• KDI Journal of Economic Policy
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• 제13권4호
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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.

• KDI Journal of Economic Policy
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• 제31권1호
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• pp.169-206
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• 2009

This study stems from a question, "How should we understand the pattern of the Korean economy after the 1990s?" Among various analytic methods applicable, this study chooses a Structural Vector Autoregression (SVAR) with long-run restrictions, identifies diverse impacts that gave rise to the current status of the Korean economy, and differentiates relative contributions of those impacts. To that end, SVAR is applied to four economic models; Blanchard and Quah (1989)'s 2-variable model, its 3-variable extensions, and the two other New Keynesian type linear models modified from Stock and Watson (2002). Especially, the latter two models are devised to reflect the recent transitions in the determination of foreign exchange rate (from a fixed rate regime to a flexible rate one) as well as the monetary policy rule (from aggregate targeting to inflation targeting). When organizing the assumed results in the form of impulse response and forecasting error variance decomposition, two common denominators are found as follows. First, changes in the rate of economic growth are mainly attributable to the impact on productivity, and such trend has grown strong since the 2000s, which indicates that Korea's economic growth since the 2000s has been closely associated with its potential growth rate. Second, the magnitude or consistency of impact responses tends to have subsided since the 2000s. Given Korea's high dependence on trade, it is possible that low interest rates, low inflation, steady growth, and the economic emergence of China as a world player have helped secure capital and demand for export and import, which therefore might reduced the impact of each sector on overall economic status. Despite the fact that a diverse mixture of models and impacts has been used for analysis, always two common findings are observed in the result. Therefore, it can be concluded that the decreased rate of economic growth of Korea since 2000 appears to be on the same track as the decrease in Korea's potential growth rate. The contents of this paper are constructed as follows: The second section observes the recent trend of the economic development of Korea and related Korean articles, which might help in clearly defining the scope and analytic methodology of this study. The third section provides an analysis model to be used in this study, which is Structural VAR as mentioned above. Variables used, estimation equations, and identification conditions of impacts are explained. The fourth section reports estimation results derived by the previously introduced model, and the fifth section concludes.

• Journal of Intelligence and Information Systems
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• 제19권3호
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• pp.127-139
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• 2013

With an advent of recent knowledge-based society, the interest in intellectual property has increased. Firms have tired to result in productive outcomes through continuous innovative activity. Especially, ICT firms which lead high-tech industry have tried to manage intellectual property more systematically. Firm's interest in the patent has increased in order to manage the innovative activity and Knowledge property. The patent involves not only simple information but also important values as information of technology, management and right. Moreover, as the patent has the detailed contents regarding technology development activity, it is regarded as valuable data. The patent which reflects technology spread and research outcomes and business performances are closely interrelated as the patent is considered as a significant the level of firm's innovation. As the patent information which represents companies' intellectual capital is accumulated continuously, it has become possible to do quantitative analysis. The advantages of patent in the related industry information and it's standardize information can be easily obtained. Through the patent, the flow of knowledge can be determined. The patent information can analyze in various levels from patent to nation. The patent information is used to analyze technical status and the effects on performance. The patent which has a high frequency of citation refers to having high technological values. Analyzing the patent information contains both citation index analysis using the number of citation and network analysis using citation relationship. Network analysis can provide the information on the flows of knowledge and technological changes, and it can show future research direction. Studies using the patent citation analysis vary academically and practically. For the citation index research, studies to analyze influential big patent has been conducted, and for the network analysis research, studies to find out the flows of technology in a certain industry has been conducted. Social network analysis is applied not only in the sociology, but also in a field of management consulting and company's knowledge management. Research of how the company's network position has an impact on business performances has been conducted from various aspects in a field of network analysis. Social network analysis can be based on the visual forms. Network indicators are available through the quantitative analysis. Social network analysis is used when analyzing outcomes in terms of the position of network. Social network analysis focuses largely on centrality and structural holes. Centrality indicates that actors having central positions among other actors have an advantage to exert stronger influence for exchange relationship. Degree centrality, betweenness centrality and closeness centrality are used for centrality analysis. Structural holes refer to an empty place in social structure and are defined as efficiency and constraints. This study stresses and analyzes firms' network in terms of the patent and how network characteristics have an influence on business performances. For the purpose of doing this, seventy-four ICT companies listed in S&P500 are chosen for the sample. UCINET6 is used to analyze the network structural characteristics such as outdegree centrality, betweenness centrality and efficiency. Then, regression analysis test is conducted to find out how these network characteristics are related to business performance. It is found that each network index has significant impacts on net income, i.e. business performance. However, it is found that efficiency is negatively associated with business performance. As the efficiency increases, net income decreases and it has a negative impact on business performances. Furthermore, it is shown that betweenness centrality solely has statistically significance for the multiple regression analysis with three network indexes. The patent citation network analysis shows the flows of knowledge between firms, and it can be expected to contribute to company's management strategies by analyzing company's network structural positions.

