• 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.

• Journal of Korea Water Resources Association
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• v.44 no.2
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• pp.125-134
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• 2011

The paper is to estimate willingness-to-pay (WTP) for residential water quality improvement in Busan, using non-parametric approach. There are several significant advantages of non-parametric approach, compared to parametric methods. That is, no probability distribution assumption is necessary so that there are no needs to assume or test goodness of fit, model specification and heteroscedasticity statistically. For the reliability and the validity of contingent valuation method a survey was conducted for 665 respondents, who were sampled by stratified random sampling method, by personal interview method. The result of mean WTP for residential water quality improvement in Busan was estimated to be 3,190 won to 3,331 won per month per household, while median WTP being 1,750 won. Provided that our sample is broadly representative of the Busan's population, an estimate of the annual aggregated benefit of residential water improvement for all Busan households is approximately 50.2 billion won in case of mean WTP or 27.5 billion won in case of median WTP.

• Journal of Korea Port Economic Association
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• v.26 no.1
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• pp.144-171
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• 2010

The purpose of this study is to propose the effective method to improve the competitive power in the Busan container terminal. To achieve this, we analyzed the present of the shift pattern in the container terminal, and identified the problems in the pattern. This study shows the issues of shift pattern for field employee in Busan container terminal and also improvement plan to solve them. We suggested two approaches as an effective approach; the flexible use of employees through overtime, use of workers pool among terminals, and outsourcing; the promotion of welfare by leisure, fitness, and community service.

• Journal of Korea Port Economic Association
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• v.29 no.1
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• pp.23-45
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• 2013

This paper aims to identify the problems of incentives and find a solution to them by empirically analyzing the port incentives and the development of cargo volume. The current method of paying performance incentives and cargo-increase incentives makes it is possible for shipping companies to get the maximum incentives just by regulating cargo volumes without increasing them. Since the processing volume of transshipment cargo of the Busan port is over the volume eligible for the maximum incentive determined by the tie-up of shipping companies, the transshipment cargo can decrease. The incentive of the Busan port based on the cargo record and increase does not affect the increase of transshipment cargo, only to suffer a loss, and thus a new incentive system is needed that does not allow shipping companies to regulate cargo volumes. Based on the result of this study, We have to apply the even-handed incentive rule which pays the incentive for the cargo volume of the pertinent year with the unit price per 1 TEU to avoid the chicken game among the ports.

• Journal of Korea Port Economic Association
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• v.27 no.3
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• pp.65-90
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• 2011

Private stevedoring companies are leasing and operating the container terminals of the Busan Port. The total amount of lease fees private stevedoring companies paid in 2010 reached 161 billion wons, an approximately 66 percent of the total revenue of the Busan Port Authority(BPA). In other words, lease fees are the most important revenue source for BPA. However, the lease fee assessment system of Busan container terminals goes against the principle of equity due to different assessment methods and criteria adopted by each container terminal. Therefore, the purpose of the study is to analyze the systematic problems of the lease fee assessment system that is used at Busan container terminals, and propose a new standardized scheme with a case study on the new system. In order to standardize the assessment system, the assessment methods need to be simplified by using the Discounted Cash Flow(DCF) method. In addition, the assessment criteria such as assessment duration, discount rates, price indexes, estimated container throughputs, sales unit price per TEU, operation costs, including labor costs, need to be standardized as well. The new standardized assessment system can be applied to estimate lease fees for new terminals. However, for existing terminals to run the new system, factors such as assessment duration, discount rates, price indexes, estimated container throughputs, investment and re-investment costs, and maintenance & repair costs of the new system should be changed slightly.

• Journal of the Economic Geographical Society of Korea
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• v.6 no.2
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• pp.403-419
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• 2003

Busan Port, Korea, is a region that must take integrated measures against problems such as the excessive handling of cargo volume, the intensification of port congestion, and the construction of a new port to improve port competitive power. In particular, if a great deal of function in the existing area of Busan Port transfers to a new port, then the problems of port redevelopment will occur as shown in the cases of port developed countries explained hereafter. For Korean ports, port redevelopment in a port zone is implemented for improving the port productivity that targets a local area, but the entire and systematic port redevelopment is not accounted for. Focused on this point, the paper is to present the directions for full-scale port redevelopment of the existing zone of Busan Port. The findings are as follows: First, the region of Busan is divided according to a regional classification that is necessary for port redevelopment. Thereby, 4 zones, total 26 regions of redevelopment were selected. Second, overseas case studies were considered for port redevelopment. From these same studies, appropriate types of port development in Korea were extracted and presented. Third, the status and problems of the selected redevelopment regions were analyzed, and types of port redevelopment were assigned. This study was not applied to the strict evaluation technique by quantitative analysis, but the concept and directions for unprecedented port redevelopment were first defined and established. It is significant to select target areas for redevelopment by regional classification and present directions for developing each region by choosing Busan Port as a real case study. This initiation will greatly contribute to the succeeding study.

