• Title/Summary/Keyword: Document research

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Analysis of media trends related to spent nuclear fuel treatment technology using text mining techniques (텍스트마이닝 기법을 활용한 사용후핵연료 건식처리기술 관련 언론 동향 분석)

  • Jeong, Ji-Song;Kim, Ho-Dong
    • Journal of Intelligence and Information Systems
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    • v.27 no.2
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    • pp.33-54
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    • 2021
  • With the fourth industrial revolution and the arrival of the New Normal era due to Corona, the importance of Non-contact technologies such as artificial intelligence and big data research has been increasing. Convergent research is being conducted in earnest to keep up with these research trends, but not many studies have been conducted in the area of nuclear research using artificial intelligence and big data-related technologies such as natural language processing and text mining analysis. This study was conducted to confirm the applicability of data science analysis techniques to the field of nuclear research. Furthermore, the study of identifying trends in nuclear spent fuel recognition is critical in terms of being able to determine directions to nuclear industry policies and respond in advance to changes in industrial policies. For those reasons, this study conducted a media trend analysis of pyroprocessing, a spent nuclear fuel treatment technology. We objectively analyze changes in media perception of spent nuclear fuel dry treatment techniques by applying text mining analysis techniques. Text data specializing in Naver's web news articles, including the keywords "Pyroprocessing" and "Sodium Cooled Reactor," were collected through Python code to identify changes in perception over time. The analysis period was set from 2007 to 2020, when the first article was published, and detailed and multi-layered analysis of text data was carried out through analysis methods such as word cloud writing based on frequency analysis, TF-IDF and degree centrality calculation. Analysis of the frequency of the keyword showed that there was a change in media perception of spent nuclear fuel dry treatment technology in the mid-2010s, which was influenced by the Gyeongju earthquake in 2016 and the implementation of the new government's energy conversion policy in 2017. Therefore, trend analysis was conducted based on the corresponding time period, and word frequency analysis, TF-IDF, degree centrality values, and semantic network graphs were derived. Studies show that before the 2010s, media perception of spent nuclear fuel dry treatment technology was diplomatic and positive. However, over time, the frequency of keywords such as "safety", "reexamination", "disposal", and "disassembly" has increased, indicating that the sustainability of spent nuclear fuel dry treatment technology is being seriously considered. It was confirmed that social awareness also changed as spent nuclear fuel dry treatment technology, which was recognized as a political and diplomatic technology, became ambiguous due to changes in domestic policy. This means that domestic policy changes such as nuclear power policy have a greater impact on media perceptions than issues of "spent nuclear fuel processing technology" itself. This seems to be because nuclear policy is a socially more discussed and public-friendly topic than spent nuclear fuel. Therefore, in order to improve social awareness of spent nuclear fuel processing technology, it would be necessary to provide sufficient information about this, and linking it to nuclear policy issues would also be a good idea. In addition, the study highlighted the importance of social science research in nuclear power. It is necessary to apply the social sciences sector widely to the nuclear engineering sector, and considering national policy changes, we could confirm that the nuclear industry would be sustainable. However, this study has limitations that it has applied big data analysis methods only to detailed research areas such as "Pyroprocessing," a spent nuclear fuel dry processing technology. Furthermore, there was no clear basis for the cause of the change in social perception, and only news articles were analyzed to determine social perception. Considering future comments, it is expected that more reliable results will be produced and efficiently used in the field of nuclear policy research if a media trend analysis study on nuclear power is conducted. Recently, the development of uncontact-related technologies such as artificial intelligence and big data research is accelerating in the wake of the recent arrival of the New Normal era caused by corona. Convergence research is being conducted in earnest in various research fields to follow these research trends, but not many studies have been conducted in the nuclear field with artificial intelligence and big data-related technologies such as natural language processing and text mining analysis. The academic significance of this study is that it was possible to confirm the applicability of data science analysis technology in the field of nuclear research. Furthermore, due to the impact of current government energy policies such as nuclear power plant reductions, re-evaluation of spent fuel treatment technology research is undertaken, and key keyword analysis in the field can contribute to future research orientation. It is important to consider the views of others outside, not just the safety technology and engineering integrity of nuclear power, and further reconsider whether it is appropriate to discuss nuclear engineering technology internally. In addition, if multidisciplinary research on nuclear power is carried out, reasonable alternatives can be prepared to maintain the nuclear industry.

