• Korean Journal of Soil Science and Fertilizer
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• v.44 no.5
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• pp.717-721
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• 2011

In case of plastic film greenhouses cultivating fresh vegetables on paddy soil, soil characteristics must be considered as more important factor than any other factors. Generally after the four years of cultivation, soils tend to increase electrical conductivity value, nutrient unbalance and soil pests. As a result, degradation of agricultural products occurred, therefore it is necessary to improve soil conditions. In this study, yield and economic cost of cucumber were analyzed. The best soil conditions for cucumber cultivation were alluvial or valley in soil topology, moderately or poorly drainage in soil drainage classes, coarse loamy soil in texture. In addition, rich-sunlight and-deep groundwater would be proper for the cucumber cultivation. Good environmental managements of plastic film greenhouse were as follows. The temperature needed to be adjusted three times. The optimal daytime temperature could be $22{\sim}28^{\circ}C$, the one from 12 until night could be $14{\sim}15^{\circ}C$, and the temperature from 24 to sunrise could be $10{\sim}12^{\circ}C$. During plant growth period, soil moisture content was as low as 10~15%, and it needed to be maintained as 15~20% during reproductive growth period. To control pests, catch crop cultivation and solar treatment were carried out, after those EC was reduced and the root-knot nematode was controled too. Cucumber yield from the plot with improved soil managements increased to $158.4Mg\;ha^{-1}$, but plot with successive cropping injury yielded $140.3Mg\;ha^{-1}$. The income from the plot with improved soil managements was 215,676 thousand won $ha^{-1}$, the plot with successive cropping injury was 131,649 thousand won $ha^{-1}$. Income rate of each plot was 51.8% and 38.4%, respectively.

• Journal of Climate Change Research
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• v.3 no.2
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• pp.117-128
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• 2012

The Government of South Korea has continued its effort to fixate virtuous circle of economic growth and climate change response to cope with international demands and pressure to commitment for greenhouse gas reduction effectively. Nationally, Korean Government has established "Enforcement of the Framework Act on Low carbon, Green Growth"(2010. 4. 13) to implement national mid-term GHG mitigation goal(30% reduction by 2020 compare to BAU), which established the foundation for phased GHG mitigation by setting up the sectoral and industrial goal, adopting GHG and Energy Target Management System. Also, follow-up measures are taken such as planning and control of mid-term and short-term mitigation target by detailed analysis of potential mitigation of sector and industry, building up the infrastructure for periodic and systematic analysis of target management. Likewise, it is required to establish more accurate, reliable and detailed sectoral GHG inventory for successfully establishment and implement the frame act. In comparison to the $CO_2$ emission, Especially fluorinated greenhouse gases (HFCs, PFCs, $SF_6$) are lacking research to build the greenhouse gas inventories to identify emissions sources and collection of the applicable collection activities data. In this study, with the refrigeration and air conditioning sector being used to fluorine refrigerant(HFCs) as the center, greenhouse gas emission estimation methodology for evaluating the feasibility of using this methodology look over and mobile air conditioning, fixed air conditioning, household refrigeration equipment, commercial refrigeration equipment for the greenhouse gas emissions were calculated. First look at in terms of methodology, refrigeration and air conditioning sector GHG emissions in developing country-specific emission factors and activity data of the industrial sector the construction of the DB is not enough, it's 2006 IPCC Guidelines Tier 2a (emission factor approach) rather than the Tier 2b (mass balance approach) deems appropriate, and each detail by process, sectoral activity data more accurate, if DB is built Tier 2a (emission factor approach) can be applied will also be judged. Refrigeration and air conditioning sector in 2009 due to the use of refrigerant greenhouse gas emissions ($CO_2eq.$) assessment results, portable air conditioner 1,974,646 ton to year, fixed-mount air conditioner 1,011,754 ton to year, household refrigeration unit 4,396 ton to year, commercial refrigeration equipment 1,263 ton to year was estimated to total 2,992,037 tons.

