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Utilization of Smart Farms in Open-field Agriculture Based on Digital Twin (디지털 트윈 기반 노지스마트팜 활용방안)

  • Kim, Sukgu
    • Proceedings of the Korean Society of Crop Science Conference
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    • 2023.04a
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    • pp.7-7
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    • 2023
  • Currently, the main technologies of various fourth industries are big data, the Internet of Things, artificial intelligence, blockchain, mixed reality (MR), and drones. In particular, "digital twin," which has recently become a global technological trend, is a concept of a virtual model that is expressed equally in physical objects and computers. By creating and simulating a Digital twin of software-virtualized assets instead of real physical assets, accurate information about the characteristics of real farming (current state, agricultural productivity, agricultural work scenarios, etc.) can be obtained. This study aims to streamline agricultural work through automatic water management, remote growth forecasting, drone control, and pest forecasting through the operation of an integrated control system by constructing digital twin data on the main production area of the nojinot industry and designing and building a smart farm complex. In addition, it aims to distribute digital environmental control agriculture in Korea that can reduce labor and improve crop productivity by minimizing environmental load through the use of appropriate amounts of fertilizers and pesticides through big data analysis. These open-field agricultural technologies can reduce labor through digital farming and cultivation management, optimize water use and prevent soil pollution in preparation for climate change, and quantitative growth management of open-field crops by securing digital data for the national cultivation environment. It is also a way to directly implement carbon-neutral RED++ activities by improving agricultural productivity. The analysis and prediction of growth status through the acquisition of the acquired high-precision and high-definition image-based crop growth data are very effective in digital farming work management. The Southern Crop Department of the National Institute of Food Science conducted research and development on various types of open-field agricultural smart farms such as underground point and underground drainage. In particular, from this year, commercialization is underway in earnest through the establishment of smart farm facilities and technology distribution for agricultural technology complexes across the country. In this study, we would like to describe the case of establishing the agricultural field that combines digital twin technology and open-field agricultural smart farm technology and future utilization plans.

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Use of Parasites for Stock Analysis of Salmonid Fishes (연어과 어류의 계군분석을 위한 기생충의 활용)

  • Kim, Jeong-Ho
    • The Sea:JOURNAL OF THE KOREAN SOCIETY OF OCEANOGRAPHY
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    • v.12 no.2
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    • pp.112-120
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    • 2007
  • This paper reviews the use of parasites as 'biological tags' for studying stock analysis of salmonid fishes. Numerous definitions of stock concepts exist, but most of them essentially define a group of fish as having similar biological characteristics and being self-reproducing as stocks. It is important to manage fish stocks for human consumption and sustainable production and especially for salmonid fishes. Because these fry are considered as each country's property, it is necessary to identify and discriminate each fish stock in the open sea. Methods of separating fish stocks are very diverse. Artificial tags, parasites, otoliths scales and genetic characters have been used for stock analysis and each method has advantages and disadvantages. Of these parasites can be good biological tags because they are applied by nature at no cost. Parasites can be infected with susceptible host fishes when they enter into certain areas. Then if they move to the outside and are caught researchers can infer that the fish had been in the endemic area for a period of time during their life. Hence the host fish can be considered as naturally 'tagged' by parasites. However, if they do not pass the parasites-endemic. area, they will harbour no parasites. Therefore, researchers can discriminate each fish stocks and trace their migration routes with these biological tags. In this paper, several examples on the use of parasites as biological tags for studying salmonids, as well as other species, are listed. The advantages and limitations of parasites as biological tags are also discussed. Chum salmon (Oncorhynchus keta), the main salmonid species migrating to Korea, is distributed all around the North Pacific. Korean chum salmon are generally thought to move to the Sea of Okhotsk, the western North Pacific and the Bering Sea. However, there is no clear information on the distribution and migration pathways of Korean chum salmon, and no markers exist for separating them from others yet. Recent Korean chum salmon stock analysis including parasites information are mentioned.

