Okdong Lee Seo's Historical View Examined through Yeokdaega (｢역대가(歷代歌)｣를 통해 본 옥동(玉洞) 이서(李漵)의 역사인식(歷史認識))
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- (The)Study of the Eastern Classic
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- no.57
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- pp.331-357
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- 2014
This paper is to examine Okdong Lee Seo's historical view through analyzing Yeokdaega("歷代歌"), Okdong's full-length historical epic. As long as Okdong Lee Seo was a Confucian scholar holding moral cultivation as the highest value, his Yeokdaega is hard to explain separately from the Confucian world view. Okdong's Yeokdaega is a long old-style sino-korean poem consisting of 526 7-syllable verses, yet it considerably differs in structure from other historical epics known so far. Okdong's Yeokdaega consists of two parts: the first narrates Chinese historical facts from the beginning to the fall of Ming dynasty, and the second describes the social irrationality of the time and reveals his strong social criticism. It is very different from an ordinary historical epic piece narrating the orders and disorders and the rise and fall of historical facts. It is thought that Okdong's Yeokdaega was written based on his Confucian historical view. It seems that for Okdong the rise and fall of Chinese historical dynasties did not merely mean historical facts but functioned as a tool explaining the reason for people to persue moral cultivation. Okdong summed up his knowledge of the rise and fall of Chinese historical dynasties, his sharp criticism on social irrationality, and his stimulation about the necessity of moral cultivation, and then created a long 526-verse historical epic Yeokdaega. For the reasons, it is not easy to say that Okdong's Yeokdaega is the result of pure literary activities only for artistry. However, Okdong's Yeokdaega is not inferior to other historical epic pieces written by the time in literary value. Especially, Okdong's Yeokdaega can be said to be more meaningful since it was, over its literary value, not only a tool to strengthen his own study and will but also a educational tool for others around himself.
With the advent of knowledge-based society, the revitalization of technological innovation type SMEs, termed "inno-biz" hereafter, has been globally recognized as a government policymakers' primary concern in strengthening national competitiveness, and much effort is being put into establishing polices of boosting the start-ups and innovation capability of SMEs. Especially, in that the inno-biz enables national economy to get vitalized by widening world markets with its superior technology, and thus, taking the initiative of extremely competitive world markets, its growth and development has greater significance. In the case of Korea, the government has been maintaining the policies since the late 1990s of stimulating the growth of SMEs as well as building various infrastructures to foster the start-ups of the SMEs such as venture businesses with high technology. In addition, since the enactment of "Innovation Promotion Law for SMEs" in 2001, the government has been accelerating the policies of prioritizing the growth and development of inno-biz. So, for the sound growth and development of Korean inno-biz, this paper intends to offer effective management strategies for SMEs and suggest proper policies for the government, by researching into the effect of technological innovation capability and technology commercialization capability as the primary business resources on business performance in Korean SMEs in the light of market information orientation. The research is carried out on Korean companies characterized as inno-biz. On the basis of OSLO manual and prior studies, the research categorizes their status. R&D capability, technology accumulation capability and technological innovation system are categorized into technological innovation capability; product development capability, manufacturing capability and marketing capability into technology commercialization capability; and increase in product competitiveness and merits for new technology and/or product development into business performance. Then the effect of each component on business performance is substantially analyzed. In addition, the mediation effect of technological innovation and technology commercialization capability on business performance is observed by the use of the market information orientation as a parameter. The following hypotheses are proposed. H1 : Technology innovation capability will positively influence business performance. H1-1 : R&D capability will positively influence product competitiveness. H1-2 : R&D capability will positively influence merits for new technology and/or product development into business performance. H1-3 : Technology accumulation capability will positively influence product competitiveness. H1-4 : Technology accumulation capability will positively influence merits for new technology and/or product development into business performance. H1-5 : Technological innovation system will positively influence product competitiveness. H1-6 : Technological innovation system will positively influence merits for new technology and/or product development into business performance. H2 : Technology commercializing capability will positively influence business performance. H2-1 : Product development capability will positively influence product competitiveness. H2-2 : Product development capability will positively influence merits for new technology and/or product development into business performance. H2-3 : Manufacturing capability will positively influence product competitiveness. H2-4 : Manufacturing capability will positively influence merits for new technology and/or product development into business performance. H2-5 : Marketing capability will positively influence product competitiveness. H2-6 : Marketing capability will positively influence merits for new technology and/or product development into business performance. H3 : Technology innovation capability will