• Title/Summary/Keyword: South Korea's economic development

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How Large are Local Human Capital Spillovers?: Evidence from Korea

  • PARK, WOORAM
    • KDI Journal of Economic Policy
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    • v.38 no.4
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    • pp.77-94
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    • 2016
  • This paper examines the empirical magnitude of local human capital spillovers in Korea during the 1980s and mid-1990s. Local human capital spillovers exists if plants in regions with a higher level of human capital can produce more given their own amount of input (Moretti 2004c). In particular, this paper explores an educational reform in South Korea which exogenously induced a large amount of variation in regional human capital levels. Using annually collected plant level data, I explore the effect of changes in the regional human capital levels induced by this reform on plant productivity in Korea. My results suggest that this effect is limited. I find a positive correlation between a regional level of human capital and plant productivity. However, after further addressing endogeneity using an instrumental variable, the effect of the overall regional human capital level on productivity decreases and becomes statistically insignificant.

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A Study On the Introduction of Electronic Commerce Between South and North Korea (남북한 교역 확대를 위한 전자상거래 도입 방안에 관한 연구)

  • Lee, Choong-Bae;Jung, Jae-Woo
    • International Commerce and Information Review
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    • v.7 no.4
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    • pp.135-156
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    • 2005
  • Since July 7 mutual declaration in 1988 which is a landmark for South-North Korean relations, Inter-Korean Trade has been set out. During the period, the Inter-Korean Trade has been ups and downs depending on the Inter-Korean relations and economic situation of both countries. South Korea became one of the major three trading countries of North Korea's trading partners in 2000, when the sum of annual trade volume reached the record 425million US dollars. A rapidly increasing number of countries including North Korea are developing national policies and strategies to promote the digital economy, recognizing the potential benefits of e-business as an engine of growth and development. However, the trade structure of South-North Korea remains very simple in terms of its contents. Furthermore trade procedure many limitations especially electronic commerce in North Korea has many obstacles to working properly. The information in Inter-Korean trade cannot be shared in common. South Korean firms have suffered repeatedly trial and error and excessive competition took place among South Korean firms. Institutional inertia related to mutual trade, political and military Impacts on Inter-Korean economic relations, abnormal industrial structure of North Korea and insufficiency of SOC could be mentioned as major problems in Inter-Korean trade as well. Several measures should be taken in order to cope with those problems. First of all, South Korean government should provide valuable information to business firms about North Korean economy and business environments. It is suggested that forums related to inter-Korean trade hold in regular base between South and North Koreas and establish the system of business information sharing. Second, the government should improve various laws and regulations to respond to the realistic needs of inter-Korean trade. That is, detailed measures should be taken to guarantee investment in electronic commerce. Third, it is desirable to start with the mutual agreement between South and North Korea.

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The System of City Planning and Development in North Korea: Focused on Development of Kaesong Industrial Complex (KIC)

  • Yang, Sukwoo;Kwack, Dongwha
    • Architectural research
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    • v.16 no.3
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    • pp.109-120
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    • 2014
  • South and North Korea, the divided nations on the Korean peninsula, began with the same modern city planning system, but following the adoption of different national ideologies-capitalism and socialism-, they established their own city planning system and developed their cities accordingly. However, the process of planning and developing a joint city of Kaesong Industrial Complex (KIC) led to the recognition about the need to bridge the differences and prepare for future joint development. This study examines North Korea's city planning system by comparing the two Koreas' systems, and identify the characteristics of North Korea's city planning system through a case analysis of the KIC. By comparing two cases, we found two distinct characteristics of North Korea's. The one is a tool for realizing ideologies and maintaining national system. The other one is that it is ideology-oriented system for the supreme leader and party while South Korea has control-oriented system for the public. We analyze the KIC case based on four pillars: planning system, development system and procedure, master plan, and use behaviors. Result of analysis shows that in KIC there are many socialistic features as we mentioned above in terms of planning system, urban design & structure, and use behavior even though a private enterprise-Hyundai Asan, in South Korea led the whole process. This study is meaningful in that it identifies the specific characteristics of North Korea's city planning focusing on the KIC and is expected to serve as a baseline material to set the future direction for North Korea's development.