Study on the Possibility of Estimating Surface Soil Moisture Using Sentinel-1 SAR Satellite Imagery Based on Google Earth Engine (Google Earth Engine 기반 Sentinel-1 SAR 위성영상을 이용한 지표 토양수분량 산정 가능성에 관한 연구)

  • Younghyun Cho
    • Korean Journal of Remote Sensing
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    • v.40 no.2
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    • pp.229-241
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    • 2024
  • With the advancement of big data processing technology using cloud platforms, access, processing, and analysis of large-volume data such as satellite imagery have recently been significantly improved. In this study, the Change Detection Method, a relatively simple technique for retrieving soil moisture, was applied to the backscattering coefficient values of pre-processed Sentinel-1 synthetic aperture radar (SAR) satellite imagery product based on Google Earth Engine (GEE), one of those platforms, to estimate the surface soil moisture for six observatories within the Yongdam Dam watershed in South Korea for the period of 2015 to 2023, as well as the watershed average. Subsequently, a correlation analysis was conducted between the estimated values and actual measurements, along with an examination of the applicability of GEE. The results revealed that the surface soil moisture estimated for small areas within the soil moisture observatories of the watershed exhibited low correlations ranging from 0.1 to 0.3 for both VH and VV polarizations, likely due to the inherent measurement accuracy of the SAR satellite imagery and variations in data characteristics. However, the surface soil moisture average, which was derived by extracting the average SAR backscattering coefficient values for the entire watershed area and applying moving averages to mitigate data uncertainties and variability, exhibited significantly improved results at the level of 0.5. The results obtained from estimating soil moisture using GEE demonstrate its utility despite limitations in directly conducting desired analyses due to preprocessed SAR data. However, the efficient processing of extensive satellite imagery data allows for the estimation and evaluation of soil moisture over broad ranges, such as long-term watershed averages. This highlights the effectiveness of GEE in handling vast satellite imagery datasets to assess soil moisture. Based on this, it is anticipated that GEE can be effectively utilized to assess long-term variations of soil moisture average in major dam watersheds, in conjunction with soil moisture observation data from various locations across the country in the future.

A Study of the Materials on Officials Composing Response Poems to the King's during the Reign of King Yeongjo in the Collection of the National Museum of Korea (국립중앙박물관 소장 영조대 갱진(賡進) 자료 연구)

  • Heo Moonhaeng
    • Bangmulgwan gwa yeongu (The National Museum of Korea Journal)
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    • v.1
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    • pp.258-277
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    • 2024
  • Kings of the Joseon Dynasty composed poems exploring their thinking about the governance of the country or personal feelings. Kings Taejong (r. 1400-1418), Seongjong (r. 1469-1494), Yeongjo (r. 1724-1776), and other kings bestowed poems upon their officials and had them compose response poems using rhyming words. Such literary exchanges between sovereign and subject were called gaengjin. The vast body of surviving materials related to gaengjin includes chronological materials recording the words and acts of kings, Yeolseong oeje compiling writings by Joseon kings, the so-called gaengjin albums that kings specially produced to commemorate officials' composition of response poems, and literary collections by officials who took part in the composition of response poems. Gaengjin albums were produced immediately after the king's bestowal of a poem and the officials' composition of response poems. They provide diverse information about the background, content, and participants of literary exchanges. Many of these albums are held in the collection of the National Museum of Korea, Gyujanggak Archives at Seoul National University, and Jangseogak Archives of the Academy of Korean Studies. A majority of the extant gaengjin albums were produced during the reign of King Yeongjo. This paper analyzed chronological materials on the gaengjin literary exchanges that were officially conducted 200 times during the fifty-two-year reign of King Yeongjo. It also explored the drastic increase in gaengjin literary exchanges between 1769 (the forty-fifth year of the reign of King Yeongjo) and 1776 (the fifty-second year of the reign of King Yeongjo), the period corresponding to King Yeongjo's latter years. The paper introduced sixteen items (albums, books, hanging boards, and folding screens) related to the gaengjin literary exchanges held in the eighteenth and nineteenth centuries from the collection of the National Museum of Korea. Among them, it shed light on the production backgrounds, contents, and characteristics of the eight gaengjin albums produced during the reign of King Yeongjo. The materials related to the gaengjin literary exchanges created during the reign of King Yeongjo are valuable in that they improve the understanding of various aspects of the respective period, including joyous events of the state (or royal court), the administration of state affairs, and literary activities among the sovereign and subjects.

