• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.75
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• pp.179-198
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• 2017

Recently, agricultural exports of Korea have steadily increased. But, no progress is being made at the WTO and DDA negotiations, the FTAs have played a leading role in the formulation of the international trade rules, and countries have been cleverly utilizing non-tariff barriers such as SPS and TBT, there is a growing need to respond to non-tariff barriers aggressively. On the other hand, since the FTA has the potential to activate the global value chain, there is a high need for exporting companies in the domestic agricultural sector to understand the structure of the global value chain in agriculture and actively utilize the global value chain. The non-tariff measures of agricultural commodities major trading partners in the field of domestic agricultural exports were mostly comprised of SPS measures and TBT measures. The non-tariff measures corresponding to inputs and production stages of value chain elements (seeds, seedlings) in the value chain were mainly reported in SPS measures. TBT measures are mainly carried out in selective packaging, storage, processing, distribution, and export sales. It is most important for agricultural export companies to know their position on the value chain and information on non-tariff measures of importing countries in order to actively utilize the global value chain. Since there are non-tariff barriers that are difficult to be solved at the individual enterprise level, active government support of the government is not only important but also actively promoting relevant information to farmers and agricultural exporters. In addition, potential export farmers and prospective export companies will be able to identify TBT and SPS and other non-tariff barriers well in advance, and respond to them in advance. Also, through networking with export related organizations and overseas buyers, It is very important that policy support from the perspective of global value chain is linked effectively.

• Journal of the Economic Geographical Society of Korea
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• v.25 no.1
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• pp.23-40
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• 2022

Under the global economic system, production activities has formed an international division of labor, which has greatly affected industries in individual countries by global issues such as the U.S-China trade war and neo-protectionism. In particular the risk and change of disconnection of semiconductor value chain caused by COVID-19 are evaluated as offering the crisis and opportunity at the same time to all countries participating in the global electronics industry value chain. Therefore, this study was conducted with the OECD Trade in Value Added(TiVA) based on the time when a detailed analysis of the global chain of the electronic industry is needed. As a result of the analysis, it was confirmed that the global value chain of the electronics industry is gradually expanding and strengthening, and that various countries are emerging as major actors in the global value chain. It was found that the U.S. and Japan are in charge of relatively high value-added activities, while Korea, Taiwan and China are in charge of low value-added activities, although they are large scale.

• Journal of Information Technology Applications and Management
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• v.26 no.6
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• pp.65-78
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• 2019

This study describes the accounting approach of separating the value chain components that occur between the origin and destination of a country's total exports, and applied this analysis to the nation's information and communication industry. As a result of this study, the analysis results of ICT's global value chain for the United States and China, focusing on Korea, are as follows: First of all, the value added standard was relatively lower than the export amount standard for the information and communication industry. In particular, the gap was starkly visible in the information and communication manufacturing sector, where global vertical specialization was developed relatively. As a representative sector, the computer-related equipment sector exported to China became more specialized vertically than other information and communication industries. Next, the method of participating in vertical specialization of Korea's information and communication sector and its relative position in the global value chain came from domestic products (0.25/35.16) whose total exports, which were double calculated in the case of the U.S. market, returned home. On the other hand, about 32.68 percent returned to the Chinese market. Finally, in the global value chain level, the SW sector occupied a medium vertical culture location for the information and communication equipment sector and the information and communication service sector.

• Journal of Korea Trade
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• v.25 no.3
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• pp.65-86
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• 2021

Purpose - This paper empirically investigates the relationship between the corporate value chain and performance of non- financial businesses of South Korean stock market companies. It aims to explore the evidence that can be used to infer the relationship between value chains and corporate performance in the case of firms forming a value chain with other companies with the means of an equity investment or a special business relationship. Design/methodology - Non-financial corporations listed from 2011 to 2017 on the securities market of South Korea are analyzed. The data used for analysis are found for transactions with the related party by year for all the corporations of non-financial industries in the securities market. Multiple analysis attempts are conducted including the relationship between the value chain and productivity, corporate value, risk-adjusted corporate value, and mediation effects of productivity. The empirical model employs sixteen variables including the value chain index which identifies its impact on various aspects of business performances. Findings - The results of this study clearly supports the phenomenon that corporate productivity and value are enhanced when the corporation expands its value chain established with domestic related firms and overseas companies. Such a positive effect is statistically significant even after the possible risk factors that accompany the expansion of value chain were considered, and productivity plays the role as a medicating variable in the effect of the value chain on the corporation values. Originality/value - The findings of this study confirms that domestic companies' expansion of their value chain centered on the related firms overseas that helped them in terms of the maximization of their productivity and corporate values. This study shows that Korean government's policy on expanding the corporate GVC can enhance the productivity and value of firms. The expansion of value chain and its impact on business performance has not been explored thoroughly, although it is getting more and more important in the global trade operation.

