• Journal of Information Technology Services
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• v.4 no.2
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• pp.33-46
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• 2005

Small/medium software businesses are often at a disadvantage when trying to win government contracts. Rather, most of small/medium software companies work with larger companies in the form of subcontracting. In its broadest meaning, subcontracting refers to the purchase of a part of a product or process from a different company. Appropriate subcontracting system helps both large and small software firms keep in healthy. However, many problems regarding subcontracting have been reported and recognized as one of major obstacles impeding advancement of the software industry. This paper examines the current problems in subcontracting system by conducting a field survey and proposes directions to improve the system for software project. It suggests revision of 'Software Industry Promotion Act' to induce fair relationship among software firms.

• Korean Journal of Construction Engineering and Management
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• v.10 no.6
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• pp.107-116
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• 2009

As the Fundamentals of Construction Business Act was revised in December 2004 and its implementing ordinances and enforcement regulations were adjusted in June 2005, the screening system of low price subcontracting has been an obligation to the public owners, having brought about arguments for and against since it enacted in 1983. The statutes for low price subcontracting have been reinforced from this year; for example, it underlines to submit to a project and builds an information network of subcontracting works. The system's original intention was that prevents shoddy and fraudulent constructions caused by low price subcontracting and precludes disturbances of fair trade by screening that whether it satisfies the conditions or not in advance. But, the criterion for the existing low price subcontracting has several issues having held up a true mirror to the real situation. It is arguable to discharge an important task with the primary purpose. This dissertation have researched the problem with a deposit of subcontract and the low price subcontracting basic rate are being used by the criteria for deciding whether it is a low price subcontracting or not, so showing the plan of reformation based on the findings, it wishes to contribute toward making the most of the system's essential intent.

• Korean Journal of Labor Studies
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• v.17 no.1
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• pp.177-208
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• 2011

This article examines that how in-house subcontract has been introduced and developed in metal industry in 1970s, focusing typical workplaces in steel industry. That was essential for the capital to insure control mechanism for large number of laborer because of mobilizing a large scale of capital in industrialization of heavy metal industry. In case of Pohang steel industry, this necessity was fulfilled by introduction and imitation of Japanese personnel management by being included of Japanese economic hinterland. This was embodied in both constructing internal labor market for regular workers and introducing in-house subcontracting system for contingent workers at workplaces. This was exceptional comparing in-house subcontracting system in Korean steel industry with in-house subcontracting system in advanced economies, because of disappearing in-house subcontracting system by making internal labor market. And this was closely linked by late development of Korea. Implications of Pohang steel company's case are as follows : first, late development effect in formation of employment system, second, in linking informality of Korean employment system. This implications mean that in-house subcontracting in steel industry is structured as mechanism for personnel management in large factory being influenced by industrialization of heavy industry. In this point, improvements which include wide economic solution beyond labor solution for present problem of in-house subcontracting system is desirable.

• KDI Journal of Economic Policy
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• v.13 no.2
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• pp.69-96
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• 1991

Economic circumstances of enterprise began to change after a series of democratization measures in 1987. Accompanied with it, competitive advantage of enterprise began to change as well. By that time Korean enterprises had a competitive advantage based on low wages of labor. Abrupt and steady upsurge in wage, however, weakened competitive advantage based on low wages, upward revaluation of won currency caused by surplus in BOP strengthened upward trend in price increase of export products. An urgent problem in Korea economy is, therefore, to find 'new' competitive advantage. For the time being preserving competitiveness based on cost advantage must inevitably remain our basic strategy in industrial policy. While cost advantage in the past referred to low wage level, this cost advantage must have foundation on the improvment in producing technology, which will increase labor productivity and decrease unit cost of products. Besides, other measure to improve competitiveness can be considered such as increasing the extent of production automation, self-development of new products, and spread and strengthening subcontracting system among various enterprises. In this paper we tried to perceive how subcontracting system as a form of intercompany division of labor operates and to which direction this system proceeds responding to the recent changes in economic circumstances. Speaking more concretly, we tried to perceive how large the gap of bargaining power between mother-company and subcontracting company is and how effectively subcontracting company's technical power contributes to mother-company. Facing up to weakeening of competitiveness, how stably is the partnership between mother-company and subcontracting company established and what measures are being prepared to retore the weakened competitiveness. In conclusion the result of investigation through the questionaire on subcontracting system is positive, from which we can infer the optimistic view of restoring Korean economy's competitiveness.

• Korean Journal of Labor Studies
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• v.24 no.2
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• pp.247-291
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• 2018

This study investigates the employment structure and the social safety net experience of the subcontracting cleaning workers in Korea, who have been main targets of the labor outsourcing despite the necessity and permanence of their labour. This study specifically focuses on the fact that these subcontracting cleaning workers are mostly female and in their old age, and analyzes how the combination of their age, gender, and employment structure leads to the (mis)match with the Korean social security system. Case study with in-dept interview method has been conducted to the old-aged female subcontracting cleaning workers in Korea. The result of this study is as follows. It was the income insecurity that led them to (re)enter the labour market, and the cleaning work was the almost the only wage work they could do considering their age and gender. Cleaning workers are mostly employed in the subcontracting company, and thus their labour contracts depend on the business contract period between the original and subcontracting company. Consequently, their employment relationship is mostly insecure unless they are guaranteed employment succession through the collective agreement of trade union. Moreover, it has been discovered that the employment insecurity due to the indirect employment relationship led to the poor labour conditions, low wage, and the exclusion from the social safety net.

