• Title/Summary/Keyword: Creation-oriented

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A Study on Perceived Quality affecting the Service Personal Value in the On-off line Channel - Focusing on the moderate effect of the need for cognition - (온.오프라인 채널에서 지각된 품질이 서비스의 개인가치에 미치는 영향에 관한 연구 -인지욕구의 조정효과를 중심으로-)

  • Sung, Hyung-Suk
    • Journal of Distribution Research
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    • v.15 no.3
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    • pp.111-137
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    • 2010
  • The basic purpose of this study is to investigate perceived quality and service personal value affecting the result of long-term relationship between service buyers and suppliers. This research presented a constructive model(perceived quality affecting the service personal value and the moderate effect of NFC) in the on off line and then propose the research model base on prior researches and studies about relationships among components of service. Data were gathered from respondents who visit at the education service market. For this study, Data were analyzed by AMOS 7.0. We integrate the literature on services marketing with researches on personal values and perceived quality. The SERPVAL scale presented here allows for the creation of a common ground for assessing service personal values, giving a clear understanding of the key value dimensions behind service choice and usage. It will lead to a focus of future research in services marketing, extending knowledge in the field and stimulating further empirical research on service personal values. At the managerial level, as a tool the SERPVAL scale should allow practitioners to evaluate and improve the value of a service, and consequently, to define strategies and actions to address services for customers based on their fundamental personal values. Through qualitative and empirical research, we find that the service quality construct conforms to the structure of a second-order factor model that ties service quality perceptions to distinct and actionable dimensions: outcome, interaction, and environmental quality. In turn, each has two subdimensions that define the basis of service quality perceptions. The authors further suggest that for each of these subdimensions to contribute to improved service quality perceptions, the quality received by consumers must be perceived to be reliable, responsive, and empathetic. Although the service personal value may be found in researches that explore individual values and their consequences for consumer behavior, there is no established operationalization of a SERPVAL scale. The inexistence of an established scale, duly adapted in order to understand and analyze personal values behind services usage, exposes the need of a measurement scale with such a purpose. This need has to be rooted, however, in a conceptualization of the construct being scaled. Service personal values can be defined as a customer's overall assessment of the use of a service based on the perception of what is achieved in terms of his own personal values. As consumer behaviors serve to show an individual's values, the use of a service can also be a way to fulfill and demonstrate consumers'personal values. In this sense, a service can provide more to the customer than its concrete and abstract attributes at both the attribute and the quality levels, and more than its functional consequences at the value level. Both values and services literatures agree, that personal value is the highest-level concept, followed by instrumental values, attitudes and finally by product attributes. Purchasing behaviors are agreed to be the end result of these concepts' interaction, with personal values taking a major role in the final decision process. From both consumers' and practitioners' perspectives, values are extremely relevant, as they are desirable goals that serve as guiding principles in people's lives. While building on previous research, we propose to assess service personal values through three broad groups of individual dimensions; at the self-oriented level, we use (1) service value to peaceful life (SVPL) and, at the social-oriented level, we use (2) service value to social recognition (SVSR), and (3) service value to social integration (SVSI). Service value to peaceful life is our first dimension. This dimension emerged as a combination of values coming from the RVS scale, a scale built specifically to assess general individual values. If a service promotes a pleasurable life, brings or improves tranquility, safety and harmony, then its user recognizes the value of this service. Generally, this service can improve the user's pleasure of life, since it protects or defends the consumer from threats to life or pressures on it. While building upon both the LOV scale, a scale built specifically to assess consumer values, and the RVS scale for individual values, we develop the other two dimensions: SVSR and SVSI. The roles of social recognition and social integration to improve service personal value have been seriously neglected. Social recognition derives its outcome utility from its predictive utility. When applying this underlying belief to our second dimension, SVSR, we assume that people use a service while taking into consideration the content of what is delivered. Individuals consider whether the service aids in gaining respect from others, social recognition and status, as well as whether it allows achieving a more fulfilled and stimulating life, which might then be revealed to others. People also tend to engage in behavior that receives social recognition and to avoid behavior that leads to social disapproval, and this contributes to an individual's social integration. This leads us to the third dimension, SVSI, which is based on the fact that if the consumer perceives that a service