• Journal of the Korean Geographical Society
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• 제29권2호
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• pp.166-182
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• 1994

Kyonggi Province in the late Chosun dynasty was a center of superior government offices including 'Han' River water-road transportation and was located in the middle of an 'X'-shaped arterial road network. Because of these reasons, Kyonggi Province had a faster inflow of commodities, informations and technics compared with the other province. At this period of time, every local 'Eup' (name of administrative district) had not been affected by their above administrative districts and had their own autonomy. For this reason, every 'Eup' could be developed as a town, even if its size was small when it had sufficient internal growing conditions. Moreover, the markets ('Si-Jon') in big towns and periodical markets which were spread over the Kyonggi Province played role of commercial functions of town. And because military bases for the defence of the royal capital in Kyonggi Province also took parts of a non-agricultural city role, Xyonggi Provinc had much more possibilities of growing as a town rather than the other provinces. The towns of the late Chosun Dynasty were, except the capital and superior administrative districts which were governed by the 'You-Su', small towns which had only about 3, 000-5, 000 people. Most of the town dewellers were local officials, nobles, merchants, craftmen and slaves. And the farmers who lived near town became a pseudo-towner through suburb agriculture. Among these people, the merchants were leaders of townization. The downtowns were affected by the landform and traffic roads. The most fundamental function of towns were administrative. The opcial's grade, which was dispatched to the local administrative district ('Kun' or 'Hyun'), was decided by the size of population and agricultural land of each county. Large county which was governed by a high ranking opcial had more possibilities to develop as a large town. Because they supervised other opcials of lower rank and obtained more land and population for the town. The phonomena of farm abandonment after the Japanese Invasion of Korea in 1592-1598 stimulated the development of towns for commercial function. The commercial functions of towns were evident in the Si-Jon or Nan-Jon (names of markets) in the big cities such as Hansung and Kaesung, meanffwhile in the local areas it was emerged in the shape of periodical market networks as allied with near markets (which were called as Jang-Si) or permanent markets which were grown up from periodical markets. These facts of commercial development induced the birth of commercial town. Kyonggi Province showed the weak points of its defense system during both wars (Japanese Invasion in 1592 and Manchu's Invasion in 1636). The government reinforced its defense system by adding 4 'You-Su-Bus' and several military bases. Each local districts ('Eup'), where Geo-Jins were established, were stimulated to be a town while Jin-Kwan system were, adjusted and enforced. Among Dok-Jins(name of solitary military bases), Youngjongjin was grown up as a large garrison town which only played a role of defense. The number of towns that took roles of non-agricultural functions in Kyonggi Province was 52. Among these towns, 29 were developed as big towns which had above 3, 000 people and most of these towns were located on the northwest-southeast axes of 'X'-shaped arterial trafic network in the Chosn Dynasty, This fact points out that the traffic road is one of the important causes of the development of towns. When we make hierarchy of the towns of Kyonggi Province according to its population and how many functions it had, we can make it as 6 grades. The virst grade town 'Hansung' was the biggest central town of administration, commerce and defdnse. The 2nd grade town includes 'Kaesung' which had historical inertia that it had been the capital of the Koryo Dynesty. The 3rd grade towns include some 'You- Su-Bus' such as Soowon, Kanghwa, Kwangju and also include Mapo, Yongsan and from this we can imagine that the commercial development in the late Chosun Dynasty extremely affected the townization. The 4th-6th grade towns had smiliar population but it can be discriminated by how many town functions it had. So the 4th grade towns were the core of administration, commerce and defense function. 5th grade towns had administrative functions and one of commercial and defense functions. 6th grade towns had only one of these functions. When we research and town conditions of each grades as the ratio of non-agricultural population, we can find out that the towns from the 1st grade to 4th grade show difference by degree of townization but from the 4th grade to 6th grade towns do not show big difference in general.

