• Journal of Korea Trade
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• v.25 no.3
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• pp.21-47
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• 2021

Purpose - Offshoring has emerged as one of the major trends in international trade and has become one of the strategies for achieving competitiveness in the global market. In spite of this, the expected gains of offshoring can be offset by hidden costs and risks, such as those associated with the COVID-19 pandemic, the trade war between the USA and China, and the ongoing trade dispute between Korea and Japan. To obviate such business failure and prevent critical business blunders, offshoring strategies that efficiently consider both risk elements and potential wealth creation are urgently need. The first purpose of this study is to contribute to the development of more advanced offshoring strategies to help host countries select the best locations to manage supply chain risks and create unique value. The second purpose is to specifically analyze the current status of Korea and provide Korean companies with implications to be considered when deciding whether to offshore or re-shore. Design/methodology - A Network DEA model was applied to measure the comparative location efficiency of national competencies for offshoring strategy from perspectives of wealth creation opportunities (profitability and marketability) and supply chain risk management. The location efficiencies are compared among a total 70 countries selected from the Global Competitiveness Index (GCI) and globally attractive locations outlined by Kearney (2017). For the secondary analysis of efficiency, a t-test examining the nature of competitive advantage and the level of sophistication in production processes was implemented in three divisions. We then analyzed differences in offshoring performance in terms of the identified national traits. Moreover, Tobit regression analysis is conducted to investigate the correlation between value-added business activities and each divisional efficiency, seeking to determine how each degree of value-added business activity influences the increase in offshoring productivity. Findings - Regarding overall location efficiency for offshoring performance, only the USA and Italy were identified as being efficient as host countries for offshoring, under circumstances of advanced development, such as productivity and risk management. Korea ranks 13th among 70 countries. The determinants of national competitiveness depend on national traits (the nature of competitive advantage and business sophistication). Countries with labor/resource advantages and labor-intensive industries are more competitive in terms of marketability than others. In contrast, countries with strong technology-intensive industries benefit offshoring companies, particularly in the technology sector, with the added advantage of supply chain risk management. As the perception of a value chain is broader in a country, it can achieve both production sophistication and competitive advantages such as marketability and SCRM. Originality/value - Existing studies focus on offshoring effectiveness from a company perspective. This paper contributes to comparing country efficiency in producing core competencies related to an offshoring strategy and also segments countries into three performance-based considerations associated with the global offshoring market. It also details Korea's position as an offshoring location according to national efficiency and competency.

• Journal of the Korea Society of Computer and Information
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• v.25 no.10
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• pp.185-191
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• 2020

This article proposes the unified an arm's length price of transfer pricing for thin capitalization since the scope of permanent establishment has been enlarged under Digital Economy and the implementation of Blackchain system to resolve the drawback of finding an arm's length price. The rule of current thin capitalization runs against the non-discrimination of taxation of the tax treaties and the national treatment which deals fairly with goods, sercice and capital money within the country under the treaty of commerce and navigator. In addition, the information of comparable uncontrolled debt are not available of current system to prove the debt which is not subject to the rule of thin capitalization. The united an arm's length price of transfer pricing for thin capitalization can apply to foreign investment as well as domestic corporations, thereby resolving the problem of the non-discrimination of taxation of the tax treaties and the treaty of commerce and navigation. The availability of transaction level data through Blockchain platform to decide whether the debt can be subject to thin capitalization can resolve the issue of comparable uncontrolled debt transaction which can't be found in current business transactions. This article should shed light on the proposing of the unified an arm's length price of transfer pricing for thin capitalization and Blockchain system to prevent the income shifting. This propose provide implication for policymakers on current system of thin capitalization and arm's length principles.

• Asia pacific journal of information systems
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• v.17 no.4
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• pp.113-132
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• 2007