• Journal of the Korean Geographical Society
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• v.39 no.1
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• pp.116-131
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• 2004

The purpose of this study is to inquiry spatial features of shipbuilding subcontract structures. These days, firms are trying to get their goals by wav of production system which is related to other firm. Shipbuilding subcontract structures which builds complex and grand plant show a different peculiarity according to spatial features having rules of business relations with contracting firms. First of all, internal subcontracting firms which takes part in the production process of contracting firm and shipbuilding cooperative complex firms which showing a peculiarity of spin-off firms are closely related with contracting firm. And firms in Changwon that have a specialized with machine industry and those of Busan that have made development in marine equipment industries traditionally are connected with subcontract relations because of a high level of specialization relatively. On the other hand, subcontracting firms which range from non-localized and provide standardized products are less connected with contracting firm. In order to develop of Korea' shipbuilding industry, first, close cooperative relation is important with subcontracting firms which concentrate internal and outside contacting firm. And, it is necessary to strengthen selective business relations with far distance firms which are specialized in technology.

• Korean Journal of Construction Engineering and Management
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• v.21 no.5
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• pp.3-10
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• 2020

Subcontracting of construction is essential to carry out public construction projects. Subcontractor of the construction work shall enter into a contract with the original contractor without directly entering into a contract with the owner. Subcontracts are therefore greatly affected by the original contract with the owner. To protect subcontractors, the Fair Trade Act is enacted and the construction company's standard subcontracting contract is in operation. However, subcontracts are not properly reflected in the Government contract system, which deals with the relationships between the owner and the original contractor. In particular, the subcontractor may complain of difficulties at the public construction site as such procedures are not properly reflected in the construction work standard subcontract, although various procedures shall be carried out depending on the amount when change order occurs in subcontracts. Thus, the direction of improvement of subcontracting systems was proposed in the case of change order at public construction project sites as follows: First, the rights of subcontractors should be strengthened. Second, in order to resolve the information non-identity, subcontractors should have access to information related to subcontracts. Third, the status of subcontractor shall be guaranteed by reflecting the characteristics of the subcontract when the original contract for public works is concluded. Fourth, the dispute settlement method should be prioritized over litigation in order to fair subcontracting.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.27 no.1
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• pp.64-73
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• 2004

This paper addresses a problem of machining determination of input quantity in a multi-stage flexible flow system with non-identical parallel machines considers a subcontracting, machining restraint, and machine yield. We develop a nonlinear programing with the objective of minimizing the sum of in-house processing cost and subcontracting cost. To solve this model, we introduce a single-processor parallel genetic algorithm(SPGA) to improve a weak point for the declined robustness of simple algorithm(SGA). The efficiency of the SPGA is examined in comparison with the SGA for the same problem. In of examination the SPGA is to provide the excellent solution than the solution of the SGA.

• International conference on construction engineering and project management
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• 2009.05a
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• pp.635-641
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• 2009

In the building construction, the specialist contractors play the important roles in the point of the quality securing. Therefore, it is very important for the construction industry to study the sub-package problem. The sub-package problem includes two problems which should be solved. One is to decide the scope of works of each specialist contractor, and another one is to decide the particular specialist contractor which carries out the work. However, the sub-package problem in Korea is not clarified yet, although the circumstance around it has changed rapidly. Many factors influence to the sub-package problem regardless of internal factors or external factors of the project. The general contractor usually decides the sub-package under considering the project conditions. In case of the internal factors, each general contractor manages the organization and materials. But the external factors are relatively more difficult to control and predict than internal ones. But out of the external factors, the legal system has very close relationship with a sub-package problem especially in Korean construction system. So, this paper clarifies relationship between the legal system relating subcontracting and the state of sub-package.

• Journal of the Korean Regional Science Association
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• v.9 no.1
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• pp.79-99
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• 1993

This paper identifies the mechanisms governing the industrial location changes in Korea by focusing upon the emergence of the country's large conglomerate business organizations (chaebols). As the country has distinctive industrial organization, production systems, and government-business relations, this study tries to develop an ideal conceptual framework for the analysis of industrial location changes in Korea. It perceives the Korean economy as a system within which 'space-organizing', lage business organizations interact over time with government, smaller firms and multinational corporations at different geographical scales. The usefulness of the model is assessed using a case study of Korea's most representative chaebol, the Samsung Group. This study identifies chaebols as the dominant institutions in Korean society. Their growth and business strategies have been influenced by the Korean Government through its power to allocate capital resources. Regional dynamics of industry and labor, therfore, have been strongly influenced by changes in the location, industrial structure, and production system of chaebols. With econmic power concentrated within a few giant business groups and their major areas of operation restricted, unbalanced regional development has resulted. Dissatisfaction from residents in less-developed areas has pressured the Government to advise chaebols to disperse their production facilities. Most small and medium-sized firms are closely linked to large corporations through subcontracting. By forming hierarchical subcontracting. By forming hierarchical subcontracting systems, chaebols have indirectly exploited scattered, part-time, home-based, female and lower-paid laborers organized by subcontractors. Further, chaebols have expanded their business arena to encompass overseas locations in a bid to overcome the problem of a small domestic market, trade regulations and increased market, trade regulations and increased labor costs. Through their international business networks Korea's local and regional economies are integrated into the world economy. Indeed, the identification of the changing relationships of chaebols with both the Korean Government and smaller firms is the key to explaining the nations's spatial dyanmics of industry and labor.