Set Analysis for Stock Market Timing (러프집합분석을 이용한 매매시점 결정)

  • Huh, Jin-Nyung;Kim, Kyoung-Jae;Han, In-Goo
    • Journal of Intelligence and Information Systems
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    • v.16 no.3
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    • pp.77-97
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    • 2010
  • Market timing is an investment strategy which is used for obtaining excessive return from financial market. In general, detection of market timing means determining when to buy and sell to get excess return from trading. In many market timing systems, trading rules have been used as an engine to generate signals for trade. On the other hand, some researchers proposed the rough set analysis as a proper tool for market timing because it does not generate a signal for trade when the pattern of the market is uncertain by using the control function. The data for the rough set analysis should be discretized of numeric value because the rough set only accepts categorical data for analysis. Discretization searches for proper "cuts" for numeric data that determine intervals. All values that lie within each interval are transformed into same value. In general, there are four methods for data discretization in rough set analysis including equal frequency scaling, expert's knowledge-based discretization, minimum entropy scaling, and na$\ddot{i}$ve and Boolean reasoning-based discretization. Equal frequency scaling fixes a number of intervals and examines the histogram of each variable, then determines cuts so that approximately the same number of samples fall into each of the intervals. Expert's knowledge-based discretization determines cuts according to knowledge of domain experts through literature review or interview with experts. Minimum entropy scaling implements the algorithm based on recursively partitioning the value set of each variable so that a local measure of entropy is optimized. Na$\ddot{i}$ve and Booleanreasoning-based discretization searches categorical values by using Na$\ddot{i}$ve scaling the data, then finds the optimized dicretization thresholds through Boolean reasoning. Although the rough set analysis is promising for market timing, there is little research on the impact of the various data discretization methods on performance from trading using the rough set analysis. In this study, we compare stock market timing models using rough set analysis with various data discretization methods. The research data used in this study are the KOSPI 200 from May 1996 to October 1998. KOSPI 200 is the underlying index of the KOSPI 200 futures which is the first derivative instrument in the Korean stock market. The KOSPI 200 is a market value weighted index which consists of 200 stocks selected by criteria on liquidity and their status in corresponding industry including manufacturing, construction, communication, electricity and gas, distribution and services, and financing. The total number of samples is 660 trading days. In addition, this study uses popular technical indicators as independent variables. The experimental results show that the most profitable method for the training sample is the na$\ddot{i}$ve and Boolean reasoning but the expert's knowledge-based discretization is the most profitable method for the validation sample. In addition, the expert's knowledge-based discretization produced robust performance for both of training and validation sample. We also compared rough set analysis and decision tree. This study experimented C4.5 for the comparison purpose. The results show that rough set analysis with expert's knowledge-based discretization produced more profitable rules than C4.5.

A Study on Rationalization of National Forest Management in Korea (국유림경영(國有林經營)의 합리화(合理化)에 관(關)한 연구(硏究))

