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A Study on the Market Structure Analysis for Durable Goods Using Consideration Set:An Exploratory Approach for Automotive Market (고려상표군을 이용한 내구재 시장구조 분석에 관한 연구: 자동차 시장에 대한 탐색적 분석방법)

  • Lee, Seokoo
    • Asia Marketing Journal
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    • v.14 no.2
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    • pp.157-176
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    • 2012
  • Brand switching data frequently used in market structure analysis is adequate to analyze non- durable goods, because it can capture competition between specific two brands. But brand switching data sometimes can not be used to analyze goods like automobiles having long term duration because one of main assumptions that consumer preference toward brand attributes is not changed against time can be violated. Therefore a new type of data which can precisely capture competition among durable goods is needed. Another problem of using brand switching data collected from actual purchase behavior is short of explanation why consumers consider different set of brands. Considering above problems, main purpose of this study is to analyze market structure for durable goods with consideration set. The author uses exploratory approach and latent class clustering to identify market structure based on heterogeneous consideration set among consumers. Then the relationship between some factors and consideration set formation is analyzed. Some benefits and two demographic variables - age and income - are selected as factors based on consumer behavior theory. The author analyzed USA automotive market with top 11 brands using exploratory approach and latent class clustering. 2,500 respondents are randomly selected from the total sample and used for analysis. Six models concerning market structure are established to test. Model 1 means non-structured market and model 6 means market structure composed of six sub-markets. It is exploratory approach because any hypothetical market structure is not defined. The result showed that model 1 is insufficient to fit data. It implies that USA automotive market is a structured market. Model 3 with three market structures is significant and identified as the optimal market structure in USA automotive market. Three sub markets are named as USA brands, Asian Brands, and European Brands. And it implies that country of origin effect may exist in USA automotive market. Comparison between modal classification by derived market structures and probabilistic classification by research model was conducted to test how model 3 can correctly classify respondents. The model classify 97% of respondents exactly. The result of this study is different from those of previous research. Previous research used confirmatory approach. Car type and price were chosen as criteria for market structuring and car type-price structure was revealed as the optimal structure for USA automotive market. But this research used exploratory approach without hypothetical market structures. It is not concluded yet which approach is superior. For confirmatory approach, hypothetical market structures should be established exhaustively, because the optimal market structure is selected among hypothetical structures. On the other hand, exploratory approach has a potential problem that validity for derived optimal market structure is somewhat difficult to verify. There also exist market boundary difference between this research and previous research. While previous research analyzed seven car brands, this research analyzed eleven car brands. Both researches seemed to represent entire car market, because cumulative market shares for analyzed brands exceeds 50%. But market boundary difference might affect the different results. Though both researches showed different results, it is obvious that country of origin effect among brands should be considered as important criteria to analyze USA automotive market structure. This research tried to explain heterogeneity of consideration sets among consumers using benefits and two demographic factors, sex and income. Benefit works as a key variable for consumer decision process, and also works as an important criterion in market segmentation. Three factors - trust/safety, image/fun to drive, and economy - are identified among nine benefit related measure. Then the relationship between market structures and independent variables is analyzed using multinomial regression. Independent variables are three benefit factors and two demographic factors. The result showed that all independent variables can be used to explain why there exist different market structures in USA automotive market. For example, a male consumer who perceives all benefits important and has lower income tends to consider domestic brands more than European brands. And the result also showed benefits, sex, and income have an effect to consideration set formation. Though it is generally perceived that a consumer who has higher income is likely to purchase a high priced car, it is notable that American consumers perceived benefits of domestic brands much positive regardless of income. Male consumers especially showed higher loyalty for domestic brands. Managerial implications of this research are as follow. Though implication may be confined to the USA automotive market, the effect of sex on automotive buying behavior should be analyzed. The automotive market is traditionally conceived as male consumers oriented market. But the proportion of female consumers has grown over the years in the automotive market. It is natural outcome that Volvo and Hyundai motors recently developed new cars which are targeted for women market. Secondly, the model used in this research can be applied easier than that of previous researches. Exploratory approach has many advantages except difficulty to apply for practice, because it tends to accompany with complicated model and to require various types of data. The data needed for the model in this research are a few items such as purchased brands, consideration set, some benefits, and some demographic factors and easy to collect from consumers.

