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Characteristics and Controlling Factors on Nickel Laterite Deposits in Sulawesi, Indonesia (인도네시아 술라웨시 니켈 라테라이트 광상의 특성과 광화 규제 요인)

  • Younggi Choi;Byounghan Kim
    • Economic and Environmental Geology
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    • v.56 no.3
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    • pp.343-363
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    • 2023
  • Sulawesi island, as a global producer of nickel resources, is leading the rapid growth of nickel industry of Indonesia. Nickel laterite deposits in Sulawesi was formed by lateritization of the world-scale East Sulawesi Ophiolite (ESO) under the active tectonic setting and tropical rainforest climate. In this paper, exploration cases for nickel laterite deposits in five regions of Sulawesi are reported. Regional characteristics on nickel laterite deposits in Sulawesi are understood based on various exploration activities such as outcrop, trench and pit survey, petrological observation, geochemical analysis, and interpretation of drilling data, etc.. In the northeastern part of 'Southeast-Arm', which is a strategic location for nickel industry of Indonesia, ESO is extensively exposed to the surface. In the Morombo and Morowali regions, typical high-grade saprolite-type orebodies with a thickness of 10 to 20 m occur. The cases showed that topographic relief tends to regulate Ni-grade distribution and orebody thickness, and that high grade intervals tend to occur in places where joints and garnierite veins are dense. In the Tinanggea and South Palangga regions in the southern part of the Southeast-Arm, overburden composed of Neogene to Quaternary deposits is a major factor affecting the preservation and profitability of nickel laterite deposits. Despite the overburden, high-grade saprolite-type orebodies composed of Ni-bearing serpentine with garnierite veins occur in a thickness of around 10 m to secure economic feasibility. In contrast, in the Ampana region in the northern part of 'East-Arm', low-grade nickel laterite deposits with immature laterite profile was identified, which is thought to be the result of active denudation due to tectonic uplift. Exploration cases in this paper will help to understand characteristics and controlling factors on nickel laterite deposits in Sulawesi, Indonesia.

A Theory on the Scope of Financial Activity (금융(金融)의 전업(專業) 및 겸업화(兼業化) 이론(理論): 금융산업조직론(金融産業組織論)의 모색(摸索))

  • Jwa, Sung-hee
    • KDI Journal of Economic Policy
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    • v.13 no.1
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    • pp.167-197
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    • 1991
  • This paper is intended as an introductory essay to explain endogenous changes in the scope of firm activities in the competitive structure of a deregulated, multi-product financial industry. Recently, the global financial industry has been experiencing a widespread reshuffling in its activities, reflecting both consolidation and specialization. The spread of the universal banking system, which involves the integration of various kinds of financial activities, has resulted in the so-called financial supermarket. At the same time, the traditional set of banking activities has been unbundled into so-called financial boutiques. A relevant question is where the current reshuffling process of integration and disintegration in financial activities might lead the financial industry. However, presently popular theories of the financial industry are not really appropriate for the analysis of this issue. This paper attempts to integrate the theory of specialization [George J. Stigler, "The Division of Labor is Limited by the Extent of the Market," Journal of Political Economy, Vol. LIX, No.3, June 1951] and the theory of the multi-product firm [William J. Baumol, John C. Panzar, and Robert D. Willig, Contestable Markets and the Theory of Industry Structure, Harcourt Brace Jovanovich, Inc., New York, 1982] and to apply the resulting hybrid theory, a theory on the scope of financial activity, to the financial industry. The implications of this theory for the issues raised above are formalized under five hypotheses on the reshuffling of financial activities as listed below: Hypothesis I: The differences in the organization of financial industries among countries are determined by differences in the size of the financial markets, other things being equal. Hypothesis II: A financial firm will separate those financial activities simultaneously having relatively strong economies of scale and relatively weak economies of scope (alternatively, diseconomies of scope) from other activities. Conversely, the firm will integrate those activities simultaneously having relatively weak economies of scale (alternatively, diseconomies of scale) and relatively strong economies of scope with incumbent activities. Hypothesis III: A competitive equilibrium in the deregulated financial industry will consist of both specialized and multi-product financial firms, resulting in a mixed form of specialized and universal banking systems. Hypothesis IV: As world financial markets fully integrate and all countries consequently face this single, common world market, the financial structures of individual countries will become increasingly similar. Hypothesis V: A more universal banking system will dominate the deregulated financial industry in countries with relatively small financial markets, while a more specialized banking system will dominate in countries with relatively large financial markets. However, equilibrium will ultimately be mixed, with specialized and universal banks coexisting, as stated in Hypothesis III. Based on these hypotheses, this paper interprets the historical development of specialized vs. universal banking systems in major industrial countries as a process driven by the evolution of the financial market in each country - i.e. the change in the size of the financial market over time. In addition, this paper anticipates that the final equilibrium of the world financial industry, which is currently under the pressure of financial innovations and deregulation, will be a mixed equilibrium with both specialized boutiques and universal supermarket-type financial firms, instead of an exclusively specialized or universal banking system. Future research should seek continued theoretical elaboration and empirical verification of this paper's hypotheses.