  • Choi, Kyu-Ryun
    • Journal of Korean Society of Forest Science
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    • v.20 no.1
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    • pp.1-44
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    • 1973
  • Needless to say, the management of national forest in all countries is very important in view of the national mission and management purposes. Korean national forest is also in particular significant in promoting national economy for the continuous increasing of the demand for wood, conservation of the land and social welfare. But there's no denying the fact that the leading aim of the Korean forest policy has been based upon the conservation of forest resources and recovery of land conservation function instead of improvement of the forest productive capacity. Therefore, the management of national forest should be aimed as an industry in the chain of the Korean national economy. And the increment of the forest productive capacity based on rationalized forest management is also urgently needed. Not only the increment of the timber production but also the establishment of the good forest in quality and quantity are to bring naturally many functions of conservation and other public benefits. In 1908 Korean national forest was historically established for the first time as a result of the notification for ownership, and was divided into two kinds in 1911-1924, such as indisposable national forest for land conservation, forest management, scientific research and public welfare, and the other national forest to be disposed. Indisposable forest is mostly under the jurisdiction of national forest stations (Chungbu, Tongbu, Nambu), and the tother national forests are under custody of respective cities and provinces, and under custody of the other government authorities. As of the end of 1971, national forest land is 19.5% (1,297,708 ha) of the total forest land area, but growing stock is 50.1% ($35,406,079m^3$) of the total forest growing stock, and timber production of national forest is 23.6% ($205,959m^3$) of the year production of total timber in Korea. Accordingly, it is the important fact that national forest occupies the major part of Korean forestry. The author positively affirms that success or failure of the management of national forest controls rise or fall of forestry in Korea. All functions of forest are very important, but among others the function of timber production is most important especially in Korea, that unavoidably imports a large quantity of foreign wood every year (in 1971 import of foreign wood-$3,756,000m^3$, 160,995,000 dollars). So, Korea urgently needs the improvement of forest productive capacity in national forest. But it is difficult that wood production meets the rapid increase of demand for wood to the development of economy, because production term of forestry is long, so national forest management should be rationalized by the effective investment and development of forestry techniques in the long view. Although Korean national forest business has many difficulties in the budget, techniques and the lack of labour due to outflow of rural village labour by development of national economy, and the increase of labour wages and administrative expenses etc. the development of national forest depends on adoption of the suitable forest techniques and management adapted for social and economical development. In this view point the writer has investigated and analyzed the status of the management of national forest in Korea to examine the irrational problems and suggest an improvement plan. The national forestry statistics cited in this study is based on the basic statistics and the statistics of the forest business as of the end of 1971 published by Office of Forestry, Republic of Korea, and the other depended on the data presented by the national forest stations. The writer wants to propose as follows (seemed to be helpful in improvement of Korean national forest management). 1) In the organization of national forest management, more national forest stations should be established to manage intensively, and the staff of working plan officials should be strengthened because of the importance of working plan. 2) By increasing the staff of protection officials, forest area assigned for each protection official should be decreased to 1,000-2,000 ha. 3) The frequent personnel changes of supervisor of national forest station(the responsible person on-the-spot) obstructs to accomplish the consistent management plan. 4) In the working plan drafting for national forest, basic investigations should be carefully practiced with sufficient expenditure and staff not to draft unreal working plan. 5) The area of working-unit should be decreased to less than 2,000 ha on the average for intensive management and the principle of a working-unit in a forest station should be realized as soon as possible. 6) Reforestation on open land should be completed in a short time with a debt of the special fund(a long term loan), and the land on which growing hardwood stands should be changed with conifers to increase productivity per unit area, and at the same time techical utilization method of hardwood should be developed. 7) Expenses of reforestation should be saved by mechanization and use of chemicals for reforestation and tree nursery operation providing against the lack of labour in future. 8) In forest protection, forest fire damage is enormous in comparison with foreign countries, accordingly prevention system and equipment should be improved, and also the minimum necessary budget should be counted up for establishment and manintenance of fire-lines. 9) Manufacture production should be enlarged to systematize protection, processing and circulation of forest business, and, by doing this, mich benefit is naturally given for rural people. 10) Establishment and arrangement of forest road networks and erosion control work are indispensable for the future development of national forest itself and local development. Therefore, these works should be promoted by the responsibility of general accounting instead of special accounting. 11) Mechanization of forest works should be realized for exploiting hinterlands to meet the demand for timber increased and for solving lack of labour, consequently it should promote import of forest machines, home production, training for operaters and careful adminitration. 12) Situation of labour in future will grow worse. Therefore, the countermeasure to maintain forest labourers and pay attention to public welfare facilities and works should be considered. 13) Although the condition of income and expenditure grows worse because of economical change, the regular expenditure should be fixed. So part of the surplus fund, as of the end of 1971, should be established for the fund, and used for enlarging reforestation and forest road networks(preceding investment in national forest).