• Journal of the Korean earth science society
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• v.43 no.1
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• pp.41-59
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• 2022

In accordance with the enactment of 'the Paris Agreement' in 2015 and 'the Framework Act on Carbon Neutrality and Green Growth for Response to the Climate Crisis' in 2021, each local government has set appropriate reduction target of greenhouse gas to achieve the nationally determined contribution (NDC, the reduction target of 40% compared to 2018) of greenhouse gas (GHG) emissions in 2030. In this study, the current distribution of GHG emissions was analyzed in a time series centered on the Chungbuk region for the period from 1990 to 2018, with the aim of reducing GHG emissions in Chungbuk by 2030 based on the 2030 NDC and scenario. In addition, the prospected reduction by 2030 was estimated considering the projected emissions according to Busines As Usual in order to achieve the target reduction of GHG emissions. Our results showed that GHG emissions in Chungbuk and Korea have been increasing since 1990 owing to population and economic growth. GHG emissions in 2018 in Chungbuk were very low (3.9 %) relative to the national value. Moreover, emissions from fuel combustion, such as cement and lime production, manufacturing and construction industries, and transportation industries, were the main sources. Furthermore, the 2030 target of GHG emission reduction in Chungbuk was set at 40.2% relative to the 2018 value, in accordance with the 2030 NDC and 2050 carbon-zero national scenario. Therefore, when projected emissions were considered, the prospected reduction to achieve the target reduction of GHG emissions was estimated to be 46.8% relative to 2018. The above results highlight the importance of meeting the prospected reduction of GHG emissions through reduction means in each sector to achieve the national and local GHG reduction target. In addition, to achieve the 2030 NDC and 2050 carbon zero, the country and each local government, including Chungbuk, need to estimate projected emissions by year, determine reduction targets and prospect reductions every year, and prepare specific means to reduce GHG emissions.

• Archives of design research
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• v.16 no.4
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• pp.185-196
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• 2003

The demand for an environment-friendly transportation system, equipped with low energy consumption, and low-or zero-pollution has been on the increase since the beginning of the World Trade Organization era. Simultaneously, the consistent growth of high-speed tram technology, combined with market share, has sparked a fierce competition among technologically-advanced countries like France, Germany, and Japan in an effort to keep the lead in high-speed train technology via extensive Research and development(R＆D) expenses. These countries are leaders in the race to implement the next-generation transportation system, build intercontinental rail way networks and export the high-speed train as a major industry commodity. The need to develop our own(Korean) 'high-speed train' technology and its core system technology layouts including original technology serves a few objectives: They boost the national competitive edge; they develop an environmental friendly rail road system that can cope with globalization and minimize the social and economic losses created by the growing traffic-congested delivery costs, environment pollution, and public discomforts. In turn, the 'G7 Project-Development of High Speed Railway Technology' held between 1996 and 2002 for a six-year period was focused on designing a domestic train capable of traveling at a speed of 350km/h combined and led to the actual implementation of engineering and producing the '2000 high-speed train:' This paper summarizes and introduces one of the G7 Projects-specifically, the design segment achievement within the development of train system engineering technology. It is true that the design aspect of the Korean domestic railway system program as a whole was lacking when compared with the advanced railroad countries whose early phase of train design emphasized the design aspect. However, having allowed the active participation of expert designers in the early phase of train design in the current project has led to a new era of domestic train development and the implementation of a way to meet demand flexibly with newly designed trains. The idea of a high-speed train in Korea and its design concept is well-conceived: a faster, more pleasant, and silent based Korean high-speed train that facilitates a new travel culture. A Korean-type of high-speed train is acknowledged by passengers who travel in such trains. The Korean high-speed prototype train has been born, combining aerodynamic air-cushioned design, which is the embodiment of Korean original design of forehead of power car minimized aerodynamic resistance using a curved car body profile, and the improvement of the interior design with ergonomics and the accommodation of the vestibule area through the study of passenger behavior and social culture that is based on the general passenger car.

• The Journal of Industrial Distribution & Business
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• v.1 no.1
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• pp.5-12
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• 2010

