• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.6
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• pp.117-132
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• 2023

With the recent spread of COVID-19, the size of the online shopping market continues to increase, and various online platforms are appearing in the market, and many small and medium businesses are entering the platform. As the recent increase in the use of the platform by small andmedium businesses as raised the issue of appropriate platform fees, the need for social discussions on the use of the platform and fees is raised. Currently, most discussions regarding fees primarily focus on specific cases from a negative perspective, and discussions that comprehensively consider the platform's utilization value and fees are insufficient. Therefore, this study aims to systematically and comprehensively understand platform fees by considering the value of using platform services and commission costs together. To achieve this, the economic value of each platform service was estimated and analyzed in detail. It selected two industries that are actively using online platforms, delivery services and e-commerce, and paid attention to changes in expected profits generated by sellers using platform services, and compared and analyzed expected profits based on estimated sales and costs for each scenario, such as whether sellers entered the platform and whether they used the service. As a result of the study, our results that entering the platform and using the platform service enable sales increase and cost reduction, which have a positive effect on the seller's expected profit. Through this study, we intend to understand platform fees from the perspective of user fees for platform service use and value acquisition, and based on this, estimate the economic value of platform services and fees to expand the value and cost of using platform services to a comprehensive and systematic discussion.

• The Journal of the Convergence on Culture Technology
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• v.10 no.3
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• pp.461-466
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• 2024

Korean local governments operates the participatory budgeting system autonomously. This study is to classify these entities into clusters. Among the diverse machine learning methodologies(Neural Network, Rule Induction(CN2), KNN, Decision Tree, Random Forest, Gradient Boosting, SVM, Naïve Bayes), the Support Vector Machine technique emerged as the most efficacious in the analysis of 2022 Korean municipalities data. The first cluster C1 is characterized by minimal committee activity but a substantial allocation of participatory budgeting; another cluster C3 comprises cities that exhibit a passive stance. The majority of cities falls into the final cluster C2 which is noted for its proactive engagement in. Overall, most Korean local government operates the participatory busgeting system in good shape. Only a small number of cities is less active in this system. We anticipate that analyzing time-series data from the past decade in follow-up studies will further enhance the reliability of classifying local government types regarding participatory budgeting.

• Journal of the Korea institute for structural maintenance and inspection
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• v.28 no.3
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• pp.100-107
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• 2024

Currently, in Korea, due to the rapid aging and deterioration of facilities, the minimum Maintenance Level and Performance Level' of facilities are required by the 'Facility Safety Act' or 'Infrastructure Management Act'. Since infrastructure assets have a long lifespan and the pattern of deterioration over time is complex, it is very difficult to maintain infrastructure as 'minimum maintenance state' or 'minimum performance state' by the current way of management. 'Asset Management' shall be performed not only by a technical perspective, but also by an accounting perspective such as cost and asset value. However, due to lack of awareness of 'asset management' among stakeholder, only technical perspective management is being carried out in practice. In order to effectively manage infrastructure assets, complex consideration of various asset value factors such as budget and service as well as safety and durability are required. In this paper, we presented a theory to evaluate and quantify the road network value for efficient asset management of the road network. We also presented a method of simulation to apply the theory presented in this paper. Through simulation and the results derived from this study, it is possible to specify the budget for the future national asset management, and to optimize the strategy for the management of old road facilities.

• Journal of the Economic Geographical Society of Korea
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• v.14 no.4
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• pp.467-485
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• 2011

After Korean War, Korea focused on catching up with the world economy by concentrating on some target industries around the Capital Region and southern coastal cities. Thus, the regional disparity between Capital Region and non-Capital Regions increased drastically. At last, when Korea acquired full-fledged autonomy in 1994 in the Civilian government (1993-1998) and experienced the Asian financial crisis in 1997-1998, local governments were awakened to the notion of region-oriented development, especially for regional industrial development. The purposes of this paper are to introduce regional industrial development policies since 1998 and to suggest some recommendations in terms of how to adjust regional development for industrial policies in the future. In the introducing phase (Kim administration, 1998-2003), four provincial governments requested national funding to raise regional industries that are of strategic importance. At the same time, the central government recognized the need to nurture regional industries to overcome structural weaknesses. As a result, the Roh administration (2003-2008) gave a birth to a systematizing phase. As the ultimate regional policy objective, the balanced national development has been set and the Special Acts, Special Accounts, Committee, and National Plan have been established. Regional Industrial Promotion Project has been carried out very actively during this period. It had a good start albeit idealistic to a certain extent. Therefore, the current government has changed policy paradigm from balanced growth to regional competitiveness along with global paradigm shifts. In order to enhance regional competitiveness, regional development policies have been pursued in more efficient way. Leading Industry Nurturing Projects (LINPs) on Economic Region level, existed Regional Industrial Promotion Projects (RIPPs) on Province level, and Region Specific Industry Projects (RSIPs) on Local Area level have been implemented. Now, it is appropriate to review regional development policies including industrial policies since 1998 and to adjust them for the future sustainable regional development. Because LINPs and RIPPs will be terminated in next two years, the 2nd stage projects are on planning to reduce the redundancies in two projects. In addition, business support program would be reformed from subsiding technology development to building ecological business system. Finally some policy implications are provided in this paper, which is useful to establish the new regional industrial policies for both central and local government.

