• Korea Trade Review
• /
• v.47 no.2
• /
• pp.103-120
• /
• 2022

This paper studies the possibility of options as an instrument for central bank to intervene foreign exchange market. As opposed to spot transaction or forward transaction, which impacts spot exchange rate only once, currency options can continuously resist a directional speculative pressure on spot market due to the dynamic delta hedging of OTC currency options market maker. This research also analyzes whether and how central banks can use currency options to lower exchange rate volatility and maintain (implicit) target zones in foreign exchange markets. It argues that short position rather than long position in options will result in market makers dynamically hedging their long option exposure in a stabilizing manner, consistent with the first objective. Selling a "Strangle" allows a central bank to increase the credibility of its commitment to a target zone, and could have a lower expected cost than spot market interventions. However, this strategy also exposes the central bank to an unlimited loss potential. Therefore these kinds of intervention strategies must be used in the short run and temporarily.

• Journal of Korea Trade
• /
• v.27 no.5
• /
• pp.91-112
• /
• 2023

Purpose - This study empirically investigates how the effects of localized knowledge spillovers on technology adoption are conditional on the organizational capabilities of potential adopters. Design/methodology - The empirical model utilized in this study examines how the presence of prior adopters of advanced manufacturing technologies affects a plant's technology adoption decision differently based on its organizational capabilities, measured by plant size and plant status (single-plant firm vs. multi-plant firm). Moreover, this study investigates how the scope of knowledge spillovers from prior adopters, both in terms of geographical and functional proximities, differ for plants with different organizational capabilities. Findings - The main findings of this study are as follows: 1. Although plants with lower organizational capabilities are less likely to adopt advanced technologies, such plants receive greater marginal benefits from knowledge spillovers from prior adopters in their region. 2. Plants with greater organizational capabilities can benefit from knowledge spillovers from a wider set of prior adopters. In other words, while plants with lower organizational capabilities tend to benefit from knowledge spillovers from "similar" and "local" adopters, plants with greater organizational capabilities can also benefit from knowledge spillovers from "not-too-similar" or are geographically distant prior adopters. Originality/value - While existing studies mainly focus on the effects of the various kinds of regional agglomeration, few studies investigate localized knowledge spillovers in technology adoption. Moreover, no prior studies have explored how the effects of knowledge spillovers on technology adoption depend on a plant's organizational capabilities and how the scope of knowledge spillovers differs for plants with different organizational capabilities. This study is the first to empirically investigate this topic.

• Korea Trade Review
• /
• v.48 no.2
• /
• pp.111-127
• /
• 2023

While the e-commerce market in Southeast Asia is growing, this study aims to derive factors for establishing an entry strategy for the Cambodian e-commerce market where Korean logistics companies can strategically enter in the future. Cambodia is a country where growth and growth potential in the e-commerce market is steadily increasing based on the high youth population ratio, high smartphone penetration rate, the introduction of convenient payment systems, and government-level e-commerce promotion policies. In this study, Korean logistics companies established detailed promotion strategies by deriving factors necessary for Cambodia's entry into the e-commerce market and analyzing their relative importance. The AHP analysis technique derived three top factors for the entry strategy, and each presented four sub-factors. As a result, the importance was shown in the order of 'Market Factor' (0.556), 'Policy and Institutional Factor' (0.295), and 'Corporate Competency Factor' (0.149). As a result of the sub-factors analysis, the importance was found in the order of "Characteristics and Growth Potential of Distribution Channel" (0.230), "Purchasing Power and Awareness Level of Consumers" (0.176), "Cambodia Government's E-commerce Policy and Institutional Support" (0.122), and "Cambodia Government's Logistics Infrastructure Plan" (0.108). In both the upper and lower factors, the characteristics and growth potential of the Cambodian e-commerce market were important, indicating that Korean logistics companies value market size and growth potential to enter the Cambodian e-commerce market. The results of this study can be used as a guideline to help Korean logistics companies make successful inroads into Cambodia, where the e-commerce market is expected to grow in the future.