The retail business of drugstore was introduced to Korea for the first time 10 years ago. Since Olive Young introduced a retail store in the name of drugstore in 1999 for the first time in Korea, new distribution channel combining drugstore, cosmetic products and dairy products, etc has been made. At initial stage, the new distribution channel grew up slowly because of low specialty and economic stagnation. However, the three big distribution channels, that is to say, Olive Young (CJ), Watsons (GS) and W Store (Kolon Well Care), etc, were established to produce new distribution system following large-scaled discount stores as well as convenience stores. The purpose of the study is to investigate ways making Korean style drugstore be new retail business in addition to traditional markets, department stores, E-Mart and other general super markets and to examine problems preventing the drugstore from being promoted and to find out solutions. The speciality retailers that is called a category killer attacking department stores as well as marts is expanding market quickly. New consumption trend that gives priority to wellbeing is being expanded in accordance with high level of standards of living life: The drugstore is thought to be new alternative of distribution because it keeps special products. Young ladies who are main customers of drugstores respond to the trend sensitively to have more buying power that is thought to be promising. And, consumers' desire has become concrete and special. This is because consumers want not only convenient shopping but also special shopping system that is current trend. These days, so called Multi-shop and Total shop and other special shops have been recently opened. Special multi-shop has been concentrated on fashion product and miscellaneous goods so far: Health total wellbeing shop shall be popular in accordance with wellbeing trends. Drugstores can play an important role. Drugstores were opened for the first time ten years ago. In particular, Olive Young succeeded in going into the black after making efforts for a long time by many persons. Drugstores could succeed in the business owing to many persons in the past as well as customers who liked drugstores. However, drugstores once lost ways and recorded poor business results. The three drugstores, that is to say, Olive Young, Watsons making efforts to go into the black and W-Store pursuing traditional drugstore shall compete each other and make effort to satisfy customers' desire. In that way, the three drugstores can be assured of present business as well as future business. The consumers' demand trend has become special at sub-division so that drugstores that can satisfy the demand can succeed in the business. Large businesses may be more interested in the 4th generation retail business to produce good income and to have bright future. Drugstore business and market are likely to expand and develop owing to large business' participation in drugstore business. Drugstores expanded shop at Seoul and Gyeonggi-do until middle of 2000. Drugstore business at station sphere in Seoul and Gyeonggi-do that have high ratio of temporary population has low customer loyalty to have limitation on continuous growth. Since 2009, drugstores have opened new shops at local towns: From the year of 2010, drugstores need to establish multiple shop strategy by accelerating business speed and to allow customers to drop in the shop anywhere in the nation and to enter consumers' life deeply, so that they can strengthen business base definitely. Drugstores need to have price competitiveness to have multiple shop opening strategy and to satisfy consumers and to supply high quality services that is future subject to solve. And, Olive Young and Watsons that are Korean style drugstore need to keep system in order and to strengthen substance as Korean style drugstore and to expand marketing, so that they can get business outcome within 5 years that was done 10 years before and they become the 4th generation retail business. The study had difficulties at collecting material from the three drugstore because of poor cooperation. And, the author had great difficulty at collecting statistical material that was made in disorder. Further effort is needed considering such problems.

• Journal of Sericultural and Entomological Science
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• no.11
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• pp.1-14
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• 1970

The following results were obtained by surveying the productivity of mulberry fields in Korea. 1. The productivity of mulberry field per 10a in which cocoon can be yield belongs to the range of 9.8∼105kg, and among them the productivity of 20 to 60kg was chiefly distributed. And their average was 50.2kg. 2. In general, the larger the mulberry field in scale per a person is, the lower the productivity of it is, but about 6.6 ares per a person was estimated to be economic scale for high productivity. 3. As far as the texture of soil is concerned, sandy-loam and loam contained a capacity of higher productivity while others like clay and sand that of lower productivity, And the depth of surface soil must be at least 50cm, although 70cm's depth of surface sail could bring about high productivity. 4. Fertilization of 900kg's compost on planting and 1,200kg's that after planting could enhance the productivity, because the use of compost have a positive relation to the productivity. 5. The greater the number of farmer's domestic animals is as a source of organic matter the higher the productivity is. 6. In the case of fertilization of 1,200kg compost, the amount of 20kg's nitrogen per 10 ares as chemical manure was best for high productivity. However, fertilization of 14.7kg's nitrogen as average amount of that, which is far below the standard amount, had been a factor to reduce the productivity of mulberry field. 7. In pruning the low-cut form resulted in high productivity, but as their shape become taller due to the lack of techniques, they were turned out to be non head pruning, thus to produce poor harvest of leaves. 8. The pure mulberry fields showed better productivity than others such as wide and narrow ridge planting and inter-crop planting. 9. As for the degree of planting density, at least 800 trees per 10 ares should be planted to increase the productivity, although the planting of 713 trees per 10 ares could be possible in case of the low stemmed pruning. 10. The hole and tranch in planting must be digged as wider and dipper as possible far the better growth of mulberry tree. 11. On the whole, varieties like NOsang and Y oung-cheun choowoo had a tendency of lower productivity.

