• Journal of Distribution Science
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• v.13 no.6
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• pp.79-86
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• 2015

Purpose - The cosmetics industry is a traditional high value-added industry in terms of the domestic demand, small batch production systems, exclusive competition, and raw materials highly dependent on overseas countries as well as an oligopolistic market structure. However, new foreign brands and growing consumer awareness of inexpensive products, has triggered a shift. In line with changing lifestyles and the polarization of consumption, the industry faces a new market structure. Among its key characteristics is the cosmetics industry's numerous distribution channels (i.e., department stores, door-to-door sales, online shopping malls, brand shops, and discount stores). Therefore, the study of its distribution channels is essential. Research design, data, and methodology - The study analyzed channel distribution power divided into coercive and non-coercive power. The factors of coercive power included: unilateral request of an increase in commissions, interference in sales by taking advantage of a superior status, unilateral buck-passing at the time of a problem, unilateral request to stop sales activities, and a unilateral business contract; the factors of non-coercive power included favorable payment conditions, offers of various kinds of information, policy on commission reduction, pride in market entrance, and promotion support. In addition, the mediating variable "interdependence" was applied to the execution of department store (or mart) power and their shop conflicts and satisfaction to examine direct and indirect influential power. The methodology was a survey of managers of cosmetics shops in department stores (or marts). The questionnaire, based on a five-point Likert scale, included questions about basic personal information, execution of power, interdependence, conflict, and satisfaction. The study distributed 198 questionnaires and collected 131. Ten questionnaires with missing or hard to analyze data were excluded. Thus, 121 copies were analyzed. Results - According to the analysis, the execution of coercive power by department stores (or marts) did not affect interdependence, but the execution of non-coercive power did. Interdependence did not influence conflict, but did affect satisfaction. Additionally, the analysis revealed direct influential power: the execution of coercive power positively affected conflict and negatively influenced satisfaction; the execution of non-coercive power positively affected satisfaction. Conclusions - To offer suggestions for distribution business relations in the cosmetics industry, this study investigated how the execution of power by department stores (or marts) affected their shops. More specifically, it examined how much the execution of both coercive power and non-coercive power influenced conflict and satisfaction, and analyzed the mediating role of interdependence. In line with previous study results in various areas, coercive power was shown to be the source of conflict, leading to a decrease in satisfaction, whereas non-coercive power significantly positively influenced satisfaction. Moreover, non-coercive power increased interdependence, which led to greater satisfaction. As a result, interdependence had a mediating effect on non-coercive power and satisfaction. Based on the results, department stores (or marts) should look for improvements plans that increase interdependence. Such plans could alleviate conflict with the shops, increasing their satisfaction.

• Journal of the Korea Society of Computer and Information
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• v.27 no.11
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• pp.147-155
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• 2022

In this study, we developed a system to dynamically balance a daily stock portfolio and performed trading simulations using gradient boosting and genetic algorithms. We collected various stock market data from stocks listed on the KOSPI and KOSDAQ markets, including investor-specific transaction data. Subsequently, we indexed the data as a preprocessing step, and used feature engineering to modify and generate variables for training. First, we experimentally compared the performance of three popular gradient boosting algorithms in terms of accuracy, precision, recall, and F1-score, including XGBoost, LightGBM, and CatBoost. Based on the results, in a second experiment, we used a LightGBM model trained on the collected data along with genetic algorithms to predict and select stocks with a high daily probability of profit. We also conducted simulations of trading during the period of the testing data to analyze the performance of the proposed approach compared with the KOSPI and KOSDAQ indices in terms of the CAGR (Compound Annual Growth Rate), MDD (Maximum Draw Down), Sharpe ratio, and volatility. The results showed that the proposed strategies outperformed those employed by the Korean stock market in terms of all performance metrics. Moreover, our proposed LightGBM model with a genetic algorithm exhibited competitive performance in predicting stock price movements.

• Korea Trade Review
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• v.43 no.5
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• pp.159-177
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• 2018

The container shipping sector is an important international logistics operation that connects open economies. Freight rates rapidly change as the market fluctuates, and staff related to the shipping market are interested in factors that determine freight rates in the container market. This study uses the Vector Error Correction Model(VECM) to estimate the impact of factors affecting container freight rates. This study uses data published by Clarksons. The analysis results show a 4.2% increase in freight rates when world container traffic increases at 1.0%, a 4.0% decrease in freight rates when volume of container carriers increases by 1.0%, a 0.07% increase in freight rates when bunker price increases by 1.0%, and a 0.04% increase in freight rates accompanying 1.0% increase in libor interests rates. In addition, if the current freight rate is 1.0% higher than the long-term equilibrium rate, the freight rate will be reduced by 3.2% in the subsequent term. In addition, if the current freight rate is 1.0% lower than the long-term equilibrium rate, the freight rate will decrease by 0.12% in the following term. However, the adjusting power in a period of recession is not statistically significant which means that the pressure of freight rate increase in this case is neglectable. This research is expected to contribute to the utilization of scientific methods in forecasting container freight rates.

