• East Asian Journal of Business Economics (EAJBE)
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• v.9 no.1
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• pp.53-61
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• 2021

Purpose - This study aims to understand the phenomenon called "regional multinational" in the geographical expansion of multinational enterprises and to find some evidence whether globalization of multinational enterprises tends to have a strong home region bias. Research design, data, and methodology - Through an in-depth case analysis, we analyze the series of strategic behaviors Wal-Mart made in South Korea from its entry in 1998 to its withdrawal in 2006. Then, we discuss the plausible causes of this exit, seeking to provide some evidence on the "regional multinational" phenomenon. Result - This study finds some evidence on the regional-based expansion of multinational enterprises. Our case study shows that Wal-Mart in South Korea focused on global standardization strategy and made an exit from the market as they were faced with increasing localization demands. From the perspective of multinational enterprises' globalization strategy, Wal-Mart's exit from the South Korean market can be considered as a strategic exit. Conclusion - The findings of this study suggest that while national responsiveness and localized adaptation are considered as a panacea for penetrating international markets, in reality most multinational enterprises attempt to add value primarily by capitalizing on similarities across markets and remain as regional multinationals.

• Journal of Arbitration Studies
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• v.27 no.4
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• pp.179-198
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• 2017

The OECD Guidelines for Multinational Enterprises (The Guidelines) was initially promulgated in 1976 as a form of annex to the OECD Declaration on International Investment and Multinational Enterprises. The Guidelines aims at accomplishing the implementation and dissemination of the Responsible Business Conduct. The latest version of The Guidelines, as revised in 2011, directed 47 adhering countries to The Guidelines to set up their respective National Contact Points (NCPs). NCPs are The Guidelines' dispute resolution mechanism for specific instances arising from breach by multinational enterprises of The Guidelines. Korea to date has its own NCP performing its role to offer good offices and facilitates settlement between the parties to the specific instances regarding The Guidelines. However, there has been strong criticism from NGOs and civil society that Korea NCP has not performed well due to lack of transparency and impartiality, especially in the context of the governance of Korea NCP. Under this circumstance, this paper ⅰ) examines current status and problems of Korea NCP, ⅱ) evaluates the core criteria for function and governance of NCPs through a comparative overseas cases study, and ⅲ) suggests improvement plans for Korea NCP.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.46
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• pp.351-380
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• 2010

Multinational Enterprises set the prices for transactions between affiliates based principally on their global interest. But the customs authority in Korea wants to set the arm's length price as high as possible to get higher dutiable value for customs purpose, while the internal tax authority in Korea prefers lower arm's length price to get higher value for corporation tax purpose by cutting costs. Problem caused by the inconsistent valuation methods on the same imported goods of the two tax authorities is the single most important tax issue facing multinational enterprises. In the meantime, the customs authority in Korea has thought that it is a universal trend worldwide for the Customs and Internal tax authorities to adopt different methods of valuation on transfer prices between related parties, so KCS couldn't accept APA prices. But the internal tax authority in Korea has taken the initiative in APA program so NTS provided taxpayer with safe-harbor. Recently, KCS created the Advance Customs Valuation Arrangement(ACVA) provisions in the 2008 revision bill of the Customs Act through benchmarking APAs program. Can APAs work for customs? Neither WCO or OECD presents any recommendation on the integration of the valuation methods, but calls for close cooperation between two authorities, which still leaves taxpayers very unstable. We will start to seek ways to integrate the customs valuation and transfer pricing in this study.

• Journal of Korea Trade
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• v.23 no.7
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• pp.64-82
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• 2019

Purpose - This study's the ultimate goal is to analyze competitiveness improvement on multinational enterprises as firstly providing which factors are to strengthen or weaken competitiveness, secondly investigating if hypotheses development and research design is correct and thirdly finding significant implications for research and practices across country specific advantage. Design/methodology - Using feedback data provided by 250 firms, we extracted variable factors and hypotheses, which were empirically carried out by reliability and validity testing, correlation analysis, path analysis, and confirmatory factor analysis to prove which factors are to make the positive effect on the improvement of overseas subsidiaries' management performance and competitiveness. Findings - Through proceeding empirical analysis study, we found out that technology management capability, knowledge management capability, and local management capability had a statistically significant effect on the improvement of overseas subsidiaries' competitiveness, while linked activity capability revealed a negative effect. Originality/value - During business globalization, overseas investments and establishment of overseas subsidiaries have been essential. It is anticipated that this study results would be meaningful for analysis on multinational enterprises' competitiveness and helpful in promoting their entry into Korean market and enhancing their competitiveness. This paper would also help Korea government develops new FDI model and induce more investment from global major companies to Korea region.