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Development of a Novel Medium with Chinese Cabbage Extract and Optimized Fermentation Conditions for the Cultivation of Leuconostoc citreum GR1 (폐배추 추출물을 이용한 Leuconostoc citreum GR1 종균 배양용 최적 배지 및 배양 조건 개발)

  • Moon, Shin-Hye;Chang, Hae-Choon;Kim, In-Cheol
    • Journal of the Korean Society of Food Science and Nutrition
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    • v.42 no.7
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    • pp.1125-1132
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    • 2013
  • In the kimchi manufacturing process, the starter is cultured on a large-scale and needs to be supplied at a low price to kimchi factories. However, current high costs associated with the culture of lactic acid bacteria for the starter, have led to rising kimchi prices. To solve this problem, the development of a new medium for culturing lactic acid bacteria was studied. The base materials of a this novel medium consisted of Chinese cabbage extract, a carbon source, a nitrogen source, and inorganic salts. The optimal composition of this medium was determined to be 30% Chinese cabbage extract, 2% maltose, 0.25% yeast extract, and $2{\times}$ salt stock (2% sodium acetate trihydrate, 0.8% disodium hydrogen phosphate, 0.8% sodium citrate, 0.8% ammonium sulfate, 0.04% magnesium sulfate, 0.02% manganese sulfate). The newly developed medium was named MFL (medium for lactic acid bacteria). After culture for 24 hr at $30^{\circ}C$, the CFU/mL of Leuconostoc (Leuc.) citreum GR1 in MRS and MFL was $3.41{\times}10^9$ and $7.49{\times}10^9$, respectively. The number of cells in the MFL medium was 2.2 times higher than their number in the MRS media. In a scale-up process using this optimized medium, the fermentation conditions for Leuc. citreum GR1 were tested in a 2 L working volume using a 5 L jar fermentor at $30^{\circ}C$. At an impeller speed of 50 rpm (without pH control), the viable cell count was $8.60{\times}10^9$ CFU/mL. From studies on pH-stat control fermentation, the optimal pH and regulating agent was determined to be 6.8 and NaOH, respectively. At an impeller speed of 50 rpm with pH control, the viable cell count was $11.42{\times}10^9(1.14{\times}10^{10})$ CFU/mL after cultivation for 20 hr - a value was 3.34 times higher than that obtained using the MRS media in biomass production. This MFL media is expected to have economic advantages for the cultivation of Leuc. citreum GR1 as a starter for kimchi production.