• International Commerce and Information Review
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• v.19 no.3
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• pp.3-23
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• 2017

With the globalization of the world economy, international trade networks are expanding beyond geographical proximity, and the expansion of such trade networks is playing a role in promoting globalization. Korea has established itself as a strong FTA for the past 13 years, starting with the Korea-Chile FTA. Successful establishment of a short-term FTA network has shown positive economic effects such as increased trade volume with partner countries and market share in overseas markets. Other countries are also turning to the paradigm of economic development through the formation of a regional economic integration and a bilateral trade agreement network, and it is time to investigate new opportunities through understanding the entire RTA and FTA network. In this study, we analyzed the status of RTA and FTA from the 1960s to 2010s, analyzed network structure and centrality through SNA(social network analysis). The results of the study show that the structure of the FTA network is gradually expanding, and the FTA network, which has been expanding to the center of the early European countries, is changing toward the Asian countries such as Korea, China and Japan. As a result of the analysis of the degree of centrality, Korea was ranked as the top in all the degree of centrality(Degree, Betweenness, Closeness and Eigenvector) indicators for a short period of time and it means that Korea's FTA strategy was evaluated as very successful. This study examines the FTA among the global RTAs, assesses the structure of the FTAs and evaluates Korea's FTA strategies and the FTA network from a network perspective.

• Journal of Korea Port Economic Association
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• v.24 no.2
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• pp.43-69
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• 2008

The labor contract Law has been prepared as an important solution for social stability. After long disputes around the orientations of the law, On June 29, 2007, the new Chinese labor contract law is passed. This law reflects the changing labor relations because of economic reforms like restructuring of the state-owned enterprises and so on. This law contains more market-oriented clauses that are supplemented by corporatist scheme supported by trade unions than the first draft. This law emphasize labor's rights and interests to remove prior labor contract problem. So Chines government see this law as standard law to restructure social relationship and also require firms to corporate social responsibility. Therefore, implementation of the new Chinese labor contract law bring about increasing labor cost, infringement of autonomy for human resource management, rigidity of industrial relations. Under these situation, Korean shipping and port logistics companies need to introduce management system of minimized employment, prepare human resource management in response to long-term employment, maintain favor relationship with trade union, and set up counteiplan about risk of a labor dispute.

• International Commerce and Information Review
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• v.16 no.1
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• pp.45-68
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• 2014

Since the introduction of AEO certification in South Korea in 2008, 516 areas have been AEO certified based on a report dated December 31st, 2013. The number is expected to increase drastically as more and more companies strive to obtain the AEO certification. In this regards, this study is designed to contribute to the further invigoration of the AEO certification system as well as to propose directions to improve companies' performance in a practical point of view. To do so, the writer reviewed the past studies done in the relevant subjects in order to 1) grasp the principal subject, 2) catch the areas with insufficient information/lacking points, and to 3) get a focus on future directions on how additional research should be conducted. An analysis of the past studies proved that prior to the introduction of the AEO certification, the focus of the studies were to present the reasons as to why AEO should be introduced, the benefits of AEO, and a comparative analysis of countries already in wide usage of the AEO system. Studies done after the introduction of AEO (that is, after 2008) focused mainly on invigorating the system into the market. Compared to the previous studies, this study will present a distinct conclusion by breaking down the major points of each study on a year-by-year basis and studying them in total in order to provide an even more practical direction in the future of AEO in South Korea.

• Management & Information Systems Review
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• v.28 no.1
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• pp.1-24
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• 2009

Electronic commerce markets have been increasing rapidly, which has resulted in parallel growth in the door-to-door delivery service industry. The door-to-door delivery service industry is projected to be more competitive, due to the large amount of companies that are already established and the fact that several leading multinational logistics companies are rushing into the domestic market. This is a critical period for the companies which are attempting to obtain a competitive advantage. Previous research on door-to-door delivery services has been undertaken, in relation to strategic exploration, political proposals, and user satisfaction. However, there is a lack of practical studies focused on the information systems of door-to-door service companies and its decisive roles have been undertaken. This study aims to investigate, compare, and analyze the information systems of door-to-door delivery service companies. Also, the study proposes developmental direction of how the information systems should be improved. In order to accomplish the purpose of this study, first, we examined previous research on door-to-door delivery services and their information systems. Second, we investigated and analyzed the information systems of four leading domestic companies by conducting interviews. Third, we compared and identified factors of the information systems that could be improved. Finally, we proposed its developmental direction. As a result of the study, the information systems of door-to-door delivery service companies required to provide classified services using diverse tools and develop the optimized routing model to reduce logistics costs.