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HYPER SUPRIME-CAMERA SURVEY OF THE AKARI NEP WIDE FIELD

  • Goto, Tomotsugu;Toba, Yoshiki;Utsumi, Yousuke;Oi, Nagisa;Takagi, Toshinobu;Malkan, Matt;Ohayma, Youichi;Murata, Kazumi;Price, Paul;Karouzos, Marios;Matsuhara, Hideo;Nakagawa, Takao;Wada, Takehiko;Serjeant, Steve;Burgarella, Denis;Buat, Veronique;Takada, Masahiro;Miyazaki, Satoshi;Oguri, Masamune;Miyaji, Takamitsu;Oyabu, Shinki;White, Glenn;Takeuchi, Tsutomu;Inami, Hanae;Perason, Chris;Malek, Katarzyna;Marchetti, Lucia;Lee, HyungMoK;Im, Myung;Kim, Seong Jin;Koptelova, Ekaterina;Chao, Dani;Wu, Yi-Han;AKARI NEP Survey team;AKARIAll Sky Survey Team
    • Publications of The Korean Astronomical Society
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    • v.32 no.1
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    • pp.225-230
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    • 2017
  • The extragalactic background suggests half the energy generated by stars was reprocessed into the infrared (IR) by dust. At z~1.3, 90% of star formation is obscured by dust. To fully understand the cosmic star formation history, it is critical to investigate infrared emission. AKARI has made deep mid-IR observation using its continuous 9-band filters in the NEP field ($5.4deg^2$), using ~10% of the entire pointed observations available throughout its lifetime. However, there remain 11,000 AKARI infrared sources undetected with the previous CFHT/Megacam imaging (r ~25.9ABmag). Redshift and IR luminosity of these sources are unknown. These sources may contribute significantly to the cosmic star-formation rate density (CSFRD). For example, if they all lie at 1< z <2, the CSFRD will be twice as high at the epoch. We are carrying out deep imaging of the NEP field in 5 broad bands (g, r, i, z, and y) using Hyper Suprime-Camera (HSC), which has 1.5 deg field of view in diameter on Subaru 8m telescope. This will provide photometric redshift information, and thereby IR luminosity for the previously-undetected 11,000 faint AKARI IR sources. Combined with AKARI's mid-IR AGN/SF diagnosis, and accurate midIR luminosity measurement, this will allow a complete census of cosmic star-formation/AGN accretion history obscured by dust.

The Study on Consumption of Health Supplements and Herbal Medicines by Elementary School Students in Gyeonggi-do (수도권 지역 초등학생의 건강기능식품 및 한약 복용 실태에 대한 연구)

