• Journal of the Economic Geographical Society of Korea
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• v.11 no.3
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• pp.412-427
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• 2008

The purpose of this paper is to examine the characteristics of firms relocation into or out of Busan Region. Especially, it analyses the relation between relocated regions, firms' sizes and industrial sectors of the relocated firms systematically. For this, examinations of former studies about firm relocations, forming of analytical framework for systematic investigation were done. In short, this analysis figures out the correlation between the firms' characteristics and relocations.

• Journal of Korean Society of Transportation
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• v.26 no.1
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• pp.37-49
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• 2008

In general, most of the firms do not settle down in one place for their pursuit of profit. There are many reasons for the relocation of the firms; procurement of raw material, market area, transportation cost and housing cost. The aspect of national policy, firm relocation has been systemically promoted for the purpose of logistics system efficiency. Nowadays balanced regional development has been issue. Another aspect, many countries have struggled for the preoccupancy of new place because of its production cost saving and curtailment of expenditure. The aim of this article is qualitative and quantitative analysis of relocation influence factors of domestic goods firms in Korea. This article dynamically analyzed the relocation influence factors for domestic goods firms in Korea. For the analysis this article made use of complementary survey (2006) out of the 3rd national logistics survey (2005). The complementary survey conducted pre-business district, business period, relocation reason, etc. This article dynamically analyzed from the three aspects; observation of average residence time in one business district, relocation factors, influence of market area. Analysis shows that relocation of firm is very high rate and the reasons of relocation play compositeness role. The results of determinants of location, firms approach the established market area closely and the firm's relocation is influenced by market area.

• Journal of the Korean Regional Science Association
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• v.33 no.3
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• pp.61-78
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• 2017

Among several policies for industrial decentralization introduced since the 1960s, business relocation grant policies put a heavy financial burden on central and local governments. This study investigates the change in the likelihood of manufacturing establishments' relocation to the non-SMA associate with the change in business relocation grant policies. Using the mining and manufacturing survey data from 1996 to 2014, manufacturing firms' relocation decision model in nested logit structure was estimated. The data showed that the proportion of movements from the SMA to the non-SMA significantly increased after the introduction of the grant policies. However, estimation results of firms' relocation decision model indicated that the likelihood of firms relocating from the SMA to the non-SMA decreased after the introduction of the grant policies. In particular, firms' likelihood to move into the rural regions is even lower in the period of the grant extension. This suggests that increasing rate of relocations toward the rural regions may have been driven by the growing advantage of rural locations, such as low land rent and improvement in market accessibility, rather than the grants per se. This implies that the alleviation of physical and environmental constraints of the rural regions and the creation of business friendly environment such as easy access to premises at reasonable prices and strengthened linkage with the SMA, rather than simple provision of business relocation grants, needed to attract businesses in the rural regions.

• Journal of the Korean association of regional geographers
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• v.4 no.1
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• pp.99-120
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• 1998

The purpose of this study is to clarify the industrialization process, and locational factors and linkages of manufacturing in Jangyu-Myun, a suburb of Metropolitan Pusan, toward which heavy decentralization of manufacturing from Pusan has been done. Hard data and soft data were used as the basic data. Hard data used for this study were both the statistical data which consists of the number of establishments and employee classified by product type, firm size, organizational type and unit area(dong) which were listed in statistics yearbooks, and the list of the owner's names, addresses, employee number, products and headquarters of firms which were listed in firm directories. Soft data were the results of the interviews with the 53 owners of firms surveyed among the firms selected by Proportional Stratified Sampling Method. The major findings were as follows: (1) Manufacturing location in Jangyu-Myun was regularized in 1980's in which decentralization of manufacturing was activiated. Though the industrialization of study area resulted from the birth, relocation and establishment of branches of the firms originated from the other regions, the relocation of small outer-oriented firms from the central city was the most important factor among them. (2) The main locational factors which induced the decentralizing manufacturing from the central city into Jangyu-Myun are closely related to land, transportation, personal factor, raw material suppliers and market. (3) The differences of important locational factors by the size and organizational type of firms are relevant to the characteristics of manufacturing location. (4) The changes of linkages attendant upon locational changes of firms were not so great and were localized in labor supply and marketing. (5) The strength of linkages is strong in the procurement of materials, in the subcontraction and in the marketing, but not in the ordering. (6) The main factors influencing on the formation of linkages are different by the types of linkages: monopolistic and oligopolistic supply are important in procurement linkages; characteristics of products and production capacity in the subcontraction and ordering; characteristics of products and the subsequent difficulties, in the marketing. (7) With the exception of procurement linkages, the strength of linkages with the outside of the study area are stronger than the linkages with the inside. The strength of linkages with the outside has distance-decay-function and strong linkages with the central city. (8) These spatial characteristics of linkages are different by products type, firm size and organizational type of firms: the spatial ranges of linkages are wider in the multi-location firms than in the single-location firms; the larger the firm size, the wider the spatial range of linkages: there is no consistent trend by products type. In conclusion, some facts described above were proved to be consistent with the results of proceeding studies in the other areas: influence of central city manufacturing relocation on industrialization in the suburb: different decentralization by products type, firm size and organizational types of firms: different locational factors by products type, firm size and organizational types of firms; linkage changes attendant upon locational changes of firms; spatial differences of linkages by products type, firm size and organizational type of firms. Some other factors were proved to be partly consistent: locational factors and spatial characteristics of linkages. Accordingly I think that the results of previous studies on the other areas can be applicable to the explanation of the location and linkage of manufacturing in Jangyu-Myun. For the better explanation on the characteristics of manufacturing decentralization from the central city, more empirical case studies on the location and linkage of manufacturing in the suburb areas are necessary.