Awareness Activation of Dance Copyrights and Research of Effectiveness Plans (무용의 저작권 인식 활성화와 실효성 방안 연구)

  • LEE, Seoeun
    • Trans-
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    • v.2
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    • pp.1-38
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    • 2017
  • Dance, as an art which expresses thoughts and emotions by movement human, is included in work that its copyright has to be protected, choreographers who are creators and dancers who are performing can exercise their rights included in copyright laws. However, artists who work in the dancing scene have lack of awareness about copyrights and the application level is low. The purpose of this thesis is to look into the current status and issues about dance copyright and to discuss activation plans and effectiveness plans for dance copyrights. The main point is to check into the level of awareness for dance copyrights with choreographers, dancers and students majoring in dance who are in charge of the art of dancing, to present issues about the necessity of the dance copyrights protection plans by analyzing interviews-in-depth and to prepare the dance copyrights protection plans which are concretely realistic. For the research methods, first, I looked into ideas and contents about copyrights through a document research and then, wanted to prepare theoretical background by reviewing actual cases of performing art copyrights related to dance. Next, I carried out surveys about awareness of copyrights with students majoring in dance, choreographers and dancers then carried out analysis of actual proof. Also, I chose three famous dancers who are actively performing in the current dancing scene and did interviews-in-depth about dance copyrights then carried out a recording analysis. I tried to complement the analysis by discussing deeper which I couldn't deal with in the previous surveys and to contemplate awareness activation of dance copyrights and plans. As a result of the research, the level of the awareness about dance copyrights through age, major, education and career was very low. The level of awareness was almost same compared to the previous research 10 years ago. 'Music', which can be an element of copyright issue in dance, was the highest in rate, and dance was recognized as an art which is combined with various elements as a combination work. The way of protection for works of choreography and performance only used data preservation and contracts and didn't register copyrights or record in dace notation. Majority of responders answered that they couldn't have any education about copyrights while they were recognizing the necessity of education and management for copyrights. The analysis of interviews-in-depth was also matched to the result of the previous surveys and a deeper discussion about the status of dance copyrights and issues was carried out. The plans of effectiveness for dance copyrights through the result of previous research are as followings. First, an advanced education is necessary above all to increase the awareness and application of copyrights in dancing scene. Long-term education like study curriculums and short-term education like special courses and seminars should be combined, and education about copyrights for dance groups, choreographers, dancers and students majoring in dance should keep on going. Second, revision of performing art works is necessary for the activation of dance copyrights, and establishing a dance copyright association to manage copyrights systematically and training dance copyright experts are necessary as well. Third, as the way of copyright protection for choreographers and dancers, an establishment for relation gain and loss about copyrights is necessary when creating dance works and performing, and registration of dance works should be activated. Also, the dancing scene should sign contracts for choreography and performance and this contract culture should be activated, and it should systematically preserve and manage choreography and performance records through basic ways. Hereby, it is considered to prepare a foundation to foster the awareness of dance copyrights and activate dance copyrights.

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A Study on the International Carriage of Cargo by Air under the Montreal Convention-With respect to the Air Waybill and the Liability of Air Carrier (몬트리올 협약상 국제항공화물운송에 관한 연구 - 항공화물운송장과 항공운송인의 책임을 중심으로 -)

