• Journal of the Korean Society of Food Science and Nutrition
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• v.33 no.4
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• pp.659-667
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• 2004

Plantain has been used for antidiarrhea, antihemorrhage and the remedy of indigestion. Plantain was extracted with ethanol and fractionated systemically with n-hexane, chloroform, ethylacetate (EtOAC) and n-butanol. Antioxidant index (AI was expressed as induction period of oil containing various fractions/induction period of oil of 600 ppm) of EtOAC fraction was the highest among fractions in vitro. The protective effects of the EtOAC fraction of plantain (PE) administered 1 mL orally or intraduodenally on experimentally induced gastritis, gastric ulcer and gastric secretion were evaluated in rats. Sprague-Dawley rats weighing 250∼300 g were divided into 4 groups; negative control group (CON), PE 200 mg/kg treated group (PEL), PE 400 mg/kg treated group (PEH) and positive control group (cimetidine 100 mg/kg-CMT or omeprazol 100 mg/kg treated group-OMT), respectively, PE significantly suppressed HCl-ethanol induced gastric lesions and indomethacin-induced gastric ulcers (administered subcutaneouly) in rats. Specially PE 400 mg/kg showed significantly inhibitory effect, which was more potent than that of 100 mg/kg of commercial drug, cimetidine, and elevated an inhibitory effect to be close to the level in inhibitory ratio of omeprazol administered group in Shay's ucler. On gastric secretion in pylorus ligated rat, PE 200 mg/kg and 400 mg/kg decreased the gastric volume and acid output, but did not show an apparent effect on pepsin activity. In addition, PE 400 mg/kg depressed gastric ulcers induced by water immersion stress and duodenal ulcers induced by cysteamine administered subcutaneouly. These results suggest that the ethylacetate fraction of plantain can be used in prevention and treatment of experimentally induced gastric mucosal damage and ulcers.

• Korean journal of communication and information
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• v.39
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• pp.250-283
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• 2007

The Shinmoongo (Shinmoon-drum) system is known as the last means of petition, appeal, and, denunciation during the Chosun dynasty. The purpose of this study is first to examine the system's origin and changes of its function and operation. The study further looks at several issues around the striking gong system, an alternative appealing method, and its background and transition. Introduced by King Taejong, the Shinmoongo was a kind of the press (or communication) system which was intended to deliver various cases of personal appeal, social petition, national denunciation, etc. Since the 2nd year of King Sejong, the system had been changed into the legal system which mainly to settle personal mortifying problem. Originally, the system was institutionalized for the common people who were hard to appeal their mortifying affairs to the supervisory administration. This reporting system to a superior was utilized as an institutional device to remedy abuses from 'complaint to the King near his sedan chair' and 'direct complaint out of order' during the early disordered years of Chosun dynasty. The system was often abused for the devices of private interest by illustrious officials. Meanwhile, it carried out a role of checking power abuses of provincial governors and magistrates. There were many obstacles for the common people and lowly people to turn to the means. The drum was located at the palace of capitol, less accessible for most people at the time. The petition had to be processed through several steps in written forms. The punishment on a false drummer was heavy. It inhibited any appeal concerning the superior under the rigorous caste system. The Shinmoongo system is regarded as a legitimate press system. Also, it is taken as informal or semi-official press system such as 'document to send around', 'document for agitation', 'joint petition', 'striking gong to complain', 'complaint to the King near his sedan chair', 'scream to complain', etc. Connecting together, the tools resulted in the increase of regal power and decrease of divine authority.