A Study on the Smart Region Strategy in Yellow Sea Rim (환황해권 스마트리전 구축방안 연구)

  • Lim, Dong Sung;Kim, June Bong;Leem, Yountaik
    • Journal of the Korean Regional Science Association
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    • v.35 no.3
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    • pp.7-23
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    • 2019
  • Smart cities are expanding their spatial scope to urban areas and regions. Linking regional economic development strategies beyond the borders with smart city planning can lead to cooperation and economic development between regions and countries as well. The purpose of this study is to suggest cooperation and regional development of the three nations - Korea, North Korea and China - through the Yellow Sea Rim Smart Region. To this end, smart city strategies and economic development plan with implementation status in the three countries including special economic zones have analyzed that could be the spatial basis of the smart region. On the west coast of Korea facing the Yellow Sea, lots of projects related to smart cities are actively underway in Saemangeum, Yellow Sea Free Economic Zone(YESFEZ), and Incheon Free Economic Zone(IFEZ). Although the political situation is still uncertain, North Korea is analyzed to have economic and technical potential in the west coast connecting Haeju, Nampo, and Sinuiju. In Liaoning and Shandong provinces of China, smart city projects have been actively promoted in recent years especially in the state-supporting industrial cities. Restoration of economic cooperation between South Korea and China, linkage of transportation networks, vitalization of cross-border cooperation projects between China and North Korea centered on Dandong and Sinuiju, and the connecting of smart city infrastructure and services for China and South Korea's economic cooperation process will make the Yellow Sea Rim as a world prosperous economic region. However, it is necessary to establish and operate a governance system through long-term planning for transnational consultation and establishment of a promotion organization.

The Policy of Win-Win Growth between Large and Small Enterprises : A South Korean Model (한국형 동반성장 정책의 방향과 과제)

  • Lee, Jang-Woo
    • Korean small business review
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    • v.33 no.4
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    • pp.77-93
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    • 2011
  • Since 2000, the employment rate of small and medium enterprises (SMEs) has dwindled while the creation of new jobs and the emergence of healthy SMEs have been stagnant. The fundamental reason for these symptoms is that the economic structure is disadvantageous to SMEs. In particular, the greater gap between SMEs and large enterprises has resulted in polarization, and the resulting imbalance has become the largest obstacle to improving SMEs' competitiveness. For example, the total productivity has continued to drop, and the average productivity of SMEs is now merely 30% of that of large enterprises, and the average wage of SMEs' employees is only 53% of that of large enterprises. Along with polarization, rapid industrialization has also caused anti-enterprise consensus, the collapse of the middle class, hostility towards establishments, and other aftereffects. The general consensus is that unless these problems are solved, South Korea will not become an advanced country. Especially, South Korea is now facing issues that need urgent measures, such as the decline of its economic growth, the worsening distribution of profits, and the increased external volatility. Recognizing such negative trends, the MB administration proposed a win-win growth policy and recently introduced a new national value called "ecosystemic development." As the terms in such policy agenda are similar, however, the conceptual differences among such terms must first be fully understood. Therefore, in this study, the concepts of win-win growth policy and ecosystemic development, and the need for them, were surveyed, and their differences from and similarities with other policy concepts like win-win cooperation and symbiotic development were examined. Based on the results of the survey and examination, the study introduced a South Korean model of win-win growth, targeting the promotion of a sound balance between large enterprises and SMEs and an innovative ecosystem, and finally, proposing future policy tasks. Win-win growth is not an academic term but a policy term. Thus, it is less advisable to give a theoretical definition of it than to understand its concept based on its objective and method as a policy. The core of the MB administration's win-win growth policy is the creation of a partnership between key economic subjects such as large enterprises and SMEs based on each subject's differentiated capacity, and such economic subjects' joint promotion of growth opportunities. Its objective is to contribute to the establishment of an advanced capitalistic system by securing the sustainability of the South Korean economy. Such win-win growth policy includes three core concepts. The first concept, ecosystem, is that win-win growth should be understood from the viewpoint of an industrial ecosystem and should be pursued by overcoming the issues of specific enterprises. An enterprise is not an independent entity but a social entity, meaning it exists in relationship with the society (Drucker, 2011). The second concept, balance, points to the fact that an effort should be made to establish a systemic and social infrastructure for a healthy balance in the industry. The social system and infrastructure should be established in such a way as to create a balance between short- term needs and long-term sustainability, between freedom and responsibility, and between profitability and social obligations. Finally, the third concept is the behavioral change of economic entities. The win-win growth policy is not merely about simple transactional relationships or determining reasonable prices but more about the need for a behavior change on the part of economic entities, without which the objectives of the policy cannot be achieved. Various advanced countries have developed different win-win growth models based on their respective cultures and economic-development stages. Japan, whose culture is characterized by a relatively high level of group-centered trust, has developed a productivity improvement model based on such culture, whereas the U.S., which has a highly developed system of market capitalism, has developed a system that instigates or promotes market-oriented technological innovation. Unlike Japan or the U.S., Europe, a late starter, has not fully developed a trust-based culture or market capitalism and thus often uses a policy-led model based on which the government leads the improvement of productivity and promotes technological innovation. By modeling successful cases from these advanced countries, South Korea can establish its unique win-win growth system. For this, it needs to determine the method and tasks that suit its circumstances by examining the prerequisites for its success as well as the strengths and weaknesses of each advanced country. This paper proposes a South Korean model of win-win growth, whose objective is to upgrade the country's low-trust-level-based industrial structure, in which large enterprises and SMEs depend only on independent survival strategies, to a high-trust-level-based social ecosystem, in which large enterprises and SMEs develop a cooperative relationship as partners. Based on this objective, the model proposes the establishment of a sound balance of systems and infrastructure between large enterprises and SMEs, and to form a crenovative social ecosystem. The South Korean model of win-win growth consists of three axes: utilization of the South Koreans' potential, which creates community-oriented energy; fusion-style improvement of various control and self-regulated systems for establishing a high-trust-level-oriented social infrastructure; and behavioral change on the part of enterprises in terms of putting an end to their unfair business activities and promoting future-oriented cooperative relationships. This system will establish a dynamic industrial ecosystem that will generate creative energy and will thus contribute to the realization of a sustainable economy in the 21st century. The South Korean model of win-win growth should pursue community-based self-regulation, which promotes the power of efficiency and competition that is fundamentally being pursued by capitalism while at the same time seeking the value of society and community. Already existing in Korea's traditional roots, such objectives have become the bases of the Shinbaram culture, characterized by the South Koreans' spontaneity, creativity, and optimism. In the process of a community's gradual improvement of its rules and procedures, the trust among the community members increases, and the "social capital" that guarantees the successful control of shared resources can be established (Ostrom, 2010). This basic ideal can help reduce the gap between large enterprises and SMEs, alleviating the South Koreans' victim mentality in the face of competition and the open-door policy, and creating crenovative corporate competitiveness. The win-win growth policy emerged for the purpose of addressing the polarization and imbalance structure resulting from the evolution of 21st-century capitalism. It simultaneously pursues efficiency and fairness on one hand and economic and community values on the other, and aims to foster efficient interaction between the market and the government. This policy, however, is also evolving. The win-win growth policy can be considered an extension of the win-win cooperation that the past 'Participatory Government' promoted at the enterprise management level to the level of systems and culture. Also, the ecosystemic development agendum that has recently emerged is a further extension that has been presented as a national ideal of "a new development model that promotes the co-advancement of environmental conservation, growth, economic development, social integration, and national and individual development."