  • Kim, Mi-Ki;Jung, Ji-Ho;Shin, Kwon-Sung;Lee, John Dong-Yeop;Lee, Hai-Ja;Park, Eun-Jung
    • The Journal of Pediatrics of Korean Medicine
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    • v.24 no.2
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    • pp.40-48
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    • 2010
  • Objectives The purpose of this study is to get the basic information about the actual amount of consumption of the Health supplements and Herbal Medicines. Also, we investigated the consumption differences according to the regions. Methods 500 questionnaires were handed out to parents of elementary students in O O, Gyeonggi-do province, and 331 questionnaires were collected and evaluated for this study. Results Among the 331 students, 58.4% were female, and 41.6% were male. The percentages of the subjects consuming health supplements and herbal medicines were 67.4% and 59.2% respectively. The maximum period of taking the health supplements were from 1 month to 6 month (49.5%), and the maximum period of taking the herbal medicine was within one month (55.6%). The total cost of the health supplements was less than 100,000won (43.7%), which was the most common while herbal medicine cost was between 100,000won and 200,000won (40.6%). The most common age of consuming the health supplements and herbal medicine for the first time was six to ten years old (47.3%); the case of herbal medicine was one to six years old (64.0%). Most of people purchased health supplements from pharmacy (48.0%), and purchased the herbal medicine from the oriental medical clinic (61.8%). Among those people who purchased health supplements, they bought nutritional supplements (82.8%), red ginseng or ginseng products (43.4%), plum extract products (10.9%), and chlorella products (6.8%). The reason for consuming health supplements was to be healthier even though there is no ongoing illness (47.1%), which was the most common reason. The reason for consuming herbal medicine was to cure weakness (39.3%). For the responses about effectiveness after taking medications, people thought herbal medicine seemed to be more effective compare to health supplements (72.3%, 63% respectively). Only 1.4% of the subjects consuming the health supplements showed adverse effects while herbal medicine showed 4.6%. The most common adverse effects were 'general reaction' caused by the health supplements and dermatologic problems caused by the herbal medications. Conclusions Among 331 subjects, the percentage of consuming the health supplements (67.4%) was higher than the Herbal Medicine (59.2%). The total consuming cost of the herbal medications was higher than general health supplements. Also, the maximum period of consuming the health supplements was longer than herbal medications. Therefore, it is shown that herbal medications have no price competitiveness compare to health supplements. The age of using the herbal medicine for the first time was younger than the health supplements. Even though many people can purchase both health supplements and herbal medication from pharmacies and local oriental medical clinic, it is also shown that some people thought that the health supplements should be purchased from oriental medical hospital (13.9%). The most commonly taken forms of the health supplement was nutrition-supplying products, and the second common health supplements were ginseng and red ginseng. The health supplements were commonly consumed for preventing illness and for maintaining healthy life rather than for cure diseases. On the other hand, the herbal medicine was more commonly consumed to be taller or to treat diseases. More than half of the entire people replied as 'satisfied' for their purchase. Some adverse effects and general reaction were common with the subjects consuming health supplements while dermatological adverse reaction was common with the subjects consuming herbal medications.

Power Conscious Disk Scheduling for Multimedia Data Retrieval (저전력 환경에서 멀티미디어 자료 재생을 위한 디스크 스케줄링 기법)

  • Choi, Jung-Wan;Won, Yoo-Jip;Jung, Won-Min
    • Journal of KIISE:Computer Systems and Theory
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    • v.33 no.4
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    • pp.242-255
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    • 2006
  • In the recent years, Popularization of mobile devices such as Smart Phones, PDAs and MP3 Players causes rapid increasing necessity of Power management technology because it is most essential factor of mobile devices. On the other hand, despite low price, hard disk has large capacity and high speed. Even it can be made small enough today, too. So it appropriates mobile devices. but it consumes too much power to embed In mobile devices. Due to these motivations, in this paper we had suggested methods of minimizing Power consumption while playing multimedia data in the disk media for real-time and we evaluated what we had suggested. Strict limitation of power consumption of mobile devices has a big impact on designing both hardware and software. One difference between real-time multimedia streaming data and legacy text based data is requirement about continuity of data supply. This fact is why disk drive must persist in active state for the entire playback duration, from power management point of view; it nay be a great burden. A legacy power management function of mobile disk drive affects quality of multimedia playback negatively because of excessive I/O requests when the disk is in standby state. Therefore, in this paper, we analyze power consumption profile of disk drive in detail, and we develop the algorithm which can play multimedia data effectively using less power. This algorithm calculates number of data block to be read and time duration of active/standby state. From this, the algorithm suggested in this paper does optimal scheduling that is ensuring continual playback of data blocks stored in mobile disk drive. And we implement our algorithms in publicly available MPEG player software. This MPEG player software saves up to 60% of power consumption as compared with full-time active stated disk drive, and 38% of power consumption by comparison with disk drive controlled by native power management method.