positively influence market information orientation. H3-1 : R&D capability will positively influence information generation. H3-2 : R&D capability will positively influence information diffusion. H3-3 : R&D capability will positively influence information response. H3-4 : Technology accumulation capability will positively influence information generation. H3-5 : Technology accumulation capability will positively influence information diffusion. H3-6 : Technology accumulation capability will positively influence information response. H3-7 : Technological innovation system will positively influence information generation. H3-8 : Technological innovation system will positively influence information diffusion. H3-9 : Technological innovation system will positively influence information response. H4 : Technology commercialization capability will positively influence market information orientation. H4-1 : Product development capability will positively influence information generation. H4-2 : Product development capability will positively influence information diffusion. H4-3 : Product development capability will positively influence information response. H4-4 : Manufacturing capability will positively influence information generation. H4-5 : Manufacturing capability will positively influence information diffusion. H4-6 : Manufacturing capability will positively influence information response. H4-7 : Marketing capability will positively influence information generation. H4-8 : Marketing capability will positively influence information diffusion. H4-9 : Marketing capability will positively influence information response. H5 : Market information orientation will positively influence business performance. H5-1 : Information generation will positively influence product competitiveness. H5-2 : Information generation will positively influence merits for new technology and/or product development into business performance. H5-3 : Information diffusion will positively influence product competitiveness. H5-4 : Information diffusion will positively influence merits for new technology and/or product development into business performance. H5-5 : Information response will positively influence product competitiveness. H5-6 : Information response will positively influence merits for new technology and/or product development into business performance. H6 : Market information orientation will mediate the relationship between technology innovation capability and business performance. H7 : Market information orientation will mediate the relationship between technology commercializing capability and business performance. The followings are the research results : First, as for the effect of technological innovation on business performance, the technology accumulation capability and technological innovating system have a positive effect on increase in product competitiveness and merits for new technology and/or product development, while R&D capability has little effect on business performance. Second, as for the effect of technology commercialization capability on business performance, the effect of manufacturing capability is relatively greater than that of merits for new technology and/or product development. Third, the mediation effect of market information orientation is identified to exist partially in information generation, information diffusion and information response. Judging from these results, the following analysis can be made : On Increase in product competitiveness, directly related to successful technology commercialization of technology, management capability including technological innovation system, manufacturing capability and marketing capability has a relatively strong effect. On merits for new technology and/or product development, on the other hand, capability in technological aspect including R&D capability, technology accumulation capability and product development capability has relatively strong effect. Besides, in the cast of market information orientation, the level of information diffusion within an organization plays and important role in new technology and/or product development. Also, for commercial success like increase in product competitiveness, the level of information response is primarily required. Accordingly, the following policies are suggested : First, as the effect of technological innovation capability and technology commercialization capability on business performance differs among SMEs; in order for SMEs to secure competitiveness, the government has to establish microscopic policies for SMEs which meet their needs and characteristics. Especially, the SMEs lacking in capital and labor are required to map out management strategies of focusing their resources primarily on their strengths. And the government needs to set up policies for SMEs, not from its macro-scaled standpoint, but from the selective and concentrative one that meets the needs and characteristics of respective SMEs. Second, systematic infrastructures are urgently required which lead technological success to commercial success. Namely, as technological merits at respective SME levels do not always guarantee commercial success, the government should make and effort to build systematic infrastructures including encouragement of M&A or technology trade, systematic support for protecting intellectual property, furtherance of business incubating and industrial clusters for strengthening academic-industrial network, and revitalization of technology financing, in order to make successful commercialization from technological success. Finally, the effort to innovate technology, R&D, for example, is essential to future national competitiveness, but its result is often prolonged. So the government needs continuous concern and funding for basic science, in order to maximize technological innovation capability. Indeed the government needs to examine continuously whether technological innovation capability or technological success leads satisfactorily to commercial success in market economic system. It is because, when the transition fails, it should be left to the government.