strengthens friendships, provides the possibility of becoming more integrated in the group, or promotes better relationships at the social, professional or family levels, then the service will contribute to social integration, and naturally the individual will recognize personal value in the service. Most of the research in business values deals with individual values. However, to our knowledge, no study has dealt with assessing overall personal values as well as their dimensions in a service context. Our final results show that the scales adapted from the Schwartz list were excluded. A possible explanation is that although Schwartz builds on Rokeach work in order to explore individual values, its dimensions might be especially focused on analyzing societal values. As we are looking for individual dimensions, this might explain why the values inspired by the Schwartz list were excluded from the model. The hierarchical structure of the final scale presented in this paper also presents theoretical implications. Although we cannot claim to definitively capture the dimensions of service personal values, we believe that we come close to capturing these overall evaluations because the second-order factor extracts the underlying commonality among dimensions. In addition to obtaining respondents' evaluations of the dimensions, the second-order factor model captures the common variance among these dimensions, reflecting the respondents' overall assessment of service personal values. Towards this fact, we expect that the service personal values conceptualization and measurement scale presented here contributes to both business values literature and the service marketing field, allowing for the delineation of strategies for adding value to services. This new scale also presents managerial implications. The SERPVAL dimensions give some guidance on how to better pursue a highly service-oriented business strategy. Indeed, the SERPVAL scale can be used for benchmarking purposes, as this scale can be used to identify whether or not a firms' marketing strategies are consistent with consumers' expectations. Managerial assessment of the personal values of a service might be extremely important because it allows managers to better understand what customers want or value. Thus, this scale allows us to identify what services are really valuable to the final consumer; providing knowledge for making choices regarding which services to include. Traditional approaches have focused their attention on service attributes (as quality) and service consequences(as service value), but personal values may be an important set of variables to be considered in understanding what attracts consumers to a certain service. By using the SERPVAL scale to assess the personal values associated with a services usage, managers may better understand the reasons behind services' usage, so that they may handle them more efficiently. While testing nomological validity, our empirical findings demonstrate that the three SERPVAL dimensions are positively and significantly associated with satisfaction. Additionally, while service value to social integration is related only with loyalty, service value to peaceful life is associated with both loyalty and repurchase intent. It is also interesting and surprising that service value to social recognition appears not to be significantly linked with loyalty and repurchase intent. A possible explanation is that no mobile service provider has yet emerged in the market as a luxury provider. All of the Portuguese providers are still trying to capture market share by means of low-end pricing. This research has implications for consumers as well. As more companies seek to build relationships with their customers, consumers are easily able to examine whether these relationships provide real value or not to their own lives. The selection of a strategy for a particular service depends on its customers' personal values. Being highly customer-oriented means having a strong commitment to customers, trying to create customer value and understanding customer needs. Enhancing service distinctiveness in order to provide a peaceful life, increase social recognition and gain a better social integration are all possible strategies that companies may pursue, but the one to pursue depends on the outstanding personal values held by the service customers. Data were gathered from 284 respondents in the korean discount store and online shopping mall market. This research proposed 3 hypotheses on 6 latent variables and tested through structural equation modeling. 6 alternative measurements were compared through statistical significance test of the 6 paths of research model and the overall fitting level of structural equation model. and the result was successful. and Perceived quality more positively influences service personal value when NFC is high than when no NFC is low in the off-line market. The results of the study indicate that service quality is properly modeled as an antecedent of service personal value. We consider the research and managerial implications of the study and its limitations. In sum, by knowing the dimensions a consumer takes into account when choosing a service, a better understanding of purchasing behaviors may be realized, guiding managers toward customers expectations. By defining strategies and actions that address potential problems with the service personal values, managers might ultimately influence their firm's performance. we expect to contribute to both business values and service marketing literatures through the development of the service personal value. At a time when marketing researchers are challenged to provide research with practical implications, it is also believed that this framework may be used by managers to pursue service-oriented business strategies while taking into consideration what customers value.