• Journal of Korean Medical Ki-Gong Academy
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• v.1 no.1
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• pp.13-59
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• 1996

Dep. of Classics &Medical History, College of Oriental Medicint, Kyung Hee University Today, many people are more interested Today, many people are more interested in preventing the disease than curing it. Chi-Kung(氣功) is the way of Life-Cultivation(養生法) peculiar to the orient, it is reported in china that Chi-Kung has an excellent curative value not only in curing the disease but also in preventing it. But the full-scale study of Chi-Kung is not be made up to now in Korea, so I studied the developmental history of chinese Chi-Kung through the oriental medical books. From this study, I reached the following conclusions; 1. Chi-Kung is naturally derived from the self-preservation instinct to adapt oneself to circumstances of the nature, but in the investigation from the documentational records, it is originated in the treatment method of the Sam-Huang-O-Jae(三皇五帝) period to cure the abnormal circulation of the vital force and blood caused by damp(濕). 2. As the principle and the method of the Life-Cultivation of the Chun-Chu-Jeon-Kook(春秋戰國) period were recorded in Huang-Jae-Nai-Gyung(黃帝內經) detailly and the remedy examples by ancient Chi-Kung such as Tao-Yin(導引), Haeng-Chi(行氣) were presented, we considered that theoretical basis of the development of Life-cultivation and Chi-Kung study was furnished in that period. 3. A famous doctor, Hwa-Ta(華引) lived in Han dynasty, researched the theory and practice of Tao-Yin transmitted from the former generations, as that result, he formed a kind of medical, gymnastics what is called O-Keum-Hi(五禽?). It is considered that 'O-Keum-Hi' is a Tao-Yin method developed more practically and systemetically than the Tao-Yin appeared in the 'Jang-Ja'(莊子) or 'Hoy-Nam-Ja'(淮南子). 4. In Wui-Jin-Nambook-Jo(魏曺南北朝) periods, the contents of Chi-Kung were more abundant under the influence of Buddhism(佛敎) and Taoism(道敎). Galhong(葛洪), the author of 'Po-Bak-Ja'(抱朴子) arranged the ancient Chi-Kung method systematically first of all, Tao-Goeng-Gyung, the author of 'Yang-Seong-Yeun-Myung-Rok'(養性延命錄) recorded the 'Yook-Ja-Geul'(六字訣) first time. 5. There is a new development of Chi-Kung therapy in Soo-Tang-Odae(隋唐五代) periods, especially So-Won-Bang(巢元方), the author of 'Jey-Bang-Won-Hwu-Ron' collected almost all of the Chi-Kung method, for curing the disease formed before Soo(隋) period. From that fact, we supposed that Chi-Kung was utilized more widely in curing the disease. 6. 'So-Ju-Cheon-Hwa-Hu-Peob'(小周天火候法) was adopted as the best orthodox approach under the influence of Nae-Tan-Taoist(道敎內丹學波) in Song-Keum-Won(宋金元) periods, especially in the song dynasty, 'Pal-Dan-Geum'(八段錦) was appearde and assignment of six-Chi(六氣) for bowel and viscera in the 'Yook-Ja-Geul'(六字訣) was decided firmly, that is to say Lung-Si(肺-?), Heart-Kha(心-呵), Spleen-Hoa(脾-呼), liver-Hoe(肝-噓), Kidney-chui(賢-吹), Three-Burner-shi(三焦-?). 7. In Myung-Cheong(明淸) periods, The general practitioner applied the principle of 'Byun-Jeng-Ron-Chi(辨證論治) to the Chi-Kung field, and after Myung dynasty the style of doing 'Yook-Ja-Gyel'(六字訣) was developed to the moving style. 8. Today, in china, the study on the Chi-Kyung is being progressed constantly under the positive assistance of government, Chi-Kung-Hak(氣功學) has taking its place as a branch of study step by step. It is considered that the establishment of Chi-Kung-Hak Classroom(氣功學敎室) and Medical Chi-Kung Center(氣功療法室) for special and systematic research are needed, at the same time the settlement of institutional system for training the Chi-Kung technician(氣功師) is also needed.

