• KDI Journal of Economic Policy
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• v.13 no.4
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• pp.31-57
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• 1991

Korean firms of all sizes, from virtually every industry, have used and are using the term "excessive competition" to describe the state of their industry and to call for government interventions. Moreover, the Korean government has frequently responded to such calls in various ways favorable to the firms, such as controlling entry, curbing capacity investments, or allowing collusion. Despite such interventions' impact on the overall efficiency on the Korean economy as well as on the wealth distribution among diverse groups of economic agents, the term "excessive competition", the basis for the interventions, has so far escaped rigorous scrutiny. The objective of this paper is to clarify the notion of "excessive competition" and "over-investment" which usually accompanies "excessive competition", and to examine the circumstances under which they might occur. We first survey the cases where the terms are most widely used and proceed to examine those cases to determine if competition is indeed excessive, and if so, what causes "excessive competition". Our main concern deals with the case in which the firms must make investment decisions that involve large sunk costs while facing uncertain demand. In order to analyze this case, we developed a two period model of capacity precommitment and the ensuing competition. In the first period, oligopolistic firms make capacity investments that are irreversible. Demand is uncertain in period 1 and only the distribution is known. Thus, firms must make investment decisions under uncertainty. In the second period, demand is realized, and the firms compete with quantity under realized demand and capacity constraints. In the above setting, we find that there is "no over-investment," en ante, and there is "no excessive competition," ex post. As measured by the information available in period 1, expected return from investment of a firm is non-negative, overall industry capacity does not exceed the socially optimal level, and competition in the second period yields an outcome that gives each operating firm a non-negative second period profit. Thus, neither "excessive competition" nor "over-investment" is possible. This result will generally hold true if there is no externality and if the industry is not a natural monopoly. We also extend this result by examining a model in which the government is an active participant in the game with a well defined preference. Analysis of this model shows that over-investment arises if the government cannot credibly precommit itself to non-intervention when ex post idle capacity occurs, due to socio-political reasons. Firms invest in capacities that exceed socially optimal levels in this case because they correctly expect that the government will find it optimal for itself to intervene once over-investment and ensuing financial problems for the firms occur. Such planned over-investment and ensuing government intervention are the generic problems under the current system. These problems are expected to be repeated in many industries in years to come, causing a significant loss of welfare in the long run. As a remedy to this problem, we recommend a non-intervention policy by the government which creates and utilizes uncertainty. Based upon an argument which is essentially the same as that of Kreps and Wilson in the context of a chain-store game, we show that maintaining a consistent non-intervention policy will deter a planned over-investment by firms in the long run. We believe that the results obtained in this paper has a direct bearing on the public policies relating to many industries including the petrochemical industry that is currently in the center of heated debates.

• Journal of Distribution Science
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• v.10 no.7
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• pp.33-41
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• 2012

The purpose of this study is to analyse the state of the energy industry and to determine the efficiency of its functioning on the basis of energy conservation principle and application of innovative technologies aimed at improving the ecological modernisation of agricultural sectors of Kazakhstan. The research methodology is based on an integrated approach of financial and economic evaluation of the effectiveness of the investment project, based on calculation of elasticity, total costs and profitability, as well as on comparative, graphical and system analysis. The current stage is characterised by widely spread restructuring processes of electric power industry in many countries through introduction of new technical installations of energy facilities and increased government regulation in order to enhance the competitive advantage of electricity market. Electric power industry features a considerable value of creating areas. For example, by providing scientific and technical progress, it crucially affects not only the development but also the territorial organisation of productive forces, first of all the industry. In modern life, more than 90% of electricity and heat is obtained by Kazakhstan's economy by consuming non-renewable energy resources: different types of coal, oil shale, oil, natural gas and peat. Therefore, it is significant to ensure energy security, as the country faces a rapid fall back to mono-gas structure of fuel and energy balance. However, energy resources in Kazakhstan are spread very unevenly. Its main supplies are concentrated in northern and central parts of the republic, and the majority of consumers of electrical power live in the southern and western areas of the country. However, energy plays an important role in the economy of industrial production and to a large extent determines the level of competitive advantage, which is a promising condition for implementation of energy-saving and environmentally friendly technologies. In these circumstances, issues of modernisation and reforms of this sector in Kazakhstan gain more and more importance, which can be seen in the example of economically sustainable solutions of a large local monopoly company, significant savings in capital investment and efficiency of implementation of an investment project. A major disadvantage of development of electricity distribution companies is the prevalence of very high moral and physical amortisation of equipment, reaching almost 70-80%, which significantly increases the operating costs. For example, while an investment of 12 billion tenge was planned in 2009 in this branch, in 2012 it is planned to invest more than 17 billion. Obviously, despite the absolute increase, the rate of investment is still quite low, as the total demand in this area is at least more than 250 billion tenge. In addition, industrial infrastructure, including the objects of Kazakhstan electric power industry, have a tangible adverse impact on the environment. Thus, since there is a large number of various power projects that are sources of electromagnetic radiation, the environment is deteriorated. Hence, there is a need to optimise the efficiency of the organisation and management of production activities of energy companies, to create and implement new technologies, to ensure safe production and provide solutions to various environmental aspects. These are key strategic factors to ensure success of the modern energy sector of Kazakhstan. The contribution of authors in developing the scope of this subject is explained by the fact that there was not enough research in the energy sector, especially in the view of ecological modernisation. This work differs from similar works in Kazakhstan in the way that the proposed method of investment project calculation takes into account the time factor, which compares the current and future value of profit from the implementation of innovative equipment that helps to bring it to actual practise. The feasibility of writing this article lies in the need of forming a public policy in the industrial sector, including optimising the structure of energy disbursing rate, which complies with the terms of future modernised development of the domestic energy sector.