The Legal Response and Future Tasks regarding Oil-Spill Damage to Korea - Focusing on the Hebei Spirit oil-spill (한국의 해양유류오염피해에 대한 법적 대응과 과제 - HEBEI SPIRIT호 유류유출사고를 중심으로 -)

  • Han, Sang-Woon
    • Journal of Environmental Policy
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    • v.7 no.3
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    • pp.89-120
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    • 2008
  • With petroleum being a major source of energy in Korea, the quantity of petroleum transported via ocean routes is on its way up due to increased consumption. Due to the increase, more than 300 cases of pollution caused by petroleum occur annually. Moreover, the number of oil-spill accidents is also on the rise. Causes of such accidents, not including the disposal of waste oil on purpose, turn out to be human error during navigation or defects in the vessels, showing that most accidents are caused by humans. Therefore, to prevent future oil spills, it is imperative that navigation efficiency be enhanced by improving the quality of navigators and replacing old vessels with newer ones. Nevertheless, such improvements cannot occur overnight, so long- and mid-term efforts should be made to achieve it institutionally. As large-scale oil-spill accidents can happen at anytime along the coastal waters of Korea, it is necessary to set-up institutional devices which go beyond the compensation limit of 92FC. The current special law regarding this issue has its limits in that it prescribes compensation be supplemented solely by national taxes. Therefore, the setting-up of a new 'national fund' is recommended for consideration rather than to subscribe to the '2003 Convention for the Supplementary Fund'. It is strongly suggested that a National fund be created from fees collected from oil companies based on the risks involved in oil transportation and according to the profiteers pay principle. In addition, a public fund should be created to handle general environmental damage, such as the large-scale destruction of the ecosystem, which is distinct from the economic damage that harms the local people. The posterior responses to the large-scale oil spill have always been unsatisfactory because of the symbolic nature of the disasters included in such accidents. Oil-spills can be prevented in advance, because they are caused by human beings. But once they occur, they inflict long-term damage to both human life and the natural ecosystem. Therefore, the best response to future oil-spills is to work to prevent them.

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The Excluded from Public Pension : Problem, Cause and Policy Measures (공적연금의 사각지대 : 실태, 원인과 정책방안)

  • Seok, Jae-Eun
    • Korean Journal of Social Welfare
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    • v.53
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    • pp.285-310
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    • 2003
  • As National Pension Scheme for all nation complete in 1999 through expanding application in cities, the public pension including Public Occupational Pension became main axis of old-age income maintenance. After 4years since then, now, it is only half of total National Pension insured persons who have been qualified to receive pension through participate and contribution. The other half of National Pension insured is left the excluded from public pension. This paper is intended to identify scale and characteristics of the excluded from public pension and to analysis its cause, and to explore policy measures for solving the excluded's problem. for current recipients over 60 years old generation, the its excluded's scale is no less than 86% of the old over 60 years. The probability of getting in the excluded is high in case of old elderly and female for current elderly generation. For future recipients 18-59 years working generation, the its excluded's scale is no less than 61% of the 18-59 years total population. The probability of getting in the excluded is high in case of 18-29 years and female for current working generation. As logistic regression analysis determinant factor of paying or not pension contribution for future recipients, it appear that probability of getting in the excluded for current working generation is high in case of younger old, lower education attainment, irregular employee, working at agriculture forestry fishery sector, construction sector, wholesale retail trade restaurants hotels sector, financial institution and insurance real estate renting and leasing sector in comparison with manufacturing sector, occpaying at elementary occupation, professionals technicians and associate professionals, sale and service workers, plant machine operators and assemblers, legislators senior officials and managers in comparison with clerks. The Policy measures for the current recipient old generation have need to reinforce supplemental role of Senior's pension(non-contribution pension) until maturing of public pension, because of no having chance of public pension participants for them. And the Policy measures for the future recipient working generation have need to restructure social security fundamentally corresponding with social-economic change as labour market and family structure etc. The pension system has need to change from one earner one pension to one citizen one pension with citizenship rights. At this point, public pension have need to manage with combining insurance's contribution principle and citizenship principle financing by taxes. Then public pension will become substantially universal social network for old-age income maintenance and we can find real solution for the excluded from.