• Journal of Korean Public Health Nursing
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• v.6 no.1
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• pp.32-45
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• 1992

An important role of community health nurses in health centers is to solve community health problems found through data collection methodology which has been used to identify the health needs of the community, diagnose the health problems and to plan health programs suitable for the health problems. Also community health nurses must be prepared to know the community health needs and to participate in the planning process. Since 1956 when the health center law was established, community health nurses have really implemented only the services which the government has asked them to do. This has kept them busy enough. But these days as society is in rapid change, community health nurses should have the flexibility to deal with the social change and demands that are unique to their community each which has different health needs and demands. So community health nurses need to identify what community health problems exist in their particular communities. The purposes of this study were as follows. 1) To explore the suitability of the health programs which the government has asked the community health nurses to do for their own communities and if these programs are not suitable, to explore the reasons why. 2) To explore the degree to which the community health nurses have the ability to identify health problems in their own communities and activate the community diagnostic process. 3) To identify the degree that the community health nurses have the ability to implement plans related to community diagnosis. 4) To find out how much data related to community health problems, the community health nurses have and how they are utilizing it. 5) To measure the community health nurses self-confidence concerning diagnostic activities for community health. The study subjects were 454 Community Health Nurses working in Health Centers in Seoul, Korea. The period of data collection was 6 days(Nov. 9th 1991-Nov. 15th 1991). A questionnaire used for data collection was composed of three different items; general characteristics, community health diagnostic activities and self-confidence in performing diagnostic activities. The results of the study are as follows. First, over one third of the respondents replied that the government required activities for their communities are not appropriate. Of these activities the most frequent reply $(51.2\%)$ indicated that many of the activities in the community were inappropriate to the actual situation. Further, $25\%$ of the replies indicated that many activities were only administratively oriented and as such not appropriate. Second, $49.8\%$ of the respondents replied that they had done general assessments and had a general idea of the health problems of their community. Effective solutions to health problems could be found with an increase in health personnel and management ability according to $41.5\%$ of the respondents. Third, to the question as to whether they had ever independently implemented a plan towards solving community diagnosed problems, $52\%$ of nurses replied 'never', $40\%$ 'occasionally' but only $7.5\%$ replied that they did it frequently. Actually there was very little done even in the basic work of collecting the necessary data. Fourth, when asked how much of basic information they had collected that might be used in community diagnosis activity, of 26 items in 5 areas, there was hardly one for which complete data had been collected. Fifteen percent did have data on the geographical aspects of their area, housing distribution and types of housing, while $17.8\%$ knew the frequency with which the health center was used. Concerning community resources, even with a list of community resources, only $12.3\%$ had data on any of these resources, and this data was incomplete. Further, information about social work institutions, and facilities was also incomplete, only $14.2\%$ of the respondents had any data and even it was incomplete; that is, in general, the nurses did not have this information. Fifth, concerning the confidence of the community health nurse in their ability to carry out community diagnoses activities, $60\%$ replied that they were very or at least nominally confident, indicating that although they were not doing community diagnostic activities they felt they could do so, as they were carrying out home visits and program planning as part of their official duties. The following recommendations are made based on the results of this study. First; since the community health nurses have a high perception of the need for community diagnostic activities and. high confidence in their ability to carry out this activity and high percentage of respondents replied that with a little training they could do this even better it is recommended that community diagnostic activity training be included in the continuing education program for community health nurses. Second, in order for the Community Health Nurses to successfully solve the health problems of their respective community they reported to a need to increase the number of health personnel, improve the facilities and the system of managing their work. Considering this, it is recommended that ways be sought to remedy these deficits.

• Asia pacific journal of information systems
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• v.24 no.3
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• pp.325-344
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• 2014