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A Study on Design Education Re-engineering by Multi-disciplinary Approach (다학제적 접근을 통한 대학디자인 교육혁신 프로그램 연구)

  • Lee, Soon-Jong;Kim, Jong-Won;Chu, Wu-Jin;Chae, Sung-Zin;Yoon, Su-Hyun
    • Archives of design research
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    • v.20 no.3 s.71
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    • pp.299-314
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    • 2007
  • For the past 20 years, the growth and development of university-design-educational institutes contributed to the industrial development of our country. Due to the technological fluctuation and changes in the industrial structure in the latter half of the 20th century, the enterprise is demanding professionally-oriented design manpower. The principle which appears from instances of the advanced nations is to accommodate the demands in social changes and apply them to educational design programs. In order to respond promptly to the industrial demand especially, the advanced nations adopted "multidisciplinary design education programs" to lead innovation in the area of design globally. The objective of the research consequently is to suggest an educational system and a program through which the designer can be educated to obtain complex knowledge and the technique demanded by the industry and enterprise. Nowadays in order to adapt to a new business environment, designers specially should have both the knowledge and techniques in engineering and business administration. We suggest that the IPDI, a multidisciplinary design educational system and program is made up of the coordinated operation of major classes, on-the-job training connection, educational system for research base creation, renovation design development program for the application and the synthesis of alternative proposals about the training facility joint ownership by connecting with the education of design, business administration and engineering.

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A study on the beauty of space by overall arrangement and composition of a picture in Oriental painting (동양회화의 경영위치(經營位置)에 의한 여백(餘白)의 미(美) 연구(硏究))

  • Lee, Seung-Sook
    • Journal of Science of Art and Design
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    • v.11
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    • pp.201-220
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    • 2007
  • From two viewpoints the writer investigated the beauty of space by overall arrangement and composition of a picture in Oriental painting. In particular, she examined the expanded representation and significance of space use which had not properly been recognized in the field of a colored picture contrary to a painting in India ink. She studied that the boundary for the representation and appreciation of space was unlimited to one field of painting by studying and analyzing it in connection with other fields of art which had something in common with it in techniques or languages of representation. The writer considered the aspects of similar forms and spirits as the methods of understanding and representing the essence of an object in creating a work. She generally considered the aspect of perfecting knowledge by studying the principle of an actual thing for the representation of revealed forms corresponding to the aspect of similar forms, and tried to reach the stage of 'materialization' united with the spirit of the subject of creation for the formless forms corresponding to the aspect of representing an artist's inner world as well as the external shapes of things. She tried to reach the stage of spiritual cultivation in pursuit of the boundary between 'mental vanity' and 'sitting quietly and attaining the state of perfect selflessness', which were presented by Chuang-tzu, to express the spirituality internal to it. She recognized that the projection of the cultivation on a work could convey internal essence as well as external forms to a picture. It was because the image of the form represented in a picture was based on the aesthetic experience got from realty. In the concept of space and a method of representing it, she explored and analyzed the basic concept of space, arranged the concept of space shown in Oriental ideas dividing it into the concepts of space in Confucianism, Taoism and the Zen sect. What she felt acutely through this study was that she should establish the identity of her work by succeeding to, changing and re-creating tradition based on the historical heritage left by successive excellent painters and theorists. Putting together all these things showed that establishing the identity in the world of work pursued and oriented by her required searching the direction in future works by mixing tradition with modern times in a creative way, which is just the purpose of study in this thesis.

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"A Study on Hebrews Clothing in the Old Testament" - Especially on Hair Styles, Headgears, Footwear and Personal Ornaments - (구약성서(舊約聖書)에 나타난 히브리인의 복식(服飾) - 두식(頭飾), 신발 및 장신구(裝身具) 중심(中心)으로 -)

