• The Korean Journal of Air & Space Law and Policy
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• v.32 no.2
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• pp.129-153
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• 2017

Fair Competition policy in aviation field has been discussed since open skies policy began in 1970s. This issue has been also the main topic in the ICAO's Worldwide Air Transport Conference, the Air Transport Symposium, etc. ICAO defines competition as the existent or potential rivalry between two or more operators, carriers or groups, striving for advantages in the same market based on different prices, qualities and services. In a broader sense, the definition includes more various meanings; reasonable, fair, effective, and unrestricted competitions. Nowadays, competition laws and regulations to air transportation have been applied more frequently and the issues varies from antitrust immunity, mergers and alliances, abuse of dominant positions, capacity dumping and predatory pricing, sales and marketing, to airport charges and fees, state aid and loan guarantees. Now, the competition among the airlines or nations in aviation industry is changing to cooperation level. A lot of airlines try to survive by various cooperation methods. Therefore the policy of Korean aviation industry should be developed, taking so-called "the viewpoint of national aviation industry ecosystem" into consideration and Korean government should prepare a policy of fair competition to cope with it. First, in the process of open skies policy with neighboring countries such as China, Japan and the Middle East, it is necessary to apply the fair competition act and prepare laws and regulations to implement it. Second, the standards of effective ownership and control of air transportation business should be reviewed. Third, in preparation for aviation agreements and liberalization, the Korean aviation industry needs to study and review competition and cooperation issues through the analysis of strict aviation market structure for airlines and airport operations. Fourth, it is necessary to create a fair air transportation environment for the development of air transportation and competitiveness through preemptive policies such as the approval of mergers, acquisitions, JV and the ripple effects analysis.

• International Commerce and Information Review
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• v.17 no.2
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• pp.201-223
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• 2015

Concerning post-verification which is after the application of FTA preferential tariffs, in cases such as Korea-EFTA and Korea-ASEAN, the growing trend of post-verifications was restricted and there was no active research concerning this; whereas with Korea-EU FTA which adopted indirect verification for post-verification, the demand for post-verification has been rising constantly each year; and for Korea-US FTA which has adopted direct verification, a new approach to post-verification research is needed as it began genuine post-verification regarding many national enterprises only after a year and a half since the agreement. This study will consider the counter measures that can be taken for post-verification, through case of studies on the factors influencing violation of determining the country of origin for export company regarding verification of FTA. Result of this case study regarding the determining a violation of origin, The main cause of the violation factors on the essential & general principles(goods wholly obtained, value added criteria) are lack of understanding agreement & manpower. but Violation of the parties to a transaction & the origin certification are lack of advanced preparation and effected violation of principle of good faith. Finally, In this study help countermeasures of export company through the Detailed analysis of the type & implications deriving from verification of origin.

• The Journal of the Korea Contents Association
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• v.17 no.6
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• pp.504-513
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• 2017

This study investigated one of the controversial issues on debate or even controversial between policy makers at the government and corporate levels: To examine any financial determinants on the cash holdings of the firms in the advanced and emerging capital markets. Futhermore, it focused on the large representative firms headquartered in the U.S. and the Republic of Korea, taking into account scarcity of the previous literature concentrated on the comparative studies on this particular subject. Several legitimate, but robust econometric estimations such as static and dynamic panel data models and Tobit regression, were applied to investigate possible financial factors ono the cash liquidity. Given the continued debates or arguments on the excess cash reserves between interest partied at the government and corporate levels in the advanced and/or emerging capital markets, and more accelerated capital transfers among associated nations by engaging in the arrangements of the FTAs, the results of the study may provide a vision to search for the optimal level of corporate cash holdings for firms in the two nations.

• International Commerce and Information Review
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• v.14 no.4
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• pp.517-541
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• 2012

Since the Korea-Chile FTA in 2003, eight FTAs are now in force including Korea-EU and Korea-US FTA. The government anticipate that FTAs increase the GDP of Korea. Government-related research institutes officially reports the positive economic impact in Korea. However, the report does not show that how much Busan economy is affected by the FTAs. For this reason, we study the economic effects of FTAs in Busan. We compare the trade statistics before and after the time each FTA is in force. The resulting figures show that the exports and trades of Busan with the FTA nations increased significantly after the enforcement. For example, the exports to Chile increased by 273% when we compare the three-year average trade. We also construct an econometrics model to estimate the price elasticity. The estimated elasticity of exports for manufactured goods is 1.38 while that of imports is 0.83. Among the manufacturing industry, machinery has the highest price elasticity, 1.8. The average tariff for manufactured goods is 3.9% for FTA nations, while that is 5.8% for Busan. This higher price fall in Busan is offset by the lower price elasticity to make Busan's export increase be greater than Busan's import increase. Busan's export increases by 4.8% while import increases by 3.7%. So, it is expected to be added to the annual trade surplus of approximately $107million.