Situation of Geological Occurrences and Utilization, and Research Trends of North Korean Coal Resources (북한 석탄 자원의 부존 및 활용현황과 연구동향)

  • Sang-Mo Koh;Bum Han Lee;Otgon-Erdene Davaasuren
    • Economic and Environmental Geology
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    • v.57 no.3
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    • pp.281-292
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    • 2024
  • North Korea relies heavily on coal as the primary energy source, playing an important role in all energy demand sectors except for the transportation sector. Approximately half of the total electricity is generated through coal-fired power plants, and coal is used to produce heat and power for all industrial facilities. Furthermore, coal has been a significant contributor to earning foreign currency through long-term exports to China. Nevertheless, since the 1980s, indiscriminate mining activities have led to rapid depletion of coal production in most coal mines. Aging mine facilities, lack of investment in new equipment, shortages of fuel and electricity, difficulties in material supply, and frequent damage from flooding have collectively contributed to a noticeable decline in coal production since the late 1980s. North Korea's coal deposits are distributed in various geological formations from the Proterozoic to the Cenozoic, but the most critical coal-bearing formations are Ripsok and Sadong formations distributed in the Pyeongnam Basin of the Late Paleozoic from Carboniferous to Permian, which are called as Pyeongnam North and South Coal Fields. Over 90% of North Korea's coal is produced in these coal fields. The classification of coal in North Korea differs from the international classification based on coalification (peat, lignite, sub-bituminous coal, bituminous coal, and anthracite). North Korean classification based on industrial aspect is classified into bituminous coal, anthracite, and low-grade coal (Chomuyeontan). Based on the energy factor, it is classified into high-calorie coal, medium calorie coal, and low-calorie coal. In North Korea, the term "Chomuyeontan" refers to a type of coal that is not classified globally and is unique to North Korea. It is a low-grade coal exclusively used in North Korea and is not found or used in any other country worldwide. This article compares North Korea's coal classification and the international coal classification of coal and provides insights into the geological characteristics, reserves, utilization, and research trends of North Korean coal resources. This study could serve as a guide for preparing scientific and industrial agendas related to coal collaboration between North Korea and South Korea.

Evaluation of Eco-friendliness for Major Development Projects by EA-INDEX in South Korea (EA-INDEX를 활용한 국내 주요 개발사업의 친환경성 평가)

  • Jihyeon Park;Hyun-Jin Choi
    • Journal of Environmental Impact Assessment
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    • v.33 no.3
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    • pp.131-141
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    • 2024
  • The environmental impact assessment have been played important role for sustainable development of the country. Meantime, various studies have been conducted for scientific and effective environmental impact assessment. Howeverthe quantitative data such as regional distribution status and development characteristics according to the type of development project, environmental changes due to development projects, and spatial-temporal changes are insufficient, currently. In this study, we investigated the eco-friendliness of major development projects (industrial complex, urban development, tourist complexes, and waste disposal equipments) by integrating the EA-INDEX of each development projects which were reported by prior researches. As a result, we found that the eco-friendliness of development projects tended to gradually increase overtime due to the increase in eco-friendliness in the protection of living environment sector. The protection of living environment sector was a major factor in the the eco-friendliness of industrial complexes and urban development projects. In the case ofroad construction, landfill and tourist complex development projects, the natural environment conservation sector was a major factor in the eco-friendliness of the project. As a result of analyzing the eco-friendliness of development projects by local government, the eco-friendliness of development projects promoted and implemented in Ulsan, Jeonnam, and Gwangju was higher compared to other regions, and it was relatively low in Daejeon, Gyeongnam, and Daegu. This study is considered to be significant in that it conducted a quantitative analysis of the eco-friendliness of development projects carried out over a relatively long period of time throughout South Korea by dividing them by year and local government.