• Economic and Environmental Geology
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• v.36 no.5
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• pp.375-380
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• 2003

This study was carried out 1) to investigate the pH effect on solubilization of phenanthrene by biosurfactant in aqueous system and 2) to evaluate the pH effect on the biodegradation rate of phenanthrene in the presence and the absence of the biosurfactant by phenanthrene degraders. Tween 80, which is a chemically synthesized surfactant, showed greater solubilizing capacity than rhamnolipid. The solubilization capacity can be expressed as a MSR(molar solubilization ratio=moles of organic compounds solubilized per mole of surfactant). The calculated MSR of Tween 80 and rhamnolipid were 0.1449 and 0.0425 respectively. The kinetic study of phenanthrene solubilization by rhamnolipid showed that solubilization mechanism could reach equilibrium within 24 hours. Addition of 240 ppm rhamnolipid solution, which concentration is 4.3 times of Critical Micelle Concentration(CMC), caused 9 times solubility enhancement compared to water solubility. The highest solubilities were detected around a pH range of 4.5-5.5. Changes in apparent solubility with the changes in pH are possibly related to the fact that the rhamnolipid, an anionic surfactant, can form different structures depending on the pH. Two biodegradation experiments were performed in the absence and the presence of rhamnolipid, with the cell growth investigated using a spread plate method. The specific growth rates at pH 6 and 7 were higher than at the other pH, and the HPLC analysis data, for the total phenanthrene loss, confirmed the trends in the $\mu$(specific growth rate) values. In presence of rhamnolipid, maximum $\mu$ values shifted from around pH 5 which showed maximum enhancement of solubility in the abiotic experiment, compared to the $\mu$ values obtained without the biosurfactant. In this study, the increase in the observed specific grow rate(1.44 times) was not as high as the increase in solubilization(5 times). This was supported by the fact all the solubilized phenanthrene is not bioavailable to microorganisms.

• Journal of the Korea Organic Resources Recycling Association
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• v.2 no.2
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• pp.89-98
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• 1994

A survey was carried out in Seoul Metropolitan area during December of 1993 and January of 1994. The objective of the survey was to provide a useful information for the development and improvement of recycling policies, regulations and systems in Korea. Of the 782 individuals contacted, 473 individuals completed and retured surveys, of which 437 were usable. The results were analyzed using a statistical package SAS(Statistical Analysis System). The results indicated that 86% of apartment area has recycling bins, while only 33% of individual house(detached dwelling) area has those. About half of the respondents felt that food waste is the major source of household waste. The most serious problem to recycle more household waste is to provide space to store recyclables at the source. The majority of Seoul Metropolitans(78.5%) are willing to participate in recycling programs, while 14.4% want to participate only when there are economic incentives or benefits. Respondents who want economic incentives appeared to be low income people. 66.1% of total respondents said that they do not use disposables. However, only 53,0% among respondents under 30 years old answered they do not use disposables. People who graduated from middle high school only and are under 30 years old have tendency to dispose of used milk cartons without rincing and drying, while those who are over 40 years old and graduated from university prefered to rinse and dry used milk cartons before disposal. Regarding disposal of newspapers, only 43.9% of the total respondents separated newspaper from other types of used paper. In the case of alumium cans, 22.5% of the total respondents answered that used aluminum cans are not recyclables. Much higher portion (30. 4%) of the respondents who graduated from middle high school only felt that aluminum cans have no value to recycle. The results indicated that education and information regarding recycling are highly desirable.