The Efficient Merge Operation in Log Buffer-Based Flash Translation Layer for Enhanced Random Writing (임의쓰기 성능향상을 위한 로그블록 기반 FTL의 효율적인 합병연산)

  • Lee, Jun-Hyuk;Roh, Hong-Chan;Park, Sang-Hyun
    • The KIPS Transactions:PartD
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    • v.19D no.2
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    • pp.161-186
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    • 2012
  • Recently, the flash memory consistently increases the storage capacity while the price of the memory is being cheap. This makes the mass storage SSD(Solid State Drive) popular. The flash memory, however, has a lot of defects. In order that these defects should be complimented, it is needed to use the FTL(Flash Translation Layer) as a special layer. To operate restrictions of the hardware efficiently, the FTL that is essential to work plays a role of transferring from the logical sector number of file systems to the physical sector number of the flash memory. Especially, the poor performance is attributed to Erase-Before-Write among the flash memory's restrictions, and even if there are lots of studies based on the log block, a few problems still exists in order for the mass storage flash memory to be operated. If the FAST based on Log Block-Based Flash often is generated in the wide locality causing the random writing, the merge operation will be occur as the sectors is not used in the data block. In other words, the block thrashing which is not effective occurs and then, the flash memory's performance get worse. If the log-block makes the overwriting caused, the log-block is executed like a cache and this technique contributes to developing the flash memory performance improvement. This study for the improvement of the random writing demonstrates that the log block is operated like not only the cache but also the entire flash memory so that the merge operation and the erase operation are diminished as there are a distinct mapping table called as the offset mapping table for the operation. The new FTL is to be defined as the XAST(extensively-Associative Sector Translation). The XAST manages the offset mapping table with efficiency based on the spatial locality and temporal locality.

A Study on the Construction Cost Risk through Analyzing the Actual Cost of Public Apartment (공공주택 실적공사비 분석을 통한 공사비 리스크에 관한 연구)

  • Yoon, Woo-Sung;Go, Seong-Seok
    • Korean Journal of Construction Engineering and Management
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    • v.12 no.6
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    • pp.65-78
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    • 2011
  • Construction business, which is complex and long-term business, requires accurate estimation and verification in construction costs and payment procedure from project planning to the completion of construction phase. And more importantly, it is necessary to investigate and determine the risk factors related to construction costs during the entire process including design planning, construction drawings, and quantity calculating. But, currently, it is not seem to be adequate to cope with the risk and increased construction costs against the operational budget in terms of actual costs when screening and estimating the bidding cost of public apartment. Therefore, this study selected and analyzed 40 sites' report of construction completion account from 2004 to 2010 focused on the adequacy on the modification of contract and design planning and on the complication of the budget in the beginning of the project. This study deducted various risk causes and results by analyzing actual costs according to year, architectural area, region, construction cost and sale/lease classification. We could find out construction risk according to annual variation of government policy and economy, and also deducted risk items by construction characteristic according to region and architectural area. Study result, we first found out the problems of lowest price award system according to the construction costs. The weight of the cost increase risk was analyzed that subcontract and material costs are very high. Roof and tile work were analyzed highly in subcontract cost risk and reinforcing bar and cement were analyzed highly in material cost risk, among direct construction cost. Finally, this study results could be used in comparing the categories of the construction costs made by specific construction process, belonging to the construction costs, with the operational budget made in the beginning of the project that can enable to grasp unpredictable risks over the construction costs and making quantitative analysis for it through analyzing the range of fluctuation and variations led by the fluctuations in the actual construction costs.