  • Lee, Kang-Bin
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.49
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    • pp.283-324
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    • 2011
  • The purpose of this paper is to research the air waybill and the carrier's liability in respect of the carriage of cargo by air under the Montreal Convention of 1999. The Warsaw Convention for the unification of certain rules for international carriage by air was adopted in 1929 and modified successively in 1955, 1961, 1971, 1975 and 1999. The Montreal Convention of 1999 modernized and consolidated the Warsaw Convention and related instruments. Under the Montreal Convention, in respect of the carriage of cargo, the air waybill shall be made out by the consignor. If, at the request of the consignor, the carrier makes it out, the carrier shall be deemed to have done so on behalf of the consignor. The air waybill shall be made out in three orignal parts. Under the Montreal Convention, the consignor shall indemnify the carrier against all damages suffered by the carrier or any other person to whom the carrier is liable, by reason of the irregularity, incorrectness or incompleteness of the particulars and statement furnished by the consignor or on its behalf. The air waybill is not a document of title or negotiable instrument. Under the Montreal Convention, the air waybill is prima facie evidence of the conclusion of the contract, of the acceptance of the cargo and of the conditions of carriage. If the carrier carries out the instructions of the consignor for the disposition of the cargo without requiring the production of the part of the air waybill, the carrier will be liable, for any damage which may be accused thereby to any person who is lawfully in possession of the part of the air waybill. Under the Montreal Convention, the carrier is liable by application of principle of strict liability for the damage sustained during the carriage of cargo by air. The carrier is liable for the destruction or loss of, or damage to cargo and delay during the carriage by air. The period of the carriage by air does not extend to any carriage by land, by sea or by inland waterway performed outside an airport. Under the Montreal Convention, the carrier's liability is limited to a sum of 17 Special Drawing Rights per kilogramme. Any provision tending to relieve the carrier of liability or to fix a lower limit than that which is laid down in this Convention shall be and void. Under the Montreal Convention, if the carrier proves that the damage was caused by the negligence or other wrongful act or omission of the person claiming compensation, or the person from whom he derives his rights, the carrier shall be wholly or partly exonerated from ist liability to the claimant to the extent that such negligence or wrongful act or omission caused the damage. Under the Montreal Convention, any action for damages, however founded, whether under this Convention or in contract or in tort or otherwise, can only be brought subject to the conditions and such limits of liability as are set out in this Convention. Under the Montreal Convention, in the case of damage the person entitled to delivery must complain to the carrier forthwith after the discovery of the damage, and at the latest, within fourteen days from the date of receipt of cargo. In the case of delay, the complaint must be made at the latest within twenty-one days from the date on which the cargo has been placed at his disposal. if no complaint is made within the times aforesaid, no action shall lie against the carrier, save in the case of fraud on its part. Under the Montreal Convention, the right to damage shall be extinguished if an action is not brought within a period of two years, reckoned from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped. In conclusion, the Montreal Convention has main outstanding issues with respect to the carrier's liability in respect of the carriage of cargo by air as follows : The amounts of limits of the carrier's liability, the duration of the carrier's liability, and the aviation liability insurance. Therefore, the conditions and limits of the carrier's liability under the Montreal Convention should be readjusted and regulated in detail.

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Study on Clinical Dental Hygiene in Korea Based on Analysis of Clinical Dental Hygiene Curriculum of Fones School in the United States (미국 폰즈스쿨의 임상치위생학 교육과정 분석을 통한 국내 임상치위생학 교육과정에 관한 고찰)

  • Choi, Yong-Keum;Lim, Keun-Ok;Han, Yang-Keum;Bae, Soo-Myoung;Shin, Bo-Mi;Ahn, Se-Youn;Jeon, Hyun-Sun;Kim, Jin;Jang, Sun-Ok;Kim, Hye-Jin;Park, Ji-Eun;Lim, Hee Jung;Jang, Yun-Jung;Jung, Jin-Ah;Lee, Hyo-Jin
    • Journal of dental hygiene science
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    • v.17 no.2
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    • pp.123-133
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    • 2017
  • The aim of this study was to analyze in depth the standardized Clinical dental hygiene curriculum of the Fones School in the United States. We investigated the clinical dental hygiene curriculum in 2015~2016 including title, credit, hours, contents, goals, competencies, and evaluation. We obtained the course syllabus and data related to each subject, for each grade, from the professors and students at the university. The goals and competencies, of the clinical dental hygiene program, which were based on the goals of the Fones School and the mission of the University of Bridgeport, were developed in accordance with the dental hygienist practice standards proposed by the American Dental Hygienists Association. The curriculum consisted of theory to teach proper dental hygiene care procedures and incorporated practical exercises that modeled an actual clinical setting. The students had to document the procedures performed for each client/patient and improve their clinical competency through discussion with the professors. Dental hygiene care should be provided for children, adolescents, adults, elderly, and patients, which includes patients with moderate or severe periodontal status. Students were evaluated by a paper test or case study presentation and their clinical evaluation was based on their clinical competency. In particular, professors evaluated students on a rotational basis, so they could evaluate the level of achievement of clinical competency of all students and find ways to improve any weaknesses. Therefore, the current study suggested that clinical dental hygiene program in Korea could be improved if based on the curriculum of Fones School in the United States.