• International Commerce and Information Review
• /
• v.15 no.3
• /
• pp.41-62
• /
• 2013

This paper, the accumulation of foreign exchange reserves in the financial systems of emerging markets mid-to long-term impact on how investigated. The accumulation of foreign exchange reserves in emerging markets is a highly effective means to prevent the recurrence of another financial crisis as well as to minimizing risks of financial crisis. By examining the economic effects of excessive accumulation of foreign exchange reserves on factors such as foreign liabilities, domestic consumption, domestic investment and economic growth from a mid-to long-term perspective, it reduced domestic consumption, but on the other hand, led to the expansion of the trade-related industries based on increase of exports. Although China implements a policy to substantially increase domestic investment, other emerging market countries have stagnant domestic investment activities due to excessive accumulation of foreign exchange reserves. Such fact signifies that excessive accumulation of foreign exchange reserves increases potential risks by depressing the mid-to long-term economic growth through the scale down of trade-related industries.

• The Korean Society of Law and Medicine
• /
• v.12 no.2
• /
• pp.295-316
• /
• 2011

If the medical staff privileges, which mean the eligibility to practice at open hospitals, are excluded in the United States, antitrust claims based on the violation of the Sherman Act have been raised a lot. The proliferation of these lawsuits in the United States, which are characterized as antitrust lawsuits, can be understandable situation. The reason is because doctors who don't belong to specific hospitals are seriously damaged, if the medical staff privileges are excluded and doctors cannot use facilities of open hospitals. In order to decide to allow the privileges of certain doctors, hospitals have to rely on peer review to maintain high quality of medical services, and it is not easy to find alternative of peer review in the professional areas like healthcare. However, there are possibilities that members of the peer review can abuse power to unfairly exclude privileges of potential competitors. In this sense, it is asserted in the U.S. antitrust lawsuits that the restraint of medical staff privilege can be the illegal restraint of trade in violation of section 1 of Sherman Act and can be monopolization or an attempt to monopoly by hospitals in violation of section 2 of Sherman Act. As Korea adopted open hospital system quite recently, there is still no case related with the exclusion of medical staff privileges. However, medical staff privilege system of Korea is not different from that of the United States in principle. Thus, the U.S. jurisprudence on the exclusion of medical staff privileges can be referred in the interpretation of "practice that interferes with or restricts the activities or contents of the business" based on Article 19.1.9 of Monopoly Regulation and Fair Trade Law of Korea.

• International Area Studies Review
• /
• v.17 no.4
• /
• pp.1-21
• /
• 2013

This study aims at conducting a quantitative assessment of potential economic effects of the Regional Comprehensive Economic Partnership (RCEP) consisting of 10 Member States of the ASEAN, Australia, China, India, Japan, Korea and New Zealand using a multi-region, multi-sector CGE model. Three different policy scenarios are carried out based on baseline scenarios: China-Japan-Korea FTA (Scenario 1); ASEAN+3 FTA (Scenario 2); and the RCEP (Scenario 3). The impacts of three scenarios are described in terms of real GDP, Equivalent Variation as a measure of welfare, export and import volumes, trade balance, and terms of trade. This study finds that the RCEP is to lead to an increase in real GDP of all members of the RCEP, with Korea as a winner with a highest additional economic growth of 2.43 percent, which implies that Korea is in a better position to play a leading role in promoting the RCEP.

• International Commerce and Information Review
• /
• v.15 no.3
• /
• pp.313-332
• /
• 2013

Large tundra of the Russian Empire, has rich resources and science and technology, and a huge domestic market potential is rapidly changing. Based on the abundant energy resources such as oil, gas, and minerals, as foreign trade is active, the huge capital is moving. And commitment the active SOC by improving laws and regulations and changes in the structure of the Russian economy. One of them pushed the WTO since 1993, 19 years to see fruition join the WTO (World Trade Organization). As the official entry into force August 22, Russia, July 10, 2012, Congress passed the treaty after joining the WTO and of the 156th WTO member countries, was officially join. As the WTO, Russia has the world's 11th-largest economy in the steel tariffs from 30% to 15% are exported to Russia, South Korea Car TV parts from 10% to 0%, reduced from 20% to 5% Korean export companies to export to Russia, etc., is expected to become the new land of opportunity. Russia hopes the changes improve the investment environment, the service industry, manufacturing revitalization the macroeconomic sectors of the economy through the WTO, and forecast, but the consumption increased revenue due to tariff cuts, falling import prices and the real economy, and weak manufacturing base. On the one hand, the perspective of concern. In conclusion, Russia joining the WTO, and the feed to improve the fairness and transparency of the market opening, the Russian advance in Korean companies be facilitated and strong complementary cooperation, especially in manufacturing is expected. In this paper, after Russia joining the WTO, trade liberalization, and ready for a new era of economic cooperation between Korea and Russia, at the point of expanding openness to propose strategies to analyze the problems of Korean companies during the Russian advance.