This study was attempted to contribute to the development of school health by providing the basic data about the distribution basis and distribution aspect of teachers holding additional school health that are in charge of school health business in parimary schools, middle schools and high schools without any nurse-teacher. This study analyzed literatures about the history, related laws, organization and professional manpower of school health. The emphasis was set on the distribution basis of theachers holding additional school health. The results of this study are as following: 1. The school health of the world dates to the late 18th century in Europe where was free supplying with food for poor children. The school health of Korea orginated from smallpox vaccination which was executed with appearance of modern schools in the late 19th century. 2. The related laws of school health began as a part of Education Law with was constituted in 1949. By the School Health Law constituted in 1967 and the enforcement ordinance of School Health made firm the legal basis of school health. 3. The administrative organs of school health are the Ministry of Education in center and each Board of Education in cities and provinces. For the first time in 1979, the department of school health was established in the organization of the Ministry of Education. And at about the same time of establishment of the department of school health, health section was established in the department of social physical-training in locality. 4. In the manpower of school health which was presented in the related statute of school health, there are the ward chief of education, the superintendent of educational affair, of cities and districts, the mayors, the governors of provinces, the school managers, the principals, the school doctors, the school pharmacists, and the nurse-teachers, including teachers holding additional school health as the practical manpower of school health. 5. In order to get some information on distribution aspect of teachers additional school health, this study made up a questionnaire from August 3 to August 11, 1988. The subjects of this study were 212 leachers who took part in the yearly training for teachers holding additional school health from Kyunggi province, Chungbuk province and Jeonbuk province. The results of the questionnaire are as following: 1. The distribution percentages of teachers holding additional school health according to each Board of Education wich schools are subject to, are as following:70.1% (Kyunggi), 76.5% (Chungbuk), and 81.4% (Jeonbuk). There was a significant difference. The distribution percentages of teachers holding additional school health according to the school levels of 3 provinces are as following: 74.1% (Primary schools), 77.8% (Middle schools), 76.7% (High schools). There were little significant differences. 2. The distribution according to the general characteristics of the subject schools: There were 64.2 percent of primary schools and 35.8 percent of middle schools among 212 schools. 91. 5 percent of schools were located in districts. Public schools formed 55.7% and then national schools were higher in percentage than private schools. 58.5 percent of schools had 1-9 classes, 64.6 percent of schools had 101-500 students, and 90 percents of schools had 1-20 teachers. In considering student sex, the coed school showed the high distribution percentage (Primary schools : 100%, Middle schools: 81.6%). 3. The distribution according to the characteristics of teachers holding additional school health: 93.3 percent of teachers were female, and more than 60 percent of teachers were 20-29 years old. As the age got higher, the percentage became lower. There were little significant differences by marital status. In considering their educational status, 86.8 percent of teachers in primary schools were from teacher's colleges, and 64.5 percent of teachers in middle schools were from education colleges. In considering teaching career, 46.7 percent of teachers had teaching career of less than 2 years. 73.6 percent of teachers had held additional school health for less than one year. More than 80 percent of teachers had participated in the training one time or twice. More than 70 percent of teachers had 1-2 additional jobs except for the school health business. The motivation to hold additional school health is most caused by mandatory order, which accounts for more than 80.0 percent. In considering interesting degree concerning school health, lukewarm answer is the highest of 62.7 percent, followed by affirmative answer of 23.6 percent. In considering their contentment degree respecting additional school health job, "discontent or very discontent"is the highest of 47.6 percent. As a descontent reason of additional school health job, overwork is the highest factor of 37.9 percent. Among addiitional school health job, the most difficult affair is nursing service to be 34.0 percent, followed by health education of 31.6 percent. It testify the need of professional. The source of knowledge about school health has been acquired from masscommunication or private health experience, which account for as much as 56.1 percent. It shows seriousness of lack of professionalism. With regard to neccessity of school health experts, 95.8 percent represents absolute need. With above consideration of study results, I propose as follows : 1. I propose that the authorities concerned unify and improve statute respecting current school health which has not been steadfastly supporting school health business by ambiguity of expression and dualization. 2. I propose that the authorities concerned give the school manager, school staffs and parents of students educational chance with which they can acknowledge the importance of school health and in which they can participate as well as set up alternative policy plan to be albe to vitalize school health committee. 3. I propose that administrative organization practicable to taking totally charge of school health business is established within the Ministry of Education. 4. I propose that the authorities concerned back up and cooperate in an attempt by make school health better and desirable toward development by way of appointing qualitied health teachers on the basis of legally regular teacher staffs.