• The Korean Journal of Air & Space Law and Policy
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• v.32 no.1
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• pp.287-325
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• 2017

Considering the development of aerospace, military science and technology since the 20th century, the sky is very important for the nation's existence and prosperity. The proverb "Whosoever commands the space commands the world itself!" emphasizes the need for the command of the air. This essay is the first study on the status of airspace after reunification. First, the territorial airspace is over the territory and territorial sea, and its horizontal extent is determined by the territorial boundary lines. Acceptance of the present order is most reasonable, rather than attempting to reconfigure through historical truths about border issues, and it could be supported by neighboring countries in the reunification period. For peace in Northeast Asia, the reunified Korea needs to respect the existing border agreement between North Korea and China or Russia. However, the North Korean straight baselines established in the East Sea and the Yellow Sea should be discarded because they are not available under United Nations Convention on the Law of the Sea. It is desirable for the reunified Korea to redefine the straight baselines that comply with international law and determine the territorial waters up to and including the 12-nautical mile outside it. Second, the Flight Information Region (hereinafter "FIR") is a region defined by the International Civil Aviation Organization (hereinafter "ICAO") in order to provide information necessary for the safe and efficient flight of aircraft and the search and rescue of aircraft. At present, Korea is divided into Incheon FIR which is under the jurisdiction of South Korea and Pyongyang FIR which is under the jurisdiction of North Korea. If North Korea can not temporarily exercise control of Pyongyang FIR due to a sudden change of circumstances, it is desirable for South Korea to exercise control of Pyongyang FIR, and if it is unavoidable, ICAO should temporarily exercise it. In reunified Korea, it is desirable to abolish Pyongyang FIR and integrate it into Incheon FIR with the approval of ICAO, considering systematic management and control of FIR, establishment of route, and efficiency of management. Third, the Air Defense Identification Zone (hereinafter "ADIZ") is a zone that requires easy identification, positioning, and control of aircraft for national security purposes, and is set up unilaterally by the country concerned. The US unilaterally established the Korea Air Defense Identification Area (KADIZ) by the Declaration of Commitment on March 22, 1951. The Ministry of Defense proclaimed a new KADIZ which extended to the area including IEODO on December 13, 2013. At present, North Korea's military warning zone is set only at maritime boundaries such as the East Sea and the Yellow Sea. But in view of its lack of function as ADIZ in relations with China and Russia, the reunified Korea has no obligation to succeed it. Since the depth of the Korean peninsula is short, it is necessary to set ADIZ boundary on the outskirts of the territorial airspace to achieve the original purpose of ADIZ. Therefore, KADIZ of the reunified Korea should be newly established by the boundary line that coincides with the Incheon FIR of the reunified Korea. However, if there is no buffer zone overlapping with or adjacent to the ADIZs of neighboring countries, military tensions may rise. Therefore, through bilateral negotiations for peace in Northeast Asia, a buffer zone is established between adjacent ADIZs.

• The Korean Journal of Air & Space Law and Policy
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• v.25 no.1
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• pp.97-158
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• 2010