Price rigidity involves prices that do not change with the regularity predicted by standard economic theory. It is of long-standing interest for firms, industries and the economy as a whole. However, due to the difficulty of measuring price rigidity and price adjustments directly, only a few studies have attempted to provide empirical evidence for explanatory theories from Economics and Marketing. This paper proposes and validates a research model to examine different theories of price rigidity and to predict what variables can explain the observed empirical regularities and variations in price adjustment patterns of Internet-based retailers. I specify and test a model using more than 3 million daily observations on 385 books, 118 DVDs and 154 CDs, sold by 22 Internet-based retailers that were collected over a 676-day period from March 2003 to February 2005. I obtained a number of interesting findings from the estimation of our logit model. First, quality seems to play a role-I find that both price levels as proxies for store quality, and information on the quality of a product consumers have, affect online price rigidity. Second, greater competition(i.e., less industry concentration) leads to less price rigidity(i.e., more price changes) on the Internet. I also find that Internet-based sellers more frequently change the prices of popular products, and the sellers with broader product coverage change prices less frequently, which seem due to economic forces faced by these Internet-based sellers. To the best of my knowledge, this research is the first to empirically assess price rigidity patterns for multiple industries in Internet-based retailing, and attempt to explain the variation in these patterns. I found that price changes are more likely to be driven by quality, competitive and economic considerations. These results speak to both the IS and economics literatures. To the IS literature these results suggest we take economic considerations into account in more sophisticated ways. The existence and variation in price rigidity argue that simplistic assumptions about frictionless and completely flexible digital prices do not capture the richness of pricing behavior on the Internet. The quality, competitive and economic forces identified in this model suggest promising directions for future theoretical and empirical work on their role in these technologically changing markets. To the economics literature these results offer new evidence on the sources of price rigidity, which can then be incorporated into the development of models of pricing at the firm, industry and even macro-economic level of analysis. It also suggests that there is much to be learned through interdisciplinary research between the IS, economics and related business disciplines.

• Archives of design research
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• v.15 no.1
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• pp.213-224
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• 2002

We've already living our lives in the 21s1 century. This century, even alone, means enormous changes and innovations. Namely, we have been encountering various forms of generation changes such as digital generation, globalization generation, consumer generation, and brand power generation. Among these, there have been extraordinary changes in consumers and the environment of consumer market, and it is noteworthy of paying attention to the transition of the leader of the consumer market from producers to consumers. Such changes will affect not only all fields related to market environment but also entire fields including future products and sales. Hereupon, it is intended to foresee and analyze the trend in the consumer market of the 21st century and investigate changes in the consumer market and the environment of consumers. Also, the world has brought a single space of economy along with globalization and the era of self-imposed competition, and multi-national enterprises have emerged and, at the same time, their brands can be seen around the world. Hence, they have been trying to maintain their own power brands for the century. In the past, brand meant the name of a product in general. But, in the present, it has another meaning such that the brand itself provides psychological satisfaction and trustworthiness. Hereupon, this study intends to foresee changes in the trend of the consumer market of the 21s1 century, to ,outlook the trend of the consumer market along with study of power brand strategies, and to pursue creative strategies for power brand.

• Journal of the Economic Geographical Society of Korea
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• v.8 no.2
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• pp.247-266
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• 2005

The purpose of this paper is to analyse the effects of a firm's financial and non-financial factors on the relationship formation with its main bank in the industry of parts and material in Pusan-Kyungnam region. The results, out of accordance with the relation-banking or regional financial market perspective, do not support the hypothesis that regional financial institutions would be useful for decreasing the financial difficulties of the small and medium firms in the region. The analyses about the effects of non-financial factors on the formation of main bank relations show that while Kookmin Bank and Industrial Bank play important roles as main banks of small businesses other national banks put emphasis on the transaction lending. And the analyses about the effects of financial factors show that firms having main bank relations with non-bank financial institutions and Kookmin bank are more profitable and stable than firms having main bank relations with other banks including local banks. On the whole it seems that local banks are not making a commitment to the regional economy and their operational grounds are not strong enough.

• Industry Promotion Research
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• v.9 no.2
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• pp.95-102
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• 2024

This study aims to compare the role of the public sector in the U.S. and Korean medical security systems and study response measures in the social risk situation of the COVID-19 virus. The COVID-19 pandemic was a typical case of a 'disaster' that spread across the world across borders in a short period of time and caused serious social welfare losses by increasing the annual number of deaths by approximately 4% in 2020. Threats to health security, such as changes in social order, unpredictable endings, prolonged control of daily life, and deepening inequality, affected the economy, politics, and environment as a whole, and people had to experience anxiety and confusion due to mental and physical stress. Furthermore, developed countries failed to provide help to low-income countries in the face of global disasters. In this situation, the country's disaster management capacity to minimize harm and secure resilience, especially disaster response capacity in the health and medical field, is inevitably very important. Therefore, this study compares how the health insurance system, which is a system to guarantee citizens' right to life, differs from the United States, a liberal health care country, and raises the need to strengthen the role of the public sector.