Technical support of Window XP ended in March, 8, 2014, and it makes OS(Operating System) users fall in a state of confusion. Sudden decision making of OS upgrade and replacement is not a simple problem. Firms need to change the long term capacity plan in enterprise IS management, but they are pressed for time and cost to complete it. Individuals can not help selecting the second best plan, because the following OSs of Window XP are below expectations in performances, new PC sales as the opportunities of OS upgrade decrease, and the potential risk of OS technical support ending had not announced to OS users at the point of purchase. Microsoft as the OS vendors had not presented precaution or remedy for this confusion. Rather, Microsoft announced that the technical support of the other following OSs of Wndow XP such as Window 7 would ended in two years. This conflict between OS vendor and OS users could not happen in one time, but could recur in recent future. Although studies on the ways of OS user protection policy would be needed to escape from this conflict, few prior studies had conducted this issue. This study had challenge to cautiously investigate in such OS user's reactions as the confirmation with OS user's expectation in the point of purchase, three types of justice perception on the treatment of OS vendor, psychological contract violation, satisfaction and the other betrayal behavioral intention in the case of Window XP technical support ending. By adopting the justice perception on this research, and by empirically validating the impact on OS user's reactions, I could suggest the direction of establishing OS user protection policy of OS vendor. Based on the expectation-confirmation theory, the theory of justice, literatures about psychological contract violation, and studies about consumer betrayal behaviors in the perspective of Herzberg(1968)'s dual factor theory, I developed the research model and hypothesis. Expectation-confirmation theory explain that consumers had expectation on the performance of product in the point of sale, and they could satisfied with their purchase behaviors, when the expectation could have confirmed in the point of consumption. The theory of justice in social exchange argues that treatee could be willing to accept the treatment by treater when the three types of justice as distributive, procedural, and interactional justice could be established in treatment. Literatures about psychological contract violation in human behaviors explains that contracter in a side could have the implied contract (also called 'psychological contract') which the contracter in the other side would sincerely execute the contract, and that they are willing to do vengeance behaviors when their contract had unfairly been broken. When the psychological contract of consumers had been broken, consumers feel distrust with the vendors and are willing to decrease such beneficial attitude and behavior as satisfaction, loyalty and repurchase intention. At the same time, consumers feel betrayal and are willing to increase such retributive attitude and behavior as negative word-of-mouth, complain to the vendors, complain to the third parties for consumer protection. We conducted a scenario survey in order to validate our research model at March, 2013, when is the point of news released firstly and when is the point of one year before the acture Window XP technical support ending. We collected the valid data from 238 voluntary participants who are the OS users but had not yet exposed the news of Window OSs technical support ending schedule. The subject had been allocated into two groups and one of two groups had been exposed this news. The data had been analyzed by the MANOVA and PLS. MANOVA results indicate that the OSs technical support ending could significantly decrease all three types of justice perception. PLS results indicated that it could significantly increase psychological contract violation and that this increased psychological contract violation could significantly reduce the trust and increase the perceived betrayal. Then, it could significantly reduce satisfaction, loyalty, and repurchase intention, and it also could significantly increase negative word-of-month intention, complain to the vendor intention, and complain to the third party intention. All hypothesis had been significantly approved. Consequently, OS users feel that the OSs technical support ending is not natural value added service ending, but the violation of the core OS purchase contract, that it could be the posteriori prohibition of OS user's OS usage right, and that it could induce the psychological contract violation of OS users. This study would contributions to introduce the psychological contract violation of the OS users from the OSs technical support ending in IS field, to introduce three types of justice as the antecedents of psychological contract violation, and to empirically validate the impact of psychological contract violation both on the beneficial and retributive behavioral intentions of OS users. For practice, the results of this study could contribute to make more comprehensive OS user protection policy and consumer relationship management practices of OS vendor.

• Management & Information Systems Review
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• v.34 no.2
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• pp.131-149
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• 2015

Recently many organizations have engaged in widespread restructuring as well as more flexible usage of labor in an attempt to cut costs and to increase profit. As a result of lays offs resulting from frequent restructuring, many people no longer consider their jobs as permanent positions. many employees have an increased feeling of job insecurity. There structuring and following downsizing have created an uncertain environment within creased fear offer ther job losses. therefore the study of job insecurity is significant. especially To understand the relationship between job security and union-relation behaviors on the industrial relations. The purpose of this study suggested the strategies to company and union. The purpose of this study is to examine how the union-relation behaviors are influenced by the job security. This study built a exploratory model that there is causal relationship of job security to union commitment, dual commitment, and labor related behaviors. For the verification of this study model, the regression analysis was applied to the surveys of 236 members of union that are located in Busan, Gyeongnam, Ulsan, and Pohang. The result of this research shows that the job insecurity is strongly related to the union commitment and union related behaviors. According to the research, the effect that the job security affects union commitment and union related behaviors are positive. With the research outputs, we have discussed about the academic and pragmatic viewpoint. We proposed comprehensive model to verify how the job insecurity affects the union-related behaviors, and objectively analyzed the model. The research result was opposite to what the existing theories have said that high job insecurity derives high union-related behaviors. This result is meaningful because it is concerned with the social issues-present situation of Korean company, low-employment, unstable employment and so on. Moreover, this research may contribute to expand the aspect of academic research on job insecurity as there are few research conducted in korea. This research also suggests the realistic alternative of union-related behaviors because it is proved that job security can contribute to innovation activities. Also, this research implies that the matter of job insecurity is the basic need of organizational individual and presents that job security is not a notion but the alternative by using of the positional stability and situational control power. The limitation of this research is that it is only utilized the cross-sectional study. To remedy the cross-sectional study, vertical, and serial method of research is needed. And there is no enough sample to secure more comprehensive data as the targets of the research is limited to Busan and Gyeongnam regions. Finally, the measurement tool for job security is needed to be suitably modified to by the South Korea's economic, linguistic, and cultural situation.