The purpose of this paper is to research on the contents and improvement of national legislations relating to space development in Korea to make the sustainable progress of space development project in Korea. Korea has launched its first satellite KITST-1 in 1992. The National Space Committee has established "The Space Development Promotion Basic Plan" in 2007. The plan addressed the development of total 13 satellites by 2010 and the space launch vehicle by 2020, and the launch of moon exploration spaceship by 2021. Korea has built the space center at Oinarodo, Goheng Province in June 2009. In Korea the first small launch vehicle KSLV-1 was launched at the Naro Space Center in August 2009, and its second launch was made in June 2010. The United Nations has adopted five treaties relating to the development of outer space as follows : The Outer Space Treaty of 1967, the Rescue and Return Agreement of 1968, the Liability Convention of 1972, the Registration Convention of 1974, and the Moon Treaty of 1979. All five treaties has come into force. Korea has ratified the Outer Space Treaty, the Rescue and Return Agreement, the Liability Convention and the Registration Convention excepting the Moon Treaty. Most of development countries have enacted the national legislation relating to the development of our space as follows : The National Aeronautic and Space Act of 1958 and the Commercial Space Act of 1998 in the United States, Outer Space Act of 1986 in England, Establishment Act of National Space Center of 1961 in France, Canadian Space Agency Act of 1990 in Canada, Space Basic Act of 2008 in Japan, and Law on Space Activity of 1993 in Russia. There are currently three national legislations relating to space development in Korea as follows : Aerospace Industry Development Promotion Act of 1987, Outer Space Development Promotion Act of 2005, Outer Space Damage Compensation Act of 2008. The Ministry of Knowledge Economy of Korea has announced the Full Amendment Draft of Aerospace Industry Development Promotion Act in December 2009, and it's main contents are as follows : (1) Changing the title of Act into Aerospace Industry Promotion Act, (2) Newly regulating the definition of air flight test place, etc., (3) Establishment of aerospace industry basic plan, establishment of aerospace industry committee, (4) Project for promoting aerospace industry, (5) Exploration development, international joint development, (6) Cooperative research development, (7) Mutual benefit project, (8) Project for furthering basis of aerospace industry, (9) Activating cluster of aerospace industry, (10) Designation of air flight test place, etc., (11) Abolishing the designation and assistance of specific enterprise, (12) Abolishing the inspection of performance and quality. The Outer Space Development Promotion Act should be revised with regard to the following matters : (1) Overlapping problem in legal system between the Outer Space Development Promotion Act and the Aerospace industry Development promotion Act, (2) Distribution and adjustment problem of the national research development budget for space development between National Space Committee and National Science Technology Committee, (3) Consideration and preservation of environment in space development, (4) Taking the legal action and maintaining the legal system for policy and regulation relating to space development. The Outer Space Damage Compensation Act should be revised with regard to the following matters : (1) Definition of space damage and indirect damage, (2) Currency unit of limit of compensation liability, (3) Joint liability and compensation claim right of launching person of space object, (4) Establishment of Space Damage Compensation Council. In Korea, it will be possible to make a space tourism in 2013, and it is planned to introduce and operate a manned spaceship in 2013. Therefore, it is necessary to develop the policy relating to the promotion of commercial space transportation industry. Also it is necessary to make the proper maintenance of the current Aviation Law and space development-related laws and regulations for the promotion of space transportation industry in Korea.

• The Journal of Industrial Distribution & Business
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• v.1 no.1
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• pp.13-21
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• 2010

Since Korea establish diplomatic ties with China in 1992, korea and China have had rapid progress in most of field as politic, economy, society and culture through basing on cultural commonality and geographical adjacency. Especially, China is the biggest trading partner to korea, and also Korea is third-biggest trading country to China. They become strategic cooperating relation in 2008. Currently, in terms of international trade relation, WTO/DDA negotiation is proceeding in difficulty, but FTA has been growing and extending in the world, and the two country, china and korea, have been competitively trying wide and active FTA negotiation promotion. After Financial crisis in 1997, according to the requirement of local economic cooperation, China has shown the interest to several countries since the conclusion of FTA treaty with ASEAN in 2005. China also makes the active afford to conclude FTA with Korea. Last May 28th, this was mentioned in the meeting between president Lee and Premier Wen Jiabao, so it is anticipated that the negotiation for FTA will be started in the near future. There are many political suggestions and concerns in terms of way of negotiation korea would choose. Some economist said that "'Continuous FTA aimed at long-term protocol should be promoted between korea and China and negotiated includingly'" However, this research claims that commodity exchange, service, and investment areas should be included and it has to be comprehensive package settlement style in negotiation. This research has found out the characteristics of China's negotiation and implications through the China's existed FTA negotiation examples. Currently, China has taken Continuous or a phase-negotiation method to ASEAN, Pakistan, Chile and some other developing country and to advanced countries like New Zealand or Singapore, comprehensive package settlement method is used in FTA negotiation. In consider of the FTA negotiation between Korea and China, Korea has some problems in the commodity change area in agriculture maket's opening. While, for china, the issues would happen in service trade area, especially when encountering finance and communication industries are opened, China's economy could be exposed to some risk. In result, Korea should expand its negotiation range from commodity trade to service trade, in order to exchange both issues, then the negotiation will be concluded more easily. In other word, for FTA, korea should follow comprehensive package settlement way that is similar to New zealand and Singapore case. Through this kind of method, Korea can expect effect of creating trade, conversion of it and preoccupancy of service field in china's market against the advanced countries like Usa, Europe and Japan. Also, to have a successful FTA negotiation, korea should find out china's policy for FTA negotiation. With this information, korea will be able to suggest the way to make a profit. Systematic analysis and comparison about previous negotiation cases of china are needed before the negotiation begin.

