• The Journal of Fisheries Business Administration
• /
• v.40 no.1
• /
• pp.27-49
• /
• 2009

Recently, the Korea's economy concerns the second money crisis because of the rapid increase of the exchange rate. The Korea's economy which is very dependent on the foreign trade is more sensitive to the change of exchange rates. There are many literatures which analyze the effects of variations of the exchange rates on the secondary and tertiary industries such as the manufacturing industry and IT(Information Technology). But there have been no studies which try to figure out the effects of variations of exchange rate on the primary industries, especially, fisheries' industry. Therefore this paper tries to analyze the effect of price competition structure and the change of exchange rate on foreign fisheries exporting prices in Korea's fisheries import market. This study utilizes OLS(Ordinary Least Squares Analysis) for the analysis in the market of frozen yellow corvina, hairtail, angler fish which are major fisheries importable in Korea. The results show that the exporting country which has the highest market share is more sensitive to the change of the exchange rates itself than that of the other exporting countries' price when it starts to set up its exporting price. And the exporting countries which have low market share are more sensitive to the change of price which country has the highest market share than that of price whose countries have low market share and those of their exchange rate. Also we can find out that the countries which have similar market share try to set up price-setting strategy in the opposite direction. In other words, one country tries to bid up its price, other countries response to rival country by lowering their prices. In the consideration of the fact that most exporting countries aren't affected by Korea's fisheries' prices, the exporting countries in Korea's fisheries import market are more sensitive to the prices of other exporting countries than that of Korea's. This result indicates that the price leader-follower model could be applicable to the Korea's fisheries import market.

• The Journal of Fisheries Business Administration
• /
• v.51 no.4
• /
• pp.47-67
• /
• 2020

I explore that South Korea's major import fishery product markets-frozen hairtail, frozen mackerel, frozen pollock and frozen squid-are integrated by testing whether there is favorable evidence of the law of one price (LOP). Unlike previous studies on the LOP for fishery product markets, I assume non-zero import costs and include them in a trade model. To explore whether LOP holds for major import fishery product markets in South Korea with non-zero import costs, I utilize a non-linear time-series model, Smooth Transition Autoregressive (STAR) model with the sample periods from January in 2002 to December in 2019. I find that the behaviors of home-foreign price (i.e., import price) differentials of all four major import fishery products are non-linear depending on whether trade occurs and favorable evidence of LOP for each import market in South Korea. These findings indicate that each of South Korea's major import fishery product markets is integrated. They imply that the supply of each major import fishery product-frozen hairtail, frozen pollock, frozen mackerel and frozen squid, and their prices are stable even if there is an economic shock on each market. When it comes to trade policy implications, the Korean trade policy including tariffs or quotas against their import countries for the four major import fishery products may not have influences on their price in the markets.

• The Journal of Fisheries Business Administration
• /
• v.53 no.2
• /
• pp.21-41
• /
• 2022

The effect of change in exchange rates on an economy is very important, especially, to a small open economy like South Korea. I explore whether Free Trade Agreements (FTAs) have positive influences on exchange rate-pass through import price of import market for fishery products in South Korea. Competition among FTA partners is enhanced after FTAs are effective. I expect that the extent to which are exchange rate pass-through (hereafter, ERPT) into import price of fishery products (in terms of Korea currency) would be reduced since the import market for fishery products in South Korea is an oligopolistic market. Specifically, I investigate two research questions with six South Korea's FTA partners-Norway, Thailand, Peru, U.S., China and Vietnam. First, whether the extent to which are exchange rate pass-through into import price of fishery products from six FTA partners would decrase in the post-FTA era; seconds, the size of reduction has a negative relation with the size of their market share in the import market for fishery products in South Korea if it decreases. The empirical results indicate that the degree of ERPT into import price from other FTA partners than Norway has been reduced after FTA, statistically and significantly; however, I do not find the evidence that the size of reduction is related to their market share. The findings in this study imply that FTAs have negative effects on producers' economic welfare in South Korea's fishery industry by reducing the extent to which are exchange rate pass-through as well as reducing tariff barriers.

• The Journal of Fisheries Business Administration
• /
• v.34 no.2
• /
• pp.141-164
• /
• 2003

This study analysis the market status and competitive structure of Korean fishery in Japan import market, and derive policy implications for seeking main causes. Specifically', trade state between Korea and Japan is discovered and theoretical model is also used to analysis competitiveness between two countries. And then real measuring methods of competitive index is Introduced, the status of Korean fishery products in Japan import market is analysed totally through the study of comparative predominance and export competition. The analysis is based on the statistical methods such as RCA, RMI, and CMS. In summary, first, Korean fishery products have the comparative predominance in Japan, China and Thailand, but they have the comparative inferiority in USA, considering research results. Second, competitiveness of fishery products between Korea and in Japan import market extreme, relatively, competitiveness of Korean fishery products for Thailand's fishery products is lowest. Third, Korean fishery products maintain unconstant pattern, but competitive inputs result in increasing export to Japan generally.