SKU recommender system for retail stores that carry identical brands using collaborative filtering and hybrid filtering (협업 필터링 및 하이브리드 필터링을 이용한 동종 브랜드 판매 매장간(間) 취급 SKU 추천 시스템)

  • Joe, Denis Yongmin;Nam, Kihwan
    • Journal of Intelligence and Information Systems
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    • v.23 no.4
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    • pp.77-110
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    • 2017
  • Recently, the diversification and individualization of consumption patterns through the web and mobile devices based on the Internet have been rapid. As this happens, the efficient operation of the offline store, which is a traditional distribution channel, has become more important. In order to raise both the sales and profits of stores, stores need to supply and sell the most attractive products to consumers in a timely manner. However, there is a lack of research on which SKUs, out of many products, can increase sales probability and reduce inventory costs. In particular, if a company sells products through multiple in-store stores across multiple locations, it would be helpful to increase sales and profitability of stores if SKUs appealing to customers are recommended. In this study, the recommender system (recommender system such as collaborative filtering and hybrid filtering), which has been used for personalization recommendation, is suggested by SKU recommendation method of a store unit of a distribution company that handles a homogeneous brand through a plurality of sales stores by country and region. We calculated the similarity of each store by using the purchase data of each store's handling items, filtering the collaboration according to the sales history of each store by each SKU, and finally recommending the individual SKU to the store. In addition, the store is classified into four clusters through PCA (Principal Component Analysis) and cluster analysis (Clustering) using the store profile data. The recommendation system is implemented by the hybrid filtering method that applies the collaborative filtering in each cluster and measured the performance of both methods based on actual sales data. Most of the existing recommendation systems have been studied by recommending items such as movies and music to the users. In practice, industrial applications have also become popular. In the meantime, there has been little research on recommending SKUs for each store by applying these recommendation systems, which have been mainly dealt with in the field of personalization services, to the store units of distributors handling similar brands. If the recommendation method of the existing recommendation methodology was 'the individual field', this study expanded the scope of the store beyond the individual domain through a plurality of sales stores by country and region and dealt with the store unit of the distribution company handling the same brand SKU while suggesting a recommendation method. In addition, if the existing recommendation system is limited to online, it is recommended to apply the data mining technique to develop an algorithm suitable for expanding to the store area rather than expanding the utilization range offline and analyzing based on the existing individual. The significance of the results of this study is that the personalization recommendation algorithm is applied to a plurality of sales outlets handling the same brand. A meaningful result is derived and a concrete methodology that can be constructed and used as a system for actual companies is proposed. It is also meaningful that this is the first attempt to expand the research area of the academic field related to the existing recommendation system, which was focused on the personalization domain, to a sales store of a company handling the same brand. From 05 to 03 in 2014, the number of stores' sales volume of the top 100 SKUs are limited to 52 SKUs by collaborative filtering and the hybrid filtering method SKU recommended. We compared the performance of the two recommendation methods by totaling the sales results. The reason for comparing the two recommendation methods is that the recommendation method of this study is defined as the reference model in which offline collaborative filtering is applied to demonstrate higher performance than the existing recommendation method. The results of this model are compared with the Hybrid filtering method, which is a model that reflects the characteristics of the offline store view. The proposed method showed a higher performance than the existing recommendation method. The proposed method was proved by using actual sales data of large Korean apparel companies. In this study, we propose a method to extend the recommendation system of the individual level to the group level and to efficiently approach it. In addition to the theoretical framework, which is of great value.

Anatomical and Physical Properties of Pitch Pine (Pinus rigida Miller) - The Characteristics of Stem, Branch, Root and Topwood - (리기다소나무(Pinus rigida Miller)의 목재해부학적(木材解剖學的) 및 물리학적성질(物理學的性質)에 관(關)한 연구(硏究) - 간(幹), 지(枝), 근(根), 초두목(梢頭木)의 특성(特性)을 중심(中心)으로 -)

