• Journal of Distribution Science
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• v.13 no.1
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• pp.27-33
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• 2015

Purpose - The ICT market in the EU is lagging behind that of the US; however, algorithm and software development within the EU have grown steadily, and they involve focusing on the creative cultural convergence conceptualized as part of Horizon 2020 and connecting neighboring markets in the EE and the Mediterranean region. It is essential to study the requirements to market the EU's creative ICT development in emerging industrial countries after examining its applicability in these countries. Research design, data, and methodology - This study deals with data pertaining to the EU's creative industry and competitive edge. The global cultural expansion of the EU facilitates a new concept involving not only low-cost IT products to enhance local cultural artifacts through R&D and the construction of efficient infrastructure services, but also information exchange with a realistic commercialization of the technology that can be applied for creative cultural localization. In the European industry, research on algorithms has been applied for the benefit of consumers. We investigated how the process is conducted in the EU. Results - Europe needs to adjust its economic structure to the local culture as part of IT distribution convergence. The convergence has been converted into a production algorithm with IT in the form of low-cost production. This is because there is an attempt to improve the quality of transport infrastructure, workforce availability, and the distribution of the distance to the local industries and consumers, using IT algorithms. Integrated into the manufacturing industry, based on the ICT infrastructure and solutions, smart localized regional clusters are formed with the help of grafting. Europe has own strategy to increase the number of hub-and-spoke cities. Europe is now becoming integrated, with an EPC system for regional cooperation rather than national competition in ICT technology. Europe has also been recognized in this study as changing the step-by-step paradigm for global competitiveness through new creative culture industries. Conclusions - As a result, there are several ways of converging with others through EU R&D intensity; therefore, the EU can be seen as successfully increasing marginal value, which is useful in developing a special industrial cluster or local cultural cities that create converged development by connecting people and objects with IT. In fact, when compared to the US, Europe has a strong culture and the car industries have a tendency to overshadow the IT industries with integration of services in IT distribution. Considering the rapid environmental changes, the convergence of IT services is likely to take place in Europe, similar to the pharmaceutical industry and the automotive industry. This requires a focus on human resources and automated systems management. The trend is to move away from low-wage industries, switched to key personnel centers of the local university-industry. EU emphasizes the creation of IT market demand in Europe involving local cultural convergence for marketing as the second step to strengthen the economic hub-and-spoke areas.

• Journal of Global Scholars of Marketing Science
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• v.19 no.4
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• pp.24-31
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• 2009

Firms produce various products that differ by function, design, color, etc. Product proliferation occurs for three different reasons. When there exist economies of scope, the unit cost for a product is lower when it is produced in conjunction with another product than when it is produced separately. Second, consumers are heterogeneous in the sense that they have different tastes, preferences, or price elasticities. A firm can earn more profit by segmenting consumers into different groups with similar characteristics. For example, product proliferation helps a firm increase profits by satisfying various consumer needs more precisely. The third reason for product proliferation is based on strategy. Producing a number of products can not only deter entry by providing few niches, but can also cause a firm to react efficiently to a low-price entry. By producing various products, a firm can reduce niches so that potential entrants have less incentive to enter. Moreover, a firm can produce new products in response to entry, which is called fighting brands. That is, when an entrant tries to attract consumers with a low price, an incumbent introduces a new lower-quality product while maintaining the price of the existing product. The drawback of product proliferation, however, is cannibalization. Some consumers who would have bought a high-price product switch to a low-price product. Moreover, it is possible that proliferation can decrease profits when a new product is less differentiated from a rival’s than is the existing product because of more severe competition. Many studies have analyzed the effect of product line rivalry in the areas of economics and marketing. They show how a monopolist can solve the problem of cannibalization by adjusting quality in a market where consumers differ in their preferences for quality. They find that a consumer who prefers high-quality products will obtain his or her most preferred quality, but a consumer who has not such preference will obtain less than his or her preferred quality to reduce cannibalization. This study analyzed the effects of product line rivalry in a duopoly market with two types of consumers differentiated by quality preference. I assume that the two firms are asymmetric in the sense that an incumbent can produce both high- and low-quality products, while an entrant can produce only a low-quality product. The effects of product proliferation can be explained by comparing the market outcomes when an incumbent produces both products to those when it produces only one product. Compared to the case in which an incumbent produces only a high-quality product, the price of a low-quality product tends to decrease in a consumer segment that prefers low-quality products because of more severe competition. Prices, however, tend to increase in a segment with high preferences because of less severe competition. It is known that when firms compete over prices, it is optimal for a firm to increase its price when its rival increases its price, which is called a strategic complement. Since prices are strategic complements, we have two opposing effects. It turns out that the price of a high-quality product increases because the positive effect of reduced competition outweighs the negative effect of strategic complements. This implies that an incumbent needs to increase the price of a high-quality product when it is also introducing a low-quality product. However, the change in price of the entrant’s low-quality product is ambiguous. Second, compared to the case in which an incumbent produces only a low-quality product, prices tend to increase in a consumer segment with low preferences but decrease in a segment with high preferences. The prices of low-quality products decrease because the negative effect outweighs the positive effect. Moreover, when an incumbent produces both kinds of product, the price of an incumbent‘s low-quality product is higher, even though the quality of both firms’ low-quality products is the same. The reason for this is that the incumbent has less incentive to reduce the price of a low-quality product because of the negative impact on the price of its high-quality product. In fact, the effects of product line rivalry on profits depend not only on changes in price, but also on sales and cannibalization. If the difference in marginal cost is moderate compared to the difference in product quality, the positive effect of product proliferation outweighs the negative effect, thereby increasing the profit. Furthermore, if the cost difference is very large (small), an incumbent is better off producing only a low (high) quality product. Moreover, this study also analyzed the effect of product line rivalry when a firm can determine product characteristics by focusing on the issue of fighting brands. Recently, Korean air and Asiana airlines have established budget airlines called Jin air and Air Busan, respectively, to confront the launching of budget airlines such as Hansung airline and Jeju air, among others. In addition, as more online bookstores have entered the market, a leading off-line bookstore Kyobo began its own online bookstore. Through fighting brands, an incumbent with a high-quality product can increase profits by producing an additional low-quality product when its low-quality product is more differentiated from that of the entrant than is its high-quality product.

