• KDI Journal of Economic Policy
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• v.26 no.2
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• pp.249-280
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• 2004

This paper analyzes the industrial growth of Korea in the 1990s and its relationship with the nation's export performance. The result shows that total factor productivity (TFP) played a significant role in the growth of some industries, where in particular a sharp increase in TFP was observed in the electrics and electronics industry and the automobile industry in the late 1990s. While CEPII RCA indexes for the Korean industries such as IT industry and automobile industry significantly increased since 1998, only limited evidence was found that TFP or TFI influenced RCA. Investigating Korea's export performance in the Northeast Asian context, this paper shows that, in the 1990s, the growth of Korea's exports to Japan was led by industries that recorded relatively fast growth in total factor input (TFI). In contrast, that to China was almost equally contributed by industries that experienced relatively fast growth in TFP or TFI. This paper also investigates competition between Korea and China, and Korea and Japan in the world market. The competition between Korea and China was relatively stronger for the Korean industries to whose growth TFI made a more significant contribution. While no decisive evidence is found for the relationship between TFP growth in Korean industries and their competition against Japan in the world market, it is revealed that the competition between Korea and Japan became less intense for the Korean industries to whose growth TFI made a stronger contribution. In this regard, the paper supports the view of 'nut-cracking' that the Korean economy has lost its competitiveness in the sectors where it maintained comparative advantage, but failed to catch up more advanced countries such as Japan by gaining competitiveness in more capital or technology intensive sectors.

• Journal of Distribution Science
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• v.4 no.1
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• pp.53-78
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• 2006

We call this world network society. Logistics is one of important network systems which connect people, materials and information. The World Economy Conditions of 21st Century has been Changed so rapidly. These Changes are more conspicuous in Northeast Asia than other Regions. China, North Korea and Russia have reformed their Economical and Social Systems, which enlarged the Trade Volume and Traffic Demand in this Area and between Europe. The Railway System Crossing the Eurasia Continent, such as TSR(Trans Siberian Railway), TCR(Trans China Railway), TMR(Trans Manchuria Railway), TMGR(Trans Mongolia Railway) and TKR(Trans Korea Railway), have been becoming very important to enhance the International Transportation efficiency and to connect each continents by International Railways. This Paper investigated and surveyed the logistical Environments surrounding this Korea Peninsula. And concerned with the Crossing Continents Railway, TSR,TCR(TMR, TMGR), TKR, operating Conditions and Tasks that must be considered and solved were also investigated. Especially the Current Logistical Conditions of China, Russia, and North Korea and their Problems were surveyed. And the SWOT of these Railways were analyzed and compared. The Visions and Goals of these Inter-Continental Railways were suggested in terms of their Rationalization of Operations and efficient Connections among many Countries. Not only the Policies and Strategies/Tactics which should be considered but also and Many detail countermeasures which should be introduced and adopted were suggested.

• International Area Studies Review
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• v.13 no.3
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• pp.413-438
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• 2009

Tourism is an attractive field of industry to many countries due to its strong potentials in increasing employment rates as well as improving the national image. The positive effect of the tourism on the national economy and globalization has been recognized in Korea. A multilateral effort has been made in order to develop its tourist industry. Therefore, it is necessary to analyze the patterns of tourism demand in Korea. The present study analyzes and demonstrates the effects of a nation's characteristics on tourism demand. The study model was based on factors that affected tourism demand, especially emphasizing on the economic size, distance, national income, and language differences from the mother country. In particular, this study highlights the effects of economic relations between the countries and their exchange rate on tourism demand. In summary, this thesis demonstrates that actual national and international panel data enhance the credibility of the research and precisely determine factors that have a direct influence on tourism demand. A corresponding strategy of development and products are required as most tourists show the preference in advanced nations.

• Journal of Navigation and Port Research
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• v.39 no.4
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• pp.371-376
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• 2015

Port is responsible for the important role that creates a lot of value-added export and import-intensive countries, critical infrastructure, and in the national economy. Despite being an important facility for the past, awareness of the port is insufficient; In 2000s, increasing the world container traffic volumes, China's economic development, and trade volume in the Northeast Asia to generate a lot of are changing the perception of the role and importance of the port. According to the review of the master plan and the port recognition in Korean Port, this study examines determining factors which affects the port cargo volume. The target of the study is domestic small and medium-sized container port that receives a large hinterland cargo volume, excluding the impact of the Global Hub Port like Busan and Gwangyang port. Factors that affect the multiple regression analysis result of the port cargo volume are berthing capacity, degree of activation, connection number of countries, GRDP and number of manufacturers.