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A Prospective Study on Attitude of Professional Student toward Population Related Issues in Korea (대학전공별(大學專攻別) 전문직학생(專門職學生)들의 인구관련문제(人口關聯問題)에 대한 연차적(年次的) 변화(變化) 연구(硏究))

  • Lee, Kyung-Sik;Kim, Hwa-Joong
    • Journal of Preventive Medicine and Public Health
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    • v.9 no.1
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    • pp.11-24
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    • 1976
  • This study was a part of large scale of a prospective study on attitudes of professional students in medicine, nursing and teaching toward population related issues in Korea. The study was first conducted in May 1974 and then in May 1975 for the 1974 class cohot using a questionaire consisted of attitude scales and other items developed by Lee. The purpose of stuay was twohold, namely, to determine the difference in students among specializations on one hand and between the first and second years in the 1974 class cohot regarding tile subject matter. A one-way analysis of variance was used for attitude scale, and absolute and relative frequency were computed for the analysis of non-attitude scale items by employing Fishers' Ratio and Duncan's multiple range test at 5% level and chi square test at 5% level as significance tests. The hypothesis 'students in health profession are more likely to have positive attitudes toward population related issues progressively as class year advances than students in teaching profession' was tested and the following results were obtained: 1) Nursing students were more likely to display favarable attitudes toward family planning than medical or teaching students although the class cohot showed slightly negative improvement in the second year. Medical and teaching students apperaed to have slightly improved attitudes in the second year. 2) Respondents in general perceived national family planning program as a means of population control and this tendency was more true among nursing students as the class year advances than two other professional groups of students. Students in teaching profession appeared to perceive it more as a means to improve individual family welfare while health students were likely to see as to improve maternal and child health. This tendency was progressively improved as the class year advanced. 3) The majority of students regardless of their respective specializations believed that family planning program should be directed toward the improvement of individual family welfare. No progressive changes in the class cohot were observed. 4) About the plan to use contraceptives in future, no singnificant differences were observes among different specializations nor in different class years. However, the majority was confirmed to have a plan to use contracepives in future. An increasing proportion of the undecided category was observed, as class year advanced among health students. 5) Students in health profession were found to be more favorable about 'more leisure opportunities' as motive for limiting number of children whereas education students indicated the reasons as 'facilitate ambitions' and 'economic base' The progressive changes toward positive direction in both groups were observed as the class years advanced. 6) Attitudes toward induced abortions of the health students were observed to be positively related to class years while an inverse relationship was found in teaching students who showed much less favor in the subject matter than health students. This phenomenon may be due to the different exposure to learning environments unique to respective specializations. 7) Health students were found to have more favorable attitudes toward population education in general than the teaching students. The teaching students appeared to have changed more to the negative direction when they became the second year while no such development was observed in health students. The teaching students seemed to hold a very conservative position with regard to sex education in schools. 8) About the equality of sexes, the nursing group was found to be most favorable while the reverse was true in the teaching group. A change in the negative direction as the class year advanced was found in the teaching group. 9) About questions related to fertility values-the 10 percent of respondents regardless of specialization indicated that they would maintain their single status in future, however no change was observed in the second year. The desired number of children was found to be two by the majority of students in nursing, medicine and teaching in order of high proportion. No changes in a different class year were observed. The childless marriage was seen by nursing students as a problem more than other students, but a slight change in positive direction was found when the nursing students became the second year. In summing, as data supported in the above, students in health profession demonstrated more favorable attitudes toward population related issues than the teaching students and this tendency became more apparent in the second year. It was noticed that health students were more conscious about the health aspect of population and family planning program while the teaching students gave more attention to the socioeconomic aspect. The sex variable seemed to have operated in the item related to the equality of sexes. In conclusion, as data presented in the above, the hypothesis of this study was accepted except in the few items. It should be noted that the limitation of this study is the short duration of the observation in measuring the possible attitude changes. It should include curriculum analysis for the respective specializations in order to indentify the area of curriculum impact on students in future study.