  • Park, Chan-Boo
    • Journal of the Korean Society of Costume
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    • v.10
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    • pp.63-80
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    • 1986
  • The Old Testament cotains mention of the history of creation and clothing in ancient Hebrew. This study dealt with Hebrew dress customs especially aimed at the manners of their hair styles, headgears, footwear and personal ornaments. References are Korean Revised Version, English King James Version and Revised Standard Version. There is little mention of hair styles and headgears in the Old Testament. Some sort of turban was worn by priests, and soldiers protected themselves with helmets, but most Israelitish men went bareheaded except on special occasions and often wear simple headbands. It was more common for women to use headwear of some type-turbans, scarves, and veils concealing the face. The veil was the distinctive female wearing apparel. All females, with the exception of maidservants and women in a low condition of life, wore a veil. It was the custom for women to wear a veil entirely covering their head in the public. Through most of the Old Testament periods long and thick hair was admired on men and women alike. The Hebrews were proud to have thick and abundant long hair, and they gave much attention to the care of their hair. The caring of hair was deeply related to their rituals. Nazirites never took a razor to their hair during his vow-days, but instead let it grow long, as an offering to God. Men would not cut their beards, but allow them to grow long. The Israelites' standard footwear was a pair of simple leather sandals. This was one of the items of clothing not highly prized. In a colloquial saying of the time, a pair of shoes signified something of small value, and to be barefoot except in times of mourning or on holy place, was a sign either of extreme poverty or humiliation, as in the case of war prisoners. Because precious stones were not mined in the Palestine-Syria region, Hebrews imported them from foreign country. They were consumer-to a large degree limited by their very modest standard of living-but not producers. Hebrews liked the precious stones and were motivated to acquire and wear jewels. Besides their use for adornment and as gifts, the precious or semiprecious stones were regarded by Jews of property. The Hebrews were not innovators in the field of decorative arts. The prohibition of the Law against making any "graven image" precluded the development of painting, sculpture, and other forms of representational art. Jewish men did not indulge in extravagances of dress, and there was little ornamentation among them. Men wore a signet ring on their right hand or sometimes suspended by a cord or chain around the neck. The necklaces, when worn by a male, also bore any symbol of his authority. Bracelets were extremely popular with both men and women, men usually preferring to wear them on their upper arms. The girdle was a very useful part of a man's clothing. It was used as a waist belt, or used to fasten a man's sword to his body, or served as a pouch in which to keep money and other things. Men often carried a cane or staff, which would be ornamented at the top. Among the women there was more apt to be ornamentation than among the men. Hebrew women liked to deck themselves with jewels, and ornamentation of the bride were specially luxurious and numerous. They wore rings on their fingers or On toes, ankle rings, earrings, nosering, necklace, bracelets. Their shapes were of cresent, waterdrops, scarab, insect, animal or plant. Sometimes those were used as amulets. They were made of ceramics, gold, silver, bronze, iron, and various precious stones which were mostly imported from Egypt and Sinai peninsular. Hebrews were given many religious regulations by Moses Law on their hair, headgears, sandals and ornamentation. Their clothing were deeply related with their customs especially with their religions and rituals. Hebrew religion was of monotheism and of revealed religion. Their religious leaders, the prophets who was inspired by God might need such many religious regulations to lead the idol oriented people to God through them.

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독창적 아이디어에서 창조적 혁신까지 : 인공씨감자 기술혁신 성공사례 분석

  • 현재호
    • Proceedings of the Technology Innovation Conference
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    • 1997.07a
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    • pp.222-223
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    • 1997
  • By analyzing the successful innovation case of potato microtuber mass production technology, a representative case of technology-push type creative innovation in an imitation oriented research culture, this paper attempts to figure out conceptual model of creative innovation that is initiated by the public laboratories in catching-up country, Stages of creative innovation can be divided into the internal R&D stage and the external commercialization stage. Success of the internal R&D stage depended on autonomy to secure creative research idea and commitment of individual researchers. Psychological pressure evoked from sportlights of mass media and commitment of sponsor increased the intensity of research efforts of the researcher Recognition of research problem and its significance was intensified by site visits of agricultural fields, and the recognized higher impacts of expected research results and knowledge creation achieved were a fundamental source of self-motivation. In the stage of commercialization stage, various legal, socio-economic, and psychological barriers were confronted. In a catching-up country lacking of experiences of creative innovation, creative innovation process can be regarded as a barrier elimination and cultural revolution process. Among the barriers, psychological refusal of farmers to corn-sized potato seeds was critical, which finally enforced to further researches to enlarge the size of potato seeds. In addition, the researcher has concentrated his research efforts in one specialized research area by getting a series of similar research project funds rather than diversification. It was lucky for him to have a chance to carry out a series of similar researches in one research area during the last 10 years. In getting research funds from government and private companies continuously in one research area, both internal and external promoters played significant roles.

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A Study on the Differentiation of a City image with City Identity (CI(City Identity)에 의한 도시이미지 차별화를 위한 연구)