After almost one century of discontinuity in the archival tradition of Chosun dynasty, Korea entered the new age of records and archival management by legislating and executing the basic laws (The Records and Archives Management of Public Agencies Ad of 1999). Annals of Chosun dynasty recorded major historical facts of the five hundred years of national affairs. The Annals are major accomplishment in human history and rare in the world. It was possible because the Annals were composed of collected, selected and complied records of primary sources written and compiled by generations of historians, As important public records are needed to be preserved in original forms in modern archives, we had to develop and establish a modern archival system to appraise and select important national records for archival preservation. However, the colonialization of Korea deprived us of the opportunity to do the task, and our fine archival tradition was not succeeded. A centralized archival system began to develop since the establishment of GARS under the Ministry of Government Administration in 1969. GARS built a modem repository in Pusan in 1984 succeeding to the tradition of History Archives of Chosun dynasty. In 1998, GARS moved its headquarter to Taejon Government Complex and acquired state-of-the-art audio visual archives preservation facilities. From 1996, GARS introduced an automated archival management system to remedy the manual registration and management system complementing the preservation microfilming. Digitization of the holdings was the key project to provided the digital images of archives to users. To do this, the GARS purchased new computer/server systems and developed application softwares. Parallel to this direction, GARS drastically renovated its manpower composition toward a high level of professionalization by recruiting more archivists with historical and library science backgrounds. Conservators and computer system operators were also recruited. The new archival laws has been in effect from January 1, 2000. The new laws made following new changes in the field of records and archival administration in Korea. First, the laws regulate the records and archives of all public agencies including the Legislature, the Judiciary, the Administration, the constitutional institutions, Army, Navy, Air Force, and National Intelligence Service. A nation-wide unified records and archives management system became available. Second, public archives and records centers are to be established according to the level of the agency; a central archives at national level, special archives for the National Assembly and the Judiciary, local government archives for metropolitan cities and provinces, records center or special records center for administrative agencies. A records manager will be responsible for the records management of each administrative divisions. Third, the records in the public agencies are registered in the computer system as they are produced. Therefore, the records are traceable and will be searched or retrieved easily through internet or computer network. Fourth, qualified records managers and archivists who are professionally trained in the field of records management and archival science will be assigned mandatorily to guarantee the professional management of records and archives. Fifth, the illegal treatment of public records and archives constitutes a punishable crime. In the future, the public records find archival management will develop along with Korean government's 'Electronic Government Project.' Following changes are in prospect. First, public agencies will digitize paper records, audio-visual records, and publications as well as electronic documents, thus promoting administrative efficiency and productivity. Second, the National Assembly already established its Special Archives. The judiciary and the National Intelligence Service will follow it. More archives will be established at city and provincial levels. Third, the more our society develop into a knowledge-based information society, the more the records management function will become one of the important national government functions. As more universities, academic associations, and civil societies participate in promoting archival awareness and in establishing archival science, and more people realize the importance of the records and archives management up to the level of national public campaign, the records and archival management in Korea will develop significantly distinguishable from present practice.