• Journal of Science and Technology Studies
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• v.8 no.1
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• pp.97-129
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• 2008

We are living in the time of high probability of technological risk due to increased rate of technology development and diffusion of new technologies. Resolving uncertainties, the basic attribution of risk, by accumulating knowledge over the risk factors of certain technology is critical to management of technological risk. In many cases of technological risks, high uncertainty of knowledge is commonly mentioned reason for public controversies on risk management. However, the type of technological risk with low social agreement and low uncertainty of knowledge, the main reason for public controversy is absence of social agreement. Public debates on the risks of mobile phones electromagnetic fields(EMF) to human health comes under this category. The knowledge uncertainty on human health effect of mobile phones EMF has been lowered increasingly by accumulating enormous volume of knowledge though scientists have not reached a final conclusion whether it pose a risk to the physical and mental health of the general population or not. In contrast with civil organizations calling for precautionary approach based regulation, the mobile phone industry is cling to the position of no-regulation-needed by arguing no clear evidence to prove health risks of mobile phone EMF has found. In Korea, government set exposure standards based on a measurement called the 'specific absorption rate'(SAR) and require the mobile phone industry to open SAR information to the public by their own decision. From the view of pro-regulation side based on precautionary approach, technology risk managament of mobile phones EMF in Korea is highly limited and formalized one with limited measuring of SAR on head part only and problematic self-regulated opening of information about SAR to the public. As far as the government keeps having priority on protecting interest of mobile phone industry over precautionary regulation of mobile phones EMF, the disagreement between civil organizations and the government will not resolved. The risk of mobile phones EMF to human health have high probability of being underestimated in the rate and damage of risk than objectively estimated ones due to familiarity of mobile phone technology. And this can be the cause of destructive social dispute or devastating disaster. To prevent such disastrous results, technology risk management, which integrating the goals of safety with economic growth in public policy and designing and promoting risk communication, is required.

• Journal of Intelligence and Information Systems
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• v.24 no.2
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• pp.195-220
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• 2018

In this study, we conducted an empirical analysis of the factors that affect the change of Bitcoin Closing Price. Previous studies have focused on the security of the block chain system, the economic ripple effects caused by the cryptocurrency, legal implications and the acceptance to consumer about cryptocurrency. In various area, cryptocurrency was studied and many researcher and people including government, regardless of country, try to utilize cryptocurrency and applicate to its technology. Despite of rapid and dramatic change of cryptocurrencies' price and growth of its effects, empirical study of the factors affecting the price change of cryptocurrency was lack. There were only a few limited studies, business reports and short working paper. Therefore, it is necessary to determine what factors effect on the change of closing Bitcoin price. For analysis, hypotheses were constructed from three dimensions of consumer, industry, and macroeconomics for analysis, and time series data were collected for variables of each dimension. Consumer variables consist of search traffic of Bitcoin, search traffic of bitcoin ban, search traffic of ransomware and search traffic of war. Industry variables were composed GPU vendors' stock price and memory vendors' stock price. Macro-economy variables were contemplated such as U.S. dollar index futures, FOMC policy interest rates, WTI crude oil price. Using above variables, we did times series regression analysis to find relationship between those variables and change of Bitcoin Closing Price. Before the regression analysis to confirm the relationship between change of Bitcoin Closing Price and the other variables, we performed the Unit-root test to verifying the stationary of time series data to avoid spurious regression. Then, using a stationary data, we did the regression analysis. As a result of the analysis, we found that the change of Bitcoin Closing Price has negative effects with search traffic of 'Bitcoin Ban' and US dollar index futures, while change of GPU vendors' stock price and change of WTI crude oil price showed positive effects. In case of 'Bitcoin Ban', it is directly determining the maintenance or abolition of Bitcoin trade, that's why consumer reacted sensitively and effected on change of Bitcoin Closing Price. GPU is raw material of Bitcoin mining. Generally, increasing of companies' stock price means the growth of the sales of those companies' products and services. GPU's demands increases are indirectly reflected to the GPU vendors' stock price. Making an interpretation, a rise in prices of GPU has put a crimp on the mining of Bitcoin. Consequently, GPU vendors' stock price effects on change of Bitcoin Closing Price. And we confirmed U.S. dollar index futures moved in the opposite direction with change of Bitcoin Closing Price. It moved like Gold. Gold was considered as a safe asset to consumers and it means consumer think that Bitcoin is a safe asset. On the other hand, WTI oil price went Bitcoin Closing Price's way. It implies that Bitcoin are regarded to investment asset like raw materials market's product. The variables that were not significant in the analysis were search traffic of bitcoin, search traffic of ransomware, search traffic of war, memory vendor's stock price, FOMC policy interest rates. In search traffic of bitcoin, we judged that interest in Bitcoin did not lead to purchase of Bitcoin. It means search traffic of Bitcoin didn't reflect all of Bitcoin's demand. So, it implies there are some factors that regulate and mediate the Bitcoin purchase. In search traffic of ransomware, it is hard to say concern of ransomware determined the whole Bitcoin demand. Because only a few people damaged by ransomware and the percentage of hackers requiring Bitcoins was low. Also, its information security problem is events not continuous issues. Search traffic of war was not significant. Like stock market, generally it has negative in relation to war, but exceptional case like Gulf war, it moves stakeholders' profits and environment. We think that this is the same case. In memory vendor stock price, this is because memory vendors' flagship products were not VRAM which is essential for Bitcoin supply. In FOMC policy interest rates, when the interest rate is low, the surplus capital is invested in securities such as stocks. But Bitcoin' price fluctuation was large so it is not recognized as an attractive commodity to the consumers. In addition, unlike the stock market, Bitcoin doesn't have any safety policy such as Circuit breakers and Sidecar. Through this study, we verified what factors effect on change of Bitcoin Closing Price, and interpreted why such change happened. In addition, establishing the characteristics of Bitcoin as a safe asset and investment asset, we provide a guide how consumer, financial institution and government organization approach to the cryptocurrency. Moreover, corroborating the factors affecting change of Bitcoin Closing Price, researcher will get some clue and qualification which factors have to be considered in hereafter cryptocurrency study.