• Korea Trade Review
• /
• v.46 no.4
• /
• pp.219-234
• /
• 2021

Armington elasticity has been a methodology for analyzing how much imports could increase in response to importing price cuts, assuming the possibility of incomplete substitution of domestic and imported products. This study calculates Armington elasticity values in Korean fisheries sector and presents an analysis method for classifying items based on price and preference differences. The model is modified reflecting the characteristics of the fisheries market along with the typical OLS, PAM, and ECM models. The result's implication is that products with a high import growth rate do not necessarily show a high Armington value, but it could be seen that price is not the only factor facilitating fisheries imports increase. Considering the items of which demand increases due to importing price cuts have an indiscriminate demand between domestic and imported products, the results could be interpreted that the Korean fisheries importing market has been easily affected by the changes in import prices. Fisheries grouping by price and preference demonstrates that explanatory variables other than price should be considered when estimating import demand.

• The Journal of Fisheries Business Administration
• /
• v.48 no.4
• /
• pp.45-66
• /
• 2017

Although the main objective of Free Trade Agreements (FTA) is market integration among member countries, there are limited studies supporting this impact. Our study explores whether FTA has enhanced market integration between South Korea and its FTA partners, focusing on South Korea's fishery product import market. We investigate two research questions concerning FTA impacts: first, whether trade costs declined when South Korea imported fishery products from its FTA partners after the FTA; second, if the speed of the convergence of South Korea-its FTA partners'price differential of imported fishery products on trade costs result to occur more quickly after the FTA. To determine these outcomes, we utilize a Threshold Autoregressive Model covering the sample periods from January 2002 to April 2017. Our findings demonstrate the effects of FTA on market integration are different among FTA partners. FTA has enhanced the market integration between South Korea and Norway, Vietnam, and Spain, respectively, but not for others. Therefore, we find positive evidence of FTA on fishery import market integration between South Korea and Norway, Vietnam and Spain, respectively.

• The Journal of Fisheries Business Administration
• /
• v.33 no.2
• /
• pp.153-168
• /
• 2002

Korea's marine products trade is taking for phase that income exceeds export after 2000. According to external environment change of Korea and Japan fishery agreement and an import liberalization of marine products, import of live fish and fresh fish is increasing rapidly. This study investigates import view of Japan live fish and fresh fish. Live fish which is imported from Japan has red seabream and seabass, but it is in declining tendency because of the increase in import of cheaper croaker from the China. If see importer's trend, entry to import business of fresh fish is eased a little. If a circulation trend is seen, However, it is thought that a future import trend is influenced by economic trends of Japan and the grade of place-of-production development of a domestic trader. Circulation market outside is common and the district wholesale store has played the important role. The import view of Japanese live fish and a fresh fish will increase against the background of maintenance of domestic circulation organization, and upgrading of marine product consumption However, it is thought that a future import trend is influenced by economic trends of Japan and the grade of place-of-production development of a domestic trader.

• The Journal of Fisheries Business Administration
• /
• v.49 no.2
• /
• pp.37-48
• /
• 2018

This study analyzed the impact of FTA tariff elimination on the export prices for Norwegian fresh and chilled salmon, of which Korean import has significantly increased since the Korea-EFTA FTA implementation. Korea's fresh and chilled salmon market is almost monopolized by Norway, and Korea's price level is higher than other countries, so it is highly likely that price discrimination occurs. This study theoretically explained that exporters could adjust their prices by market power when tariffs are eliminated in imperfectly competitive markets. And the empirical analysis provided evidence that the exporters have made price adjustments since the FTA took effect, and similar results were found in the relative price comparison with trade statistics and Nasdaq Salmon Index. Therefore, in order to increase consumer welfare in Korean salmon market, it is required to transform the monopolistic market structure into a competitive one.

• 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.27 no.2
• /
• pp.65-82
• /
• 1996

This study aims to investigate the development of the stow-net fishery operated in East China Sea and Yellow Sea and its role in the off-shore demersal fishery In Korea after 1980's. This paper also reorganization problems of this fishery under 200 mile exclusive economic zen system. Stow-net fishery which has an important role in offshore demersal fishery in terms of the fish production and supplies had attained an rapid growth since 1960's throughout advancement of the fishing technique, government support and enlargement of fish market. However, the production had come to a stagnant stage since 1980, and even reduced in 1990's by reason of competition from Chinese vessels which have been developing reapidly as well as other more productive demersal fishery such as trawl of Korea. Nevertheless, high fish price has maintained the business of this fishery. This fishery faces some difficulties such as limited resources, the plunge of fish price due to fish import freedom, and 200 mile EEZ settlement in those Seas among the related countries ratifying the United Nations Convention of the Law of the Sea in 1996. This paper discusses the reorganization problems of the stow-net fishery under the new situation. : (1)to lighten a damage to the fishery to keep the fishing ground and to restrict the entry of competitive fisheries, (2)to reduce the fishing effort by the governmental support, (3)to introduce new fishing methods, (4)to employ foreigner as a cheep labour, (5)to rise fish price throughout more freshness of fishes.