• Spatial Information Research
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• v.18 no.3
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• pp.41-52
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• 2010

This paper analyzed the interregional flow changes of software (SW) industries using a GIS Flow Map. Employment data for SW enterprise headquarters from 1999 until 2008 were constructed according to the Origin-Destination Matrix, and were mapped and analyzed using the Flow Mapper and ArcGIS Flow Data Model. From the result we can identify the decentralization of interregional flow in SW industries and recognize the possibilities of the larger SW enterprises' employment, the higher locational footlooseness. The GIS Flow Map was identified as useful tool for researching growth, decline and spatial movement of industrial clusters that experience business relocation. This method can be applied to understand and visualize urban spatial changes.

• Journal of the Economic Geographical Society of Korea
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• v.26 no.3
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• pp.190-201
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• 2023

This study conducted an in-depth case study of bio-health companies in the Chungcheong region to examine the factors influencing the relocation of new industry cluster firms in non-metropolitan areas. Focusing on the experiences and perceptions of key stakeholders within the cluster, which have been relatively overlooked in previous research, this narrative research explored the factors that lead entrepreneurs who initially founded their businesses in non-metropolitan areas to relocate to metropolitan areas as well as the decision-making process involved. Through interviews with 61 key stakeholders within the Chungcheong cluster, it was observed that entrepreneurs receive various benefits from local stakeholders during the initial stages of entrepreneurship. However, as the company enters a phase of significant growth, matters such as securing specialized talent and market accessibility lead them to contemplate relocating to metropolitan areas. Based on case studies of companies that both remained and relocated in the Chungcheong region, this study examines structural drawbacks within non-metropolitan clusters and provides policy implications.

• Journal of the Korean association of regional geographers
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• v.6 no.1
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• pp.1-28
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• 2000

