• Journal of Korea Technology Innovation Society
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• v.14 no.4
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• pp.1024-1049
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• 2011

Korea has accomplished rapid industrial development based on the manufacturing industry. However, the growth potential has been slowing down lately due to some reasons including low employment creation rates. Also, competitions in the manufacturing industry with China and developing countries in Asia are constantly intensified. Advanced countries maintain economic growth based on the competitiveness secured by changing its industrial structure into service oriented economy. Accordingly Korean government announced various policies to promote service industry and stimulate R&D activity for the advancement of knowledge based service industry. For promoting R&D of private firm, R&D center accreditation system for knowledge based service firm is going to be introduced. However, the accreditation system needs to be revised because it was established based solely on manufacturing business. Under the existing system, subject firms for government support are selected based on R&D activities. However in service area, the difference between R&D activity and business activity is indistinctive due to its nature so that the range of subject firms can be expanded too much. So it is more practical to select major service businesses and operate the system with selected businesses. There also should be proper logic to select major service business from the whole service businesses. We have to consider Koean industrial structure which is heavily dependent on manufacturing business and has weak competitiveness in service business when preparing the logic. In this paper, we study how to set up the range of service business and the requirements for R&D center accreditation. For this, this paper analyzed the ripple effect on the economy of service businesses based on input-output analysis, R&D activity and capability to put the resource for R&D. Based on the analysis result, we suggest methods to screen subject companies for R&D center accreditation among service business and present possible measures on manpower and physical requirement for service industry's R&D center accreditation system.

• KDI Journal of Economic Policy
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• v.12 no.1
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• pp.127-148
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• 1990

A Milgrom-Roberts style signalling model of limit pricing is developed to analyze the possibility and the scope of limit pricing in general, noncooperative oligopolies. The model contains multiple incumbent firms facing a potential entrant and assumes an information asymmetry between incombents and the potential entrant about the market demand. There are two periods in the model. In period 1, n incumbent firms simultaneously and noncooperatively choose quantities. At the end of period 1, the potential entrant observes the market price and makes an entry decision. In period 2, depending on the entry decision of the entrant, n' or (n+1) firms choose quantities again before the game terminates. Since the choice of incumbent firms in period 1 depends on their information about demand, the market price in period 1 conveys information about the market demand. Thus, there is a systematic link between the market price and the profitability of entry. Using Bayes-Nash equilibrium as the solution concept, we find that there exist some demand conditions under which incumbent firms will limit price. In symmetric equilibria, incumbent firms each produce an output that is greater than the Cournot output and induce a price that is below the Cournot price. In doing so, each incumbent firm refrains from maximizing short-run profit and supplies a public good that is entry deterrence. The reason that entry is deterred by such a reduced price is that it conveys information about the demand of the industry that is unfavorable to the entrant. This establishes the possibility of limit pricing by noncooperative oligopolists in a setting that is fully rational, and also generalizes the result of Milgrom and Roberts to general oligopolies, confirming Bain's intuition. Limit pricing by incumbents explained above can be interpreted as a form of credible collusion in which each firm voluntarily deviates from myopic optimization in order to deter entry using their superior information. This type of implicit collusion differs from Folk-theorem type collusions in many ways and suggests that a collusion can be a credible one even in finite games as long as there is information asymmetry. Another important result is that as the number of incumbent firms approaches infinity, or as the industry approaches a competitive one, the probability that limit pricing occurs converges to zero and the probability of entry converges to that under complete information. This limit result confirms the intuition that as the number of agents sharing the same private information increases, the value of the private information decreases, and the probability that the information gets revealed increases. This limit result also supports the conventional belief that there is no entry problem in a competitive market. Considering the fact that limit pricing is generally believed to occur at an early stage of an industry and the fact that many industries in Korea are oligopolies in their infant stages, the theoretical results of this paper suggest that we should pay attention to the possibility of implicit collusion by incumbent firms aimed at deterring new entry using superior information. The long-term loss to the Korean economy from limit pricing can be very large if the industry in question is a part of the world market and the domestic potential entrant whose entry is deterred could .have developed into a competitor in the world market. In this case, the long-term loss to the Korean economy should include the lost opportunity in the world market in addition to the domestic long-run welfare loss.