  • Lee, Phil Woo
    • Journal of Korean Society of Forest Science
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    • v.16 no.1
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    • pp.33-62
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    • 1972
  • Pitch pine (Pinus rigida Miller) in Korea has become one of the major silvicultural species for many years since it was introduced from the United States of America in 1907. To attain the more rational wood utilization basical researches on wood properties are primarily needed, since large scale of timber production from Pitch Pine trees has now been accomplishing in the forested areast hroughout the country. Under the circumustances, this experiment was carried out to study the wood anatomical, physical and mechanical properties of Pitch Pine grown in the country. Materials used in this study had been prepared by cutting the selected pitch pine trees from the Seoul National University Forests located in Suwon. To obtain and compare the anatomical and physical properties of the different parts of tree such as stem, branch, top and rootwood, this study had been divided into two categories (anatomical and physical). For the anatomical study macroscopical and microscopical features such as annual ring, intercellular cannal, ray, tracheid, ray trachid, ray parenchyma cell and pit etc. were observed and measured by the different parts (stem, branch, root and topwood) of tree. For the physical and mechanical properties the moisture content of geen wood, wood specific gravity, shrinkage, compression parallel to the grain, tension parallel and perpendicular to the grain, radial and tangential shear, bending, cleavage and hardness wree tested. According to the results this study may be concluded as follows: 1. The most important comparable features in general properties of wood among the different parts of tree were distinctness and width of annual ring, transition from spring to summerwood, wood color, odor and grain etc. In microscopical features the sizes of structural elements of wood were comparable features among the parts of tree. Among their features, length, width and thickness of tracheids, resin ducts and ray structures were most important. 2. In microscopical features among the different parts of tree stem and topwood were shown simillar reults in tissues. However in rootwood compared with other parts on the tangential surface distinctly larger ray structures were observed and measured. The maximum size of unseriate ray was attained to 27 cell ($550{\mu}$) height in length and 35 microns in width. Fusiform rays were formed occasionally the connected ray which contain one or several horizontal cannals. Branchwood was shown the same features like stemwood but the measured values were very low in comparing with other parts of tree. 3. Trachid length measured among the different parts of tree were shown largest in stem and shortest in branchwood. In comparing the tracheid length among the parts the differences were not shown only between stem and rootwood, but shown between all other parts of tree. Trachid diameters were shown widest in rootwood and narrowest in branchwood, and the differences among the different parts were not realized. Wall thickness were shown largest value in rootwood and smallest in branchwood, and the differences were shown between root and top or branchwood, and between stem and branch or top wood, but not shown between other parts of tree. 4. Moisture contents of green wood were shown highest in topwood and lowest in heartwood of stem. The differences among the different parts were recognized between top or heartwood and other parts of tree, but not between root and branchwood or root and sapwood. 5. Wood specific gravities were shown highest in stem and next order root and branchwood, but lowest in topwood. The differences were shown clearly between stemwood and other parts of tree, but not root and branchwood. However the significant difference is realized as most lowest value in topwood. 6. In compression strength parallel to the grain compared among the different parts of tree at the 14 percent of moisture content, highest strength was appeared in stem, next order branch and rootwood, but lowest in topwood. 7. In bending strength compared among the different parts of tree at the 14 percent of moisture content clearly highest strength was shown in branchwood, next order stem and root, but lowest in topwood. Though the branchwood has lower specific gravity than stemwood it was shown clearly high bending strength.

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Studies on the Mechanical Properties of Weathered Granitic Soil -On the Elements of Shear Strength and Hardness- (화강암질풍화토(花崗岩質風化土)의 역학적(力學的) 성질(性質)에 관(關)한 연구(硏究) -전단강도(剪斷强度)의 영향요소(影響要素)와 견밀도(堅密度)에 대(對)하여-)