• Journal of Popular Narrative
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• 제25권3호
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• pp.9-40
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• 2019

This study presents an investigation into South Korean films in the 1990s in the aspects of genre change and emotional reorganization. The 1990s witnessed a change of genres and a paradigm shift in the history of Korean films according to the revolutionary changes of the film industry structure and media environment. Believing that these changes had something to do with emotional changes driven by global capitalization symbolized by democratization in 1987 and the foreign currency crisis in 1998, the investigator analyzed the phenomena in film texts and examined the opportunities and context behind them. Unlike previous researches, this study made an approach to the history of Korean films in the 1990s with three points: first, this study focused on why the romantic comedy genre emerged in the 1990s and what stages its formation underwent since there had been no profound discussions about them; secondly, this study analyzed the biggest hits during the transitional period from 1987~1999 to figure out the mainstream genres and emotions during that period since these hits would provide texts to show the genre domain and public taste in a symbolic way; and finally, this study grew out of the separate investigation approach between melodramas and romantic comedies and looked into an emotional structure to encompass both genres to make a more broad and dynamic approach to South Korean films in the 1990s. History flows continuously without severance from previous times. When there is attention paid to inflection points and opportunities in the continuum, it can show the dynamics and structures of changes. This research led to the following conclusions: the mainstream genre of South Korean films had been melodramas until the 1980s. The old convention had been kept to offset or suture contradictions and excessive elements deviant from the structural consistency. Here, the structural consistency refers to no compliance to rational regulations or trade. The process of genre reorganization in the 1990s happened while securing some distance from the convention of making the structural consistency a sacrifice. The direction was to reinforce control through reasonable rationalism and logic of capital. It developed into romance, which would start with comedy to keep distance from the objects through laughter, heighten the level of remarks, and expand criticality, symbolize emotions with taste items, and build through the logic of mutual consensus and practical trade. In the 1990s, the South Korean films thus developed in a direction of moving away from the narrative of urgent pathos based on unconditional familism. It was on the same track as the entry of the South Korean society into the upgraded orbits of democracy and capitalism as the twins of modern rationalism since the latter part of the 1980s.

• Journal of the Korean Institute of Traditional Landscape Architecture
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• 제28권1호
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• pp.93-101
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• 2010

This paper aims to analyze success factors for the construction of Supdari(a traditional wooden bridge to connect small streams temporarily), which is a citizens' initiative project to revitalize local community in Jeonju-River, Jeonju City. Recently Supdari has been restored for the use of belongings in local festivals. But Jeonju-River Supdari was designed and built to unite local citizens and connect river-divided villages. This project shows how investing social capital like Supdari makes the community vitalize through citizen's active participation. As a citizen leading project, there were several critical factors for sucess. At first, there were some noticeable ways to encourage local citizen's participation in online and offline. In the online, the Supdari internet cafe introduced what is a Supdari, how to make it and where we build using various media of UCCs and photos. In the offline, the small scaled model of Supdari was made and exhibited in the entrance of the village and related several seminars were hosted to discuss how to construct Supdari with citizens, local assembly men and public officials together. The Second is the movement to restore traditional and cultural resources for the community recovery triggered the supports from local councils and many civic groups. Civic groups supported ecological and structural expertise to guarantee environment friendly and stable construction. And local councils mediated citizen's and administrative office's opinions. The third is flexible administrative management to help citizen's ideas to be realized. Officials extended setting period of Supdari on the condition with the civic-control safety management.

• Management & Information Systems Review
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• 제35권4호
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• pp.99-122
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• 2016

The social networking services (SNSs) have become popular among smartphone users, and one of the most popular services. In order to explain users' motivations toward SNS, this study considers uses and gratification theory which can explain individuals' motivations to select certain media channels. The purposes of this study is to investigate the relationships between motivations and addiction of SNS, and between addiction of SNS and decline in the subjective wellbeing. We examine moderating effects of social tie based on the social capital theory in the relationships between SNS addiction and decline in the subjective wellbeing. The motivations of SNS are subdivided into emotional motive (entertainment and fantasy) and cognitive motive (information share burden and challenge burden) based on the use and gratifications theory. The addiction of SNS is subdivided into time tolerance, withdrawal symptoms, interruption, and barrier of living. The data used in this study were collected from 286 SNS users through surveys. The data analysis in this study was performed using AMOS 17.0, and we used SEM(Structural Equation Modeling) methods in order to test the research model. The result shows that the emotional motive(entertainment and fantasy) and cognitive motive(information share burden and challenge burden) have an effect on the addiction of SNS. Especially emotional motive such as entertainment and users' fantasy toward SNS is an important factor that can cause SNS addiction. The addiction of SNS such as time tolerance, withdrawal symptoms, interruption, and barrier of living has an effect on the decline in the subjective wellbeing. Our result show that social tie partially moderates the relationship SNS addiction and decline in the subjective wellbeing. In addition, social tie between interruption of SNS and decline in the subjective wellbeing is an important moderating factor. The results focuses on the understanding toward relationship between SNS addiction based on the online and decline in the subjective wellbeing in the real world. The findings of this study also provides theoretical as well as practical implications which reflect the major features of SNS, and moderating effects of social tie based on the social capital.