The purpose of this study is to clarify the suburbanization of manufacturing, and location and linkages of decentralized manufacturing from Metropolitan Pusan by means of case study on manufacturing location and linkages in the suburb of Metropolitan Pusan. Kimhae city and Yangsan-Gun toward which heavy decentralization of manufacturing from the Metropolitan Pusan has been done. Both hard data and soft data were used as the basic data. Hard data are the statistical data in statistical yearbooks and firm list in directories. The former consists of the number of establishments and employees classified by product type, firm size and unit area. The latter consists of owner's names, addresses, employee number, products and headquarters of firms. Soft data are the results of the interviews with the 242 owners of firms in the four case study areas selected by Proportional Stratified Sampling Method. The major findings are as follows: 1. The spatial variations of manufacturing in the suburb was regularized in the latter half of 1970's. The primary processes to decentralize manufacturing from Metropolitan Pusan were the birth, relocation and establishment of branches of the firms. Among them the relocation of small outer-oriented single-location firms from Pusan was the most important. 2. The spatial variations undergoing spatial expansion of manufacturing distribution and increase of agglomeration degree of manufacturing, proceeded from the adjacents of Metropolitan Pusan to the outer areas along the main transportation route. 3. The main factors which caused manufacturing to decentralize from the Metropolitan Pusan were firm policy and land for this policy. The main locational factors which induced the decentralizing manufacturing into the suburb were land, market and transportation. 4. The strength of linkages with the outside of the study area is stronger than that of linkages with the inside. There is distance-decay-function in the strength of linkages with the outside, and linkages with short distant areas are stronger than those with long distant areas. 5. The ranges of spatial linkages in procurement of materials, in subcontraction and in marketing are wider than those in ordering. 6. The main factors which cause the formation of linkages are different by types of linkages: monopolistic and oligopolistic supply are important in procurement linkages; characteristics of products and the subsequent marketing difficulties, in subcontraction linkages; fluctuation, cost reduction, insufficient facility and characteristics of products, in ordering linkages; subcontract, characteristics of product and the subsequent marketing difficulties, in marketing linkages. 7. The changes of linkages owing to locational changes of firms were great, and were greater in long distant areas than in short distant areas. 8. The main factor influencing on the changes of linkages was the easiness in the transportation of goods, movement of labour and contacts with customers. In conclusion, some facts described above were proved to be consistent with the results of proceeding studies in the other areas: influence of relocation of decentralizing firms on the suburbanization; the factors of manufacturing decentralization; spatial characteristics of linkages; linkage changes owing to relocation of firms. Some were proved to be partly consistent: locational factors inducing decentralized manufacturing into the suburb were proved to be inconsistent. I think that the results of previous studies on the other areas can be applicable to the explanation on the decentralization of Metropolitan manufacturing from the viewpoint of the suburb. For the better explanation on the decentralization of Metropolitan manufacturing, more empirical case studies on the suburbanization of manufacturing are necessary.

• KDI Journal of Economic Policy
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• v.38 no.4
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• pp.1-21
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• 2016

This paper documents how the net profit margin of private firms improves when the CEOs of the companies relocate their primary residence to be closer to the corporate headquarters. By reviewing 127 Korean non-public companies belonging to 66 private business groups, we find that the top managers move closer to the headquarters when the profitability of the firms has recently deteriorated. A one basis point decline in the margin causes CEOs to relocate their homes approximately two kilometers closer to their corporate headquarters. The profit margin rebounds after their relocation. This finding implies that physical proximity can serve as a proxy for personal commitment.

• Journal of Digital Convergence
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• v.17 no.2
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• pp.47-57
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• 2019

This study analyze whether the organizational learning culture affects the firm's dynamic capacity and whether the dynamic capacity mediates the relationship between organizational learning culture and management performance. Respectively. First, "The more organizational structure is organic, the higher the integrated relocation capacity and learning capacity. Organizations with organic organizational structures were found to have the ability to successfully adapt to external changes because there is a practice that is not tied to formal processing or procedures. Second, it can be seen that there is a positive (+) influence on the relocation capacity among the dynamic competence of the learning culture of the corporate organization. Third, both sub-factors of dynamic competence have positive (+) influence on business performance. Also, there was no mediating effect of dynamic competence related to learning culture.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.16 no.6
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• pp.57-68
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• 2021

The purpose of this study is to investigate the effect of location satisfaction of innovative start-ups, located in capital and non-capital areas, on the intention of relocation. The analysis was based on the data of a survey of 231 innovative start-ups that were founded less than 7 years ago. 10 factors related to the aspects of business management, network building, and business environment were considered as location satisfaction of start-ups. The dependent variable was whether innovative start-ups plan to relocate. First, it was confirmed that in the case of innovative start-ups in capital area, the intention to relocate was found to decrease when the location satisfactions related to the promptly provision of products and services to consumers and ease of supplying labor were increased. Second, in the case of innovative start-ups in non-capital area, it was found that the intention to relocate was found to decrease when the location satisfactions related to creating a network, convenient transportation and free and creative start-up environment were increased. In addition, it was found that the higher the sales of start-ups in non-capital area, the lower their intention to relocate while the higher firm age of start-ups in non-capital area, the higher their intention to relocate. This study has an academic contribution to examining the relationship between between the location satisfactions of start-ups and the intention to relocate, which has been rarely addressed in Korea, and to shedding light on the difference in capital and non-capital areas. Furthermore, this study has policy implications since it suggests factors that the government should consider for geographical agglomeration of start-ups.