  • Cho, Hi Doo
    • Journal of Korean Society of Forest Science
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    • v.66 no.1
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    • pp.16-36
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    • 1984
  • It is very important in forestry to study the shear strength of weathered granitic soil, because the soil covers 66% of our country, and because the majority of land slides have been occured in the soil. In general, the causes of land slide can be classified both the external and internal factors. The external factors are known as vegetations, geography and climate, but internal factors are known as engineering properties originated from parent rocks and weathering. Soil engineering properties are controlled by the skeleton structure, texture, consistency, cohesion, permeability, water content, mineral components, porosity and density etc. of soils. And the effects of these internal factors on sliding down summarize as resistance, shear strength, against silding of soil mass. Shear strength basically depends upon effective stress, kinds of soils, density (void ratio), water content, the structure and arrangement of soil particles, among the properties. But these elements of shear strength work not all alone, but together. The purpose of this thesis is to clarify the characteristics of shear strength and the related elements, such as water content ($w_o$), void ratio($e_o$), dry density (${\gamma}_d$) and specific gravity ($G_s$), and the interrelationship among related elements in order to decide the dominant element chiefly influencing on shear strength in natural/undisturbed state of weathered granitic soil, in addition to the characteristics of soil hardness of weathered granitic soil and root distribution of Pinus rigida Mill and Pinus rigida ${\times}$ taeda planted in erosion-controlled lands. For the characteristics of shear strength of weathered granitic soil and the related elements of shear strength, three sites were selected from Kwangju district. The outlines of sampling sites in the district were: average specific gravity, 2.63 ~ 2.79; average natural water content, 24.3 ~ 28.3%; average dry density, $1.31{\sim}1.43g/cm^3$, average void ratio, 0.93 ~ 1.001 ; cohesion, $ 0.2{\sim}0.75kg/cm^2$ ; angle of internal friction, $29^{\circ}{\sim}45^{\circ}$ ; soil texture, SL. The shear strength of the soil in different sites was measured by a direct shear apparatus (type B; shear box size, $62.5{\times}20mm$; ${\sigma}$, $1.434kg/cm^2$; speed, 1/100mm/min.). For the related element analyses, water content was moderated through a series of drainage experiments with 4 levels of drainage period, specific gravity was measured by KS F 308, analysis of particle size distribution, by KS F 2302 and soil samples were dried at $110{\pm}5^{\circ}C$ for more than 12 hours in dry oven. Soil hardness represents physical properties, such as particle size distribution, porosity, bulk density and water content of soil, and test of the hardness by soil hardness tester is the simplest approach and totally indicative method to grasp the mechanical properties of soil. It is important to understand the mechanical properties of soil as well as the chemical in order to realize the fundamental phenomena in the growth and the distribution of tree roots. The writer intended to study the correlation between the soil hardness and the distribution of tree roots of Pinus rigida Mill. planted in 1966 and Pinus rigida ${\times}$ taeda in 199 to 1960 in the denuded forest lands with and after several erosion control works. The soil texture of the sites investigated was SL originated from weathered granitic soil. The former is situated at Py$\ddot{o}$ngchangri, Ky$\ddot{o}$m-my$\ddot{o}$n, Kogs$\ddot{o}$ng-gun, Ch$\ddot{o}$llanam-do (3.63 ha; slope, $17^{\circ}{\sim}41^{\circ}$ soil depth, thin or medium; humidity, dry or optimum; height, 5.66/3.73 ~ 7.63 m; D.B.H., 9.7/8.00 ~ 12.00 cm) and the Latter at changun-long Kwangju-shi (3.50 ha; slope, $12^{\circ}{\sim}23^{\circ}$; soil depth, thin; humidity, dry; height, 10.47/7.3 ~ 12.79 m; D.B.H., 16.94/14.3 ~ 19.4 cm).The sampling areas were 24quadrats ($10m{\times}10m$) in the former area and 12 in the latter expanding from summit to foot. Each sampling trees for hardness test and investigation of root distribution were selected by purposive selection and soil profiles of these trees were made at the downward distance of 50 cm from the trees, at each quadrat. Soil layers of the profile were separated by the distance of 10 cm from the surface (layer I, II, ... ...). Soil hardness was measured with Yamanaka soil hardness tester and indicated as indicated soil hardness at the different soil layers. The distribution of tree root number per unit area in different soil depth was investigated, and the relationship between the soil hardness and the number of tree roots was discussed. The results obtained from the experiments are summarized as follows. 1. Analyses of simple relationship between shear strength and elements of shear strength, water content ($w_o$), void ratio ($e_o$), dry density (${\gamma}_d$) and specific gravity ($G_s$). 1) Negative correlation coefficients were recognized between shear strength and water content. and shear strength and void ratio. 2) Positive correlation coefficients were recognized between shear strength and dry density. 3) The correlation coefficients between shear strength and specific gravity were not significant. 2. Analyses of partial and multiple correlation coefficients between shear strength and the related elements: 1) From the analyses of the partial correlation coefficients among water content ($x_1$), void ratio ($x_2$), and dry density ($x_3$), the direct effect of the water content on shear strength was the highest, and effect on shear strength was in order of void ratio and dry density. Similar trend was recognized from the results of multiple correlation coefficient analyses. 2) Multiple linear regression equations derived from two independent variables, water content ($x_1$ and dry density ($x_2$) were found to be ineffective in estimating shear strength ($\hat{Y}$). However, the simple linear regression equations with an independent variable, water content (x) were highly efficient to estimate shear strength ($\hat{Y}$) with relatively high fitness. 3. A relationship between soil hardness and the distribution of root number: 1) The soil hardness increased proportionally to the soil depth. Negative correlation coefficients were recognized between indicated soil hardness and the number of tree roots in both plantations. 2) The majority of tree roots of Pinus rigida Mill and Pinus rigida ${\times}$ taeda planted in erosion-controlled lands distributed at 20 cm deep from the surface. 3) Simple linear regression equations were derived from indicated hardness (x) and the number of tree roots (Y) to estimate root numbers in both plantations.