• Analyses & Alternatives
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• v.1 no.1
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• pp.44-64
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• 2017

Russia's push in the Asia-Pacific region stems from its interests that have the national, regional and global dimensions. In their turn, the aims of this policy are civilizational, geopolitical, economic and prospective, with a long-term outlook. In the course of their achievement, cooperation with Northeast Asia's countries will play one of the key roles owing to the factors of geographic proximity, Northeast Asia's economic potential, risk hedging and a growing influence Northeast Asia exerts upon the global development. A new cooperation paradigm between Russia and the states of Northeast Asia should be based upon establishing and cementing self-reproducing ties. This is the central aim of Russian initiatives in relations, with Japan, the Republic of Korea, Democratic People's Republic of Korea, Mongolia and China. However, numerous obstacles ranging from Russia's absence in the regional free trade agreements and supply-production chains of value-added production to the permanent international instability generated by Pyongyang's missile-nuclear developments hamper the practical implementation of this task. Realizing the necessity to give an additional impetus to this new cooperative paradigm, Russia has to develop directions with an apparent consolidating effect. The most promising may be the establishment of a permanent security forum based upon Northeast Asia Peace and Security Mechanism chaired by the Russian Federation. The urgency of this measure and its expected support stem from the necessity to strengthen security in Northeast Asia, a task neither the US-led hub-and-spoke system nor ASE-AN-led multilateral dialogue venues have been able to resolve. The issues addressed at the security forum must include the unification of approaches to North Korean nuclear issue and producing a document specifying actions of the claimants on the disputed maritime territories in the "direct contact" situations. At the expert level, Russia has elaborated on the idea to establish such a forum outlining the spectrum of the key directions of cooperation. With the urgency in the establishment of this dialogue venue, its agenda has to be coordinated with the agendas of the existing security systems presented by the US alliances and the ASE-AN-led multilateral negotiations. The practical implementation of this initiative will strengthen security in Northeast Asia as its challenges will be resolved in the pre-emptive way based on coordinated approaches. Therefore, Russia as the Eurasian state will be one of the role players in the advent of the Asian century.

• Analyses & Alternatives
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• v.2 no.1
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• pp.5-29
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• 2018

Models of South-North Korean economic integration have the problem of circular reasoning. While many studies argue that South-North Korean economic integration would contribute to alleviate security risks in the Korean peninsular, they emphasize the success of any economic model of inter-Korean economic integration is subject to favorable geo-political and security environment. It is a failure in distinguishing between goals and constraints. After identifying three major goals of South-North Korean economic cooperation, this study shows the trilemma among the goals; they are 1) formation of a complete economic community, 2) maintaining independent sovereignty of the two Koreas, 3) promotion of mutual economic interests. The trilemma suggests that it is theoretically impossible to achieve the above three goals at the same time. Only two goals are achievable simultaneously. This study argues that the most practical option is to pursue the combination of goals 2) and 3) considering the complex political and security environment around the Korean peninsular. Recognizing that North Korea is the least developed country in the Northeast Asia region, South Korea's initiatives for inter-Korean economic cooperation should focus on assisting industrialization and integration of the North Korea economy into the Northeast Asian regional production sharing structure. In view of the 'flying geese model' of the sequential industrialization in the region, the least developed economic status of North Korea can partially be explained by its failure to participate in the production network in the region as well as lack of effective implementation of appropriate industrial policy. Therefore, promotion of industrialization of North Korea should be the immediate goal of economic cooperation between North and South Korea. It is an interesting fact that North Korea has rapidly expanded its apparel exports in recent years. It could mean that the North Korean economy is actively responding to the dynamics of international comparative advantage structure, although the production activities are limited to exports to China since the closure of the Gaesung Industrial Complex. The recent increase in apparel export is a starting point for incorporating the Easy Import Substitution fulfilling both domestic and neighboring regional demand of North Korea. It could help integrate North Korea's industry into the production network of Northeast Asia. An immediate policy implication is that the economic cooperation between the two Koreas should focus on facilitating this process and supporting North Korea's industrial policy through South Korea's contribution of capital, technology, and service intermediary inputs.

• Journal of Digital Convergence
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• v.17 no.10
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• pp.169-176
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• 2019

Recently, the Korean economy is congested with Japan's economic retaliation, the US-China trade war, the Bank of Korea's 0.25% base rate cut and Korea's economic growth forecast revision. The purpose of this study is to analyze the KOSPI, CPI, Treasury bonds(3 years) Interest rate & sales performance of all industries, and examine the impact of each index on the KOSPI. The analysis period is from January 2003 to June 2019, and the effect of each index on the KOSPI is analyzed. In numerical analysis, we performed correlation coefficients and regression analysis. In the model analysis, the distribution, quadrant, scatter, box-plot and impulse response were examined. This study examined the volatility and dynamic characteristics of each index. As a result, the KOSPI showed a high correlation with sales and Treasury bonds, but showed a very low correlation with the CPI. The KOSPI will continue to be affected by sales and interest rates.