• Journal of the Society of Cosmetic Scientists of Korea
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• v.32 no.1 s.55
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• pp.59-64
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• 2006

Crinum asiaticum Linne var. japonicum has long been used as a rheumatic remedy, an anti-pyretic, an anti-ulcer treatment, and for the alleviation of local pain and fever in Korea and Malaysia. In order to investigate the possibility of Crinum asiaticum Linne var. japonicum extract as a cosmetic ingredient, we measured its anti-inflammatory effect by inhibition of iNOS (inducible nitric oxide synthase), and the release of PGE2, IL-6, and IL-8. HPLC experiment after extraction with 95% ethanol at pH 3.5 showed that Crinum asiaticum Linne var. japonicum was mainly composed of lycorine (up to 1%), a well-known immunosuppressant. The content of lycorine varied depending on the type of tissue analyzed and the extraction method. In anti-inflammatory assay for inhibition of nitric oxide formation on lipopolysaccharide (LPS)- activated mouse macrophage RAW 264.7 cells, the ethanolic extract of Crinum asiaticum showed inhibitory activity of NO production in dose-dependent manner ($IC_{50} = 83.5 {\mu}g/mL$). Additional study by RT-PCR demonstrated that the extract of Crinum asiaticum significantly suppressed the expression of the iNOS gene. Moreover, the extract of Crinum asiaticum did not show my cytotoxicity, but did show cell proliferation effect against LPS ($10{\sim}60%$ increase of tell viability). In an assay to determine inhibition of the $H_2O_2$-activated release of PGE2, IL-6, and IL-8 in human normal fibroblast cell lines, the release of PGE2 and IL-6 was almost completely inhibited above concentrations of 0.05% and 1%, respectively. Moreover, the release of IL-8 was completely inhibited over the entire range of concentrations (> 0.0025%). The result showed that the extract of Crinum asiaticum Linne var. japonicum has sufficient anti-inflammatory effect. There-fore, Crinum asiaticum Linne var. japonicum extract may be useful as an ingredient of cosmetic products.

• Journal of Physiology & Pathology in Korean Medicine
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• v.17 no.5
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• pp.1157-1176
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• 2003