• KDI Journal of Economic Policy
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• v.12 no.2
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• pp.51-79
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• 1990

Research on technical efficiency, an important dimension of market performance, had received little attention until recently by most industrial organization empiricists, the reason being that traditional microeconomic theory simply assumed away any form of inefficiency in production. Recently, however, an increasing number of research efforts have been conducted to answer questions such as: To what extent do technical ineffciencies exist in the production activities of firms and plants? What are the factors accounting for the level of inefficiency found and those explaining the interindustry difference in technical inefficiency? Are there any significant international differences in the levels of technical efficiency and, if so, how can we reconcile these results with the observed pattern of international trade, etc? As the first in a series of studies on the technical efficiency of Korea's manufacturing industries, this paper attempts to answer some of these questions. Since the estimation of technical efficiency requires the use of plant-level data for each of the five-digit KSIC industries available from the Census of Manufactures, one may consture the findings of this paper as empirical evidence of technical efficiency in Korea's manufacturing industries at the most disaggregated level. We start by clarifying the relationship among the various concepts of efficiency-allocative effciency, factor-price efficiency, technical efficiency, Leibenstein's X-efficiency, and scale efficiency. It then becomes clear that unless certain ceteris paribus assumptions are satisfied, our estimates of technical inefficiency are in fact related to factor price inefficiency as well. The empirical model employed is, what is called, a stochastic frontier production function which divides the stochastic term into two different components-one with a symmetric distribution for pure white noise and the other for technical inefficiency with an asymmetric distribution. A translog production function is assumed for the functional relationship between inputs and output, and was estimated by the corrected ordinary least squares method. The second and third sample moments of the regression residuals are then used to yield estimates of four different types of measures for technical (in) efficiency. The entire range of manufacturing industries can be divided into two groups, depending on whether or not the distribution of estimated regression residuals allows a successful estimation of technical efficiency. The regression equation employing value added as the dependent variable gives a greater number of "successful" industries than the one using gross output. The correlation among estimates of the different measures of efficiency appears to be high, while the estimates of efficiency based on different regression equations seem almost uncorrelated. Thus, in the subsequent analysis of the determinants of interindustry variations in technical efficiency, the choice of the regression equation in the previous stage will affect the outcome significantly.

• Economic and Environmental Geology
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• v.38 no.6 s.175
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• pp.663-673
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• 2005

This study investigates the relationship between the geochemical maps and the gold-silver deposit locations. Geochemical maps of 21 elements, which are published by KIGAM, locations of gold-silver deposits, and 1:1,000,000 scale geological map of Korea are utilized far this investigation. Pixel size of the basic geochemical maps is 250m and these data are resampled in 1km spacing for the statistical analyses. Relationship between the mine location and the geochemical data are investigated using bayesian statistics and decision tree algorithms. For the bayesian statistics, each geochemical maps are reclassified by percentile divisions which divides the data by 5, 25, 50, 75, 95, and $100\%$ data groups. Number of mine locations in these divisions are counted and the probabilities are calculated. Posterior probabilities of each pixel are calculated using the probability of 21 geochemical maps and the geological map. A prediction map of the mining locations is made by plotting the posterior probability. The input parameters for the decision tree construction are 21 geochemical elements and lithology, and the output parameters are 5 types of mines (Ag/Au, Cu, Fe, Pb/Zn, W) and absence of the mine. The locations for the absence of the mine are selected by resampling the overall area by 1 km spacing and eliminating my resampled points, which is in 750m distance from mine locations. A prediction map of each mine area is produced by applying the decision tree to every pixels. The prediction by Bayesian method is slightly better than the decision tree. However both prediction maps show reasonable match with the input mine locations. We interpret that such match indicate the rules produced by both methods are reasonable and therefore the geochemical data has strong relations with the mine locations. This implies that the geochemical rules could be used as background values oi mine locations, therefore could be used for evaluation of mine contamination. Bayesian statistics indicated that the probability of Au/Ag deposit increases as CaO, Cu, MgO, MnO, Pb and Li increases, and Zr decreases.