• Korean Business Review
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• v.1
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• pp.37-70
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• 1987

• Korea Trade Review
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• v.42 no.4
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• pp.159-184
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• 2017

OECD MNE Guidelines ('OECD Guidelines') was set forth in 1976 as a form of annex to the OECD Declaration on International Investment and Multinational Enterprises. The objective of the OECD Guidelines is to fulfill the implementation and adoption of the Responsible Business Conduct ('RBC') among the adhering states. To further the effectiveness of the OECD Guidelines, OECD, specifically the Investment Committee of OECD, has utilized National Contact Point ('NCP') structure. According to the Procedural Guidance annexed to the OECD Guidelines, peer learning is prescribed as an important tool for promoting and facilitating the implementation procedures of the OECD Guidelines. This paper, inter alia, is mainly focusing on the peer review mechanism applicable to NCPs because negative assessments by peers are likely to harm Korea's state image and entail international criticisms even though such reviews are conducted voluntarily. In addition, the Working Party on Responsible Business Conduct ('WPRBC') decided to have a peer review of Korean NCP in 2019. This paper first outlines the meaning and current applications of the peer review mechanism, and then analyzes specific peer review cases conducted in Denmark and Belgium in 2015, and in 2016, respectively. Lastly, based on the issues handled in the peer review reports on the above states, this paper makes a few recommendations for Korean government to prepare the peer review scheduled in 2019.

• East Asian Economic Review
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• v.17 no.3
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• pp.261-279
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• 2013

Using firm-level panel data for Korean multinational enterprises (MNEs), we make a distinction between being the only affiliate of a parent firm and being one of the multiple affiliates of a parent firm. In particular, we attempt to find a correlation between the sales of foreign affiliates and the productivity of multinational firms. Our main empirical results in this paper suggest that productive Korean MNEs would enlarge the number of affiliates in the host country.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.3
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• pp.173-183
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• 2019

This study aims to utilize big data contents of news and social media for developing a corporate strategy of multinational enterprises and their global decision-making through the data mining technique, especially text mining. In this paper, the data of 2 news media (BBC and CNN) and 2 social media (Facebook and Twitter) were collected for the three global leading Korean companies (Samsung, Hyundai Motor Company, and LG) from April, 2018 to April, 2019. The findings of this paper have shown that traditional news media and also modern social media have become devastating tools to extract global trends or phenomena for businesses. Moreover, this presents that a company can adopt a two-track strategy through two different types of media by deriving the key issues or trends from news media channels and also grasping consumers' sentiments, preference or issues of interest such as battery or design from social media. In addition, analyzing the texts of those media and understanding the association rules greatly contribute to the comparison between two different types of media channels to see the difference. Lastly, this provides meaningful and valuable data empowered insights to find a future direction comprehensively and develop a global strategy for sustainability of business.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.67
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• pp.143-162
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• 2015

Russia has a huge amount of energy resources. It is an attractive factor to countries which spend loads of energy. Republic of Korea is also one of large energy consumption countries. Therefore, It will be needed to raise energy cooperation with Russia. It's companies will increase trade focusing on the energy industry in the long term. Recently, However, Foreign companies should be careful when they enter the rapidly changing Russia market. In other words, companies will need a strategic approach to prepare the early case assessment and how to solve a possible dispute as they analyze cost and profit in business. This study is analyzing several dispute cases related in Russia. It presents some strategies for Korean companies such as dispute resolution method, arbitration institution selection method and so on. In addition, it proposes the introduction of the early case assessment for reducing a waste of time and cost. Furthermore, according as the importance of OECD Guidelines for Multinational Enterprises is highlighted in international community, companies should prepare practical division to establish a system of responsible business conduct. Finally, they will have to get an advice and counseling from the Russia legal experts in the early stages of the contract.

• The Korean Journal of Air & Space Law and Policy
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• v.8
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• pp.297-332
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• 1996

It is well observed in the satellite telecommunication policy of several States that legal constraints imposed upon the service coverage of satellite telecommunication as well as broadcasting are to be relaxed in a progressive way. Major aspects of such policy change lie in the adoption of policy refusing traditional concept of national frontier. In the case of direct broadcasting satellite service, while a debate upon the legal issues regarding the spill-over effect of that service is no more major concern of the States, many multinational enterprises are looking for strategic alliance for regional or global DBS project. On the other hand, an implementation plan for connecting the world through global mobile personal communication satellite system is being pursued by several joint effort of multinational firms. Legal issues arise regarding the regulatory competence of each State, Especially, a controversial issue is concerning the sovereign right well recognized upon the regulation of telecommunication. This study is focusing upon the evolution of such policy change for the purpose of allowing us to expect future develpment of worldwide satellite telecommunication policy environment.