The following conclusions are induced from a study on the acupuncture therapy depending on hyungsang of the persons. The study is made on the basis of 'Internal classic (內經)& and &Clinical Lectures by Dr. Jeesan&. The acupuncture originated from the treatment of spasm with numbness in the southern area. The acupuncture is basically a remedy for the exterior disease of meridian but also it can be a cure for the interior disease of Jang and obstinate disease with accurate method. Three mechanisms of acupuncture are described in 'Internal classic'. The first is to make meridian circulate smoothly. The second is to regulate Ki and Hyul. The third is to regulate points through which the meridian-Ki goes in and out smoothly or adversely. There are two ways of acupuncture in 'Internal classic'. One is based on pulse and symptom and the other on the Hyungsang. The former is more generally used therapy, to which depletion method, Asi point method(阿是穴 療法), Inyoung-kigu pulse comparison method (人迎氣口脈法) and method depending on jang-bu disease belong. Acupuncture is done on Su points(輸穴) and back-su point(背兪穴) in case of jang-disease. In case of bu-disease, the treatment is done on Hap points(合穴) and Mo-points(募穴). The latter includes two methods; one according to invariable Hyungsang. And the other to variable Hyungsang. The method of acupuncture according to invariable Hyungsang usually selects Won-points(原穴). Different Hyungsang requires different method of acupuncture; In case of Dam type, the acupuncture is mainly practiced on four-Kwan points with reinforcing and reducing methods achieved by the direction of the needle tip pointing to. In case of Bangkwang type, the acupuncture is usually done on Jungwan(中脘) and Poongyung(豊隆) with reinforcing and reducing methods by means of respiration. In case of female, more effective are the acupoints on the right and lateral parts of the body selected on the basis of five su-points of the twelve meridians matching the heavenly stems and earthly branches. In case of male, more effective are the acupoints on the left, front and rear parts of the eight extra meridians. In case of acupuncture to the person with Hyungsang of five jang and six bu, each person's intrinsic Hyung, color, pulse, must be observed. Because symptoms of jang-bu disease also must be checked up. Acupuncture is done on the Won-points of the meridians related to the jang and bu where the disease starts. The disease of five jang is so obstinate that it requires both of medication and acupuncture for a long time. In case of acupuncture to the person with Hyungsang of animal types, diagnosis is made on the basis of shape, temper, function and color. And the treatment is given on the Won-points of corresponding exterior and interior meridians. For the fish type, the acupuncture is done on the kidney meridian of foot-soyin and the urinary bladder of foot-taiyang. For the bird type, on the heart meridian of hand-soyin, the pericardium meridian of hand-gualyin, and the small intestine meridian of hand-taiyang For the deer type, on the liver meridian of foot-gualyin and the gallbladder meridian of foot-soyang. For the turtle type, on the lung meridian of hand-taiyin and the large intestine meridian of hand-yangmyung.

• Journal of Arbitration Studies
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• v.19 no.2
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• pp.95-126
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• 2009

One of the controversial issues in investor-state investment arbitration is the interpretation of "umbrella clause" that is found in most BIT and FTAs. This treaty clause requires on Contracting State of treaty to observe all investment obligations entered into with foreign investors from the other Contracting State. This clause did not receive in-depth attention until SGS v. Pakistan and SGS v. Philippines cases produced starkly different conclusions on the relations about treaty-based jurisdiction and contract-based jurisdiction. More recent decisions by other arbitral tribunals continue to show different approaches in their interpretation of umbrella clauses. Following the SGS v. Philippines decision, some recent decisions understand that all contracts are covered by umbrella clause, for example, in Siemens A.G. v. Argentina, LG&E Energy Corp. v. Argentina, Sempra Energy Int'l v. Argentina and Enron Corp. V. Argentina. However, other recent decisions have found a different approach that only certain kinds of public contracts are covered by umbrella clauses, for example, in El Paso Energy Int'l Co. v. Argentina, Pan American Energy LLC v. Argentina and CMS Gas Transmission Co. v. Argentina. With relation to the exhaustion of domestic remedies, most of tribunals have the position that the contractual remedy should not affect the jurisdiction of BIT tribunal. Even some tribunals considered that there is no need to exhaust contract remedies before bringing BIT arbitration, provoking suspicion of the validity of sanctity of contract in front of treaty obligation. The decision of the Annulment Committee In CMS case in 2007 was an extraordinarily surprising one and poured oil on the debate. The Committee composed of the three respected international lawyers, Gilbert Guillaume and Nabil Elaraby, both from the ICJ, and professor James Crawford, the Rapportuer of the International Law Commission on the Draft Articles on the Responsibility of States for Internationally Wrongful Acts, observed that the arbitral tribunal made critical errors of law, however, noting that it has limited power to review and overturn the award. The position of the Committee was a direct attack on ICSID system showing as an internal recognition of ICSID itself that the current system of investor-state arbitration is problematic. States are coming to limit the scope of umbrella clauses. For example, the 2004 U.S. Model BIT detailed definition of the type of contracts for which breach of contract claims may be submitted to arbitration, to increase certainty and predictability. Latin American countries, in particular, Argentina, are feeling collectively victims of these pro-investor interpretations of the ICSID tribunals. In fact, BIT between developed and developing countries are negotiated to protect foreign investment from developing countries. This general characteristic of BIT reflects naturally on the provisions making them extremely protective for foreign investors. Naturally, developing countries seek to interpret restrictively BIT provisions, whereas developed countries try to interpret more expansively. As most of cases arising out of alleged violation of BIT are administered in the ICSID, a forum under the auspices of the World Bank, these Latin American countries have been raising the legitimacy deficit of the ICSID. The Argentine cases have been provoking many legal issues of international law, predicting crisis almost coming in actual investor-state arbitration system. Some Latin American countries, such as Bolivia, Venezuela, Ecuador, Argentina, already showed their dissatisfaction with the ICSID system considering withdrawing from it to minimize the eventual investor-state dispute. Thus the disagreement over umbrella clauses in their interpretation is becoming interpreted as an historical reflection on the continued tension between developing and developed countries on foreign investment. There is an academic and political discussion on the possible return of the Calvo Doctrine in Latin America. The paper will comment on these problems related to the interpretation of umbrella clause. The paper analyses ICSID cases involving principally Latin American countries to identify the critical legal issues arising between developing and developed countries. And the paper discusses alternatives in improving actual investor-State investment arbitration; inter alia, the introduction of an appellate system and treaty interpretation rules.