Structural Decomposition Analysis on Changes in Industrial Energy Use in Korea, 1980~2000 (구조분해분석을 통한 국내 산업별 에너지 소비 변화요인 연구)

  • Kim, Jin-Soo;Heo, Eunnyeong
    • Environmental and Resource Economics Review
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    • v.14 no.2
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    • pp.257-290
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    • 2005
  • Korean energy use in industrial sector has increased more rapidly than other sectors during 1980~2000 periods. Relatively higher increases in industrial sector energy consumption raise questions whether government policy of rationalization of industrial energy use has been effective. In this study, we use 80-85-90 and 90-95-00 constant price input-output table to analyze increases in industrial energy use. Using an adjusted version of structural decomposition model introduced by Chen and Rose (1990), we decompose Changes of energy use into 17 elements. We classify entire industry sector into 32 sectors including four energy sectors (coal and coal products, refined petroleum, electricity and town gas). We then analyze changes of energy use by industrial level to check differences among industrial energy demand structures. Finally, we compare three industries, electronic product manufacturing, metal manufacturing and construction, that represent technology and capital intensive, energy and material intensive and labor and capital intensive industry. As results, we find that high energy using industries make the most effort to reduce energy use. Primary metal, petrochemical and mon-metal industries show improvements in elements such as energy and material productivity, energy and material imports, energy substitution and material substitutions towards energy saving. These results imply that although those industries are heavy users of energy, they put the best effort to reduce energy use relative to other industries. We find various patterns of change in industrial energy use at industrial level. To reduce energy use, electronic product manufacturing industry needs more effort to improve technological change element while construction industry needs more effort to improve material input structure element.

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Crosshole EM 2.5D Modeling by the Extended Born Approximation (확장된 Born 근사에 의한 시추공간 전자탐사 2.5차원 모델링)

  • Cho, In-Ky;Suh, Jung-Hee
    • Geophysics and Geophysical Exploration
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    • v.1 no.2
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    • pp.127-135
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    • 1998
  • The Born approximation is widely used for solving the complex scattering problems in electromagnetics. Approximating total internal electric field by the background field is reasonable for small material contrasts as long as scatterer is not too large and the frequency is not too high. However in many geophysical applications, moderate and high conductivity contrasts cause both real and imaginary part of internal electric field to differ greatly from background. In the extended Born approximation, which can improve the accuracy of Born approximation dramatically, the total electric field in the integral over the scattering volume is approximated by the background electric field projected to a depolarization tensor. The finite difference and elements methods are usually used in EM scattering problems with a 2D model and a 3D source, due to their capability for simulating complex subsurface conductivity distributions. The price paid for a 3D source is that many wavenumber domain solutions and their inverse Fourier transform must be computed. In these differential equation methods, all the area including homogeneous region should be discretized, which increases the number of nodes and matrix size. Therefore, the differential equation methods need a lot of computing time and large memory. In this study, EM modeling program for a 2D model and a 3D source is developed, which is based on the extended Born approximation. The solution is very fast and stable. Using the program, crosshole EM responses with a vertical magnetic dipole source are obtained and the results are compared with those of 3D integral equation solutions. The agreement between the integral equation solution and extended Born approximation is remarkable within the entire frequency range, but degrades with the increase of conductivity contrast between anomalous body and background medium. The extended Born approximation is accurate in the case conductivity contrast is lower than 1:10. Therefore, the location and conductivity of the anomalous body can be estimated effectively by the extended Born approximation although the quantitative estimate of conductivity is difficult for the case conductivity contrast is too high.

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The Development of Coin Circulation Institutes and their Regional Impact during the Reign of King Hyojong(孝宗) (효종조(孝宗朝) 행전사목(行錢事目)과 행전책(行錢策), 성과와 한계)