• Journal of Distribution Research
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• v.17 no.5
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• pp.1-23
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• 2012

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.

• KDI Journal of Economic Policy
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• v.13 no.4
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• pp.91-116
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• 1991

Market liberalization progressing simultaneously with high and rapidly rising domestic wages has created an adverse business environment for domestic firms. Korean firms are losing their international competitiveness in comparison to firms from LDC(Less Developed Countries) in low-tech industries. In high-tech industries, domestic firms without government protection (which is impossible due to the liberalization policy and the current international status of the Korean economy) are in a disadvantaged position relative to firms from advanced countries. This paper examines the division of roles between the private sector and the government in order to achieve a successful structural adjustment, which has become the impending industrial policy issue caused by high domestic wages, on the one hand, and the opening of domestic markets, on the other. The micro foundation of the economy-wide structural adjustment is actually the restructuring of business portfolios at the firm level. The firm-level business restructuring means that firms in low-value-added businesses or with declining market niches establish new major businesses in higher value-added segments or growing market niches. The adjustment of the business structure at the firm level can only be accomplished by accumulating firm-specific managerial assets necessary to establish a new business structure. This can be done through learning-by-doing in the whole system of management, including research and development, manufacturing, and marketing. Therefore, the voluntary cooperation among the people in the company is essential for making the cost of the learning process lower than that at the competing companies. Hence, firms that attempt to restructure their major businesses need to induce corporate-wide participation through innovations in organization and management, encourage innovative corporate culture, and maintain cooperative labor unions. Policy discussions on structural adjustments usually regard firms as a black box behind a few macro variables. But in reality, firm activities are not flows of materials but relationships among human resources. The growth potential of companies are embodied in the human resources of the firm; the balance of interest among stockholders, managers, and workers of the company' brings the accumulation of the company's core competencies. Therefore, policymakers and economists shoud change their old concept of the firm as a technological black box which produces a marketable commodities. Firms should be regarded as coalitions of interest groups such as stockholders, managers, and workers. Consequently the discussion on the structural adjustment both at the macroeconomic level and the firm level should be based on this new paradigm of understanding firms. The government's role in reducing the cost of structural adjustment and supporting should the creation of new industries emphasize the following: First, government must promote the competition in domestic markets by revising laws related to antitrust policy, bankruptcy, and the promotion of small and medium-sized companies. General consensus on the limitations of government intervention and the merit of deregulation should be sought among policymakers and people in the business world. In the age of internationalization, nation-specific competitive advantages cannot be exclusively in favor of domestic firms. The international competitiveness of a domestic firm derives from the firm-specific core competencies which can be accumulated by internal investment and organization of the firm. Second, government must build up a solid infrastructure of production factors including capital, technology, manpower, and information. Structural adjustment often entails bankruptcies and partial waste of resources. However, it is desirable for the government not to try to sustain marginal businesses, but to support the diversification or restructuring of businesses by assisting in factor creation. Institutional support for venture businesses needs to be improved, especially in the financing system since many investment projects in venture businesses are highly risky, even though they are very promising. The proportion of low-value added production processes and declining industries should be reduced by promoting foreign direct investment and factory automation. Moreover, one cannot over-emphasize the importance of future-oriented labor policies to be based on the new paradigm of understanding firm activities. The old laws and instititutions related to labor unions need to be reformed. Third, government must improve the regimes related to money, banking, and the tax system to change business practices dependent on government protection or undesirable in view of the evolution of the Korean economy as a whole. To prevent rational business decisions from contradicting to the interest of the economy as a whole, government should influence the business environment, not the business itself.