• Economic and Environmental Geology
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• v.48 no.6
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• pp.509-523
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• 2015

This study introduces newly implemented geological well logs database for Jeju public water wells, built for a research project focusing on integrated hydrogeology database of Jeju Island. A detailed analysis of the existing 1,200 Jeju Island geological logs for the public wells developed since 1970 revealed six major indications to be improved for their use in Jeju geological logs DB construction: (1) lack of uniformity in rock name classification, (2) poor definitions of pyroclastic deposits and sand and gravel layers, (3) lack of well borehole aquifer information, (4) lack of information on well screen installation in many water wells, (5) differences by person in geological logging descriptions. A new Jeju geological logs DB enabling standardized input and output formats has been implemented to overcome the above indications by reestablishing the names of Jeju volcanic and sedimentary rocks and utilizing a commercial, database-based input structured, geological log program. The newly designed database structure in geological log program enables users to store a large number of geology, well drilling, and test data at the standardized DB input structure. Also, well borehole groundwater and aquifer test data can be easily added without modifying the existing database structure. Thus, the newly implemented geological logs DB could be a standardized DB for a large number of Jeju existing public wells and new wells to be developed in the future at Jeju Island. Also, the new geological logs DB will be a basis for ongoing project 'Developing GIS-based integrated interpretation system for Jeju Island hydrogeology'.

• Economic and Environmental Geology
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• v.50 no.6
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• pp.477-486
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• 2017

In this study, we analyze precise seabed geomorphology and conditions for comparing the nearshore areas of the Dongdo(East Island) and the Seodo(West Island) using detailed bathymetry data and seafloor backscattering images, in Dokdo, the East Sea. We have been obtained the detailed bathymetry data and the seafloor backscattering data. The survey range is about $250m{\times}250m$ including land of islets to the nearshore areas of the southern part of the Dongdo and the Seodo. As a result of bathymetry survey, the southern area of the Dongdo(~50 m) is deeper than the Seodo(~30 m) in the water depth. The survey areas are consist of extended bedrocks from land of the Dongdo and the Seodo. The underwater rock region of the Seodo is larger than the Dongdo. In spite of similar extended rocks features from islets, there are some distinctive seabed characteristics between the southern nearshore areas of the Dongdo and the Seodo. The Talus-shaped seafloor environment formed by gravel and underwater rocks originating from the land of the Dongdo is up to about 15 m depth. And the boundary line of between extended bedrocks and seabottom is unclear in the southern nearshore of the Dongdo. On the other hand, the southern coast of the Seodo is characterized by relatively large scale underwater rocks and evenly distributed sediments, which clearly distinguish the boundary of between extended bedrocks and seafloor. This is because the tuff layers exposed to the coastal cliffs of the Dongdo are weak against weathering and erosion. It is considered that there are more influences of the clastic sediments carried from the land of the Dongdo compared with the Seodo. Particularly, the land of the Dongdo has been undergoing construction activities. And also a highly unstable ground such as faults, joints and cracks appears in the Dongdo. In previous study, there are dissimilar features of the massive tuff breccia formations of the Dongdo and the Seodo. These conditions are thought to have influenced the different seabed characteristics in the southern nearshore areas of the Dongdo and the Seodo.

• The Korean Journal of Air & Space Law and Policy
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• v.25 no.1
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• pp.159-203
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• 2010

Together with the development of space science outer space law has become one of the most rapidly developing branches of international law. This reflects a general realization that these new activities must be subject to reasonable legal regulation if they are to serve the peaceful purposes of mankind without undue confusion and disorder. The exploration and use of outer space introduces many novel opportunities and dilemmas, and inspired insights are needed in the development of this new resource. In particular, the settlement of space law disputes is a relatively new discussion in international law. However, the significance of the settlement of space law disputes was acknowledged in various colloquia organized by legal academicians and practitioners around the world. Analysis of the dispute settlement provisions in space agreements plainly reveals the degree to which States persist to be mistrustful of any impingement to their sovereignty. They are reluctant to submit disputes to adjudication and binding arbitration, particularly when these provisions are negotiated between States which have dissimilar political, economic and social interests and demography. However, there is a slow but clear shift in this attitude as States realize the contemporary political, economic and technical pressures necessitating the lifting of the veil of State sovereignty. The development of an effective mechanism for the settlement of disputes arising in relation to the development of the exploration and exploitation of outer space has been the subject of global study by highly qualified publicists and international institutions. The 1972 Liability Convention is the space treaty with the most elaborate provisions for dispute settlement. However, it fails to ensure binding decisions. In this point, the 1998 Taipei Final Draft Convention may be a useful instrument for further consideration on whether an independent sectorialized dispute settlement mechanism should be established. Considering these circumstances it seemed essential to take legislative action to implement a system as comprehensive as the relevant legal framework are in the Law of the Sea and International Criminal Law mechanisms for dispute settlement and conflict avoidance from outer space activities.