• Asia-Pacific Journal of Business
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• v.14 no.1
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• pp.365-379
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• 2023

Purpose - Our previous study (Chang & Lee, 2023) presented observations on the recent changes in the year-on-year (YoY) Consumer Price Index (CPI) of the Republic of Korea (ROK) after the COVID-19 pandemic. The purpose of this article is to present an integrated analysis and interpretation of the recent changes in CPI and the Aggregate Import Price Index (IPI) by incorporating recent data, specifically data from September 2022 to December 2022. Design/methodology/approach - This study collected CPI (YoY) data in the ROK from January 2019 to December 2022 using e-National Indicator System provided by the ROK. Statistical analysis was employed to analyze the data. Findings - First, we confirm the extended results of the existing study by Chang and Lee (2023). Second, we demonstrate that the Aggregate IPI in ROK increased significantly in 2022 compared to 2021. We then provide an integrated interpretation on the significant increase in CPI and aggregate IPI in ROK, which complements Chang and Lee (2023) that limits their discussion to YoY CPI. Moreover, we show that the IPI of the semiconductor in ROK decreased significantly in 2022 compared to 2021. Research implications or Originality - Our results provide important insights into the recent changes in the CPI in the ROK. The results suggest that these changes can be partially attributed to various factors, such as the global supply chain disruptions resulting from the spread of the COVID-19 pandemic and the prolonged war between Russia and Ukraine, the side effect of quantitative easing by the US Federal Reserve, heat waves and droughts caused by climate change in ROK, a surge in demand following a gradual daily recovery, US-China trade conflict, etc. Our study shows statistically comprehensive results compared to the studies that limit their discussion to YoY average growth rate.

• Strategy21
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• s.39
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• pp.140-162
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• 2016

The construction of Jeju Naval Base was finally completed and donated to the Republic of Korea Navy on February 26th this year. There is no doubt that the new base will contribute to the substantial augmentation of Korea's naval power and maritime security. However, we should note that the new naval base took a long and hard twenty-three years to be completed. In the 21st century, Korea should adopt a new strategy that can fulfill the security requirements of Korea for the new age of international relations. The 21st century is characterized by globalization, and in the world of globalization, a national boarder has become meaningless. In the late 20th century, after the Cold War, trade between countries have greatly increased and so did the importance of the seas. Having transformed from an agricultural country into a commercial country, Korea went from a continental state to a maritime state. Korea has become the 9th largest trading state, and obviously, the importance of the sea has become significant. Korea's national strategic focus needs to be on the sea for national survival. Thus, since the 1990s, the Korean Navy has planned to build the Jeju Naval Base. Jeju, due to its geopolitical characteristics, is extremely important to the 21st century Korea's economy and national security. Jeju is the starting point of the sea route that reaches out to the world, and at the same time, the ending point of the sea route that heads towards Korea. Jeju is located in the center of Northeast Asia and thus, Jeju Naval Base is extremely important for the area's security and order. Jeju Naval Base will be very useful not only for the maritime security of Korea, but also for keeping peace and order in Northeast Asia. Jeju Naval Base was the minimal effort against the six sea route security threats towards Korea. The six sea route threats are: 1) Threat from North Korea; 2) China's Threat towards Korea's sovereignty; 3) China's treat towards Korea's fishery; 4) Threat from Japan; 5) Threat towards Korea's sea routes; 6) Threat from recent phenomena of isolationism of the United States. Jeju Naval Base is built for both warships and civilian ships--such as cruise ships--to use. Just like the United States' Pearl Harbor, Jeju Naval Base will become not only the largest military base, but a beautiful tourist site.

• International Area Studies Review
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• v.15 no.2
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• pp.175-196
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• 2011

The developing countries have a lot of dormant resources, attempting the take-off of economic growth. The theory of 'vent for surplus' and Lewis model provide a good cornerstones to analyze the effect of export, FDI and domestic production on employment. This paper attempts to do empirical test to figure out what factor is significant as the determinant of Chinese employment. For this test, the estimation equations are derived from the Cobb-Douglas production function. The results are that the domestic production affects the most positive employment, compared to FDI and export. Unlikely general expectation, export doesn't have an substantial effect on employment in China. It is also found that the absorption of technology through export is lower than that of FDI in terms of the effect of technology on employment. So it is suggested that the employment policy should be shifted toward the increase of domestic production by using FDI rather than by promoting export industry. to reduce the internal imbalance.