Effect of Inclusive Institution on Economic Development : Focus on the institutionalization of the game industry in Korea and Germany (포용적 제도가 경제발전에 미치는 영향 : 한국과 독일의 게임산업 제도화를 중심으로)

  • Seok, Seung-Hye;Shryu, Seung-Hoo
    • Journal of Korea Game Society
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    • v.15 no.5
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    • pp.57-78
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    • 2015
  • This Study is the effect of the inclusive institution on a nation's economic development. Therefore, we focused on the gaming industry as an index that can drive the economic growth in the future. The reason to compare the game institution in South Korea and Germany is that both countries began to develop the game by the State, but the game institution in South Korea and Germany at the present time are sharply opposed, because the institutions can focus on the main points that are experiencing this difference. The results of this study, first, open/closed network in institutionalized aspect affects the social status of the game. This second, game workers in the legal institution has been classified as artists in Germany, as addicts in South Korea. And, Germany also has incentives to creators protected profits reinvested in the gaming industry, Korea leads to punitive exploitation is being transferred to the group for addiction treatment that revenue. Third, this exclusive and inclusive institutional system could affect the stable growth of the game market. As a result, South Korea's state institutions will notice that you get a result away from opportunities for economic development due to the loss of inclusiveness.

A study on the Optimal Economic Vessel in the South-East Asian Trade Route (동남아 항로의 최적 경제선박에 관한 연구)

  • Lee, Dong-Gon
    • 한국기계연구소 소보
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    • s.14
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    • pp.145-155
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    • 1985
  • The recent trend in shipbuilding technology is toward development of highly economical vessels of which construction and operation costs are minimized, whereas cargo transport capacity is maximized. But, most of the vessel which are now operated by some of the nation's shipping companies are uneconomical ones built before oil crisis and consequently the companies are suffering from long-lasted deficit problem. In this paper, derivation study of optimum vessel for multi purpose cargo vessel on south-East Asian trade route is carried out to solve this problem. The Required Freight Rate is used as a measure of merits.