• Journal of the Korean Institute of Landscape Architecture
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• v.47 no.4
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• pp.24-32
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• 2019

According to the Ministry of Land, Infrastructure, and Transport, the total area of unexecuted urban planning facilities in Korea is about $1,257km^2$, of which 47% is the unexecuted urban green space and forests. In the case of Seoul, the total area of unexecuted urban planning facilities is about $66km^2$, which is 5.24% of the total unexecuted area in the entire country. In Seoul, approximately 88% of the total unexecuted area is urban green space and forests, which is higher than the national rate. About 92% of the unexecuted urban planning facilities are long-term unexecuted urban planning facilities that are more than 10 years old. This study assessed the economic value of potential ecosystem services, focusing on the regulation service, supporting service, and cultural service, for urban green space and forests of unexecuted urban planning facilities in Seoul by using meta-regression analysis. As a result, the value of the regulation service provided by the urban green space and forests in Seoul was about 16.39 billion KRW, the value of the supporting service was about 5.8 billion KRW, and the cultural service value was about 7.78 billion KRW. The total value of ecosystem services is about 33.93 billion KRW. The values of regulation service and cultural service were the highest, and that was attributed to the characteristics of the downtown area. The significance of this study is to evaluate the value of ecosystem services for unexecuted urban planning facilities in Seoul. The results of this study can be used not only in the process of urban planning or policymaking but also land compensation methods applying the concept of an ecosystem service payment system.

• Journal of Energy Engineering
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• v.28 no.2
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• pp.18-35
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• 2019

The Korea District Heating Corporation operates a gas engine generator with a capacity of $4500m^3 /day$ of biogas generated from the sewage treatment plant of the Nanji Water Recycling Center and 1,500 kW. However, the actual operation experience of the biogas power plant is insufficient, and due to lack of accumulated technology and know-how, frequent breakdown and stoppage of the gas engine causes a lot of economic loss. Therefore, it is necessary to prepare technical fundamental measures for stable operation of the power plant In this study, a series of process problems of the gas engine plant using the biogas generated in the sewage treatment plant of the Nanji Water Recovery Center were identified and the optimization of the actual operation was made by minimizing the problems in each step. In order to purify the gas, which is the main cause of the failure stop, the conditions for establishing the quality standard of the adsorption capacity of the activated carbon were established through the analysis of the components and the adsorption test for the active carbon being used at present. In addition, the system was applied to actual operation by applying standards for replacement cycle of activated carbon to minimize impurities, strengthening measurement period of hydrogen sulfide, localization of activated carbon, and strengthening and improving the operation standards of the plant. As a result, the operating performance of gas engine # 1 was increased by 530% and the operation of the second engine was increased by 250%. In addition, improvement of vent line equipment has reduced work process and increased normal operation time and operation rate. In terms of economic efficiency, it also showed a sales increase of KRW 77,000 / year. By applying the strengthening and improvement measures of operating standards, it is possible to reduce the stoppage of the biogas plant, increase the utilization rate, It is judged to be an operational plan.

• Economic and Environmental Geology
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• v.54 no.2
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• pp.177-186
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• 2021

For disaster management and mitigation of earthquakes in Korea Peninsula, active fault investigation has been conducted for the past 5 years. In particular, investigation of sediment-covered active faults integrates geomorphological analysis on airborne LiDAR data, surface geological survey, and geophysical exploration, and unearths subsurface active faults by trench survey. However, the fault traces revealed by trench surveys are only available for investigation during a limited time and restored to the previous condition. Thus, the geological data describing the fault trench sites remain as the qualitative data in terms of research articles and reports. To extend the limitations due to temporal nature of geological studies, we utilized a terrestrial LiDAR to produce 3D point clouds for the fault trench sites and restored them in a digital space. The terrestrial LiDAR scanning was conducted at two trench sites located near the Yangsan Fault and acquired amplitude and reflectance from the surveyed area as well as color information by combining photogrammetry with the LiDAR system. The scanned data were merged to form the 3D point clouds having the average geometric error of 0.003 m, which exhibited the sufficient accuracy to restore the details of the surveyed trench sites. However, we found more post-processing on the scanned data would be necessary because the amplitudes and reflectances of the point clouds varied depending on the scan positions and the colors of the trench surfaces were captured differently depending on the light exposures available at the time. Such point clouds are pretty large in size and visualized through a limited set of softwares, which limits data sharing among researchers. As an alternative, we suggested Potree, an open-source web-based platform, to visualize the point clouds of the trench sites. In this study, as a result, we identified that terrestrial LiDAR data can be practical to increase reproducibility of geological field studies and easily accessible by researchers and students in Earth Sciences.