• Journal of the Korea Society for Simulation
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• v.23 no.4
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• pp.51-64
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• 2014

Small and medium Enterprises (SMEs), which have a manufacturing method of small quantity batch production produce goods using a general-purpose equipment and attached auxiliary tools. Many previous studies have focused on finding the effective resource allocations for improving the firms' productivity. It is very important for SMEs to keep costs low in assigning jobs to each resource, because they should meet the future uncertain demand of consumers under the limited budget. Using the concept of salvage cost, this paper proposes how to effectively allocate the tasks to main resources in the production process. The salvage cost is defined that purchasing cost minus decrease in value by workload, the method considering this is expected to reduce total purchasing costs during business period. To validate the effect of the proposed method, we proceed the real case study targeting on S company, PCB manufacturer to compare purchase amounts and its costs between the allocation proposed based salvage cost and current allocation method of current S company. As a results, In short-term (3 year) business period, salvage allocation have remarkable superior outcome to existing method, but gradually have cancelled out the effects in long-term (8 year) plans. Unlike the cycle allocation method, there exists the idle-equipments in allocation based salvage value. we additionally analyze the profits with respect to rental strategy of them during business period.

• Journal of Distribution Research
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• v.17 no.1
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• pp.87-115
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• 2012

Introduction: In these days, a loyalty program is one of the most common marketing mechanisms (Lacey & Sneath, 2006; Nues & Dreze, 2006; Uncles et al., 20003). In recent years, Coalition Loyalty Program is more noticeable as one of progressed forms. In the past, loyalty program was operating independently by single product brand or single retail channel brand. Now, companies using Coalition Loyalty Program share their programs as one single service and companies to participate to this program continue to have benefits from their existing program as well as positive spillover effect from the other participating network companies. Instead of consumers to earn or spend points from single retail channel or brand, consumers will have more opportunities to utilize their points and be able to purchase other participating companies products. Issues that are related to form of loyalty programs are essentially connected with consumers' perceived view on convenience of using its program. This can be a problem for distribution companies' strategic marketing plan. Although Coalition Loyalty Program is popular corporate marketing strategy to most companies, only few researches have been published. However, compared to independent loyalty program, coalition loyalty program operated by third parties of partnership has following conditions: Companies cannot autonomously modify structures of program for individual companies' benefits, and there is no guarantee to operate and to participate its program continuously by signing a contract. Thus, it is important to conduct the study on how coalition loyalty program affects companies' success and its process as much as conducting the study on effects of independent program. This study will complement the lack of coalition loyalty program study. The purpose of this study is to find out how consumer loyalty affects affiliated brands, its cause and mechanism. The past study about loyalty program only provided the variation of performance analysis, but this study will specifically focus on causes of results. In order to do these, this study is designed and to verify three primary objects as following; First, based on opinions of Switching Barriers (Fornell, 1992; Ping, 1993; Jones, et at., 2000) about causes of loyalty of coalition brand, 'brand attractiveness' and 'brand switching cost' are antecedents and causes of change in 'brand loyalty' will be investigated. Second, influence of consumers' perception and attitude prior to joining coalition loyalty program, influence of program in retail brands, brand attractiveness and spillover effect of switching cost after joining coalition program will be verified. Finally, the study will apply 'prior brand preference' as a variable and will provide a relationship between effects of coalition loyalty program and prior preference level. Hypothesis Hypothesis 1. After joining coalition loyalty program, more preferred brand (compared to less preferred brand) will increase influence on brand attractiveness to brand loyalty. Hypothesis 2. After joining coalition loyalty program, less preferred