• Asia pacific journal of information systems
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• v.20 no.3
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• pp.191-204
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• 2010

Recently, the CO2 emission and energy consumption have become critical global issues to decide the future of nations. Especially, the spread of IT products and the increased use of internet and web applications result in the energy consumption and CO2 emission of IT industry though information technologies drive global economic growth. EU, the United States, Japan and other developed countries are using IT related environmental regulations such as WEEE(Waste Electrical and Electronic Equipment), RoHS(Restriction of the use of Certain Hazardous Substance), REACH(Registration, Evaluation, Authorization and Restriction of CHemicals) and EuP(Energy using Product), and have established systematic green business/IT strategies to enhance the competitiveness of IT industry. For example, the Japan government proposed the "Green IT initiative" for being compatible with economic growth and environmental protection. Not only energy saving technologies but energy saving systems have been developed for accomplishing sustainable development. Korea's CO2 emission and energy consumption continuously have grown at comparatively high rates. They are related to its industrial structure depending on high energy-consuming industries such as iron and steel Industry, automotive industry, shipbuilding industry, semiconductor industry, and so on. In particular, export proportion of IT manufacturing is quite high in Korea. For example, the global market share of the semiconductor such as DRAM was about 80% in 2008. Accordingly, Korea needs to establish a systematic strategy to respond to the global environmental regulations and to maintain competitiveness in the IT industry. However, green competitiveness of Korea ranked 11th among 15 major countries and R&D budget for green technology is not large enough to develop energy-saving technologies for infrastructure and value chain of low-carbon society though that grows at high rates. Moreover, there are no concrete action plans in Korea. This research aims to deduce the priorities of the Korean green business/IT strategies to use multi attribute weighted average method. We selected a panel of 19 experts who work at the green business related firms such as HP, IBM, Fujitsu and so on, and selected six assessment indices such as the urgency of the technology development, the technology gap between Korea and the developed countries, the effect of import substitution, the spillover effect of technology, the market growth, and the export potential of the package or stand-alone products by existing literature review. We submitted questionnaires at approximately weekly intervals to them for priorities of the green business/IT strategies. The strategies broadly classify as follows. The first strategy which consists of the green business/IT policy and standardization, process and performance management and IT industry and legislative alignment relates to government's role in the green economy. The second strategy relates to IT to support environment sustainability such as the travel and ways of working management, printer output and recycling, intelligent building, printer rationalization and collaboration and connectivity. The last strategy relates to green IT systems, services and usage such as the data center consolidation and energy management, hardware recycle decommission, server and storage virtualization, device power management, and service supplier management. All the questionnaires were assessed via a five-point Likert scale ranging from "very little" to "very large." Our findings show that the IT to support environment sustainability is prior to the other strategies. In detail, the green business /IT policy and standardization is the most important in the government's role. The strategies of intelligent building and the travel and ways of working management are prior to the others for supporting environment sustainability. Finally, the strategies for the data center consolidation and energy management and server and storage virtualization have the huge influence for green IT systems, services and usage This research results the following implications. The amount of energy consumption and CO2 emissions of IT equipment including electrical business equipment will need to be clearly indicated in order to manage the effect of green business/IT strategy. And it is necessary to develop tools that measure the performance of green business/IT by each step. Additionally, intelligent building could grow up in energy-saving, growth of low carbon and related industries together. It is necessary to expand the affect of virtualization though adjusting and controlling the relationship between the management teams.

• Journal of Distribution Science
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• v.10 no.7
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• pp.33-41
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• 2012