• Journal of the Korean Regional Science Association
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• v.15 no.2
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• pp.155-187
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• 1999

The East Asian Region has experienced remarkable economic growth and transformation of interurban networking over the past three decades, and urban competiti veness for a networking hub in this region has become a critical issue confronting cities. Competitiveness of the Seoul capital region for a networking hub in Northeast Asia is outstripped by other competing cities in East Asia, notwithstanding its geo-politically and geo-economically advantageous location in this region. In this paper, we aim to appraise the Seoul capital region's competitiveness in terms of logistics distribution, financial function and logistics distribution, financial function and agglomeration of transnational corporations (especially of RHOs and other managerial functions), and to advance the networking strategies of the region for a Northeast Asia hyb. As a result of analysis, we suggest that the Seoul capital region be developed as a Northeast Asian center for regional headquarters or leading global corporations and financial services for being a strategic nodal point in Northeast Asia in the 21st century. A recent survey shows that where to locate an RHQ is influenced by various factors, such as potential market and manufacturing site in the city's hinterland, quality of life, such things as culture, health, safety, education, a well-educated, English-speaking population, reliable air transport, state-of-the-art communications, and an active policy to offer foreign companies generous incentives. The Seoul capital region, which is located at a strategic nodal point advantageous as a springboard for its Northeast Asian hinterland, cannot meet the other conditions mentioned above. To overcome these drawbacks in attracting transnational capital and to create competitiveness as a strategic hub of RHQs in Northeast Asia, it is urgent to initiate a structural reform of the Korean economy, politics, and overall society, to minimize the regulation of FDI, and to provide various incentives for foreign investment. Moreover, we propose the construction of an 'International Business Town' in the Seoul capital region, as a medium to intermediate these strategies and to shape them in a spatial scale. The projected 'International Business Town(IBT)' will be a 'free city' open to international business in which liberal economic activities are guaranteed by special legislation and administration, infrastructures needed for international and improved accessibility to the airport are furnished, and the preference of foreign high-income investors for cultural and living environment are satisfactorily met. IBT is conspicuously differentiated from a raft of other cities' incentives in that it combines deregulation and incentive programs to attract the investment of transnational capital, with a spatial program of offering an urban environment preferred by the high-income investors for cultural and living environment are satisfactorily met. IBT is conspicuously differentiated from a raft of other cities' incentives in that it combines deregulation and incentive programs to attract the investment of transnational capita, with a spatial program of offering an urban environment preferred by the high-income and managerial class. Furthermore, it can be an excellent way of overcoming the xenophobia that has spread among the Korean population by concentrating foreign businesses and their lifestyles in a specific foreign businesses and their lifestyles in a specific zone. In conclusion, 'International Business Town', in line with other legislative and administrative incentive programs, will function as a driving force to make the Seoul capital regional more competitive as a regional business hub in Northeast Asia.

• International Commerce and Information Review
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• v.15 no.4
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• pp.97-122
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• 2013

Korea's trade balance in service showed surplus in 2012 on the basis of BPM5. This is recorded by 14 years since 1999. This owes to decrease of deficit in tourism balance, increase of surplus in construction and transportation, and shift from deficit to surplus, even in small portion, in personal cultural recreational services balance. While externally the global economic growth becomes inactive and the Korean Won has appreciated, internally Korean service industry is very weak and is not equipped with international competitiveness. This study intends to look into service surplus items and services deficit items and to present measures that will be able to strengthen competitiveness in service industry. As a short case study, German and Japan was benchmarked, as they are the countries which are developed on the basis of manufacturing like Korea. And in this study, by analyzing surplus items and deficit items in trade balance sheet, it is attempted to suggest policies which would be available for strengthening service industry. As the service industry is a highly value-added one, it is necessary to designate promising categories and intensively foster as strategic industry. Service industry has their own characteristics distinguished with manufacturing goods. It has very different logistics and payment system with manufacturing industry. It means there must be independent support systems which reflect the nature of industrial classification in service industry. It is necessary to provide export support system, to organize export market development group, to support marketing, to set common logistics center, to support diplomatic means, to provide legal service and so on.

• The Journal of Society for e-Business Studies
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• v.24 no.3
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• pp.1-18
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• 2019

Due to the great advances in e-Marketplace and changes in type of items purchased from the online market, it has been dramatically increased the demand of the storage and transportation under the special conditions such as restricted temperature. Especially, the cold chain needs the way to transparently measure and monitor the entire network in realtime because it has a very complicated structure and requires totally different criteria at the every different steps and items. In this research, it has been presented the performance evaluation metrics to make contract using service level agreement (SLA), the way to apply the smart contract based on blockchain, the structure of blocks, service platform and application in order to build cold chain which can prevent the risk factors by measuring and sharing information in realtime using block chain technology. In addition, we have proposed the way to store the measured performance and reputation of each player in the block using smart contract based on SLA. With the presented framework, all players including service providers as well as users can secure the information for making the rational decisions. When the service platform is actually built and operated, it seems possible to secure the information in transparently and realtime. Also, it is possible to prevent the risk factors or prepare the preemptive plans to react on them.