Social Tagging-based Recommendation Platform for Patented Technology Transfer (특허의 기술이전 활성화를 위한 소셜 태깅기반 지적재산권 추천플랫폼)

  • Park, Yoon-Joo
    • Journal of Intelligence and Information Systems
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    • v.21 no.3
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    • pp.53-77
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    • 2015
  • Korea has witnessed an increasing number of domestic patent applications, but a majority of them are not utilized to their maximum potential but end up becoming obsolete. According to the 2012 National Congress' Inspection of Administration, about 73% of patents possessed by universities and public-funded research institutions failed to lead to creating social values, but remain latent. One of the main problem of this issue is that patent creators such as individual researcher, university, or research institution lack abilities to commercialize their patents into viable businesses with those enterprises that are in need of them. Also, for enterprises side, it is hard to find the appropriate patents by searching keywords on all such occasions. This system proposes a patent recommendation system that can identify and recommend intellectual rights appropriate to users' interested fields among a rapidly accumulating number of patent assets in a more easy and efficient manner. The proposed system extracts core contents and technology sectors from the existing pool of patents, and combines it with secondary social knowledge, which derives from tags information created by users, in order to find the best patents recommended for users. That is to say, in an early stage where there is no accumulated tag information, the recommendation is done by utilizing content characteristics, which are identified through an analysis of key words contained in such parameters as 'Title of Invention' and 'Claim' among the various patent attributes. In order to do this, the suggested system extracts only nouns from patents and assigns a weight to each noun according to the importance of it in all patents by performing TF-IDF analysis. After that, it finds patents which have similar weights with preferred patents by a user. In this paper, this similarity is called a "Domain Similarity". Next, the suggested system extract technology sector's characteristics from patent document by analyzing the international technology classification code (International Patent Classification, IPC). Every patents have more than one IPC, and each user can attach more than one tag to the patents they like. Thus, each user has a set of IPC codes included in tagged patents. The suggested system manages this IPC set to analyze technology preference of each user and find the well-fitted patents for them. In order to do this, the suggeted system calcuates a 'Technology_Similarity' between a set of IPC codes and IPC codes contained in all other patents. After that, when the tag information of multiple users are accumulated, the system expands the recommendations in consideration of other users' social tag information relating to the patent that is tagged by a concerned user. The similarity between tag information of perferred 'patents by user and other patents are called a 'Social Simialrity' in this paper. Lastly, a 'Total Similarity' are calculated by adding these three differenent similarites and patents having the highest 'Total Similarity' are recommended to each user. The suggested system are applied to a total of 1,638 korean patents obtained from the Korea Industrial Property Rights Information Service (KIPRIS) run by the Korea Intellectual Property Office. However, since this original dataset does not include tag information, we create virtual tag information and utilized this to construct the semi-virtual dataset. The proposed recommendation algorithm was implemented with JAVA, a computer programming language, and a prototype graphic user interface was also designed for this study. As the proposed system did not have dependent variables and uses virtual data, it is impossible to verify the recommendation system with a statistical method. Therefore, the study uses a scenario test method to verify the operational feasibility and recommendation effectiveness of the system. The results of this study are expected to improve the possibility of matching promising patents with the best suitable businesses. It is assumed that users' experiential knowledge can be accumulated, managed, and utilized in the As-Is patent system, which currently only manages standardized patent information.

Material composition and change of baekdong alloy in the late Joseon period (조선후기 백동의 재료 구성과 변화)