• Korean Business Review
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• v.17
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• pp.153-183
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• 2004

The Gaisong Merchants can be regarded to playa pioneering role to activate the Korea's trade with foreign countries. In the early period of Yi-Dynasty, the Gaisong Merchants focused on personal trade, but in the middle period of Yi-Dynasty, they entered to the realm of governmental trade. Furthermore, their business activities widened to various forms of trades, for example, smuggling. Utilizing accumulated capital, Gaisong merchants expanded their trading activities to their neighboring countries such as Japan and China. In recent times, it is necessary for modem Korean companies to diversify risks through the establishment of corporations for production, marketing and R&D abroad or through joint venture, M&A and strategic alliance with foreign companies in order to reduce the risks originated from volatile economic and political situations. In this study, we utilize tools of comparative study to compare Gaisong Merchants' foreign trade strategies with those of modem companies such as AMOREPACIFIC, HANILCEMENT and SHINDORICO. The purpose of the paper is to test the hypothesis that modem Korean companies grew up by following the cases of Gaisong Merchants' business activities. We summarize our main findings as follows. First, both Gaisong Merchants and modem Korean companies have common functional core capability in the field of marketing, manufacturing technology, R&D, and human resources development. Second, both Gaisong Merchants and modem Korean companies have common organizational core capability. Third, both Gaisong Merchants and modem Korean companies have common infrastructures such as planning, finance, accounting and MIS. It constitutes the infrastructure of Korea's foreign trade sector. Fourth, both Gaisong Merchants and modem companies have common organizational culture in the field of management policy and philosophy. Actually, those factors are evaluated to be driving forces of Koera's success in foreign trade. In conclusion, the business activities of Gaisong Merchants who represented the peculiarity of Korean business spirit are partially inherited to current Korean business management. The value system and behavior pattern of modern Korean companies is succeeded from the spirit of Gaisong Merchants and it playa major role to specify the identity of Korean business administration.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.11 no.3
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• pp.1-15
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• 2016

This study has analyzed predication capabilities leveraging multi-variate model, logistic regression model, and artificial neural network model based on financial information of medium-small sized companies list in KOSDAQ. 83 delisted companies from 2009 to 2012 and 83 normal companies, i.e. 166 firms in total were sampled for the analysis. Modelling with training data was mobilized for 100 companies inlcuding 50 delisted ones and 50 normal ones at random out of the 166 companies. The rest of samples, 66 companies, were used to verify accuracies of the models. Each model was designed by carrying out T-test with 79 financial ratios for the last 5 years and identifying 9 significant variables. T-test has shown that financial profitability variables were major variables to predict a financial risk at an early stage, and financial stability variables and financial cashflow variables were identified as additional significant variables at a later stage of insolvency. When predication capabilities of the models were compared, for training data, a logistic regression model exhibited the highest accuracy while for test data, the artificial neural networks model provided the most accurate results. There are differences between the previous researches and this study as follows. Firstly, this study considered a time-series aspect in light of the fact that failure proceeds gradually. Secondly, while previous studies constructed a multivariate discriminant model ignoring normality, this study has reviewed the regularity of the independent variables, and performed comparisons with the other models. Policy implications of this study is that the reliability for the disclosure documents is important because the simptoms of firm's fail woule be shown on financial statements according to this paper. Therefore institutional arragements for restraing moral laxity from accounting firms or its workers should be strengthened.

• Journal of Intelligence and Information Systems
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• v.20 no.4
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• pp.121-139
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• 2014