  • JUNG, Suhwan
    • (The)Study of the Eastern Classic
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    • no.73
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    • pp.153-184
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    • 2018
  • The aim of this thesis was to examine the circumstances that led up to successful coin use across the entire nation in 1678 (the $4^{th}$ year of King Sukjong's reign), during the Joseon Dynasty. To this end, this thesis analysed the Sa-Mouk(事目, Provisions) that contained the institutional protocol for coin circulation, implemented by King Hyojong and the statesman Kim Youk(金堉) who had practical experience in these matters over the ten years of King Hyojong's reign(1649-1659). To regulate the problematic wide circulation of coarse cotton cloth as currency in the market of 1650 (the $1^{st}$ year of King Hyojong's reign), prohibition measures were implemented. Besides the superficial justification given for these measures(i.e., that the market price was disturbed by the use of coarse cotton cloth), there was another purpose to prohibiting the circulation of cotton cloth as money, following the standard ruled by the government: the state aimed to ensure momentum for the upcoming coin circulation policy, by strengthening its control of the current economy. In 1651 (the $2^{nd}$ year of King Hyojong's reign), the government fully cracked down on the use of coarse cotton cloth as currency, and simultaneously implemented its coin circulation policy in the Pyeongan(平安) region. The pretext for this policy was to raise finances to support people who were starving as a result of poor harvests and famine. People who received coins from government officials could purchase food in the market, and the coin circulation policy was judged to be successful. Subsequently, to extend coin circulation further throughout the region, the Sa-Mouk for Seoul was established. The Sa-Mouk included stipulations regarding the use of coin in transactions and for government expenditure; it aimed thereby to enhance the national policy's market credit. The hasty implementation of the policy for the expansion of coin circulation caused some problems that required its modification. In 1652 (the $3^{rd}$ year of King Hyojong's reign), coin circulation was increased to encompass the Gyeonggi(京畿) region, and some of the tax that had been paid in rice was now paid in coin. However, coins were in short supply, since there was insufficient copper, the main material used in coin production, and the policy faced a significant limitation. Therefore, in 1655(the $6^{th}$ year of King Hyojong's reign), a new Sa-Mouk for coin circulation was established. This Sa-Mouk included specifications regarding the determination of coin values based on rice and silver, and mandated the wide spread installation of stores for exchanging spot goods for coins throughout the region in which coins were circulating. This policy's objective was to secure stability for the national economy by further regulating coin circulation. The sustained implementation of the coin circulation policy for ten years by King Hyojong and the statesman Kim Youk offered the government an opportunity to accumulate experience in coin circulation in the market, and also to learn from institutional trial and error. This may have been one of the contributing factors to the nation-wide coin circulation that was established in 1678. The objective of the policy implemented during King Hyojong's reign was not to meet the market's requirements, but rather to ensure the preservation of the national economy, and this misjudgement constituted the policy's key limitation. At this time, the government urgently needed to secure finances to cope with the war against China's Qing Dynasty.

A Study on Medium-Sized Enterprises of Japan (일본의 중견기업에 관한 연구 : 현황과 특징, 정책을 중심으로)