  • Kong, Sanghui
    • Korean Journal of Heritage: History & Science
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    • v.52 no.3
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    • pp.38-55
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    • 2019
  • The purpose of this study is to clarify the historical flow of baekdong alloy's usage according to the alloying materials mentioned in document records. For this purpose, we first overviewed the use of copper as a base material for white copper alloys and other types of copper alloys. Baekdong is an alloy of copper and other metals and is currently defined as an alloy of copper and nickel. However, depending on the research subjects and time of the scholars, baekdong may be defined as a metal with over a certain percentage of tin added to copper, or as an alloy of tin, zinc, and lead with copper. There is disagreement regarding the interpretation of this term. Baekdong, which started to appear in the literature of the Three Kingdoms Period, has been steadily seen through the Goryeo and Chosun Dynasties to the modern period. It has been used in various ways, according to each age and culture, from the symbol of the office to trading goods, daily life goods, and money. In the literature, baekdong's alloying material is not only copper and nickel, which are currently defined as alloys, but it is the same in that copper is used as the base metal of the alloy, although it varies slightly from generation to generation. In addition to copper, tin, zeolite, and emerald, zinc and lead also appeared. It was found that baekdong, which means alloy, and baekdong, which means white metal, were mixed. Nickel, which is the alloy material of baekdong as it is currently defined, is a metal with a relatively high discovery time and is widely used as a material for modern industrial fields. Nickel was introduced into Korea at the end of the Joseon Dynasty, but its use is not known in detail. In this study, we examined the acceptance and use of nickel-based baekdong in articles of modern newspapers and in statistical data. Based on the experience of craftsmen, we estimated the period when nickel-based alloys were used in crafts. Material is a direct factor in the development and deterioration of technology, and the development of technology is the basis for the changing of civilizations and cultures. In this context, this study was to investigate baekdong with the material of alloys as a starting point.

An Analysis of the 20th National Congress Report through Text-mining Methods (텍스트 마이닝을 활용한 중국공산당 20차 당대회 보고문 분석)

  • Kwon, Dokyung;Kim, Jungsoo;Park, Jihyun
    • Analyses & Alternatives
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    • v.7 no.1
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    • pp.115-145
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    • 2023
  • The 20th National Congress of the Chinese Communist Party (hereafter referred to as "the 20th National Congress") was under the global spotlight long before it was held for seven days from 16 to 22 October 2022. People wondered whether Xi Jinping would secure a third term as China's leader or whether he would lay the foundations to be in power forever during the third term. In Korea, the press and media questioned whether the event would become the "crowning of Emperor Xi (Xi Huangdi)," whose power rivaled that of the first emperor in China, Shi Hunagdi, and featured the scene where Hu Jintao was forced to leave the venue during the Congress. On the other hand, many Korean academics focused more on how Xi would organize the Politburo and its Standing Committee and whether the outline of his heirs would appear during the event. This tendency in academia in turn worsened the media's concerns. This paper presents a quantitative analysis of the 20th National Congress Report, as opposed to an analysis of Xi's political intentions at the event. The National Congress Report outlines the Party's visions, goals, and strategies for the next five years in politics, economy, society, culture, foreign affairs, and relationship with Taiwan. The authoritative document is rich in narrative and logic and deserves academic study. This research analyzes the 18th, 19th, and 20th Reports by identifying their keywords and regular expressions and checking their frequency and percentage through text-mining methods. This approach enables the quantification and visualization of the significant changes in the Party's sovereign vision over the fifteen years of Xi's rule from 2013 to 2027.

A Study on the Choice of Export Payment Types by Applying the Characteristics of the New Trade & Logistics Environment (신(新)무역물류환경의 특성을 적용한 수출대금 결제유형 선택연구)

  • Chang-bong Kim;Dong-jun Lee
    • Korea Trade Review
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    • v.48 no.4
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    • pp.303-320
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    • 2023
  • Recently, import and export companies have been using T/T remittance and Surrender B/L more frequently than L/C when selecting the process and method of trade payment settlement. The new trade and logistics environment is thriving in the era of the Fourth Industrial Revolution (4IR). Document-based trade transactions are undergoing a digitalization as bills of lading or smart contracts are being developed. The purpose of this study is to verify whether exporters choose export payment types based on negotiating factors. In addition, we would like to discuss the application of the characteristics of the new trade and logistics environment. Data for analysis was collected through surveys. The collection method consisted of direct visits to the company, e-mail, fax, and online surveys. The survey distribution period is from February 1, 2023, to April 30, 2023. The questionnaire was distributed in 2,000 copies, and 447 copies were collected. The final 336 copies were used for analysis, excluding 111 copies that were deemed inappropriate for the purpose of this study. The results of the study are shown below. First, among the negotiating factors, the product differentiation of exporters did not significantly affect the selection of export payment types. Second, among the negotiating factors, the greater the purchasing advantage recognized by exporters, the higher the possibility of using the post-transfer method. In addition to analyzing the results, this study suggests that exporters should consider adopting new payment methods, such as blockchain technology-based bills of lading and trade finance platforms, to adapt to the characteristics of the evolving trade and logistics environment. Therefore, exporters should continue to show interest in initiatives aimed at digitizing trade documents as a response to the challenges posed by bills of lading. In future studies, it is necessary to address the lack of social awareness in Korea by conducting advanced research abroad.