Predicting corporate failure has been an important topic in accounting and finance. The costs associated with bankruptcy are high, so the accuracy of bankruptcy prediction is greatly important for financial institutions. Lots of researchers have dealt with the topic associated with bankruptcy prediction in the past three decades. The current research attempts to use ensemble models for improving the performance of bankruptcy prediction. Ensemble classification is to combine individually trained classifiers in order to gain more accurate prediction than individual models. Ensemble techniques are shown to be very useful for improving the generalization ability of the classifier. Bagging is the most commonly used methods for constructing ensemble classifiers. In bagging, the different training data subsets are randomly drawn with replacement from the original training dataset. Base classifiers are trained on the different bootstrap samples. Instance selection is to select critical instances while deleting and removing irrelevant and harmful instances from the original set. Instance selection and bagging are quite well known in data mining. However, few studies have dealt with the integration of instance selection and bagging. This study proposes an improved bagging ensemble based on instance selection using genetic algorithms (GA) for improving the performance of SVM. GA is an efficient optimization procedure based on the theory of natural selection and evolution. GA uses the idea of survival of the fittest by progressively accepting better solutions to the problems. GA searches by maintaining a population of solutions from which better solutions are created rather than making incremental changes to a single solution to the problem. The initial solution population is generated randomly and evolves into the next generation by genetic operators such as selection, crossover and mutation. The solutions coded by strings are evaluated by the fitness function. The proposed model consists of two phases: GA based Instance Selection and Instance based Bagging. In the first phase, GA is used to select optimal instance subset that is used as input data of bagging model. In this study, the chromosome is encoded as a form of binary string for the instance subset. In this phase, the population size was set to 100 while maximum number of generations was set to 150. We set the crossover rate and mutation rate to 0.7 and 0.1 respectively. We used the prediction accuracy of model as the fitness function of GA. SVM model is trained on training data set using the selected instance subset. The prediction accuracy of SVM model over test data set is used as fitness value in order to avoid overfitting. In the second phase, we used the optimal instance subset selected in the first phase as input data of bagging model. We used SVM model as base classifier for bagging ensemble. The majority voting scheme was used as a combining method in this study. This study applies the proposed model to the bankruptcy prediction problem using a real data set from Korean companies. The research data used in this study contains 1832 externally non-audited firms which filed for bankruptcy (916 cases) and non-bankruptcy (916 cases). Financial ratios categorized as stability, profitability, growth, activity and cash flow were investigated through literature review and basic statistical methods and we selected 8 financial ratios as the final input variables. We separated the whole data into three subsets as training, test and validation data set. In this study, we compared the proposed model with several comparative models including the simple individual SVM model, the simple bagging model and the instance selection based SVM model. The McNemar tests were used to examine whether the proposed model significantly outperforms the other models. The experimental results show that the proposed model outperforms the other models.

• Journal of the Korean Society of Marine Environment & Safety
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• v.26 no.1
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• pp.57-64
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• 2020

The IOPC Fund general assembly reported that the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (known as the HNS Convention) will meet the requirement for the convention to take ef ect between 2021 and 2022. When the convention comes into effect, the liability-limit insurance of the HNS transport ship will be enforced and the shipper receiving the HNS will pay the share of the contribution from the International Fund for damages exceeding the limit of the ship's liability insurance. Korea is one of the major shipping and shipper countries in the world; thus, this study aimed to the need to analyze the effect of the convention on the related industries. The survey of ships and contribution targets analyzed the research data of the Ministry of Oceans and Fisheries. The P&I premium estimation was reviewed by the Korea Shipping Association and the K P&I as insured ships. In addition, the contribution of the HNS cargo volume was analyzed in an annual report by a representative international association for each cargo. About 1,500 ocean-going and domestic vessels have been identified as ships subject to the convention. The effect of changes in premiums under the convention was minimal for most ships. The effect of the shipping industry is expected, with about 150 domestic tankers expected to increase insurance premiums. In the case of shipper industries, 52 freight terminals were found to be eligible for the payment of the share of the international fund, as the proportion of freight volume in Korea was ranked second to fourth in the world by individual HNS accounts. This implies the obligation to pay contributions according to the convention. Considering the status of HNS transport ships entering and leaving ports and the quantity of HNS cargo, it can be concluded that the validity of Korea's convention is sufficient and that, it is necessary to coordinate with global major shipper countries.

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

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

• Journal of Environmental Policy
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• v.8 no.2
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• pp.25-61
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• 2009

These days, environmental policies have changed from being command and control systems toward economic incentive systems, with various incentives having been established by OECD countries. In Korea, many environmental charges have been established in order to diminish activities which damage natural resources. Among them, the Ecosystem Conservation Cooperation Charge and the Replacement Charge for Forest Resources Creation are considered to be representative environmental charges. These charges, along with a few others, were designed to encourage efforts to protect natural resources. The charges include a number of different features, utilize varying methods, and altered ranges of jurisdiction. However, the charges may pose serious inequity problems in terms of their estimated values and their conditions of reduction and exemption. For instance, although the Ecosystem Conservation Cooperation Charge is a primary charge applied to natural resource damage, the charge does not fully secure its original objectives due to its low levy and limited range of provisions. Moreover, the Replacement Charge for Forest Resources Creation has been criticized because of similar reduction and exemption provisions. Therefore, this study analyzes the inequity problems associated with the charges and proposes solutions. First of all, the Ecosystem Conservation Cooperation Charge should be redesigned in such a way that it reflects the substantial value of natural resource damage through either abrogate or increased maximum limits of the charge. With regard to the Replacement Charge for Forest Resources Creation, the cases and ranges of reduction and exemption provisions should be narrowed. Finally, the charges collected should be expended in conformity with their original objectives, and their expenditure should be restricted to either restoration activities or activities directly related to compensation and mitigation of damaged natural resources.