Contemporary belief is that the creative talented can create new knowledge and lead national development, so lots of countries in the world have interest in Gifted Education. As we well know, U.S.A., England, Russia, Germany, Australia, Israel, and Singapore enforce related laws in Gifted Education to offer Gifted Classes, and our government has also created an Improvement Act in January, 2000 and Enforcement Ordinance for Gifted Improvement Act was also announced in April, 2002. Through this initiation Gifted Education can be possible. Enforcement Ordinance was revised in October, 2008. The main purpose of this revision was to expand the opportunity of Gifted Education to students with special education needs. One of these programs is, the opportunity of Gifted Education to be offered to lots of the Gifted by establishing Special Classes at each school. Also, it is important that the quality of Gifted Education should be combined with the expansion of opportunity for the Gifted. Social opinion is that it will be reckless only to expand the opportunity for the Gifted Education, therefore, assessment on the Teaching and Learning Program for the Gifted is indispensible. In this study, 3 middle schools were selected for the Teaching and Learning Programs in mathematics. Each 1st Grade was reviewed and analyzed through comparative tables between Regular and Gifted Education Programs. Also reviewed was the content of what should be taught, and programs were evaluated on assessment standards which were revised and modified from the present teaching and learning programs in mathematics. Below, research issues were set up to assess the formation of content areas and appropriateness for Teaching and Learning Programs for the Gifted in mathematics. A. Is the formation of special class content areas complying with the 7th national curriculum? 1. Which content areas of regular curriculum is applied in this program? 2. Among Enrichment and Selection in Curriculum for the Gifted, which one is applied in this programs? 3. Are the content areas organized and performed properly? B. Are the Programs for the Gifted appropriate? 1. Are the Educational goals of the Programs aligned with that of Gifted Education in mathematics? 2. Does the content of each program reflect characteristics of mathematical Gifted students and express their mathematical talents? 3. Are Teaching and Learning models and methods diverse enough to express their talents? 4. Can the assessment on each program reflect the Learning goals and content, and enhance Gifted students' thinking ability? The conclusions are as follows: First, the best contents to be taught to the mathematical Gifted were found to be the Numeration, Arithmetic, Geometry, Measurement, Probability, Statistics, Letter and Expression. Also, Enrichment area and Selection area within the curriculum for the Gifted were offered in many ways so that their Giftedness could be fully enhanced. Second, the educational goals of Teaching and Learning Programs for the mathematical Gifted students were in accordance with the directions of mathematical education and philosophy. Also, it reflected that their research ability was successful in reaching the educational goals of improving creativity, thinking ability, problem-solving ability, all of which are required in the set curriculum. In order to accomplish the goals, visualization, symbolization, phasing and exploring strategies were used effectively. Many different of lecturing types, cooperative learning, discovery learning were applied to accomplish the Teaching and Learning model goals. For Teaching and Learning activities, various strategies and models were used to express the students' talents. These activities included experiments, exploration, application, estimation, guess, discussion (conjecture and refutation) reconsideration and so on. There were no mention to the students about evaluation and paper exams. While the program activities were being performed, educational goals and assessment methods were reflected, that is, products, performance assessment, and portfolio were mainly used rather than just paper assessment.