A Study on the Construction and Landscape Characteristics of Munam Pavilion in Changnyeong(聞巖亭) (창녕 문암정(聞巖亭)의 조영 및 경관특성에 관한 연구)

  • Lee, Won-Ho;Kim, Dong-Hyun;Kim, Jae-Ung;Ahn, Gye-Bog
    • Journal of the Korean Institute of Traditional Landscape Architecture
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    • v.32 no.2
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    • pp.27-41
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    • 2014
  • This study aims to investigate the history, cultural values prototype through literature analysis, characteristics of construction, location, space structure and landscape characteristics by Arc-GIS on the Munam pavilion(聞巖亭) in Changnyeong. The results were as follows. First, Shin-cho((辛礎, 1549~1618) is the builder of the Munam pavilion and builder's view of nature is to go back to nature. The period of formation of Munam pavilion is between 1608-1618 as referred from document of retire from politics and build a pavilion. Secondly, Munam pavilion is surrounded by mountains and located at the top of steep slope. Pavilion was known as scenic site of the area. But damaged in a past landscape is caused by near the bridge, agricultural facilities, town, the Kye-sung stream of masonry and beams. Thirdly, Munam pavilion is divided into the main space, which is located on the pavilion, space in located on the pavilion east and west and the orient space, which is located on the Youngjeonggak. Of these, original form of Munam pavilion is a simple structure composed of pavilion and Munam rock, thus at the time of the composition seems to be a direct entry is possible, unlike the current entrance. Fourth, Spatial composition of Munam pavilion is divided into vegetation such as Lagerstroemia indica trees in Sa-ri in Changnyeong, ornament such as letters carved on the rocks and pavilion containing structure. The vegetation around the building is classified as precincts and outside of the premises. Planting of precincts was limited. Outside of area consists of front on the pavilion, which is covered with Lagerstroemia Indica forest and Pinus densiflora forest at the back of the pavilion. Ofthese,LargeLagerstroemiaIndicaforestcorrespondstothenaturalheritageasHistoricalrecordsofrarespeciesresourcesthatareassociated withbuilder. Letterscarvedontherocksrepresenttheboundaryof space, which is close to the location of the Munam pavilion and those associated with the builder as ornaments. Letters carved on the rocks front on the pavilion are rare cases that are made sequentially with a constant direction and rules as act of record for families to honor the achievements. Fifth, 'The eight famous spots of Munam' is divided into landscape elements that have nothing to do with bearing 4 places and landscape elements that have to do with bearing 4 places. Unrelated bearings of landscape elements are Lagerstroemia indica trees in Sa-ri in Changnyeong, Pinus densiflora forest at the back of the pavilion, Okcheon valley, Gwanryongsa temple and Daeheungsa temple. Bearing that related element of absolute orientation, which is corresponding to the elements are Daeheungsa temple, Hwawangsan mountain, Kye-sung stream and Yeongchwisan mountain. Relative bearing is Gwanryongsa temple, Yeongchwisan mountain and Kye-sung stream Gongjigi hill. At Lagerstroemia indica trees in Sa-ri in Changnyeong, Pinus densiflora forest at the back of the pavilion, Kye-sung stream and Okcheon valley, elements are exsting. Currently, it is difficult to confirm the rest of the landscape elements. Because, it is a generic element that reliable estimate of the target and locations are impossible for element. Munam pavilion is made for turn to nature by Shin-cho(辛礎). That was remained a record such as Munamzip(聞巖集) and Munamchungueirok(聞巖忠義錄) that is relating to construction of pavilion. Munam pavilion located in a unique form, archival culture through the letters carved on the rocks and Large Lagerstroemia indica forest and through eight famous spots, cultural landscape elements can be assumed that those elements are remained.