• Journal of the Economic Geographical Society of Korea
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• v.15 no.2
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• pp.274-291
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• 2012

Since the advent of the internet as representative of the development of information communication technology (ICT), information transfer forms have changed rapidly these days. In the new techno-economic paradigms, I would ultimately consider how spatial structures of a knowledge-based service industry have been altered dynamically. To delve into this background, this study conducts an empirical case study of the internet advertising industry, particularly, among the whole advertising industry. Therefore, the primary objective of this study is to identify dynamic characteristics of spatial networks among actors for knowledge creation in Korea's internet advertising industry. In addition, it also is to analyze the formative elements of spatial networks which would have an influence on constructing the space of new economic activities. There are multilateral approaches. This research is classified into types of actors such as inter-firm, intra-firm, and firm-customer, and categorized according to spatial ranges such as local, regional, global levels. In the meanwhile, formative factors of the spatial networks could draw a conclusion from two aspects: inter-firm networks in the process of business in the internet advertising industry, and individual networks in the nonoccupational aspect. Accordingly, the results of this study suggest that actors' networks of two perspectives would make mutually complementary relationships and create new relational spaces in the digital economy.

• Journal of the Korean Regional Science Association
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• v.40 no.1
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• pp.37-51
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• 2024

To respond to local extinction, South Korea, under the leadership of the Ministry of the Interior and Safety, identified depopulated areas in 2021 and launched the Local Extinction Response Fund in 2022. However, due to its early stage of implementation, analyzing the characteristics and changes of policy response to local extinction at the central government level remains a challenge. In contrast, Japan, facing similar issues of local extinction as South Korea, has established a robust central government-led response system based on the Regional Revitalization Act and the Comprehensive Strategy and Basic Policy on Community-Population-Job Creation. Hence, this study examines Japan's policy responses to local extinction by analyzing the first and second periods of the Comprehensive Strategy and Basic Policy on Community-Population-Job Creation. For the analysis, topic modeling was employed to enhance text analysis efficiency and accuracy, complemented by expert interviews for validation. The results revealed that the first-period strategy's topics encompassed economy and society, start-up, local government, living condition, service, and industry. Meanwhile, the second-period strategy's topics included resource, the New Normal, woman, digital transformation, industry, region, public-private partnership, and population. The analysis highlights that the policy target, policy direction, and environmental change significantly influenced these policy shifts.

• The Journal of Bigdata
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• v.4 no.2
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• pp.23-34
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• 2019

Recently, the crime that utilizes the digital platform is continuously increasing. About 140,000 cases occurred in 2015 and about 150,000 cases occurred in 2016. Therefore, it is considered that there is a limit handling those online crimes by old-fashioned investigation techniques. Investigators' manual online search and cognitive investigation methods those are broadly used today are not enough to proactively cope with rapid changing civil crimes. In addition, the characteristics of the content that is posted to unspecified users of social media makes investigations more difficult. This study suggests the site-based collection and the Open API among the content web collection methods considering the characteristics of the online media where the infringement crimes occur. Since illegal content is published and deleted quickly, and new words and alterations are generated quickly and variously, it is difficult to recognize them quickly by dictionary-based morphological analysis registered manually. In order to solve this problem, we propose a tokenizing method in the existing dictionary-based morphological analysis through WPM (Word Piece Model), which is a data preprocessing method for quick recognizing and responding to illegal contents posting online infringement crimes. In the analysis of data, the optimal precision is verified through the Vote-based ensemble method by utilizing a classification learning model based on supervised learning for the investigation of illegal contents. This study utilizes a sorting algorithm model centering on illegal multilevel business cases to proactively recognize crimes invading the public economy, and presents an empirical study to effectively deal with social data collection and content investigation.

• Informatization Policy
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• v.26 no.3
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• pp.69-89
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• 2019

In order to implement smart cities that will become living spaces in the fourth industrial revolution era, detailed privacy information such as residents' living information, buildings and facilities information must be collected and processed in real time. While city functions and convenience for individuals are being facilitated, threats to personal information exposure and leakage are also likely to increase at the same time. Therefore, the design concept for personal information protection should be considered and accordingly reflected from the stages of smart city design, technology development and operation planning of intelligent information (AI) facilities. The results of the analysis show that for activation of smart cities and operation of data-driven cities, the concept of Privacy by Design (PbD) has already been introduced in the institutional, industrial and technological aspects, particularly in the cases of European countries and the US. In order to strengthen the local and global competitiveness of smart cities and the country, Korea also needs to actively deploy PbD as a strategy to secure a data-driven economy, which is the core strategy for smart cities. Therefore, the study suggests policy implications focused on approaches to legislative improvement and technology development support, which reflect the basic properties of PbD as defined in the study.