The purpose of this study is to analyse the state of the energy industry and to determine the efficiency of its functioning on the basis of energy conservation principle and application of innovative technologies aimed at improving the ecological modernisation of agricultural sectors of Kazakhstan. The research methodology is based on an integrated approach of financial and economic evaluation of the effectiveness of the investment project, based on calculation of elasticity, total costs and profitability, as well as on comparative, graphical and system analysis. The current stage is characterised by widely spread restructuring processes of electric power industry in many countries through introduction of new technical installations of energy facilities and increased government regulation in order to enhance the competitive advantage of electricity market. Electric power industry features a considerable value of creating areas. For example, by providing scientific and technical progress, it crucially affects not only the development but also the territorial organisation of productive forces, first of all the industry. In modern life, more than 90% of electricity and heat is obtained by Kazakhstan's economy by consuming non-renewable energy resources: different types of coal, oil shale, oil, natural gas and peat. Therefore, it is significant to ensure energy security, as the country faces a rapid fall back to mono-gas structure of fuel and energy balance. However, energy resources in Kazakhstan are spread very unevenly. Its main supplies are concentrated in northern and central parts of the republic, and the majority of consumers of electrical power live in the southern and western areas of the country. However, energy plays an important role in the economy of industrial production and to a large extent determines the level of competitive advantage, which is a promising condition for implementation of energy-saving and environmentally friendly technologies. In these circumstances, issues of modernisation and reforms of this sector in Kazakhstan gain more and more importance, which can be seen in the example of economically sustainable solutions of a large local monopoly company, significant savings in capital investment and efficiency of implementation of an investment project. A major disadvantage of development of electricity distribution companies is the prevalence of very high moral and physical amortisation of equipment, reaching almost 70-80%, which significantly increases the operating costs. For example, while an investment of 12 billion tenge was planned in 2009 in this branch, in 2012 it is planned to invest more than 17 billion. Obviously, despite the absolute increase, the rate of investment is still quite low, as the total demand in this area is at least more than 250 billion tenge. In addition, industrial infrastructure, including the objects of Kazakhstan electric power industry, have a tangible adverse impact on the environment. Thus, since there is a large number of various power projects that are sources of electromagnetic radiation, the environment is deteriorated. Hence, there is a need to optimise the efficiency of the organisation and management of production activities of energy companies, to create and implement new technologies, to ensure safe production and provide solutions to various environmental aspects. These are key strategic factors to ensure success of the modern energy sector of Kazakhstan. The contribution of authors in developing the scope of this subject is explained by the fact that there was not enough research in the energy sector, especially in the view of ecological modernisation. This work differs from similar works in Kazakhstan in the way that the proposed method of investment project calculation takes into account the time factor, which compares the current and future value of profit from the implementation of innovative equipment that helps to bring it to actual practise. The feasibility of writing this article lies in the need of forming a public policy in the industrial sector, including optimising the structure of energy disbursing rate, which complies with the terms of future modernised development of the domestic energy sector.

• Economic and Environmental Geology
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• v.48 no.6
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• pp.509-523
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• 2015

This study introduces newly implemented geological well logs database for Jeju public water wells, built for a research project focusing on integrated hydrogeology database of Jeju Island. A detailed analysis of the existing 1,200 Jeju Island geological logs for the public wells developed since 1970 revealed six major indications to be improved for their use in Jeju geological logs DB construction: (1) lack of uniformity in rock name classification, (2) poor definitions of pyroclastic deposits and sand and gravel layers, (3) lack of well borehole aquifer information, (4) lack of information on well screen installation in many water wells, (5) differences by person in geological logging descriptions. A new Jeju geological logs DB enabling standardized input and output formats has been implemented to overcome the above indications by reestablishing the names of Jeju volcanic and sedimentary rocks and utilizing a commercial, database-based input structured, geological log program. The newly designed database structure in geological log program enables users to store a large number of geology, well drilling, and test data at the standardized DB input structure. Also, well borehole groundwater and aquifer test data can be easily added without modifying the existing database structure. Thus, the newly implemented geological logs DB could be a standardized DB for a large number of Jeju existing public wells and new wells to be developed in the future at Jeju Island. Also, the new geological logs DB will be a basis for ongoing project 'Developing GIS-based integrated interpretation system for Jeju Island hydrogeology'.

• Journal of Distribution Science
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• v.10 no.4
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• pp.21-28
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• 2012