• KDI Journal of Economic Policy
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• v.13 no.4
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• pp.31-57
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• 1991

Korean firms of all sizes, from virtually every industry, have used and are using the term "excessive competition" to describe the state of their industry and to call for government interventions. Moreover, the Korean government has frequently responded to such calls in various ways favorable to the firms, such as controlling entry, curbing capacity investments, or allowing collusion. Despite such interventions' impact on the overall efficiency on the Korean economy as well as on the wealth distribution among diverse groups of economic agents, the term "excessive competition", the basis for the interventions, has so far escaped rigorous scrutiny. The objective of this paper is to clarify the notion of "excessive competition" and "over-investment" which usually accompanies "excessive competition", and to examine the circumstances under which they might occur. We first survey the cases where the terms are most widely used and proceed to examine those cases to determine if competition is indeed excessive, and if so, what causes "excessive competition". Our main concern deals with the case in which the firms must make investment decisions that involve large sunk costs while facing uncertain demand. In order to analyze this case, we developed a two period model of capacity precommitment and the ensuing competition. In the first period, oligopolistic firms make capacity investments that are irreversible. Demand is uncertain in period 1 and only the distribution is known. Thus, firms must make investment decisions under uncertainty. In the second period, demand is realized, and the firms compete with quantity under realized demand and capacity constraints. In the above setting, we find that there is "no over-investment," en ante, and there is "no excessive competition," ex post. As measured by the information available in period 1, expected return from investment of a firm is non-negative, overall industry capacity does not exceed the socially optimal level, and competition in the second period yields an outcome that gives each operating firm a non-negative second period profit. Thus, neither "excessive competition" nor "over-investment" is possible. This result will generally hold true if there is no externality and if the industry is not a natural monopoly. We also extend this result by examining a model in which the government is an active participant in the game with a well defined preference. Analysis of this model shows that over-investment arises if the government cannot credibly precommit itself to non-intervention when ex post idle capacity occurs, due to socio-political reasons. Firms invest in capacities that exceed socially optimal levels in this case because they correctly expect that the government will find it optimal for itself to intervene once over-investment and ensuing financial problems for the firms occur. Such planned over-investment and ensuing government intervention are the generic problems under the current system. These problems are expected to be repeated in many industries in years to come, causing a significant loss of welfare in the long run. As a remedy to this problem, we recommend a non-intervention policy by the government which creates and utilizes uncertainty. Based upon an argument which is essentially the same as that of Kreps and Wilson in the context of a chain-store game, we show that maintaining a consistent non-intervention policy will deter a planned over-investment by firms in the long run. We believe that the results obtained in this paper has a direct bearing on the public policies relating to many industries including the petrochemical industry that is currently in the center of heated debates.