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Segment-based land Cover Classification using Texture Information in Degraded Forest land of North Korea (북한 산림황폐지의 질감특성을 고려한 분할영상 기반 토지피복분류)

  • Kim, Eun-Sook;Lee, Seung-Ho;Cho, Hyun-Kook
    • Korean Journal of Remote Sensing
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    • v.26 no.5
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    • pp.477-487
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    • 2010
  • In North Korea, forests were intensively degraded by forest land reclamation for food production and firewood collection since the mid-1970s. These degraded forests have to be certainly recovered for economic support, environmental protection and disaster prevention. In order to provide detailed land cover information of forest recovery project (A/R CDM), this study was focused to develop an improved classification method for degraded forest using 2.5m SPOT-5 pan-sharpened image. The degraded forest of North Korea shows various different types of texture. This study used GLCM texture bands of segmented image with spectral bands during forest cover classification. When scale factor 40/shape factor 0.3 was used as a parameter set to generate segment image, segment image was generated on suitable segment scale that could classify types of degraded forest. Forest land cover types were classified with an optimum band combination of Band1, Band2, band3, GLCM dissimilarity (band2), GLCM homogeneity (band2) and GLCM standard deviation (band3). Segment-based classification method using spectral bands and texture bands reached an 80.4% overall accuracy, but the method using only spectral bands yielded an 70.3% overall accuracy. As using spectral and texture bands, a classification accuracy of stocked forest and unstocked forest showed an increase of 23~25%. In this research, SPOT-5 pan-sharpened high-resolution satellite image could provide a very useful information for classifying the forest cover of North Korea in which field data collection was not available for ground truth data and verification directly. And segment-based classification method using texture information improved classification accuracy of degraded forest.

Toponymic Practices for Creating and Governing of Cultural Heritage (문화유산 관리를 위한 지명(地名)의 가치와 활용 방안)

  • KIM, Sunbae
    • Korean Journal of Heritage: History & Science
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    • v.54 no.2
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    • pp.56-77
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    • 2021
  • Toponyms are located not only in the site between human cognition and the physical environment but also in the name of cultural heritage. Accordingly, certain identities and ideologies for which human groups and community have sought, their holistic way of life, and all cultural symbols and cosmos, such as sense of place and genius loci, are included in their toponymic heritage. Denoting, symbolizing, integrating and representing the culture and nature belong to the human community. Based on these perceptions of the toponymic heritage, the aims of this article are to examine the values of a toponym as an Intangible Cultural Heritage (ICH) and to suggest the application methods using the toponymic functions for governing of tangible cultural heritage. This article discusses the multivocality, diversity, and non-representational theory of landscape phenomenology intrinsic to the terms of culture and cultural landscape and then the domestic and international issues on the toponymic heritage in the first chapter on the values of toponym as a part of the ICH. In particular, it analyzes the preceding research in the field of toponymy, as well as the Resolutions of UNCSGN and UNGEGN on "Geographical names as culture, heritage and identity" including indigenous, minority and regional language names since 1992, which is related to the UNESCO's Convention for the Safeguarding of the Intangible Cultural Heritage in 2003. Based on this, I suggest that the traits of toponymic cultural heritage and its five standards of selection, i.e., cultural traits of toponyms, historical traits, spatial traits, socio-economic traits and linguistic traits with some examples. In the second chapter discussing on the methods using the toponymic denoting functions for creating and governing of the tangible cultural heritage, it is underlined to maintain the systematic and unified principle regarding the ways of naming in the official cultural heritage and its governing. Lastly, I introduce the possible ways of establishing a conservative area of the historical and cultural environment while using the toponymic scale and multi-toponymic territory. Considering both the spatial and participatory turns in the field of heritage studies in addition to the multiple viewpoints and sense of cultural heritage, I suggest that the conservative area for the cultural heritage and the historical and cultural environment should be set up through choosing the certain toponymic scale and multi-toponymic territory.