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ESTABLISHMENT OF CDM PROJECT ADDITIONALITY THROUGH ECONOMIC INDICATORS

  • Kai. Li.;Robert Tiong L. K.;Maria Balatbat ;David Carmichael
    • International conference on construction engineering and project management
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    • 2009.05a
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    • pp.272-275
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    • 2009
  • Carbon finance is the investment in Greenhouse Gas (GHG) emission reduction projects in developing countries and countries with economies in transition within the framework of the Kyoto Protocol's Clean Development Mechanism (CDM) or Joint Implementation (JI) and with creation of financial instruments, i.e., carbon credits, which are tradable in carbon market. The additional revenue generated from carbon credits will increase the bankability of projects by reducing the risks of commercial lending or grant finance. Meantime, it has also demonstrated numerous opportunities for collaborating across sectors, and has served as a catalyst in bringing climate issues to bear in projects relating to rural electrification, renewable energy, energy efficiency, urban infrastructure, waste management, pollution abatement, forestry, and water resource management. Establishing additionality is essential for successful CDM project development. One of the key steps is the investment analysis. As guided by UNFCCC, financial indicators such as IRR, NPV, DSCR etc are most commonly used in both Option II & Option III. However, economic indicator such as Economic Internal Rate of Return(EIRR) are often overlooked in Option III even it might be more suitable for the project. This could be due to the difficulties in economic analysis. Although Asian Development Bank(ADB) has given guidelines in evaluating EIRR, there are still large amount of works have to be carried out in estimating the economic, financial, social and environmental benefits in the host country. This paper will present a case study of a CDM development of a 18 MW hydro power plant with carbon finance option in central Vietnam. The estimation of respective factors in EIRR, such as Willingness to Pay(WTP), shadow price etc, will be addressed with the adjustment to Vietnam local provincial factors. The significance of carbon finance to Vietnam renewable energy development will also be addressed.

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The Impacts on SLOC Security to Korea's National Economy (해양교통로의 안전 확보가 국가경제 발전에 미치는 영향)

  • Lee, Choon-Kun
    • Strategy21
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    • s.30
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    • pp.31-62
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    • 2012
  • It is a commons sense that the Republic of Korea is a maritime state that depends its survival on International Trade and International Economy. Korea was a peninsula and do it can be both maritime and continental state by its choice. However, after the national division in 1945, South Korea had became a virtual island and pursue a maritime way for national development in the past 60 plus years. Now, South Korea is becoming a world's 12 th largest major trading and maritime state. South Korea has far more ships per capita than any other nations in the world and its economy is heavily depend upon the imports and exports with other nations in the world that pass through the oceans. Therefore, the Koreans regard the security of the sea lanes of communication as vital to the survival of the nation. The SLOC is the life line for Republic of Korea. Since the early 1990s, immediately after the Cold War was over, South Koreans began to recognize the importance of Sea Routes and thus began to build a navy that can handle with the new problems of the post Cold War era. However, the maritime security environments of the Republic of Korea today is shaky and dangerous. Almost every water near the Korean peninsula, some kind of international confrontations are going on. Territorial disputes on Dok do, Senkaku, Scarbrough, Shisha, Nansha and Eodo between and among Korea, Japan, China, Taiwan, Phillipines, Indonesia and Vietnam are the examples. In this essay, the author argues that the S. Korean efforts and capabilities to deal with these challenges are not enough and exhorts more efforts and more powerful navy for the Korean people.

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A Study on Public Effect of Rural Tourism Development Project on the Rural Community (농촌관광개발정책이 농촌지역사회에 미치는 공익적 효과에 관한 연구)

  • Park, Meejeong;Jeon, Jeongbae;Son, Hogi;Shin, Minji;Park, Roun
    • Journal of The Korean Society of Agricultural Engineers
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    • v.61 no.5
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    • pp.57-68
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    • 2019
  • Rural tourism has been identified as providing opportunities to revitalize the rural economies since early 2000s. During last decade in South Korea, government has enacted many policies aiming to establish tourism support programs as well as instigating activities between rural and nearby urban districts. In particular, the promotion of the rural tourism has been actively sought in various forms of products and services, such as green tourism village, village festival, one-company one-village campaign and etc. However, in order to prepare effective policies, it is very crucial to identify measureable evaluation criteria that can be used to assess socio-economic situations of the rural districts. Such criteria should be objective, timely and provide insights about living conditions of local residents and relevant properties. They can also be used to evaluate if progress is being made after the policies are implemented. While considerable efforts and resources have been invested to aid the tourism programs in South Korea, we still lack such systematic means to quantify and evaluate its impact on rural districts. In this work, we have applied regional deprivation analysis on well-established community experiential and recreational business in rural villages throughout the country based on three criteria (i.e., population, local commerce, and buildings). Surprisingly, the result shows that the implementation of the community experiential and recreational businesses did not bring any noticeable changes to at least one of the evaluation criteria. We concluded that the current government policies on revitalization of rural tourism at the village scale is insufficient for bringing meaningful socio-economic impacts to rural districts, with rare exceptions.