• The Korean Journal of Air & Space Law and Policy
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• v.18
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• pp.135-183
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• 2003

Aerospace force is a determining factor in a modem war. The combat field is expanding to space. Thus, the legitimacy of establishing aerospace force is no longer an debating issue, but "how should we establish aerospace force" has become an issue to the military. The standard limiting on the military use of space should be non-aggressive use as asserted by the U.S., rather than non-military use as asserted by the former Soviet Union. The former Soviet Union's argument is not even strongly supported by the current Russia government, and realistically is hard to be applied. Thus, the multi-purpose satellite used for military surveillance or a commercial satellite employed for military communication are allowed under the U.S. principle of peaceful use of space. In this regard, Air Force may be free to develop a military surveillance satellite and a communication satellite with civilian research institute. Although MTCR, entered into with the U.S., restricts the development of space-launching vehicle for the export purpose, the development of space-launching vehicle by the Korea Air Force or Korea Aerospace Research Institute is beyond the scope of application of MTCR, and Air Force may just operate a satellite in the orbit for the military purpose. The primary task for multi-purpose satellite is a remote sensing; SAR sensor with high resolution is mainly employed for military use. Therefore, a system that enables Air Force, the Korea Aerospace Research Institute, and Agency for Defense Development to conduct joint-research and development should be instituted. U.S. Air Force has dismantled its own space-launching vehicle step by step, and, instead, has increased using private space launching vehicle. In addition, Military communication has been operated separately from civil communication services or broadcasting services due to the special circumstances unique to the military setting. However, joint-operation of communication facility by the military and civil users is preferred because this reduces financial burden resulting from separate operation of military satellite. During the Gulf War, U.S. armed forces employed commercial satellites for its military communication. Korea's participation in space technology research is a little bit behind in time, considering its economic scale. In terms of budget, Korea is to spend 5 trillion won for 15 years for the space activities. However, Japan has 2 trillion won annul budget for the same activities. Because the development of space industry during initial fostering period does not apply to profit-making business, government supports are inevitable. All space development programs of other foreign countries are entirely supported by each government, and, only recently, private industry started participating in limited area such as a communication satellite and broadcasting satellite, Particularly, Korea's space industry is in an infant stage, which largely demands government supports. Government support should be in the form of investment or financial contribution, rather than in the form of loan or borrowing. Compared to other advanced countries in space industry, Korea needs more budget and professional research staff. Naturally, for the efficient and systemic space development and for the prevention of overlapping and distraction of power, it is necessary to enact space-related statutes, which would provide dear vision for the Korea space development. Furthermore, the fact that a variety of departments are running their own space development program requires a centralized and single space-industry development system. Prior to discussing how to coordinate or integrate space programs between Agency for Defense Development and the Korea Aerospace Research Institute, it is a prerequisite to establish, namely, "Space Operations Center"in the Air Force, which would determine policy and strategy in operating space forces. For the establishment of "Space Operations Center," policy determinations by the Ministry of National Defense and the Joint Chief of Staff are required. Especially, space surveillance system through using a military surveillance satellite and communication satellite, which would lay foundation for independent defense, shall be established with reference to Japan's space force plan. In order to resolve issues related to MTCR, Air Force would use space-launching vehicle of the Korea Aerospace Research Institute. Moreover, defense budge should be appropriated for using multi-purpose satellite and communication satellite. The Ministry of National Defense needs to appropriate 2.5 trillion won budget for space operations, which amounts to Japan's surveillance satellite operating budges.

• The Korean Journal of Air & Space Law and Policy
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• v.29 no.1
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• pp.127-160
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• 2014

