• 제목/요약/키워드: Violation of regulations

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Study on the effect of small and medium-sized businesses being selected as suitable business types, on the franchise industry (중소기업적합업종선정이 프랜차이즈산업에 미치는 영향에 관한 연구)

  • Kang, Chang-Dong;Shin, Geon-Chel;Jang, Jae Nam
    • Journal of Distribution Research
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    • v.17 no.5
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    • pp.1-23
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    • 2012
  • The conflict between major corporations and small and medium-sized businesses is being aggravated, the trickle down effect is not working properly, and, as the controversy surrounding the effectiveness of the business limiting system continues to swirl, the plan proposed to protect the business domain of small and medium-sized businesses, resolve polarization between these businesses and large corporations, and protect small family run stores is the suitable business type designation system for small and medium-sized businesses. The current status of carrying out this system of selecting suitable business types among small and medium-sized businesses involves receiving applications for 234 items among the suitable business types and items from small and medium-sized businesses in manufacturing, and then selecting the items of the consultative group by analyzing and investigating the actual conditions. Suitable business type designation in the service industry will involve designation with priority on business types that are experiencing social conflict. Three major classifications of the service industry, related to the livelihood of small and medium-sized businesses, will be first designated, and subsequently this will be expanded sequentially. However, there is the concern that when designated as a suitable business type or item, this will hinder the growth motive for small to medium-sized businesses, and designation all cause decrease in consumer welfare. Also it is highly likely that it will operate as a prior regulation, cause side-effects by limiting competition systematically, and also be in violation against the main regulations of the FTA system. Moreover, it is pointed out that the system does not sufficiently reflect reverse discrimination factor against large corporations. Because conflict between small to medium sized businesses and large corporations results from the expansion of corporations to the service industry, which is unrelated to their key industry, it is necessary to introduce an advanced contract method like a master franchise or local franchise system and to develop local small to medium sized businesses through a franchise system to protect these businesses and dealers. However, this method may have an effect that contributes to stronger competitiveness of small to medium sized franchise businesses by advancing their competitiveness and operational methods a step further, but also has many negative aspects. First, as revealed by the Ministry of Knowledge Economy, the franchise industry is contributing to the strengthening of competitiveness through the economy of scale by organizing existing individual proprietors and increasing the success rate of new businesses. It is also revealed to be a response measure by the government to stabilize the economy of ordinary people and is emphasized as a 'useful way' to revitalize the service industry and improve the competitiveness of individual proprietors, and has been involved in contributions to creating jobs and expanding the domestic market by providing various services to consumers. From this viewpoint, franchises fit the purpose of the suitable business type system and is not something that is against it. Second, designation as a suitable business type may decrease investment for overseas expansion, R&D, and food safety, as well negatively affect the expansion of overseas corporations that have entered the domestic market, due to the contraction and low morale of large domestic franchise corporations that have competitiveness internationally. Also because domestic franchise businesses are hard pressed to secure competitiveness with multinational overseas franchise corporations that are operating in Korea, the system may cause difficulty for domestic franchise businesses in securing international competitiveness and also may result in reverse discrimination against these overseas franchise corporations. Third, the designation of suitable business type and item can limit the opportunity of selection for consumers who have up to now used those products and can cause a negative effect that reduces consumer welfare. Also, because there is the possibility that the range of consumer selection may be reduced when a few small to medium size businesses monopolize the market, by causing reverse discrimination between these businesses, the role of determining the utility of products must be left ot the consumer not the government. Lastly, it is desirable that this is carried out with the supplementation of deficient parts in the future, because fair trade is already secured with the enforcement of the franchise trade law and the best trade standard of the Fair Trade Commission. Overlapping regulations by the suitable business type designation is an excessive restriction in the franchise industry. Now, it is necessary to establish in the domestic franchise industry an environment where a global franchise corporation, which spreads Korean culture around the world, is capable of growing, and the active support by the government is needed. Therefore, systems that do not consider the process or background of the growth of franchise businesses and harm these businesses for the sole reason of them being large corporations must be removed. The inhibition of growth to franchise enterprises may decrease the sales of franchise stores, in some cases even bankrupt them, as well as cause other problems. Therefore the suitable business type system should not hinder large corporations, and as both small dealers and small to medium size businesses both aim at improving competitiveness and combined growth, large corporations, small dealers and small to medium sized businesses, based on their mutual cooperation, should not include franchise corporations that continue business relations with them in this system.

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Actual Results on the Control of Illegal Fishing in Adjacent Sea Area of Korea (한국 연근해 불법어업의 지도 단속 실태)

  • Lee, Sang-Jo;Kim, Jin-Kun
    • Journal of Fisheries and Marine Sciences Education
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    • v.10 no.2
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    • pp.139-161
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    • 1998
  • This thesis includes a study on the legal regulation, the system and formalities on the control of illegal fishing. And the author analyzed the details of the lists of illegal fishing controlled by fishing patrol vessels of Ministry of Maritime Affairs and Fisheries from 1994 to 1996 in adjacent sea area of Korea. The results are summarized as follows ; 1. The fishing patrol vessels controlled total 826 cases in 2,726 days of 292 voyages by 17 vessels in 1994, total 1,086 cases in 3,060 days of 333 voyages by 18 vessels in 1995 and total 933 cases in 3,126 days of 330 voyages by 19 vessels in 1996. 2. The fishing period of illegal fishing was generally concentrated from April to September. But year after year, illegal fishing was scattered throughout the year. 3. The most controlled sea area of illegal fishing was the south central sea area in the sea near Port of Tongyeong. The sea area occupied about 36~51% of totality and the controlled cases were gradually increased every year. The second was the south western sea area in the sea near Port of Yosu. The sea area occupied about 18-27% and the controlled cases were a little bit increased every year. The third was the south eastern sea area in the sea near Pusan. The sea area occupied about 13~23% and the controlled cases were gradually decreased year by year. 4. The most controlled kind of illegal fishing was the small size bottom trawl. This occupied about 81-95% of totality and the controlled cases were gradually increased year by year. The second was the medium size bottom trawl. This occupied about 4-7% and the controlled cases were gradually decreased year by year. The third was the trawl of the coastal sea, this occupied about 2~4% and the controlled cases were a little bit decreased every year. 5. The most controlled address of illegal fishing manager was Pusan city which occupied about 33-51% of totality. The second was Cheonnam which occupied about 24-29%. The third was Kyungnam which occupied about 16~35%. 6. The most controlled violation of regulations was Article 57 of the Fisheries Act which occupied about 56-64% of totality. The second was Article 23 of Protectorate for Fisheries Resources which occupied about 21-36%. And the controlled cases by it were gradually increased every year.

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