• The Korean Journal of Air & Space Law and Policy
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• v.32 no.1
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• pp.83-138
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• 2017

Korea-China FTA entered into force on the 20th of December 2015, and one year elapsed after its effectuation as the FTA with China, our country's largest trading partner. Therefore, this study looks at the trends of air transport trade between Korea and China, and examines the contents of concessions to the air transport services sector in Korea-China FTA, and analyzes the impact on the air transport sector by Korea-China FTA, and proposes our country's aviation policy direction in order to respond to such impact. In 2016 the trends of air transport trade between Korea and China are as follows : The export amount of air transport trade to China was 40.03 billion dollars, down by 9.3% from the last year, and occupied 32.2% of the total export amount to China. The import amount of air transport trade from China was 24.26 billion dollars, down by 9.1% from the last year, and occupied 27.7% of the total import amount from China. The contents of concessions to the air transport services sector in Korea-China FTA are as follows : China made concessions to the aircraft repair and maintenance services and the computer reservation system services with limitations on market access and national treatment in the air transport services sector of the China Schedule of Specific Commitments of Korea-China FTA Chapter 8 Annex. Korea made concessions to the computer reservation system services, selling and marketing of air transport services, and aircraft repair and maintenance without limitations on market access and national treatment in the air transport services sector of the Korea Schedule of Specific Commitments of Korea-China FTA Chapter 8 Annex. The impact on the air transport sector by Korea-China FTA are as follows : As for the impact on the air passenger market, in 2016 the arrival passengers of the international flight from China were 9.96 million, up by 20.6% from the last year, and the departure passengers to China were 9.90 million, up by 34.8% from the last year. As for the impact on the air cargo market, in 2016 the exported goods volumes of air cargo to China were 105,220.2 tons, up by 6.6% from the last year, and imported goods volumes from China were 133,750.9 tons, up by 12.3% from the last year. Among the major items of exported air cargo to China, the exported goods volumes of benefited items in the Tariff Schedule of China of Korea-China FTA were increased, and among the major items of imported air cargo from China, the imported goods volumes of benefited items in the Tariff Schedule of Korea of Korea-China FTA were increased. As for the impact on the logistics market, in 2016 the handling performance of exported air cargo to China by domestic forwarders were 119,618 tons, down by 2.1% from the last year, and the handling performance of imported air cargo from China were 79,430 tons, down by 4.4% from the last year. In 2016 the e-commerce export amount to China were 109.16 million dollars, up by 27.7% from the last year, and the e-commerce import amount from China were 89.43 million dollars, up by 72% from the last year. The author proposes the aviation policy direction of Korea according to Korea-China FTA as follows : First, the open skies between Korea and China shall be pushed ahead. In June 2006 Korea and China concluded the open skies agreement within the scope of the third freedom and fourth freedom of the air for passenger and cargo in Sandong Province and Hainan Province of China, and agreed the full open skies of flights between the two countries from the summer season in 2010. However, China protested against the interpretation of the draft of the memorandum of understanding to the air services agreement, therefore the further open skies did not take place. Through the separate aviation talks with China from Korea-China FTA, the gradual and selective open skies of air passenger market and air cargo market shall be pushed ahead. Second, the competitiveness of air transport industry and airport shall be secured. As for the strengthening methods of the competitiveness of Korea's air transport industry, the support system for the strengthening of national air carriers' competitiveness shall be prepared, and the new basis for competition of national air carriers shall be made, and the strategic network based on national interest shall be built. As for the strengthening methods of the competitiveness of Korea's airports, particularly Incheon Airport, the competitiveness of the network for aviation demand creation shall be strengthened, and the airport facilities and safety infrastructure shall be expanded, and the new added value through the airport shall be created, and the world's No.1 level of services shall be maintained. Third, the competitiveness of aviation logistics enterprises shall be strengthened. As for the strengthening methods of the competitiveness of Korea's aviation logistics enterprises, as the upbringing strategy of higher added value in response to the industry trends changes, the new logistics market shall be developed, and the logistics infrastructure shall be expanded, and the logistics professionals shall be trained. Additionally, as the expanding strategy of global logistics market, the support system for overseas investment of logistics enterprises shall be built, and according to expanding the global transport network, the international cooperation shall be strengthened, and the network infrastructure shall be secured. As for the strengthening methods of aviation logistics competitiveness of Incheon Airport, the enterprises' demand of moving in the logistics complex shall be responded, and the comparative advantage in the field of new growth cargo shall be preoccupied, and the logistics hub's capability shall be strengthened, and the competitiveness of cargo processing speed in the airport shall be advanced. Forth, in the subsequent negotiation of Korea-China FTA, the further opening of air transport services sector shall be secured. In the subsequent negotiation being initiated within two years after entry into force of Korea-China FTA, it is necessary to ask for the further opening of the concessions of computer reservation system services, and aircraft repair and maintenance services in which the concessions level of air transport services sector by China is insufficient compared to the concessions level in the existing FTA concluded by China. In conclusion, in order to respond to the impact on Korea's air passenger market, air cargo market and aviation logistics market by Korea-China FTA, the following policy tasks shall be pushed ahead : Taking into consideration of national air carriers' competitiveness and nation's benefits, the gradual and selective open skies shall be pushed ahead, and the support system to strengthen the competitiveness of air transport industry and airport shall be built, and entry into aviation logistics market by logistics enterprises shall be expanded, and the preparations to ask for the further opening of air transport services sector, low in the concessions level by China shall be made.