We tried to observe the features of ancient medical practice by analysing the records related to medicine in the book,
Seo Byeong-o (徐丙五, 1862-1936) played a central role in the formation of the Daegu artistic community-which advocated artistic styles combining poetry, calligraphy and painting-during the Japanese colonial period, when the introduction of the Western concept of 'art' led to the adoption of Japanese and Western styles of painting in Korea. Seo first entered the world of calligraphy and painting after meeting Lee Ha-eung (李昰應, 1820-1898) in 1879, but his career as a scholar-artist only began in earnest after Korea was annexed by Japan in 1910. Seo's oeuvre can be broadly divided into three periods. In his initial period of learning, from 1879 to 1897, his artistic activity was largely confined to copying works from Chinese painting albums and painting works in the "Four Gentlemen" genre, influenced by the work of Lee Ha-eung, in his spare time. This may have been because Seo's principal aim at this time was to further his career as a government official. His subsequent period of development, which lasted from 1898 until 1920, saw him play a leading social role in such areas as the patriotic enlightenment movement until 1910, after which he reoriented his life to become a scholar-artist. During this period, Seo explored new styles based on the orchid paintings of Min Yeong-ik (閔泳翊, 1860-1914), whom he met during his second trip to Shanghai, and on the bamboo paintings of Chinese artist Pu Hua (蒲華, 1830-1911). At the same time, he painted in various genres including landscapes, flowers, and gimyeong jeolji (器皿折枝; still life with vessels and flowers). In his final mature period, from 1921 to 1936, Seo divided his time between Daegu and Seoul, becoming a highly active calligrapher and painter in Korea's modern art community. By this time his unique personal style, characterized by broad brush strokes and the use of abundant ink in orchid and bamboo paintings, was fully formed. Records on, and extant works from, Seo's early period are particularly rare, thus confining knowledge of his artistic activities and painting style largely to the realm of speculation. In this respect, eleven recently revealed nanjukseok (蘭竹石圖; orchid, bamboo and rock) paintings, produced by Seo in 1889, provide important clues about the origins and standards of his early-period painting style. This study uses a comparative analysis to confirm that Seo's orchid paintings show the influence of the early gunran (群蘭圖; orchid) and seongnan (石蘭圖; rock and orchid) paintings produced by Lee Ha-eung before his arrest by Qing troops in July 1882. Seo's bamboo paintings appear to show both that he adopted the style of Zheng Xie (鄭燮, 1693-1765) of the Yangzhou School (揚州畵派), a style widely known in Seoul from the late eighteenth century onward, and of Heo Ryeon (許鍊, 1809-1892), a student of Joseon artist Kim Jeong-hui (金正喜,1786-1856), and that he attempted to apply a modified version of Lee Ha-eung's seongnan painting technique. It was not possible to find other works by Seo evincing a direct relationship with the curious rocks depicted in his 1889 paintings, but I contend that they show the influence of both the late-nineteenth-century-Qing rock painter Zhou Tang (周棠, 1806-1876) and the curious rock paintings of the middle-class Joseon artist Jeong Hak-gyo (丁學敎, 1832-1914). In conclusion, this study asserts that, for his 1889 nanjukseok paintings, Seo Byeong-o adopted the styles of contemporary painters such as Heo Ryeon and Jeong Hak-gyo, whom he met during his early period at the Unhyeongung through his connection with its occupant, Lee Ha-eung, and those of artists such as Zheng Xie and Zhou Tang, whose works he was able to directly observe in Korea.