  • Kang, Cheol Gu;Kim, Hyun Sung;Kim, Hyun Chul
    • Korean small business review
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    • v.32 no.2
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    • pp.209-223
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    • 2010
  • Korea's business is composed of a few large-sized enterprises (which can be abbreviated as LSE) and a majority of small-sized enterprises (SSE). Although there has been a growing recognition of the need for the development of medium-sized enterprises (MSE) which can serve as a link between SSE and LSE, as yet there has not yet been a consensus on the definition, characteristics and the function of the MSE in Korea. Nowadays, the world is being globalized, and Japan and China are in competition to ne a great economic power. While East Asia is experiencing rapid changes, promoting MSE which can secure flexibility and efficiency through covering up the limitation of LSE and SSE is needed in order to respond the global market which is being specialized. The features of MSE in Japan can be listed as follows. First, the MSE in Japan is developing the company through getting into niche markets which are hard for major companies to enter rather than developing markets in order to compete against major companies directly. While MSEs are endeavoring to build the business firmly in the domestic market, they can possess special and competitive technical skills through trials and errors; so that they can get a chance develop their business through independent business system rather than putting their effort to compete against major companies. Second, from the MSEs with competitive edge in the market, there are many contributions to the national exportation. Those MSEs produce in domestic and maintain the quality of high price products which need cutting-edge technology, while they relocate the low and middle priced goods to the country where manufacturing costs are low, so that they can maintain the price competitiveness. Third, the industrial structure in Japan is formed from dual structure between major companies and small sized companies. In other words, in Japan's industrial structure which are composed of subcontract structure, this dual structure has taken a major role of small sized companies' growth and manufacturing businesses' international competitive power. Forth, MSE in Japan adopt a strategy of putting their value on qualitative scale growth rather than quantitative scale growth. In this paper, the case of Japanese MSE is analyzed. Along with its long history of Industrialization, Japan has a corporate environment where the SSEs can develop as a MSE and later a LSE through a full-support system. Among its SSEs, there are a number of world class corporations equipped with a large domestic market, win-win cooperation with the LSEs and an independent technology development. It can also be observed that these SSEs develop into MSEs with sustainable growth potentials. This study will focus on the condition under which the MSEs of Japan have been developed, and how they have survived the competition between SSEs and LSEs. Through this study, this paper attempts to offer solutions to Korea's polarization between the SSE and LSE, while providing the basis for SSEs revitalization. In general, if both extremities phenomenon deepen between LSE and SSE, there are possible fears of occurring disutility in national economy by the monopolization of LSE. For that reason, enterprise group, which can make SSE or MSE compete LSE in some area and ease the monopoly and oligopoly problem, is needed. This awareness has been shared for ages long. Nevertheless, there is no legal definition for MSE in Japan, and there is no definition about the enterprise size or unified view of MSE between scholars, but it is defined differently by each of academical person or research institution and study meeting. For that reason, this paper will organize the definition of MSE in Japan, and then will propose the characteristics of the background which has made MSE secure competitiveness and sustainable growth in global market. This study focus on that because through this process, the positive change to the awareness of MSE can be proposed in Korea and to seek the policy direction for building institutional framework which can make SSE become MES. Through this way, the fundamentals for SSE to become MSE can be managed and some appropriate suggestions which will be able to make MSE enter the global market in the future can also be proposed. Due to these facts, this study is very important and well timed task. In a sense of this way, this study will examine the definition and role of MSE in Japan. after this examination, this study will deal with the status, special feature, and promotion policy for MSE. Through this analysis of MSE in Japan, the foundation which be able to set the desirable role model for MSE in Korea can be proposed. Also, the political implication which is needed to push ahead to contribute to creating employment and economic growth through sustainable growth of MSEs in economic system of Korea can be offered through this study. It has been found that Japan's MSE functions as an indispensable link among various industrial structures by holding a significant position in employment rate, production and value added. Although the MSEs took up less than 1% of the entire number of businesses with 2700 manufacturing firms and 7000 non-manufacturing firms, its employment ratios are about 15%, while taking about 25% of the manufacturing industry's exports. In industries such as machinery and electronics which is considered Japan's major industry, the MSEs showed a higher than average ratio of manufacturing exports and employment rate. It can be analyzed that behind Japan's advantageous industries, close and deeply knit MSEs exist. Although there are no clearly stated policies geared towards the MSEs by the Japanese government, various political measures exist such as the R&D Project and the inducement of cooperation between enterprises which gives room for MSEs to participate in the SSE policies. In relation to these findings, the following practical measures can be considered in order to revitalize Korea's MSEs: First, there is a need for a legal definition of MSE and the incentives to provide legal support for its growth. Second, if a law to support the MSEs is established, it could provide a powerful inducement for the SSE to grow as a MSE, rather than stay as a SSE. Third, there is a need for a strategy of MSEs to establish a stable base in the domestic market and then advance to the global market with the accumulated trial and error and competitiveness. Fourth, the SSE themselves need the spirit of entrepreneurship in order to make the leap to a MSE. Because if nothing is to be changed about the system on the firms that grew, and the parts of the past custom was left to be managed alone, confusion and absence of management can take place. No matter how much tax favors the government will give and no matter how much incentive there could be through the policies, there are limits for industries to higher the ability to propagate. And because of that it is a period where industries need their own innovative skills to reform their firms.