• International Commerce and Information Review
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• v.8 no.4
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• pp.125-145
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• 2006

The objective of this paper is to analyze the competitiveness of the Cargo Management improvement of FTZ(Free Trade Zone) in East Asia and to suggest several measures to improve it. To the end, various comparisons are made between the FTZ of Incehon and those in Hongkong, Taiwan, Shanghai. Competitive advantages of Incheon's FTZ over others lie in its better contiguity, frequency, quality service, and convenient connections associated with the airport. To be viable, however, the Incheon's FTZ needs to have strong supports from the central government such as more SOC investment, early introduction of RFID/UBIQUITOUS, improvement of customs process and logistics system, and competitive incentives to bring in more international channel hubs to this area. With these implemented promptly as suggested, the Incheon's FTZ will draw its competitive advantages over those in Taiwan and Shanghai and will play an vital role to bring in more MNEs to Korea.

• The Journal of Industrial Distribution & Business
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• v.9 no.11
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• pp.77-91
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• 2018

Purpose - In this research, we investigate the relationship between the level of information technology utilization, social capital and knowledge management, organization performance. For information and knowledge management, participants' certain level of information technology utilization is required and connections among participants are necessary for performing and for synergy effects. Research design, data, and methodology - Reflecting on these, we empirically analyze the effects of participant's information technology utilization level and social capital on knowledge management and organization achievement for the case of Incheon International Airport. Questionnaire is distributed to the airport employees and collected 221 samples for analyzing. SPSS and AMOS statistic programs are used for analysis. Factor analysis, Credibility adaptability, path analysis, hypotheses are verified. Results - The study research shows as follow. First, the level of IT utilization does affect social capital but does not affect knowledge management. Second, social capital affects both knowledge management and organization achievement. To investigate more about the relationship between the level of IT utilization and knowledge management, we analyzed the control effects of personal characteristics, and findings are, first, employees with longer time service recognize the importance that the level of IT use and knowledge management affect organization achievement more seriously than employees with shorter time service do. Second, employees with shorter time service and younger employees have relatively lesser social capital and participate in knowledge management passively. Third, higher position employees think that the level of IT utilization affects knowledge management while lower position employees do not. Conclusions - The level of IT utilization affects social capital, and social capital affects knowledge management and organization achievement. These results suggest that the level of IT utilization is very important to both organization and each employee. So providing related training and education opportunities or incentives to induce employees to make efforts for higher level of IT utilization and thus to participate in knowledge management more actively is necessary. The level of IT utilization affects social capital which airport employees lack. The one of study results indicates the importance of social capital and for higher competitiveness of the airport social capital should be increased.

• Journal of Distribution Science
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• v.16 no.3
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• pp.69-77
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• 2018

Purpose - As more low cost carriers are introduced, the competition between the low cost carriers to become the nation's leading low cost carrier is also being intensified. The purpose of this study is to select various choice attributes for low cost carrier and figure out important factors that customers take into account for low cost carrier selection. The study also involves in establishing the relationship between perceived value, customer satisfaction, and customer behavior Intention, in an effort to identify choice attributes that are important to customers' low cost carrier. Research design, data, and methodology - To examine these research models, samples were collected from 247 peoples who visited In-Cheon international Airport during June, 2017. Results - The results of the study showed that, 'reservation service', 'airport service', 'in-flight service', and 'price' services have a significant effect on the perceived value of the choice attributes. While 'reservation service', 'airport service', 'in-flight service', and 'flight operation service' have a significant effect on the customer satisfaction of the choice attributes, perceived value has a significant effect on customer satisfaction. Perceived value has a significant effect on customer behavior intention. Finally, customer satisfaction has a significant effect on customer behavior intention. Conclusions - Flight operation service has no significant effect on perceived value of the choice attributes of low cost carriers, which indicates that the low cost carriers have not yet been well-established in the flight operation service sector. It seems likely that low cost carrier will be able to gain a competitive advantage over other companies if they expand their routes and improve the convenience of flight connections. In addition, the results show that the price service does not have a significant effect on customer satisfaction of the choice attributes of low cost carriers. From this, we may assume that the airline ticket prices of low cost carriers are already low, and the price cannot be a deciding factor in the competitive advantage of low cost carriers. To achieve higher customer satisfaction of the choice attributes, companies should strengthen the competitiveness of 'reservation service', 'airport service', 'in-flight service', and 'flight operation service'.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.20 no.4
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• pp.91-105
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• 2012