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Study on the effect of small and medium-sized businesses being selected as suitable business types, on the franchise industry (중소기업적합업종선정이 프랜차이즈산업에 미치는 영향에 관한 연구)

  • Kang, Chang-Dong;Shin, Geon-Chel;Jang, Jae Nam
    • Journal of Distribution Research
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    • v.17 no.5
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    • pp.1-23
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    • 2012
  • The conflict between major corporations and small and medium-sized businesses is being aggravated, the trickle down effect is not working properly, and, as the controversy surrounding the effectiveness of the business limiting system continues to swirl, the plan proposed to protect the business domain of small and medium-sized businesses, resolve polarization between these businesses and large corporations, and protect small family run stores is the suitable business type designation system for small and medium-sized businesses. The current status of carrying out this system of selecting suitable business types among small and medium-sized businesses involves receiving applications for 234 items among the suitable business types and items from small and medium-sized businesses in manufacturing, and then selecting the items of the consultative group by analyzing and investigating the actual conditions. Suitable business type designation in the service industry will involve designation with priority on business types that are experiencing social conflict. Three major classifications of the service industry, related to the livelihood of small and medium-sized businesses, will be first designated, and subsequently this will be expanded sequentially. However, there is the concern that when designated as a suitable business type or item, this will hinder the growth motive for small to medium-sized businesses, and designation all cause decrease in consumer welfare. Also it is highly likely that it will operate as a prior regulation, cause side-effects by limiting competition systematically, and also be in violation against the main regulations of the FTA system. Moreover, it is pointed out that the system does not sufficiently reflect reverse discrimination factor against large corporations. Because conflict between small to medium sized businesses and large corporations results from the expansion of corporations to the service industry, which is unrelated to their key industry, it is necessary to introduce an advanced contract method like a master franchise or local franchise system and to develop local small to medium sized businesses through a franchise system to protect these businesses and dealers. However, this method may have an effect that contributes to stronger competitiveness of small to medium sized franchise businesses by advancing their competitiveness and operational methods a step further, but also has many negative aspects. First, as revealed by the Ministry of Knowledge Economy, the franchise industry is contributing to the strengthening of competitiveness through the economy of scale by organizing existing individual proprietors and increasing the success rate of new businesses. It is also revealed to be a response measure by the government to stabilize the economy of ordinary people and is emphasized as a 'useful way' to revitalize the service industry and improve the competitiveness of individual proprietors, and has been involved in contributions to creating jobs and expanding the domestic market by providing various services to consumers. From this viewpoint, franchises fit the purpose of the suitable business type system and is not something that is against it. Second, designation as a suitable business type may decrease investment for overseas expansion, R&D, and food safety, as well negatively affect the expansion of overseas corporations that have entered the domestic market, due to the contraction and low morale of large domestic franchise corporations that have competitiveness internationally. Also because domestic franchise businesses are hard pressed to secure competitiveness with multinational overseas franchise corporations that are operating in Korea, the system may cause difficulty for domestic franchise businesses in securing international competitiveness and also may result in reverse discrimination against these overseas franchise corporations. Third, the designation of suitable business type and item can limit the opportunity of selection for consumers who have up to now used those products and can cause a negative effect that reduces consumer welfare. Also, because there is the possibility that the range of consumer selection may be reduced when a few small to medium size businesses monopolize the market, by causing reverse discrimination between these businesses, the role of determining the utility of products must be left ot the consumer not the government. Lastly, it is desirable that this is carried out with the supplementation of deficient parts in the future, because fair trade is already secured with the enforcement of the franchise trade law and the best trade standard of the Fair Trade Commission. Overlapping regulations by the suitable business type designation is an excessive restriction in the franchise industry. Now, it is necessary to establish in the domestic franchise industry an environment where a global franchise corporation, which spreads Korean culture around the world, is capable of growing, and the active support by the government is needed. Therefore, systems that do not consider the process or background of the growth of franchise businesses and harm these businesses for the sole reason of them being large corporations must be removed. The inhibition of growth to franchise enterprises may decrease the sales of franchise stores, in some cases even bankrupt them, as well as cause other problems. Therefore the suitable business type system should not hinder large corporations, and as both small dealers and small to medium size businesses both aim at improving competitiveness and combined growth, large corporations, small dealers and small to medium sized businesses, based on their mutual cooperation, should not include franchise corporations that continue business relations with them in this system.

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