With the continued globalization of world markets, transfer pricing has become one of the dominant sources of controversy in international taxation. Transfer pricing is the process by which a multinational corporation calculates a price for goods and services that are transferred to affiliated entities. Consider a Korean electronic enterprise that buys supplies from its own subsidiary located in China. How much the Korean parent company pays its subsidiary will determine how much profit the Chinese unit reports in local taxes. If the parent company pays above normal market prices, it may appear to have a poor profit, even if the group as a whole shows a respectable profit margin. In this way, transfer prices impact the taxable income reported in each country in which the multinational enterprise operates. It's importance lies in that around 60% of international trade involves transactions between two related parts of multinationals, according to the OECD. Multinational enterprises (hereafter MEs) exert much effort into utilizing organizational advantages to make global investments. MEs wish to minimize their tax burden. So MEs spend a fortune on economists and accountants to justify transfer prices that suit their tax needs. On the contrary, local governments are not prepared to cope with MEs' powerful financial instruments. Tax authorities in each country wish to ensure that the tax base of any ME is divided fairly. Thus, both tax authorities and MEs have a vested interest in the way in which a transfer price is determined, and this is why MEs' international transfer prices are at the center of disputes concerned with taxation. Transfer pricing issues and practices are sometimes difficult to control for regulators because the tax administration does not have enough staffs with the knowledge and resources necessary to understand them. The authors examine transfer pricing practices to provide relevant resources useful in designing tax incentives and regulation schemes for policy makers. This study focuses on identifying the relevant business and environmental factors that could influence the international transfer pricing of MEs. In this perspective, we empirically investigate how the management perception of related variables influences their choice of international transfer pricing methods. We believe that this research is particularly useful in the design of tax policy. Because it can concentrate on a few selected factors in consideration of the limited budget of the tax administration with assistance of this research. Data is composed of questionnaire responses from foreign firms in Korea with investment balances exceeding one million dollars in the end of 2004. We mailed questionnaires to 861 managers in charge of the accounting departments of each company, resulting in 121 valid responses. Seventy six percent of the sample firms are classified as small and medium sized enterprises with assets below 100 billion Korean won. Reviewing transfer pricing methods, cost-based transfer pricing is most popular showing that 60 firms have adopted it. The market-based method is used by 31 firms, and 13 firms have reported the resale-pricing method. Regarding the nationalities of foreign investors, the Japanese and the Americans constitute most of the sample. Logistic regressions have been performed for statistical analysis. The dependent variable is binary in that whether the method of international transfer pricing is a market-based method or a cost-based method. This type of binary classification is founded on the belief that the market-based method is evaluated as the relatively objective way of pricing compared with the cost-based methods. Cost-based pricing is assumed to give mangers flexibility in transfer pricing decisions. Therefore, local regulatory agencies are thought to prefer market-based pricing over cost-based pricing. Independent variables are composed of eight factors such as corporate tax rate, tariffs, relations with local tax authorities, tax audit, equity ratios of local investors, volume of internal trade, sales volume, and product life cycle. The first four variables are included in the model because taxation lies in the center of transfer pricing disputes. So identifying the impact of these variables in Korean business environments is much needed. Equity ratio is included to represent the interest of local partners. Volume of internal trade was sometimes employed in previous research to check the pricing behavior of managers, so we have followed these footsteps in this paper. Product life cycle is used as a surrogate of competition in local markets. Control variables are firm size and nationality of foreign investors. Firm size is controlled using dummy variables in that whether or not the specific firm is small and medium sized. This is because some researchers report that big firms show different behaviors compared with small and medium sized firms in transfer pricing. The other control variable is also expressed in dummy variable showing if the entrepreneur is the American or not. That's because some prior studies conclude that the American management style is different in that they limit branch manger's freedom of decision. Reviewing the statistical results, we have found that managers prefer the cost-based method over the market-based method as the importance of corporate taxes and tariffs increase. This result means that managers need flexibility to lessen the tax burden when they feel taxes are important. They also prefer the cost-based method as the product life cycle matures, which means that they support subsidiaries in local market competition using cost-based transfer pricing. On the contrary, as the relationship with local tax authorities becomes more important, managers prefer the market-based method. That is because market-based pricing is a better way to maintain good relations with the tax officials. Other variables like tax audit, volume of internal transactions, sales volume, and local equity ratio have shown only insignificant influence. Additionally, we have replaced two tax variables(corporate taxes and tariffs) with the data showing top marginal tax rate and mean tariff rates of each country, and have performed another regression to find if we could get different results compared with the former one. As a consequence, we have found something different on the part of mean tariffs, that shows only an insignificant influence on the dependent variable. We guess that each company in the sample pays tariffs with a specific rate applied only for one's own company, which could be located far from mean tariff rates. Therefore we have concluded we need a more detailed data that shows the tariffs of each company if we want to check the role of this variable. Considering that the present paper has heavily relied on questionnaires, an effort to build a reliable data base is needed for enhancing the research reliability.