While recent economic stagnation has left consumers dispirited, rapid growth has been seen in the domestic coffee industry recently. With the growth in coffee consumption, a tremendous increase in the number of specialty coffee shops has been seen in the domestic coffee market. The expectation that markets specializing in coffee will continue to grow for a long time will cause existing enterprises to expand their shops and increase the rate of entry of new shops. Intense competition in the domestic coffee market will force companies to create a competitive advantage through differentiated marketing strategies. This paper focuses on how the shopping value and repatronage intention of customers using coffee shops is affected by service quality. Moreover, this paper intends to examine the service quality that is critical for the successful management of relationships and the values that are important to consumers. For these purposes, the discriminative effect of service quality on shopping value was analyzed and the effect of utilitarian and hedonic value on repatronage intention was reviewed. The results of this study are detailed below. First, interaction and outcome quality can positively affect the hedonic value, whereas environment quality is not meaningful for utilitarian value. Considering the relative effect on utilitarian value outcome, the effect of outcome quality is greater than that of interaction. This result shows that the role of outcome quality is most important for improving utilitarian value. Second, outcome and environment quality positively affect hedonic value; however, interaction quality does not meaningfully increase hedonic value. These results indicate that customers recognize hedonic value on the basis of their evaluation of the service outcomes and the background to delivery service. In particular, it was revealed that the relative effect of outcome quality on hedonic value is greater than that of environment quality. Third, both utilitarian value and hedonic value had a positive effect on repatronage intention. The relative influence of the hedonic value is that the shopping value affects the repatronage intention more than the utilitarian value. These results mean that customers recognize coffee shops as spaces for satisfying utilitarian and hedonic values, and they place more importance on the benefits of the emotional experience than functional needs. Finally, this study suggests that output quality is more important than other service factors, and the results of this paper give some implications to the coffee shop industry that customers seek utilitarian needs based on economic value and place more weight on hedonic value, such as that offered by relationship media.

• Journal of Korea Port Economic Association
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• v.33 no.2
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• pp.53-82
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• 2017

The purpose of this study is to show the clustering trend and compare empirical results, as well as to choose the clustering ports for 3 Korean ports (Busan, Incheon, and Gwangyang) by using meta-frontier DEA (Data Envelopment Analysis) and integer models on 38 Asian container ports over the period 2005-2014. The models consider 4 input variables (birth length, depth, total area, and number of cranes) and 1 output variable (container TEU). The main empirical results of the study are as follows. First, the meta-frontier DEA for Chinese seaports identifies as most efficient ports (in decreasing order) Shanghai, Hongkong, Ningbo, Qingdao, and Guangzhou, while efficient Korean seaports are Busan, Incheon, and Gwangyang. Second, the clustering results of the integer model show that the Busan port should cluster with Dubai, Hongkong, Shanghai, Guangzhou, Ningbo, Qingdao, Singapore, and Kaosiung, while Incheon and Gwangyang should cluster with Shahid Rajaee, Haifa, Khor Fakkan, Tanjung Perak, Osaka, Keelong, and Bangkok ports. Third, clustering through the integer model sharply increases the group efficiency of Incheon (401.84%) and Gwangyang (354.25%), but not that of the Busan port. Fourth, the efficiency ranking comparison between the two models before and after the clustering using the Wilcoxon signed-rank test is matched with the average level of group efficiency (57.88 %) and the technology gap ratio (80.93%). The policy implication of this study is that Korean port policy planners should employ meta-frontier DEA, as well as integer models when clustering is needed among Asian container ports for enhancing the efficiency. In addition Korean seaport managers and port authorities should introduce port development and management plans accounting for the reference and clustered seaports after careful analysis.

• Journal of Korea Port Economic Association
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• v.34 no.3
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• pp.17-52
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• 2018

The purpose of this paper is to measure the clustering change and analyze empirical results. Additionally, by using k-means, hierarchical, and mixed models on Asian container ports over the period 2006-2015, the study aims to form a cluster comprising Busan, Incheon, and Gwangyang ports. The models consider the number of cranes, depth, birth length, and total area as inputs and container twenty-foot equivalent units(TEU) as output. Following are the main empirical results. First, ranking order according to the increasing ratio during the 10 years analysis shows that the value for average linkage(AL), mixed ward, rule of thumb(RT)& elbow, ward, and mixed AL are 42.04% up, 35.01% up, 30.47%up, and 23.65% up, respectively. Second, according to the RT and elbow models, the three Korean ports can be clustered with Asian ports in the following manner: Busan Port(Hong Kong, Guangzhou, Qingdao, and Singapore), Incheon Port(Tokyo, Nagoya, Osaka, Manila, and Bangkok), and Gwangyang Port(Gungzhou, Ningbo, Qingdao, and Kasiung). Third, optimal clustering numbers are as follows: AL(6), Mixed Ward(5), RT&elbow(4), Ward(5), and Mixed AL(6). Fourth, empirical clustering results match with those of questionnaire-Busan Port(80%), Incheon Port(17%), and Gwangyang Port(50%). The policy implication is that related parties of Korean seaports should introduce port improvement plans like the benchmarking of clustered seaports.