  • 이충훈
    • Archives of design research
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    • v.15 no.4
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    • pp.57-66
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    • 2002
  • With the advanced localization followed by the settlement of the local autonomous systems, every city has faced new realities that it is inevitable to change its environment and image designs which have been uniformly made without consideration of its characteristics. Accordingly, they have failed to effectively achieve the development goal which make them distinctive.. The identity of a city means an image rather than its attribute. It can be drawn only when the city has its own municipality as well as the superiority to others. For Corporate Identity(CI) to function effectively as a comprehensive medium of communication, We should take into consideration all the situations which surround the city. It should be emphasized on the culture and environment oriented image. To do so we first of all have to analyze in detail the current situations and characteristics of the city. Hence, this paper tried to propose the strategies of making the CI which expresses the unique identity and communication of the city applying the CI program which have been used as the way of business management. The creation of the CI of the city takes the following steps. First, find the potentials for the image of the city through the survey of its resources. Second, provide the motive for citizens to actively participate in making plans with a dear vision for the improvement of the city image, physical development and so on. Third, provide with the events and the projects for specialized goods of the city to strengthen the ability of delivering the information, to design the city image and the street environment of the city. Fourth, apply the communication design system to use actively the administration organization, to enhance the citizenship, and to differentiate the city image. To do so, a variety of efforts should be followed to integrate and promote the regional culture, develope the structure and the facility functions of the city connecting those factors effectively. The establishment of the city identity is required a variety of activities to make the environment of the city, and the agreeable residential environment for a better life by differentiating the characteristics the city has.

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A Study on the Selection of Service Business for Introduction of R&D Center Accreditation System for Knowledge Based Service Firm (지식기반서비스 산업 기업연구소 인정제도 도입을 위한 업종선정에 관한 연구)

  • Kim, Suk-Pil;Noh, Mean-Sun
    • Journal of Korea Technology Innovation Society
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    • v.14 no.4
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    • pp.1024-1049
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    • 2011
  • Korea has accomplished rapid industrial development based on the manufacturing industry. However, the growth potential has been slowing down lately due to some reasons including low employment creation rates. Also, competitions in the manufacturing industry with China and developing countries in Asia are constantly intensified. Advanced countries maintain economic growth based on the competitiveness secured by changing its industrial structure into service oriented economy. Accordingly Korean government announced various policies to promote service industry and stimulate R&D activity for the advancement of knowledge based service industry. For promoting R&D of private firm, R&D center accreditation system for knowledge based service firm is going to be introduced. However, the accreditation system needs to be revised because it was established based solely on manufacturing business. Under the existing system, subject firms for government support are selected based on R&D activities. However in service area, the difference between R&D activity and business activity is indistinctive due to its nature so that the range of subject firms can be expanded too much. So it is more practical to select major service businesses and operate the system with selected businesses. There also should be proper logic to select major service business from the whole service businesses. We have to consider Koean industrial structure which is heavily dependent on manufacturing business and has weak competitiveness in service business when preparing the logic. In this paper, we study how to set up the range of service business and the requirements for R&D center accreditation. For this, this paper analyzed the ripple effect on the economy of service businesses based on input-output analysis, R&D activity and capability to put the resource for R&D. Based on the analysis result, we suggest methods to screen subject companies for R&D center accreditation among service business and present possible measures on manpower and physical requirement for service industry's R&D center accreditation system.

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The Value of Entrepreneurial Orientation and Social Capital for Enhancing Collective Performance in R&D Collaborations of Korean Ventures (벤처기업의 R&D협력에서 사회적 자본과 기업가적 지향성이 협력성과에 미치는 영향)

  • Seo, Ribin
    • Journal of Korea Technology Innovation Society
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    • v.20 no.1
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    • pp.1-33
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    • 2017
  • In the last decades, technology-oriented small firms, i.e. venture businesses, have been increasingly engaged in R&D collaborations with external parties as strategic means for technological innovation. Despite ample evidence on the benefit of such collaborations for the firms, there has been less attention to examining whether and how the firms' social interactions with cooperating partners and their managerial characteristics contribute to that benefit. Drawing on the theories of social capital and entrepreneurial orientation, this study is to remedy this gap. The theory of social capital, referring to a sum of the value and potential resources embedded in social relationships of collectives, provides an integrated view of social factors among cooperating partners, e.g. strong ties, network stability, trust, reciprocity, shared vision and value. It categorizes these factors into structural, relational, and cognitive dimensions of social capital. Entrepreneurial orientation theory captures firms' managerial characteristics as a combination of innovativeness, proactiveness, and risk-taking. This addresses firms' managerial process to utilize and combine internal and external resources for wealth creation and opportunity realization. Against this background, this study investigates what roles social capital among cooperating R&D partners and entrepreneurial orientation of the collaborating firms play for collective performance improvement in R&D collaborations. In terms of the collective performance, this study adopts two indicators: technological competitiveness and business performance. Technological competitiveness refers to the contribution of a technology developed by a cooperative R&D project to competitive advantage of a firm while business performance is defined as the financial and economic outcome of a collaboration. Using a sample of 218 Korean ventures engaging in R&D collaboration with external parties, the author finds the significant effects of social capital (i.e. structural, relational, and cognitive dimensions) and entrepreneurial orientation (i.e. innovativeness, proactiveness, and risk-taking) on both of the technological competitiveness and the business performance. Further, the higher the social capital among R&D partners, the more likely it is to foster the entrepreneurial orientation at firm-level. Most importantly, the entrepreneurial orientation at firm-level is an significant mediator of the relationship between social capital and collective performance. Beyond these novel empirical findings, this study contributes to the literature on R&D collaboration. The findings' implications for management and policy are deeply discussed in the conclusion.