Innovative approaches to the health problems of rural Korea (한국농촌보건(韓國農村保健)의 문제점(問題點)과 개선방안(改善方案))

  • Loh, In-Kyu
    • Journal of agricultural medicine and community health
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    • v.1 no.1
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    • pp.5-9
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    • 1976
  • The categories of national health problems may be mainly divided into health promotion, problems of diseases, and population-economic problems which are indirectly related to health. Of them, the problems of diseases will be exclusively dealt with this speech. Rurality and Disease Problems There are many differences between rural and urban areas. In general, indicators of rurality are small size of towns, dispersion of the population, remoteness from urban centers, inadequacy of public transportation, poor communication, inadequate sanitation, poor housing, poverty, little education lack of health personnels and facilities, and in-accessibility to health services. The influence of such conditions creates, directly or indirectly, many problems of diseases in the rural areas. Those art the occurrence of preventable diseases, deterioration and prolongation of illness due to loss of chance to get early treatment, decreased or prolonged labour force loss, unnecessary death, doubling of medical cost, and economic loss. Some Considerations of Innovative Approach The followings art some considerations of innovative approaches to the problems of diseases in the rural Korea. 1. It would be essential goal of the innovative approaches that the damage and economic loss due to diseases will be maintained to minimum level by minimizing the absolute amount of the diseases, and by moderating the fee for medical cares. The goal of the minimization of the disease amount may be achieved by preventive services and early treatment, and the goal of moderating the medical fee may be achieved by lowering the prime cost and by adjusting the medical fees to reasonable level. 2. Community health service or community medicine will be adopted as a innovative means to disease problems. In this case, a community is defined as an unit area where supply and utilization of primary service activities can be accomplished within a day. The essential nature o the community health service should be such activities as health promotion, preventive measures, medical care, and rehabilitation performing efficiently through the organized efforts of the residents in a community. Each service activity should cover all members of the residents in a community in its plan and performance. The cooperation of the community peoples in one of the essential elements for success of the service program, The motivations of their cooperative mood may be activated through several ways: when the participation of the residents in service program of especially the direct participation of organized cooperation of the area leaders art achieved through a means of health education: when the residents get actual experience of having received the benefit of good quality services; and when the health personnels being armed with an idealism that they art working in the areas to help health problems of the residents, maintain good human relationships with them. For the success of a community health service program, a personnel who is in charge of leadership and has an able, a sincere and a steady characters seems to be required in a community. The government should lead and support the community health service programs of the nation under the basis of results appeared in the demonstrative programs so as to be carried out the programs efficiently. Moss of the health problems may be treated properly in the community levels through suitable community health service programs but there might be some problems which art beyond their abilities to be dealt with. To solve such problems each community health service program should be under the referral systems which are connected with health centers, hospitals, and so forth. 3. An approach should be intensively groped to have a physician in each community. The shortage of physicians in rural areas is world-wide problem and so is the Korean situation. In the past the government has initiated a system of area-limited physician, coercion, and a small scale of scholarship program with unsatisfactory results. But there might be ways of achieving the goal by intervice, broadened, and continuous approaches. There will be several ways of approach to motivate the physicians to be settled in a rural community. They are, for examples, to expos the students to the community health service programs during training, to be run community health service programs by every health or medical schools and other main medical facilities, communication activities and advertisement, desire of community peoples to invite a physician, scholarship program, payment of satisfactory level, fulfilment of military obligation in case of a future draft, economic growth and development of rural communities, sufficiency of health and medical facilities, provision of proper medical care system, coercion, and so forth. And, hopefully, more useful reference data on the motivations may be available when a survey be conducted to the physicians who are presently engaging in the rural community levels. 4. In communities where the availability of a physician is difficult, a trial to use physician extenders, under certain conditions, may be considered. The reason is that it would be beneficial for the health of the residents to give them the remedies of primary medical care through the extenders rather than to leave their medical problems out of management. The followings are the conditions to be considered when the physician extenders are used: their positions will be prescribed as a temporary one instead of permanent one so as to allow easy replacement of the position with a physician applicant; the extender will be under periodic direction and supervision of a physician, and also referral channel will be provided: legal constraints will be placed upon the extenders primary care practice, and the physician extenders will used only under the public medical care system. 5. For the balanced health care delivery, a greater investment to the rural areas is needed to compensate weak points of a rurality. The characteristics of a rurality has been already mentioned. The objective of balanced service for rural communities to level up that of urban areas will be hard to achieve without greater efforts and supports. For example, rural communities need mobile powers more than urban areas, communication network is extremely necessary at health delivery facilities in rural areas as well as the need of urban areas, health and medical facilities in rural areas should be provided more substantially than those of urban areas to minimize, in a sense, the amount of patient consultation and request of laboratory specimens through referral system of which procedures are more troublesome in rural areas, and more intensive control measures against communicable diseases are needed in rural areas where greater numbers of cases are occurred under the poor sanitary conditions.