brand (compared to more preferred brand) will increase influence on brand switching cost to brand loyalty. Hypothesis 3. (1)Brand attractiveness and (2)brand switching cost of more preferred brand (before joining the coalition loyalty program) will influence more positive effects from (1)program attractiveness and (2)program switching cost of coalition loyalty program (after joining) than less preferred brand. Hypothesis 4. After joining coalition loyalty program, (1)brand attractiveness and (2)brand switching cost of more preferred brand will receive more positive impacts from (1)program attractiveness and (2)program switching cost of coalition loyalty program than less preferred brand. Hypothesis 5. After joining coalition loyalty program, (1)brand attractiveness and (2)brand switching cost of more preferred brand will receive less impacts from (1)brand attractiveness and (2)brand switching cost of different brands (having different preference level), which joined simultaneously, than less preferred brand. Method : In order to validate hypotheses, this study will apply experimental method throughout virtual scenario of coalition loyalty program if consumers have used or available for the actual brands. The experiment is conducted twice to participants. In a first experiment, the study will provide six coalition brands which are already selected based on prior research. The survey asked each brand attractiveness, switching cost, and loyalty after they choose high preference brand and low preference brand. One hour break was provided prior to the second experiment. In a second experiment, virtual coalition loyalty program "SaveBag" was introduced to participants. Participants were informed that "SaveBag" will be new alliance with six coalition brands from the first experiment. Brand attractiveness and switching cost about coalition program were measured and brand attractiveness and switching cost of high preference brand and low preference brand were measured as same method of first experiment. Limitation and future research This study shows limitations of effects of coalition loyalty program by using virtual scenario instead of actual research. Thus, future study should compare and analyze CLP panel data to provide more in-depth information. In addition, this study only proved the effectiveness of coalition loyalty program. However, there are two types of loyalty program, which are Single and Coalition, and success of coalition loyalty program will be dependent on market brand power and prior customer attitude. Therefore, it will be interesting to compare effects of two programs in the future.

• Journal of Venture Innovation
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• v.4 no.3
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• pp.109-124
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• 2021

This study intends to find out the influence of a consumer's shopping style on impulse buying mediated by sales promotion, based on low-cost cosmetic goods. For the study, pleasure, economical, and convenience shopping styles were set as the independent variables, and impulse buying was set as the dependent variable, and as the mediating variable between the two, sales promotions such as price discount event, free giveaway event, and visit-inducing activity were reviewed. Accordingly, the influence relation of shopping style, sales promotion, and impulse buying were reviewed with hierarchical regression analysis to examine the mutual influence relation. The data for this study employed a structured questionnaire, and 230 copies were collected against men and women in their 20s-30s, who are the main consumers of low-cost cosmetic goods, and 197 faithful responses were analyzed, and the major findings from the analysis results are as follows. First, pleasure-style consumers were found to have influenced impulse buying, while economical-style consumers were found to have a negative influence, and convenience-style was found to have no significant relation. Second, as for the examination of the mediating effect of sales promotion, price discount event, free giveaway event, and visit-inducing activity were found to have a partial mediating effect on the influence of pleasure shopping style on impulse buying, and did not fulfill the economical shopping style mediating effect condition. Also, as convenience shopping style was found to be insignificant towards impulse buying, it was excluded from the mediating effect. Such result is thought to be a useful elementary material for establishing a sales promotion strategy according to shopping styles through the analysis of styles of major consumers in order to increase the sales of businesses. The theoretical and pragmatic implications of such study results were discussed and the future study directions were suggested.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.30 no.5A
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• pp.407-416
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• 2005