The conflict between major corporations and small and medium-sized businesses is being aggravated, the trickle down effect is not working properly, and, as the controversy surrounding the effectiveness of the business limiting system continues to swirl, the plan proposed to protect the business domain of small and medium-sized businesses, resolve polarization between these businesses and large corporations, and protect small family run stores is the suitable business type designation system for small and medium-sized businesses. The current status of carrying out this system of selecting suitable business types among small and medium-sized businesses involves receiving applications for 234 items among the suitable business types and items from small and medium-sized businesses in manufacturing, and then selecting the items of the consultative group by analyzing and investigating the actual conditions. Suitable business type designation in the service industry will involve designation with priority on business types that are experiencing social conflict. Three major classifications of the service industry, related to the livelihood of small and medium-sized businesses, will be first designated, and subsequently this will be expanded sequentially. However, there is the concern that when designated as a suitable business type or item, this will hinder the growth motive for small to medium-sized businesses, and designation all cause decrease in consumer welfare. Also it is highly likely that it will operate as a prior regulation, cause side-effects by limiting competition systematically, and also be in violation against the main regulations of the FTA system. Moreover, it is pointed out that the system does not sufficiently reflect reverse discrimination factor against large corporations. Because conflict between small to medium sized businesses and large corporations results from the expansion of corporations to the service industry, which is unrelated to their key industry, it is necessary to introduce an advanced contract method like a master franchise or local franchise system and to develop local small to medium sized businesses through a franchise system to protect these businesses and dealers. However, this method may have an effect that contributes to stronger competitiveness of small to medium sized franchise businesses by advancing their competitiveness and operational methods a step further, but also has many negative aspects. First, as revealed by the Ministry of Knowledge Economy, the franchise industry is contributing to the strengthening of competitiveness through the economy of scale by organizing existing individual proprietors and increasing the success rate of new businesses. It is also revealed to be a response measure by the government to stabilize the economy of ordinary people and is emphasized as a 'useful way' to revitalize the service industry and improve the competitiveness of individual proprietors, and has been involved in contributions to creating jobs and expanding the domestic market by providing various services to consumers. From this viewpoint, franchises fit the purpose of the suitable business type system and is not something that is against it. Second, designation as a suitable business type may decrease investment for overseas expansion, R&D, and food safety, as well negatively affect the expansion of overseas corporations that have entered the domestic market, due to the contraction and low morale of large domestic franchise corporations that have competitiveness internationally. Also because domestic franchise businesses are hard pressed to secure competitiveness with multinational overseas franchise corporations that are operating in Korea, the system may cause difficulty for domestic franchise businesses in securing international competitiveness and also may result in reverse discrimination against these overseas franchise corporations. Third, the designation of suitable business type and item can limit the opportunity of selection for consumers who have up to now used those products and can cause a negative effect that reduces consumer welfare. Also, because there is the possibility that the range of consumer selection may be reduced when a few small to medium size businesses monopolize the market, by causing reverse discrimination between these businesses, the role of determining the utility of products must be left ot the consumer not the government. Lastly, it is desirable that this is carried out with the supplementation of deficient parts in the future, because fair trade is already secured with the enforcement of the franchise trade law and the best trade standard of the Fair Trade Commission. Overlapping regulations by the suitable business type designation is an excessive restriction in the franchise industry. Now, it is necessary to establish in the domestic franchise industry an environment where a global franchise corporation, which spreads Korean culture around the world, is capable of growing, and the active support by the government is needed. Therefore, systems that do not consider the process or background of the growth of franchise businesses and harm these businesses for the sole reason of them being large corporations must be removed. The inhibition of growth to franchise enterprises may decrease the sales of franchise stores, in some cases even bankrupt them, as well as cause other problems. Therefore the suitable business type system should not hinder large corporations, and as both small dealers and small to medium size businesses both aim at improving competitiveness and combined growth, large corporations, small dealers and small to medium sized businesses, based on their mutual cooperation, should not include franchise corporations that continue business relations with them in this system.