• Journal of Intelligence and Information Systems
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• 제26권3호
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• pp.1-36
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• 2020

This study is to reveal the acceptance factors of the Market Sentiment Index (MSI) created by reflecting the investor sentiment extracted by processing unstructured big data. The research model was established by exploring exogenous variables based on the rational behavior theory and applying the Technology Acceptance Model (TAM). The acceptance of MSI provided to investors in the stock market was found to be influenced by the exogenous variables presented in this study. The results of causal analysis are as follows. First, self-efficacy, investment opportunities, Innovativeness, and perceived cost significantly affect perceived ease of use. Second, Diversity of services and perceived benefits have a statistically significant impact on perceived usefulness. Third, Perceived ease of use and perceived usefulness have a statistically significant effect on attitude to use. Fourth, Attitude to use statistically significantly influences the intention to use, and the investment opportunities as an independent variable affects the intention to use. Fifth, the intention to use statistically significantly affects the final dependent variable, the intention to use continuously. The mediating effect between the independent and dependent variables of the research model is as follows. First, The indirect effect on the causal route from diversity of services to continuous use intention was 0.1491, which was statistically significant at the significance level of 1%. Second, The indirect effect on the causal route from perceived benefit to continuous use intention was 0.1281, which was statistically significant at the significance level of 1%. The results of the multi-group analysis are as follows. First, for groups with and without stock investment experience, multi-group analysis was not possible because the measurement uniformity between the two groups was not secured. Second, the analysis result of the difference in the effect of independent variables of male and female groups on the intention to use continuously, where measurement uniformity was secured between the two groups, In the causal route from usage attitude to usage intention, women are higher than men. And in the causal route from use intention to continuous use intention, males were very high and showed statistically significant difference at significance level 5%.

• Management & Information Systems Review
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• 제31권1호
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• pp.221-246
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• 2012

The study examines the effects that non-audit service and firm's ownership structure might have on the value relevance directly or indirectly. This investigation is based on prior research which suggests that the audit firms' non-audit services is likely to adversely affect investors' perceptions of the credibility of financial reporting and that corporate governance are likely to mitigate the adverse this kind of non-audit services effects. The sample consists of non-banking firms listed on the Korea Exchange that reported annual financial statements over the period from 2004 to 2008. In the setting, stock returns as proxy for capital market response, auditor quality(measured as the discretionary accruals) is endogenously determined. This study employs a structural equation model to take into account the endogenous variables under study. The analysis influences through the path analysis that ownership structure suppress the market response through audit quality and also the non-audit service have influence on the market response through audit quality. The results of this study contribute to the literature in the following ways. First, this provides direct evidence that there is a negative association between audit firms' client importance and the value relevance. Second, the findings that the negative association is attenuated for audit quality support the findings of prior studies which present that corporate governance provide higher credibility of financial reports.

• Journal of Technology Innovation
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• 제23권4호
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• pp.33-61
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• 2015

The global economy is rapidly changing by technological innovation and diffusion of knowledge across nations. Therefore it is still important issue to find a major variables for convergence and divergence of economic development. The studies up to present on the relationship between innovation and institution has limitations that they have dealt with this issue only in term of cross-sectional study or mathematical research models. This paper aims at analyzing the impact of innovation capabilities and institutional quality on the economic growth. Empirically this paper will explore the relationship among human capital capacity and FDI, R&D expenditures and innovation capabilities and institutional quality. This paper analyzes 64 countries, which were divided into 4 groups depending on the level of economic development. Based on the data from 1995 to 2011 and by using a panel model, we look at the structural implications of the research questions. According to our analysis, the weight of R&D and the innovation capabilities were identified as important determinants of economic growth, and FDI was significant factor for economic growth in the upper middle group countries. In case of the innovation capabilities of countries, the diffusion and openness of innovation were most meaningful variables for economic growth. Also, institutional quality has a significantly positive impact. However, in the low-level economic group, innovation capabilities and institutions have a negative impact on economic growth. This paper identifies an important policy implications that of national innovation and institutional factors should be properly invested in accordance with the level of a country's economic growth.