• Journal of Korea Trade
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• v.25 no.2
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• pp.75-94
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• 2021

Purpose - This article will take the Korean manufacturing industry as an example to estimate Korea's global value chain status from the perspective of overall and sub-industry, hoping to provide a theoretical reference for Korean manufacturing to climb the global value chain. Design/methodology - Based on the WIOD data. The data is calculated by using MATLAB (2014a) coding. The data for 6 sectors are classified according to the International Standard Industrial Classification revision 3 (ISIC Rev. 3), the WIOD data are used to calculate and compare the position, participation and dynamics of the Korea, China and USA' manufacturing industry in the 1995-2016. Findings - The empirical results supported conclusions of the theoretical model. In the Korean GVC of electrical and optical sector, while stronger forward linkages than backward linkages to GVC are advantageous for an average advanced country, the benefits of downstream tasks are pronounced for non-advanced countries. And proved the correlation for an index to capture a country's upstream position or downstream position, it makes sense to compare that Korea's exports of intermediates in the same sector that are used by China and USA. Originality/value - The first is to re-examine the characteristics of South Korea's participation in global value chains under a more systematic and accurate theoretical framework, which provides a new empirical reference for related research; the second is to content covers of the manufacturing 6 sectors, so as to more completely describe the characteristics of Korean manufacturing's participation in global value chains; The value of this paper is providing empirical evidence of the effect of Korea's the GVC of manufacturing sectors. In the GVC of 6 sectors, first three have a higher position in the value chain and are in the upper middle and upper reaches of the GVC. The latter two have a low GVC position index, which has become the main sector that pulls down the overall position of Korea's manufacturing industry.

• Korea Trade Review
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• v.44 no.5
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• pp.107-125
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• 2019

This study analyzes the effects of FDI on the global value chain (GVC) using participation and export value added using panel data from 2005 to 2016 for 63 countries. This study used the GLS method. Results are as follows: First, foreign direct investment had a positive impact on the global value chain (GVC) participation and export value added of non-OECD economies. Furthermore, tariff rates were more sensitive to non-OECD countries than OECD countries. In addition, logistics infrastructure had a negative impact on global value chain (GVC) participation and export value added, while developed countries, such as OECD countries, with good infrastructure, had a positive impact on non-OECD countries. Finally, research and development costs have been shown to play a very important role in non-OECD countries. This study found that various service sectors, such as research and development (R & D) as well as the general manufacturing industry, are expanding beyond two countries to form global value chains (GVC) in which several countries are connected from production to consumption.

• East Asian Economic Review
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• v.24 no.4
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• pp.389-416
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• 2020

This paper provides empirical evidence on the reorganization of GVCs in East Asia, highlighting that structural trends explain a decrease in the fragmentation of production after 2011 but that it is not the result of rising trade costs along the value chain. Using harmonized inter-country input-output tables, the paper first analyzes the global import intensity of production to document changes in the structure of GVCs. It then calculates theory-consistent bilateral trade costs for intermediate and final products using an approach derived from the gravity literature and introduces a new index of cumulative trade costs along the value chain. These data are used to discuss whether the decrease in global imports is the consequence of shifts in demand, efficiency-enhancing strategies of firms or rising trade costs. Between 2011 and 2016, cumulative trade costs have decreased in East Asian GVCs. However, as COVID-19 is likely to intensify trade and investment uncertainties, trade costs could increase in the future. Policies aimed at reducing uncertainties and preserving the gains from trade and investment liberalization will be key in this new environment.

• Journal of the Economic Geographical Society of Korea
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• v.25 no.2
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• pp.203-218
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• 2022

The global value chain, as a major feature of the contemporary global economic system, has been mainly led by developed countries. Whereas developing countries have taken the relatively low value-added activities and this made geographical imbalances in value distribution. This imbalance in value distribution, however, began to gradually alleviated. Related to this phenomenon, the purpose of this research is to analyze the factors affecting factors. Focused on the method of upgrading the industry in the global value chain, the impact on the acquisition of value-added in developing countries was analyzed among the various factors to achieve the research purpose. Panel analysis was conducted on all industries, food and tobacco industries, textile and clothing industries, computer and electornics industries, and automobile industries of the OECD Value-Added Trade Data (TiVA). As a result of the analysis, it was confirmed that in all industries, value-added acquisition in developing countries was improved by increased total production, high value-added product production and participation in early stage. The analysis results by detailed industry showed slightly different patterns depending on the characteristics of each industry.

• Korea Trade Review
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• v.45 no.5
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• pp.239-260
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• 2020

This research was conducted on 176 GVCs-related research papers listed in the Index of Korean Academic Writers. The analysis methodology used the keyword network analysis methodology of big data analysis. For the comprehensive analysis of research trends, the research trends through word frequency (TF), important topic (TF-IDF), and topical modeling were analyzed in 176 papers. In addition, the research period of GVCs was divided into the early stages of the first study (2003-2014), the second phase of the study (2015-2017), and the third phase of the study (2018-2020). According to the comprehensive analysis, the GVCs research was conducted with the keyword 'value added' as the center, focusing on the keywords of export (trade), Korea, business, influence, and production. Major research topics were 'supporting corporate cooperation and capacity building' and 'comparative advantage with added value of overseas direct investment'. According to the analysis of major period-specific research trends, GVCs were studied in the early stages of the first phase of the study with global value chain trends and corporate production strategies. In the second research propulsion period, research was done in terms of trade value added. In the recent third phase of the study, small and medium-sized enterprises actively participated in the global value chain and actively researched ways to support the government. Through this study, the importance of the global value chain has been confirmed quantitatively and qualitatively, and it is recognized as an important factor to be considered in the strategy of enhancing industrial competitiveness and entering overseas markets. In particular, small and medium-sized companies' participation in the global value chain and support measures are being presented as important research topics in the future.

• Food Science and Industry
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• v.46 no.1
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• pp.36-41
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• 2013