This paper suggests a new geocasting protocol which is used to transfer the geographic packets to the specific region in MANET. Geocasting protocol is basically different from the conventional multicasting protocol that needs group addition and maintenance. A geocasting protocol using the mobile node's position information is the new area of multicasting protocols. The existing geocasting protocols have the following problems; it may be impossible to transfer data to some mobile hosts even if there are alternate routes and they have low adaptability and efficiency when the number of mobile hosts increases. The proposed CBG (Cluster-Based Geocasting) uses the proactive routing strategy and clustering technique with mobile host's location information. The CBG achieves high successful data transmission ratio and low data delivery cost to mobile hosts at specific region.

• Korean Journal of Materials Research
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• v.33 no.10
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• pp.377-384
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• 2023

Exploring earth-abundant, highly effective and stable electrocatalysts for electrochemical water splitting is urgent and essential to the development of hydrogen (H₂) energy technology. Iron-cobalt layered double hydroxide (FeCo-LDH) has been widely used as an electrocatalystfor OER due to its facile synthesis, tunable components, and low cost. However, LDH synthesized by the traditional hydrothermal method tends to easily agglomerate, resulting in an unstable structure that can change or dissolve in an alkaline solution. Therefore, studying the real active phase is highly significant in the design of electrochemical electrode materials. Here, metal-organic frameworks (MOFs) are used as template precursors to derive FeCo-LDH from different iron sources. Iron salts with different anions have a significant impact on the morphology and charge transfer properties of the resulting materials. FeCo-LDH synthesized from iron sulfate solution (FeCo-LDH-SO₄) exhibits a hybrid structure of nanosheets and nanowires, quite different from other electrocatalysts that were synthesized from iron chloride and iron nitrate solutions. The final FeCo-LDH-SO₄ had an overpotential of 247 mV with a low Tafel-slope of 60.6 mV dec^-1 at a current density of 10 mA cm^-2 and delivered a long-term stability of 40 h for the OER. This work provides an innovative and feasible strategy to construct efficient electrocatalysts.

• Journal of Distribution Science
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• v.8 no.3
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• pp.17-26
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• 2010