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An Analysis of the Imported Consumer Goods Distribution Sector of Korea: From a Vertical Structure Viewpoint (수입소비재(輸入消費財) 유통구조(流通構造)의 효율화(效率化) 방안(方案))

  • Nam, Il-chong
    • KDI Journal of Economic Policy
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    • v.13 no.1
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    • pp.3-33
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    • 1991
  • Since the early 1980's, the Korean government has gradually been widening the Korean market to foreign consumer goods. This, combined with the increased purchasing power of the Korean consumers resulting from the continued economic growth of the country, has sparked a spectacular influx of foreign consumer goods into Korea, ranging from BMW's to chopsticks. Import of foreign consumer goods amounted to more than 6 billion dollars in 1989 and is continuing to grow at a rapid rate. The increased import of foreign consumer goods doubtlessly improved the overall welfare of the Korean consumers by providing them with a wider range of options to choose from, by lowering the prices of some of the consumer goods domestically produced, and also by forcing the producers of some Korean goods to face competition with better foreign goods, thus giving them an incentive to raise the quality of their products. However, it is agreed by most economists that this increase in general welfare has been much smaller than what they had expected at the outset. Consumer prices of most imported consumer goods are easily double the import price, and in some cases, more than treble the import prices. Further, there has not been a noticeable drop in the prices of domestically produced consumer goods. Much of the blame has been attributed to the distribution sector of Korea. The objective of this paper is to analyze the imported consumer goods distribution sector of Korea, focusing on the possible sources of the poor performance of that sector, and to make policy suggestions that could potentially increase the welfare. This paper differs from all the previous research by others on this subject in that it analyzes the imported consumer goods distribution sector of Korea as a vertical structure. The distribution sector of an imported consumer good is a vertical structure since it consists of an international market, an import stage, and domestic wholesale and retail markets, in that order vertically. Our study naturally includes the analysis of the vertical restraints as well as the analysis of the industrial organization of each horizontal stage in the vertical structure. Each horizontal component of the imported consumer goods distribution sector is basically a monopolistically competitive market differentiated by characteristics of goods and by the locations and the services of firms. Further, restrictive dealership and resale price maintenance are found to be widely in use. Our main findings are the follwing; First, most consumer goods are imported monopolistically or oligopolistically through restrictive dealership contracts between foreign producers and domestic importers. Such restrictive dealership gives importers market power in the domestic market and explains many of the large discrepancies betwen the consumer prices and the import prices of many goods. Korean anti - trust law does not cover the issues arising from the market power of an importer resulting from a restrictive dealership contract. Second, some major producers of Korean goods are also importers of foreign goods that are substitutes of their products. The import of substitutes by major domestic producers is anti - competitive because it tends to raise the prices of both domestic goods and foreign goods, and also because it reduces the incentive of the domestic producers to raise the quality of their products. Third, wholesalers and retailers widely use resale price maintenance as a price fixing mechanism, and while this is against the anti- trust law, it seldom gets noticed. Fourth, the high level of rents of real estate for commercial use works as an entry barrier to the distribution sector and results in reduced competition by the firms in that sector. Finally, there are information problems. Consumers have inferior information to firms about the quality of a foreign consumer good that they have not tried before. Such information asymmetry often enables firms to raise prices. In addition, information asymmetry between importers frequently delays the import of cheaper substitutes. In order to alleviate the problems indentified above, we suggest the following policy changes. The government should strengthen the anti - trust law and its enforcement to regulate restrictive import contracts, import of competing goods by major domestic producers, and RPM by wholesalers and retailers that is aimed at price fixing. In addition, the government should loosen its tight real estate policy to encourage investment in the distribution sector. Finally, we suggest that the import price revelation policy that has been in use for some items since 1990 be expanded to most imported consumer goods that are introduced for the first time to give consumer better information and be used only for the period of time needed to inform sufficient number of consumers.

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