This study, the cause of an aviation security employees' job satisfaction and dissatisfaction will be understood and the data can be used as evidence to explain the position of the employees. Moreover, the results of this study shall be conducted to increase the level of service delivery and also to remove unsatisfactory factors. Thus, according to this research survey shows the understanding of the job satisfaction and service delivery influences on the overall job satisfaction of a secure enterprise's security screeners. As a results, by improving the job satisfaction of aviation security screeners, the world's most safe, convenient service and quick airport service delivery could be achieved. Therefore, in order to improve the level of Korea and the international competitiveness of airlines, the promotion of job satisfaction of employees would be very important. Moreover based on the results of this study, the advanced research on the recognition differences for service evaluation between the customers and security screeners are needed.

• Journal of Korean Society of Transportation
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• v.25 no.5
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• pp.125-133
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• 2007

Through open-sky policy, USA and European selected market principle of multiuser. However, in Asian case, major airlines monopolize airports. It is purpose that analyzes fare competition of Asian Hub Airport and the position of Incheon airport in Asia. Passengers required longer time and distance to go to the destination because direct flights decreases. But passengers increased in airport every year. Because of routes that decrease, airlines provide more services of flights. So airlines prefer to Hub Airports. As a result, both passengers and airlines are profitable by various routs and the increased frequency. On the assumption that distance and fare are related, the final formula is as following that defined the air fare from hub(H) to destination(Z) by logarithm. Analysis showed that log Rdist is not 1 but 0.08. As distance increases, fare doesn't increase. If distance from hub to destination airports is longer, Log dist_HZ is negative. It is that fare decreases from origin to destination via hub or that fare increases from hub to destination. HHI_HZ and HHI_AZ are negative. It means that if the degree of monopolization of hub and origin airports is lager, fare decreases from origin to destination via hub. Or fare increases from hub to destination. And it compares the Incheon airport with the other Asian hub airports and it examines the competitive fare by market division. As compared with the Incheon airport, Singapore, Beijing and Narita airports are higher fares. They compete with the other ones by Asian hub airports. But Hong Kong and Taipei airports must have more passengers through fare competition yet.

• Journal of Navigation and Port Research
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• v.34 no.7
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• pp.587-594
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• 2010

The positive and negative opinion to cargo demand of Incheon's SAMT in the near future remains cloudy. Considering port and shipping environmental changes and the logistics situation of China which explains the lack of facilities in Chinese airports, the creating of SAMT cargoes of the Incheon region could catches a favorable opportunity to be a logistics hub in the North-East Asia. On the other hand, as open-sky policy and direct-call service has been carried out between China and N.A.(North America), Incheon could cause a loss of competitiveness in SAMT because the enhancement in the aspect of the connectivity of Chinese airlines and shipping lines makes customer sent to last destination their cargoes whenever they want. In the same context, this paper analyses on conditions of domestic and international SAMT and proposes in this uncertainty future forecasting of SAMT of Incheon by scenario planning according to changes in integrated SAMT, measuring the likelihood of final scenario. This study shows the Sea & Air multi-transport volume will have either slight increase or decrease from the current condition. Consequently, RFS expansion and system & service improvement through strong ties with major cities in China will be required in a short run aspect. Nonetheless, we also need to take domestic & international transportation environment into account in the long run.