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Scale and Scope Economies and Prospect for the Korea's Banking Industry (우리나라 은행산업(銀行産業)의 효율성분석(效率性分析)과 제도개선방안(制度改善方案))

  • Jwa, Sung-hee
    • KDI Journal of Economic Policy
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    • v.14 no.2
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    • pp.109-153
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    • 1992
  • This paper estimates a translog cost function for the Korea's banking industry and derives various implications on the prospect for the Korean banking structure in the future based on the estimated efficiency indicators for the banking sector. The Korean banking industry is permitted to operate trust business to the full extent and the security business to a limited extent, while it is formally subjected to the strict, specialized banking system. Security underwriting and investment businesses are allowed in a very limited extent only for stocks and bonds of maturity longer than three year and only up to 100 percent of the bank paid-in capital. Until the end of 1991, the ceiling was only up to 25 percent of the total balance of the demand deposits. However, they are prohibited from the security brokerage business. While the in-house integration of security businesses with the traditional business of deposit and commercial lending is restrictively regulated as such, Korean banks can enter the security business by establishing subsidiaries in the industry. This paper, therefore, estimates the efficiency indicators as well as the cost functions, identifying the in-house integrated trust business and security investment business as important banking activities, for various cases where both the production and the intermediation function approaches in modelling the financial intermediaries are separately applied, and the banking businesses of deposit, lending and security investment as one group and the trust businesses as another group are separately and integrally analyzed. The estimation results of the efficiency indicators for various cases are summarized in Table 1 and Table 2. First, security businesses exhibit economies of scale but also economies of scope with traditional banking activities, which implies that in-house integration of the banking and security businesses may not be a nonoptimal banking structure. Therefore, this result further implies that the transformation of Korea's banking system from the current, specialized system to the universal banking system will not impede the improvement of the banking industry's efficiency. Second, the lending businesses turn out to be subjected to diseconomies of scale, while exhibiting unclear evidence for economies of scope. In sum, it implies potential efficiency gain of the continued in-house integration of the lending activity. Third, the continued integration of the trust businesses seems to contribute to improving the efficiency of the banking businesses, since the trust businesses exhibit economies of scope. Fourth, deposit services and fee-based activities, such as foreign exchange and credit card businesses, exhibit economies of scale but constant returns to scope, which implies, the possibility of separating those businesses from other banking and trust activities. The recent trend of the credit card business being operated separately from other banking activities by an independent identity in Korea as well as in the global banking market seems to be consistent with this finding. Then, how can the possibility of separating deposit services from the remaining activities be interpreted? If one insists a strict definition of commercial banking that is confined to deposit and commercial lending activities, separating the deposit service will suggest a resolution or a disappearance of banking, itself. Recently, however, there has been a suggestion that separating banks' deposit and lending activities by allowing a depository institution which specialize in deposit taking and investing deposit fund only in the safest securities such as government securities to administer the deposit activity will alleviate the risk of a bank run. This method, in turn, will help improve the safety of the payment system (Robert E. Litan, What should Banks Do? Washington, D.C., The Brookings Institution, 1987). In this context, the possibility of separating the deposit activity will imply that a new type of depository institution will arise naturally without contradicting the efficiency of the banking businesses, as the size of the banking market grows in the future. Moreover, it is also interesting to see additional evidences confirming this statement that deposit taking and security business are cost complementarity but deposit taking and lending businesses are cost substitute (see Table 2 for cost complementarity relationship in Korea's banking industry). Finally, it has been observed that the Korea's banking industry is lacking in the characteristics of natural monopoly. Therefore, it may not be optimal to encourage the merger and acquisition in the banking industry only for the purpose of improving the efficiency.

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