• Journal of the Economic Geographical Society of Korea
• /
• v.20 no.3
• /
• pp.355-368
• /
• 2017

Regarding to Dandong as the gateway city of the Sino-North Korea trade, cultural anthropology characterizes it with a hybridity of four groups with a different combination of ethnic and national identity: Korean Chinese(Chosonjok), South Koreans, North Koreans and Chinese-North Koreans. And, microeconomics views the enterprises in Dandong area have different sizes and types in the Sino-North Korea cross-border trade depending on their owner's ethnic and national identity. However, these researches focuses mainly on the differences between the groups, falling short in showing how the group members utilize their double identities to maintain and prosper their businesses, coping with various and changing situations. This study introduces the concept of 'identity juggling' and applies it to Chosonjok cross-border traders. The results from the in-depth interview and survey indicate they juggles their Korean ethnic identity and Chinese national identity selectively in terms of their bilinguality of the Korean and Chinese, mobility crossing China, South Korea, and North Korea, and prospects on the trade revitalization thanks to potential mitigation of tensions in Korea peninsula.

• Journal of Technology Innovation
• /
• v.28 no.4
• /
• pp.127-150
• /
• 2020

The World Health Organization (WHO) declared the third pandemic in history after the Hong Kong flu and swine flu. The outbreak of Corona 19 dramatically reduced exchanges between countries, while rapid contagion created a time gap in economic fluctuations by country. In January 2020, the trade dispute between the US and China entered into a consensus phase, but the economic decoupling phenomenon caused by Corona 19 made it difficult for China to balance trade with the US and made it difficult to comply with the terms of the trade dispute agreement between the US and China. President Trump attributed the responsibility for the spread of Corona 19 to China, and pointed out that the cause of the economic downturn was the infringement of Chinese trade secrets and illegal copies, and protectionism arose. As a result, China protested fiercely, and the conflict with the United States deepened. The US has declared trade sanctions on Huawei and SMIC, which are key companies in China's semiconductor industry, and is predicting the risk of a disconnection of the semiconductor value chain between the US and China. The separation of the value chain of the semiconductor industry has the potential to have a big impact on the semiconductor industry, a structure that is highly specialized and monopolized by certain countries and companies in the value chain. This paper aims to deal with the risk of disconnection in the semiconductor value chain between the US and China reignited by Corona 19, the impact and change of the global semiconductor industry value chain, and the response strategies of Korean semiconductor companies.

• International Area Studies Review
• /
• v.12 no.3
• /
• pp.419-448
• /
• 2008

The objective of this study is to conduct a quantitative assessment of potential impacts on the Korean economy of Agreement on Trade in Services Under the Framework Agreement on Comprehensive Economic Cooperation Among the Governments of the Republic of Korea and the Member Countries of the Association of Southeast Asian Nations which was signed on 21 November 2007 using a Computable General Equilibrium (CGE) model. Tariff equivalents of services were calculated on the basis of concessions made in the Agreement between Korea and ASEAN member countries. The empirical analysis shows that Korea is to get an additional gain in real GDP of 0.04 percent and in welfare of US$106 million, with an increase in per capita utility of 0.03 percent. Total exports and imports of Korea are to rise by US$179 million and $191 million, respectively, causing a trade deficit of $12 million. Korea's exports to ASEAN member countries will increase by $108 million and Korea's imports from them will rise by $278 million, giving rise to a trade deficit of $170 million.