Recently concerns have been raised due to the unbalanced supply of crops: the price of crops has been unstable and at one point the price went up so high that the word Agflation(agriculture+ inflation) was coined. Korea, in particular, is a small-sized country and needs to secure the stable supply of crops by investing in the produce importation at a national level. Investment in foreign produce importation is becoming more important as a measure for sufficient supply of crops, limited supply of domestic crops, weakened farming conditions worldwide, as well as recent changes in the use of crops due to the development of bio-fuels, influence of carbon emission on crops, the price increase in crops, and influx of foreign hot money. However, there are many problems with investing in foreign produce importation: lack of support from the government; lack of farming information and technology; difficulty in securing the capital; no immediate pay-off from the investment and insufficient management. Although foreign produce is originally more price-competitive than domestic produce, it loses its competiveness in the process of importation (due to high tariffs) and poor distribution system, which makes it difficult to sell in Korea. Therefore, investment in foreign produce importation is being questioned for feasibility; to make it possible, foreign produce must maintain the price-competitiveness. Especially, harvest of agricultural products depends on natural and geographical conditions of each country and those products have indigenous properties, so distribution system according to import and export of agricultural products should be treated more carefully than that of other industries. Distribution costs are differentiated into each item and include cost of sorting and wrapping, cost of wrapping materials, cost of domestic transport, cost of international transport and cost of clearing customs for import and export. So transporting and storing agricultural products generates considerable costs compared with other products. Also, due to upgrade of dietary life, needs for stability, taste and visible quality toward food including agricultural products are being raised and wrong way of storage causes decomposition of food and loss of freshness, making the storage more difficult than that in room temperature, so storage and transport in distribution of agricultural products needs specialty. In addition, because lack of specialty in distribution and circulation such as storage and wrapping does not solve limit factors in distance, the distribution and circulation has been limited to a form of import and export within short-distant region. Therefore, need for distribution out-sourcing which can satisfy specialty in managing distribution and circulation and it is needed to establish more effective distribution system. However, existing distribution system of agricultural products is exposed to various problems including problems in distribution channel, making distribution and strategy for distribution and those problems are as follows. First, in case of investment in overseas agricultural industry, stable supply of the products is difficult because areas of production are dispersed widely and influenced by outer factors due to including overseas distribution channels. Also, at the aspect of quality, standardization of products is difficult, distribution system is quite complicated and unreasonable due to long distribution channels according to international trade and financial and institutional support is not enough. Especially, there are quite a lot of ineffective factors including multi level distribution process, dramatic gap between production cost and customer's cost, lack of physical distribution facilities and difficulties in storage and transport due to lack of wrapping containers. Besides, because import and export of agricultural products has been manages under the company's own distribution according to transaction contract between manufacturers and exporting company, efficiency is low due to excessive investment in fixed costs and lack of specialty in dealing with agricultural products causes fall of value of products, showing the limit to lose price-competitiveness. Especially, because lack of specialty in distribution and circulation such as storage and wrapping does not solve limit factors in distance, the distribution and circulation has been limited to a form of import and export within short-distant region. Therefore, need for distribution out-sourcing which can satisfy specialty in managing distribution and circulation and it is needed to establish more effective distribution system. Second, among tangible and intangible services which promote the efficiency of the whole distribution, a function building distribution environment which includes distribution information, system for standard and inspection, distribution finance, system for diversification of risks, education and training, distribution administration and tax system is wanted. In general, such a function building distribution environment is difficult to be changed and supplement innovatively because its effect compared with investment does not appear immediately despite of its necessity. Especially, in case of distribution of agricultural products, as a function of collecting and distributing is performed individually through various channels, the importance of distribution information and standardization is getting more focus due to the problem of repetition of work and lack of specialty. Also, efficient management of distribution is quite difficult due to lack of professionals in distribution, so support to professional education is needed. Third, though effort to keep self-sufficiency ratio of staple food, rice is regarded as important at the government level, level of dependency on overseas of others crops is high. Therefore, plan for stable securing food resources aside from staple food is also necessary. Especially, governmental organizations of agricultural products distribution in Korea are production-centered and have unreasonable structure whose function at the aspect of distribution and consumption is quite insufficient. And development of new distribution channels which can deal with changes in distribution environment and they do not achieve actual results of strategy for distribution due to non-positive strategy for price distribution. That is, it implies the possibility that base for supply will become vulnerable because it does not mediate appropriate interests on total distribution channels such as manufacturers, wholesale dealers and vendors by emphasizing consumer protection excessively in the distribution of agricultural products. Therefore, this study examined fundamental concept and actual situation for our investment to overseas agriculture, drew necessities, considerations, problems, etc. of overseas agricultural investment and suggested improvements at the level of distribution for price competitiveness of agricultural products cultivated in overseas under five aspects; government's indirect support, distribution's modernization and distribution information function's strengthening, government's political support for distribution facility, transportation route, load and unloading works' improvement, price competitiveness' securing, professional manpower's cultivation by education and training, etc. Here are some suggestions for foreign produce importation. First, the government should conduct a survey on the current distribution channels and analyze the situation to establish a measure for long-term development plans. By providing each agricultural area with a guideline for planning appropriate production of crops, the government can help farmers be ready for importation, and prevent them from producing same crops all at the same time. Government can sign an MOU with the foreign government and promote the importation so that the development of agricultural resources can be stable and steady. Second, the government can establish a strategy for an effective distribution system by providing farmers and agriculture-related workers with the distribution information such as price, production, demand, market structure and location, feature of each crop, and etc. In order for such distribution system to become feasible, the government needs to reconstruct the current distribution system, designate a public organization for providing distribution information and set the criteria for level of produce quality, trade units, and package units. Third, the government should provide financial support and a policy to seek an efficient distribution channel for foreign produce to be delivered fresh: the government should expand distribution facilities (for selecting, packaging, storing, and processing) and transportation vehicles while modernizing old facilities. There should be another policy to improve the efficiency of unloading, and to lower the cost of distribution. Fourth, it is necessary to enact a new law covering exceptional cases for importing produce in order to maintain the price competitiveness; currently the high tariffs is keeping the imported produce from being distributed domestically. However, the new adjustment should be made carefully within the WTO regulations since it can create a problem from giving preferential tariffs. The government can also simplify the distribution channels in order to reduce the cost in the distribution process. Fifth, the government should educate distributors to raise the efficiency and to modernize the distribution system. It is necessary to develop human resources by educating people regarding the foreign agricultural environment, the produce quality, management skills, and by introducing some successful cases in advanced countries.