A New Exploratory Research on Franchisor's Provision of Exclusive Territories (가맹본부의 배타적 영업지역보호에 대한 탐색적 연구)

  • Lim, Young-Kyun;Lee, Su-Dong;Kim, Ju-Young
    • Journal of Distribution Research
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    • v.17 no.1
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    • pp.37-63
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    • 2012
  • In franchise business, exclusive sales territory (sometimes EST in table) protection is a very important issue from an economic, social and political point of view. It affects the growth and survival of both franchisor and franchisee and often raises issues of social and political conflicts. When franchisee is not familiar with related laws and regulations, franchisor has high chance to utilize it. Exclusive sales territory protection by the manufacturer and distributors (wholesalers or retailers) means sales area restriction by which only certain distributors have right to sell products or services. The distributor, who has been granted exclusive sales territories, can protect its own territory, whereas he may be prohibited from entering in other regions. Even though exclusive sales territory is a quite critical problem in franchise business, there is not much rigorous research about the reason, results, evaluation, and future direction based on empirical data. This paper tries to address this problem not only from logical and nomological validity, but from empirical validation. While we purse an empirical analysis, we take into account the difficulties of real data collection and statistical analysis techniques. We use a set of disclosure document data collected by Korea Fair Trade Commission, instead of conventional survey method which is usually criticized for its measurement error. Existing theories about exclusive sales territory can be summarized into two groups as shown in the table below. The first one is about the effectiveness of exclusive sales territory from both franchisor and franchisee point of view. In fact, output of exclusive sales territory can be positive for franchisors but negative for franchisees. Also, it can be positive in terms of sales but negative in terms of profit. Therefore, variables and viewpoints should be set properly. The other one is about the motive or reason why exclusive sales territory is protected. The reasons can be classified into four groups - industry characteristics, franchise systems characteristics, capability to maintain exclusive sales territory, and strategic decision. Within four groups of reasons, there are more specific variables and theories as below. Based on these theories, we develop nine hypotheses which are briefly shown in the last table below with the results. In order to validate the hypothesis, data is collected from government (FTC) homepage which is open source. The sample consists of 1,896 franchisors and it contains about three year operation data, from 2006 to 2008. Within the samples, 627 have exclusive sales territory protection policy and the one with exclusive sales territory policy is not evenly distributed over 19 representative industries. Additional data are also collected from another government agency homepage, like Statistics Korea. Also, we combine data from various secondary sources to create meaningful variables as shown in the table below. All variables are dichotomized by mean or median split if they are not inherently dichotomized by its definition, since each hypothesis is composed by multiple variables and there is no solid statistical technique to incorporate all these conditions to test the hypotheses. This paper uses a simple chi-square test because hypotheses and theories are built upon quite specific conditions such as industry type, economic condition, company history and various strategic purposes. It is almost impossible to find all those samples to satisfy them and it can't be manipulated in experimental settings. However, more advanced statistical techniques are very good on clean data without exogenous variables, but not good with real complex data. The chi-square test is applied in a way that samples are grouped into four with two criteria, whether they use exclusive sales territory protection or not, and whether they satisfy conditions of each hypothesis. So the proportion of sample franchisors which satisfy conditions and protect exclusive sales territory, does significantly exceed the proportion of samples that satisfy condition and do not protect. In fact, chi-square test is equivalent with the Poisson regression which allows more flexible application. As results, only three hypotheses are accepted. When attitude toward the risk is high so loyalty fee is determined according to sales performance, EST protection makes poor results as expected. And when franchisor protects EST in order to recruit franchisee easily, EST protection makes better results. Also, when EST protection is to improve the efficiency of franchise system as a whole, it shows better performances. High efficiency is achieved as EST prohibits the free riding of franchisee who exploits other's marketing efforts, and it encourages proper investments and distributes franchisee into multiple regions evenly. Other hypotheses are not supported in the results of significance testing. Exclusive sales territory should be protected from proper motives and administered for mutual benefits. Legal restrictions driven by the government agency like FTC could be misused and cause mis-understandings. So there need more careful monitoring on real practices and more rigorous studies by both academicians and practitioners.

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