A Study on design management of the design industry and 10 strategic industries in Busan Metropolitan City (부산광역시 10대전략산업과 디자인산업의 디자인경영에 관한 연구)

  • Park, Kwang-Cheol;Cho, Kyoung-Seop
    • Management & Information Systems Review
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    • v.30 no.4
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    • pp.293-314
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    • 2011
  • The current study investigated the position of future strategy analyzed from the perspective of design management in relation to 10 strategic industries implemented through 3 steps based on promising growth and advancement of Busan industries and evidence provided from a study on the development program of design industry in Busan. It elucidated the role of design industry as a key role from the perspective of design management in an age of creative revolution of futures values. It analyzed the associations between composition of future strategy and design industry in 10 strategic industries of Busan, and explained the relationships with the strategic industries. The perspective of design management involves that design as a ground of values is an industry of the future values, which performs a key strategic function and role, and a theoretical investigation examined the relationships between main functions of design management and business management. Chapter 3 organized items proposed in the design development program in Busan and examined goals and systems which become basic formation of establishment of design strategy in Busan and conditions for design industry in the associations with strategic industry. Chapter 4 described priorities of practicability by step through analyzing and grouping top 30 projects in Busan industry including meanings as key strategy, position relations, and policy priorities by analyzing elements of design management of strategic industry and describing and analyzing the concept of promoting Busan design. The theme of the present study is to change perception of design management as a key value and a condition to decide creativity industry into future industry and to evaluate vision of Busan design industry and meanings proposed as proceeding strategy. The early 21st century is an age when agrarian society has changed into industrial society is dominated by knowledge economy of the information revolution and one should prepare for the growth phase of creative innovation based on creative revolution of the 4th wave of creative society by design management which has become a center in 2000s on the whole. With the advent of creative paradigm and based on the function and role of the current creative economy age new innovation DNA of design management will be created. Design process has changed through information and knowledge-oriented trends of digital through convergence between industries from industrial design to convergence of industries, and it is expected that integrated design of value creation using information and technology will play a key role in Busan design industry development and top 10 strategic industries.

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A Study on Determinants of Korean SMEs' Foreign Direct Investment in Gaeseong Industrial Complex & Vietnam (중소기업의 개성공단 및 베트남 직접투자 결정요인 연구)

  • Cho, Heonsoo
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.16 no.4
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    • pp.167-178
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    • 2021
  • The purpose of this study is to analyze the direct investment decision factors in the Kaesong Industrial Complex and Vietnam, and to contribute to the creation of domestic jobs and the revitalization of the inter-Korean economy. According to the analysis, most of the Kaesong Industrial Complex and Vietnamese investment companies are entering the complex for the purpose of utilizing cheap labor, cheap factory locations, sales/development of local markets, and bypass export production bases in third countries. This can be divided into production-efficient investors using differences in production price such as labor costs and market-oriented investors to sell and expand the local market, which seems to be consistent with global direct investment patterns such as Nike, Apple, and Amazon. However, even if the North Korea-U.S. denuclearization talks ease or lift sanctions, Vietnamese investors' willingness to invest in the North Korea has been most burdened by the possibility of closing special economic zones due to political risks. Last but not least, it is important to note that those willing to invest in North Korea are mostly smaller enterprises in textiles, sewing, footwear and leather industries-those that benefit from low-cost labor. Since their size is small, they need policy support in financing, especially in the early stages of their business. Even after they grow past the early stages, those without collateral would still need state guarantee letters to get financing. Thus, it is worth considering to use the Inter-Korean Cooperation Fund to compensate commercial banks for bad loan loss or for low-interest loans for smaller SMEs. The interviews with SMEs found that red-tape is one of the biggest difficulties they face. Thus, it is recommended that a one-stop service agency should be established to cover all processes and issues related to inter-Korean economic cooperation to eliminate redundancy and expediate government support for SMEs.