• Journal of the Korean Regional Science Association
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• v.15 no.2
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• pp.155-187
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• 1999

The East Asian Region has experienced remarkable economic growth and transformation of interurban networking over the past three decades, and urban competiti veness for a networking hub in this region has become a critical issue confronting cities. Competitiveness of the Seoul capital region for a networking hub in Northeast Asia is outstripped by other competing cities in East Asia, notwithstanding its geo-politically and geo-economically advantageous location in this region. In this paper, we aim to appraise the Seoul capital region's competitiveness in terms of logistics distribution, financial function and logistics distribution, financial function and agglomeration of transnational corporations (especially of RHOs and other managerial functions), and to advance the networking strategies of the region for a Northeast Asia hyb. As a result of analysis, we suggest that the Seoul capital region be developed as a Northeast Asian center for regional headquarters or leading global corporations and financial services for being a strategic nodal point in Northeast Asia in the 21st century. A recent survey shows that where to locate an RHQ is influenced by various factors, such as potential market and manufacturing site in the city's hinterland, quality of life, such things as culture, health, safety, education, a well-educated, English-speaking population, reliable air transport, state-of-the-art communications, and an active policy to offer foreign companies generous incentives. The Seoul capital region, which is located at a strategic nodal point advantageous as a springboard for its Northeast Asian hinterland, cannot meet the other conditions mentioned above. To overcome these drawbacks in attracting transnational capital and to create competitiveness as a strategic hub of RHQs in Northeast Asia, it is urgent to initiate a structural reform of the Korean economy, politics, and overall society, to minimize the regulation of FDI, and to provide various incentives for foreign investment. Moreover, we propose the construction of an 'International Business Town' in the Seoul capital region, as a medium to intermediate these strategies and to shape them in a spatial scale. The projected 'International Business Town(IBT)' will be a 'free city' open to international business in which liberal economic activities are guaranteed by special legislation and administration, infrastructures needed for international and improved accessibility to the airport are furnished, and the preference of foreign high-income investors for cultural and living environment are satisfactorily met. IBT is conspicuously differentiated from a raft of other cities' incentives in that it combines deregulation and incentive programs to attract the investment of transnational capital, with a spatial program of offering an urban environment preferred by the high-income investors for cultural and living environment are satisfactorily met. IBT is conspicuously differentiated from a raft of other cities' incentives in that it combines deregulation and incentive programs to attract the investment of transnational capita, with a spatial program of offering an urban environment preferred by the high-income and managerial class. Furthermore, it can be an excellent way of overcoming the xenophobia that has spread among the Korean population by concentrating foreign businesses and their lifestyles in a specific foreign businesses and their lifestyles in a specific zone. In conclusion, 'International Business Town', in line with other legislative and administrative incentive programs, will function as a driving force to make the Seoul capital regional more competitive as a regional business hub in Northeast Asia.

• Journal of Korea Port Economic Association
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• v.40 no.2
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• pp.205-219
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• 2024

This study assesses Incheon Metropolitan City's potential as a global logistics hub amid intensified competition since the 2000s. Utilizing Importance-Performance Analysis(IPA), it evaluates competitive factors for logistics hub cities and Incheon's current positioning. The research identifies world-class infrastructure development and global city connectivity as key competitiveness factors. While Incheon, with its international airport and port, currently functions as a logistics hub, areas for improvement emerge. Recommendations include developing specialized cargo infrastructure for cold-chain and e-commerce, expanding the global network through multimodal transportation, and addressing gaps in smart and eco-friendly logistics. These suggestions encompass professional training, information platform establishment, and sector-wide decarbonization initiatives. The study's significance lies in its IPA-driven evaluation of competitiveness factors and Incheon's status, providing actionable recommendations for strategic planning to enhance the city's position as a global logistics hub.

• Journal of Korea Trade
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• v.25 no.6
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• pp.78-104
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• 2021

Purpose - Semiconductors are a significant export item for Korea that is expected to continue to contribute significantly to the Korean economy in the future. Thus, the semiconductor industry is a critical component in the 4th Industrial Revolution and is expected to continue growing as the non-face-to-face economy expands as a result of the COVID-19 pandemic. In this context, this paper aims to empirically investigate how semiconductors are imported and exported in Korea from a global supply chain perspective by analysing import and export data at the micro-level. Design/methodology - This study conducts a multifaceted analysis of the global supply chain for semiconductors and related equipment in Korea by examining semiconductor imports and exports by semiconductor type, year, target country, mode of transportation, airport/port, and domestic region, using import/export micro-data. The visualisation, flow analysis, and Bayesian Network methodologies were used to compensate for the limitations of each method. Findings - Korea is a major exporter of semiconductor memory and has the world's highest competitiveness but is relatively weak in the field of system semiconductors. The trade deficit in 'semiconductor equipment and parts' is clearly growing. As a result, continued investment in 'system semiconductors' and 'semiconductor equipment and parts' technology development is necessary to boost exports and ensure a stable supply chain. Originality/value - Few papers on semiconductor trade in Korea have been published from the perspective of the global supply chain or value chain. This study contributes to the literature in this area by focusing on import and export data for the global supply chain of the Korean semiconductor industry using a variety of approaches. It is our hope that the insights gained from this study will aid in the advancement of SCM research.