• Journal of Distribution Science
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• v.13 no.10
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• pp.109-114
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• 2015

Purpose - The movie market has the characteristics of being a perfectly competitive market as well as a pure monopolistic market at the same time. This is because there are competitors in the industry but prices, although not fixed, have not changed a lot. Price competition may not have spread, but the competition is focused on artistic value, and the degree of box office success is most important. The artistic value is determined in the course of the production process. However, the degree of box office success is dependent upon the marketing manager. The marketing strategy represents the difference in the standard or quality of the movie. Inherently, the marketing manager adopts the entertainment strategy based on the quality of the foundation of the completed movie. At this time, the marketing manager knows the pertinent information (high quality/low quality) regarding the movie. This research study tries to reveal what should be the reasonable movie marketing expense, dependent on the quality of the movie. Research design, data, and methodology - Using a game scenario with different market players, the goal of the research analysis is to find out the following. First, the marketing expense is determined to maximize the profits after film production. Second, after the production costs are already committed, the manufacturer gets to choose the marketing level. At this time, there will be a profit maximization point, considering the competition. The premise of the research is as follows: if it is a good movie of quality, positive word of mouth increasing the audience continuously slows down the speed of the demand curve. If the movie quality is bad, the negative word of mouth decreasing the audience gradually hastens the speed of the demand curve. On the marketing side, when the manufacturer invests heavily in the marketing expense of the movie, consumer expectations increase to drive up the audience numbers. On the other hand, it is difficult to improve the profits excessively. When the manufacturer invests in marketing a little bit, the marketing expense is only relatively committed, therefore a lot of demand cannot be gained. Results - If a fixed market share is in a competitive situation, a low quality manufacturer expends relatively more marketing expense. If the situation assumes two manufacturers spend the same for the cost of production, the high quality manufacturer takes more profit. If the manufacturer expends less marketing budget to save costs, the optimum profit cannot be achieved since the other party (opponent) grabs the initial market share. Conclusions - In conclusion, investment is essential for market share to increase. We must refrain from a zero-sum game and have models where the game participants pursue the creative profits together. In the current film industry, there is the dominating logic of winner and loser but we have to create a film industry environment where the participants can be altogether satisfied and live together.

• Strategy21
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• s.41
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• pp.261-293
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• 2017

Nuclear power is a way of attaining an enormous amount of energy with relatively small amount of resources and after it has been introduced to the submarine since 1954, there are approximately 150 of nuclear powered submarine currently on a mission around the world. This is due to the maneuverability, mountability and covertness of nuclear submarines. However, there are other tasks, not only the high level of nuclear technology that are needed to be dealt with in order to construct nuclear powered submarine. The biggest task of all is to secure the enriched uranium. Accordingly, this research is about the way of enriching and securing the nuclear fuel that are used in the nuclear submarine with the characteristics, merits and demerits of the nuclear submarine. Due to the fact that the pressurized water reactor in South Korea is the reactor that was originally built for the development of nuclear powered submarine, many parts is designed to be suitable for the submarine propulsion. However, in order to apply this to submarine it is needed to consider additional requests such as the position of reactor, accident-coping system, radioactive covering, reactor output adjustment and ship's pitch and roll in order to apply this to submarine. Nuclear submarines have much higher speed based on the powerful propulsion in comparison with diesel-electric submarine and also have bigger loading area. Besides, there is no need to snorkel and they also have advantages in covertness with the multi-noise proof system. The nuclear technology in South Korea has seen the dramatic development since 1962 and in 1998 reached to the level that we have succeeded in the localization of nuclear plant and exported the world-class one-piece small-sized reactor (SMART) to UAE. To operate these reactors, we import the whole quantity of low-enriched uranium and having our own uranium enrich facility is not probable because of the budget and international regulations. With the ROK/US nuclear agreement revised on 2015 November, the enrichment of uranium that are available without special permission has changed up to 20%. According to the assumption that we use the 20% enrichment of Uranium on U.S. virginia class submarine, it is necessary to change the fuel after 11 years and it will cause additional cost of 1 billion dollars. But the replace period by the uranium's enrichment rate is not fixed so that it is possible to change according to the design of reactor. Therefore, I would like to make a suggestion on two types of design concepts of nuclear submarine that can be operated for 30 years without nuclear fuel change by using the 20% enriched uranium from ONNp.First of all, it is possible by increasing the size of reactor by 3 times and it results in the 1,000t increase of the weight. And secondly, it is by designing the one piece reactor to insert devices such as steam turbine, condenser into the inside of nuclear core like the Rubis class submarines of France.