The UN COPUOS was established in 1959 as a permanent committee of the UN General Assembly with the aims to promote international cooperation in peaceful uses of outer space, to formulate space-related programmes within the UN, to encourage research and dissemination of information on space, and to study legal problems arising from the outer space activities. Its members have been enlarged from 24 members in 1959 to 76 in 2014. The Legal Subcommittee, which has been established under COPUOS in 1962 to deal with legal problems associated with space activities, through its first three decades of work has set up a framework of international space law: the five treaties and agreements - namely the Outer Space Treaty, Rescue Agreement, Liability Convention, Registration Convention, Moon Agreement - and the five declarations and legal principles. However, some sceptical views on this legal framework has been expressed, concerning the applicability of existing international space law to practical issues and new kinds of emerging space activities. UNISPACE III, which took place in 1999, served as a momentum to revitalize the discussions of the legal issues faced by the international community in outer space activities. The agenda of the Legal Subcommittee is currently structured into three categories: regular items, single issue/items, and items considered under a multi-year workplan. The regular items, which deal with basic legal issues, include definition and delimitation of outer space, status and application of the five UN treaties on outer space, and national legislation relevant to the peaceful exploration and use of outer space. The single issues/items, which are decided upon the preceding year, are discussed only for one year in the plenary unless renewed. They include items related to the use of nuclear power sources in outer space and to the space debris mitigation. The agenda items considered under a multi-year work plan are discussed in working group. Items under this category deal with non-legally binding UN instruments on outer space and international mechanism for cooperation. In recent years, the Subcommittee has made some progress on agenda items related to nuclear power sources, space debris, and international cooperation by means of establishing non-legally binding instruments, or soft law. The Republic of Korea became the member state of COPUOS in 2001, after rotating seats every two years with Cuba and Peru since 1994. Korea's joining of COPUOS seems to be late, in considering that some countries with hardly any space activity, such Chad, Sierra Leone, Kenya, Lebanon, Cameroon, joined COPUOS as early as 1960s and 1970s and contributed to the drafting of the aforementioned treaties, declarations, and legal principles. Given the difficulties to conclude a treaty and un urgency to regulate newly emerging space activities, Legal Subcommittee now focuses its effort on developing soft law such as resolutions and guideline to be adopted by UN General Assembly. In order to have its own practices reflected in the international practices, one of the constituent elements of international customary law, Korea should analyse its technical capability, policy, and law related to outer space activities and participate actively in the formation process of the soft law.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.38
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• pp.181-226
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• 2008

The purpose of this paper is to describe the settling procedures of the investor-state disputes in the FTA Investment Chapter, and to research on the international arbitration system for the settlement of the investor-state disputes under the ICSID Convention and UNCITRAL Arbitration Rules. The UNCTAD reports that the cumulative number of arbitration cases for the investor-state dispute settlement is 290 cases by March 2008. 182 cases of them have been brought before the ICSID, and 80 cases of them have been submitted under the UNCITRAL Arbitration Rules. The ICSID reports that the cumulative 263 cases of investor-state dispute settlement have been brought before the ICSID by March 2008. 136 cases of them have been concluded, but 127 cases of them have been pending up to now. The Chapter 11 Section B of the Korea-U.S. FTA provides for the Investor_State Dispute Settlement. Under the provisions of Section B, the claimant may submit to arbitration a claim that the respondent has breached and obligation under Section A, an investment authorization or an investment agreement and that the claimant has incurred loss or damage by reason of that breach. Provided that six months have elapsed since the events giving rise to the claim, a claimant may submit a claim referred to under the ICSID Convention and the ICSID Rules of Procedure for Arbitration Proceedings; under the ICSID Additional Facility Rules; or under the UNCITRAL Arbitration Rules. The ICSID Convention provides for the jurisdiction of the ICSID(Chapter 2), arbitration(Chapter 3), and replacement and disqualification of arbitrators(Chapter 5) as follows. The jurisdiction of the ICSID shall extend to any legal dispute arising directly out of an investment, between a Contracting State and a national of another Contracting State, which the parties to the dispute consent in writing to submit to the ICSID. Any Contracting State or any national of a Contracting State wishing to institute arbitration proceedings shall address a request to that effect in writing to the Secretary General who shall send a copy of the request to the other party. The tribunal shall consist of a sole arbitrator or any uneven number of arbitrators appointed as the parties shall agree. The tribunal shall be the judge of its own competence. The tribunal shall decide a dispute in accordance with such rules of law as may be agreed by the parties. Any arbitration proceeding shall be conducted in accordance with the provisions of the Convention Section 3 and in accordance with the Arbitration Rules in effect on the date on which the parties consented to arbitration. The award of the tribunal shall be in writing and shall be signed by members of the tribunal who voted for it. The award shall deal with every question submitted to the tribunal, and shall state the reason upon which it is based. Either party may request annulment of the award by an application in writing addressed to the Secretary General on one or more of the grounds under Article 52 of the ICSID Convention. The award shall be binding on the parties and shall not be subject to any appeal or to any other remedy except those provided for in this Convention. Each Contracting State shall recognize an award rendered pursuant to this convention as binding and enforce the pecuniary obligations imposed by that award within its territories as if it were a final judgment of a court in that State. In conclusion, there may be some issues on the international arbitration for the settlement of the investor-state disputes: for example, abuse of litigation, lack of an appeals process, and problem of transparency. Therefore, there have been active discussions to address such issues by the ICSID and UNCITRAL up to now.