• Journal of Korea Port Economic Association
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• v.27 no.2
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• pp.355-372
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• 2011

Various incentive policies for transshipment cargo have been enforced without any evaluation of the effectiveness. Therefore, the purpose of this study is to evaluate the effect of volume incentive on container transshipment cargo. To be different from previous studies, this study tries to quantitatively assess the incentive effects by using econometric techniques. The result derived from the ARIMA type models indicates that the total amount of the increased transshipment cargo during the last 7 years is about one million TEU. In the meanwhile, the multivariate long run equilibrium model implies that the increased transshipment cargo is less than 0.5 million TEU for the 7 years. Furthermore, the structural break tests indicate that the volume incentive does not change the model structures. It means that the effect of volume incentive is not statistically significant. Consequently, the test results conclude the effect of volume incentive on transshipment cargo is not significant although the volume of transshipment cargo is increased to some extent by volume incentive. Considering the magnitude of BPA's expenditure, we doubt the effectiveness of volume incentive. This study, therefore, encourages the port authority to research a more efficient way to induce transshipment cargo rather than focusing on only volume incentives.

• Journal of Korea Port Economic Association
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• v.27 no.4
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• pp.51-71
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• 2011

The purpose of this study is to use DEA modeling to make an analysis on 12 ODCYs in the hinterland of Busan North Port, so that it may propose possible ways to efficiently operate them. For analysis, this study adopted 3 input factors such as CY area, number of employees and number of cargo work equipments and also adopted 1 output factor, i.e. container throughput. According to the analysis DEA-CCR model, it was found that Chunil(YongDang CY) was the most efficient one among companies engaged in the operation of ODCY. And it was found that KCTC(YongDang CY), Kukbo(U-Am CY), KORAIL(BusanJin CY) and Hanjin (JaeSong CY) would need to boost the container throughput 5 or more times higher than current throughput with a view to improving cargo handling efficiency, while Sebang(U-Am CY), KCTC(U-Am CY), KCTC(YongDang CY), Hyopsung(YongDang CY) and Kukbo(U-Am CY) need to work on personnel restructuring targeted to current employees. Based on the analysis DEA-BCC model, it was found that Chunil(YongDang CY), Dongbu(ShinYoung GamMan CY), Intergis(GamMan CY) and Sebang(U-Am CY) were efficient companies, but KCTC(YongDang CY), Kukbo(U-Am CY), KORAIL(BusanJin CY) and Hanjin(JaeSong CY) were inefficient companies. Particularly, it was found that both KCTC(U-Am CY) and Kukbo(U-Am CY) would need to try harder to carry out personnel reshuffle than other comparable companies.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.42 no.5
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• pp.651-658
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• 2022

To cope with climate change, studies are being conducted on natural-based solutions (NBS) that reduce carbon by utilizing ecosystems and ecological resources ultimately to achieve carbon neutrality. In this study, carbon storage and economic value evaluations were conducted of the coastal land and sea of Busan using InVEST's Carbon and Coastal Blue Carbon models, which are ecosystem service-based evaluation models. As a result, it is estimated that the amount of carbon storage per unit area is lower than that of the entire Busan land area and that if the currently underway or planned development works are completed, the carbon storage of the coastal land areas would be decreased more. Coastal sea areas have less carbon storage than coastal land, but there is great potential for NBS that utilize ecological resources in the future. If the reclamation of public water affects important habitats with high carbon storage levels, it will reduce these levels, and such negative effects could last for a long time. For the sustainable management of Busan coastal areas, ecosystem service-based management strategies are needed considering carbon storage.

• International Area Studies Review
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• v.13 no.2
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• pp.602-616
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• 2009

EU and NAFTA which are huge regional economic blocs came out the world economy at the end of the twentieth century. It is the first that Europe has been trying to establish regional economic integration which is a revolutionary change to world economy. So that regional economic integration of Europe(European Union) has been improving to make a complete economic political integration. This paper analyzes trade creation effect for joining European Union(EU) of Central Eastern European countries with random effect estimation and fixed effect estimation. 12 Central Eastern European countries have become membership states of EU since 2004 is able to get 27.4% of trade increase effect on average between old and new membership countries one another as well as between new membership countries one another respectively. It is very important for some countries have a plan to affiliate to EU in the future to realize such a big effect if they are in.