Economy In Korea Research Articles

Studies of International Political Economy in Korea

During the past 30 years, IPE studies in Korea have achieved outstanding developments in terms of the amount of research, academic issues, applied methodologies, and targeted regions. Even though we have been through introductory and expansion periods of Korean IPE studies, we have been trying to move into an indigenous period. This study compares the first 50 years’ IPE studies with recent 10 years’ IPE studies in Korea. There have been many changes in IPE studies in Korea. First, the number of articles related to International Trade has dropped dramatically during the last 10 years, while the number of articles in the categories of Money-Finance and Development Assistance has increased rapidly. Second, there have been decreasing academic interests in Korea and the United States, while there have been growing interests in other countries in Asia, especially China. Third, there have been methodological changes in IPE studies in Korea. We have seen more studies that have utilized comparative and statistical methods, while the number of review articles dropped rapidly. Finally, the number of articles featuring theory introduction and comparison has decreased, while the number of articles featuring theory verification has increased in the last decade. In the academic field of IPE in Korea, scholars need to prepare for new developments in the global economy such as exponentially growing cross-border economic transactions, growing importance of non-state actors, rapid technological developments and the new industrial revolution. In the process of preparation, we need to search for indigenous IPE studies in Korea as well as to develop generalized IPE theories. We always need to consider striking a balance between academic universality and academic distinctiveness.

ICT-specific technological change and economic growth in Korea

This study investigates the role of information and communication technology-specific technological change in Korea's past and future. The contribution of information and communication technology (ICT) to past economic growth through embodied technology in intermediate inputs and investment goods is revealed by the growth accounting methodology, which considers quality adjustment. Relative prices between ICT-related products and other goods provide an indirect measure for identifying embodied technologies. Meanwhile, ICT's contribution to future economic growth is examined via policy simulations using the computable general equilibrium model. The results imply that ICT has grown Korea's economy and that policy measures for increasing ICT investment are required for continued sustainable growth.

A Study on the History of Cooperative Associations within social economy of Korea and the Improvement - Focusing on cooperatives of small business -

A Study on the History of Cooperative Associations within social economy of Korea and the Improvement - Focusing on cooperatives of small business -

North Korea's Economic Integration and Growth Potential

This paper analyzes the future growth potential of the North Korean economy, conditional on economic reform and integration with South Korea. The growth projections based on cross-country evidence show that, if North Korea embarks on substantial policy reforms toward a market-oriented and open economy, it could achieve higher economic growth in the long run. Using an empirical gravity model of trade and direct investment, we forecast that, when the two Koreas pursue economic integration and cooperation without military conflicts, North Korea’s trade with South Korea can increase significantly, that is, up to 36 percent of North Korea’s gross domestic product (GDP) and its foreign direct investment (FDI) flows from South Korea up to 6 percent of GDP. Overall, by promoting trade and FDI integration with South Korea, North Korea can boost its GDP growth by about 3 percentage points per year. Combined with a market-oriented reform, which can bring an additional boost to GDP growth, the North Korean economy could grow by about 4.7 percent per year over the next decades. Conversely, if more rigid sanctions imposed on North Korea become effective, its trade and investment will decrease and its GDP growth rate is expected to fall by approximately 2 percentage points per year.

Korea's Economic Growth and Catch‐up: Implications for China

AbstractThis study investigates the economic growth and catch‐up of Korea over the past half century. Korea's growth experience confirms the prediction of a “conditional convergence” theory. Cross‐country regression further suggests that Korea's strong catch‐up to the USA is also attributable to its favorable growth factors such as strong investment, lower fertility, greater trade openness, and improvements in human resources and rule of law. However, as Korea catches up to the USA and its steady‐state level in per worker output, it will be subject to a growth slowdown unless improvements are made in those growth factors. While manufacturing‐oriented and export‐oriented development has served Korea's success well, poor productivity performance in the services sector has hampered overall productivity growth. Korea's experience implies that China's potential growth rates are likely to slow in the coming decades due to the convergence effect and with the rebalancing toward a domestic consumption and services‐based economy. China needs to upgrade its rule of law, reform state‐owned enterprises and improve productivity, particularly in its services sector, to sustain strong growth.

Finance and the Effect of Its Outflows on the Regional Economy in Korea

Finance and the Effect of Its Outflows on the Regional Economy in Korea

North Korea's Trade with China in 2015: Analysis and Forecasts

The year 2015 marked the first time North Korea's trade with China shrank since 2009. According to China Customs, North Korea's trade with China in 2015 recorded 5.4 billion, a drop by 14.7% from 6.4 billion in 2014. Exports to China recorded 2.5 billion, 12.6% lower than the 2.8 billion in 2015, and imports stood at 2.9 billion, falling 16.4% from 3.5 billion in 2014. The trade deficit recorded 459 million, dropping by 32.0% from 675 million in 2014. Although North Korea's overall imports and imports have witnessed a decline, the trade balance improved.It seems that North Korea's trade has reached a turning point due to the structural changes in the trade environment between North Korea and China. The continued slowdown of China's GDP growth rate and a sharp reduction in imports, signs of a domestic consumption-driven economy, is well expected to continue, and will further lead to a steady decline in North Korea's trade with China. Although imports from China have dropped due to a shortage of foreign currency resulting from export decline, the negative impact this may have on North Korea's economy has yet to show. Market prices have stayed stable since 2013. North Korea's trade with China in 2016 seems that the steady decline in raw materials price in international commodity markets and China's economic slowdown would negatively affect North Korea's trade with China. However, the keys are in North Korea's improved production capabilities and China's discretion of the sanction. We have also yet to see whether China will fully implement the UNSC's sanction against North Korea, as a report says that China has recently resumed economic cooperation with North Korea in infrastructure construction.

Impact of the Smart City Industry on the Korean National Economy: Input-Output Analysis

The characteristics of the smart city industry and its effects on the national economy of Korea are investigated using input-output analysis. The definition and industrial classification of a smart city are established using the Delphi technique for experts in various fields, from information and communication technologies (ICT) to governmental policies for urban matters. The results of the analysis, including the production, value added and employment induction effects, show that the smart city industry has intermediate characteristics between ICT and urban construction industries, indicating that acquisition of the competitive edge of both the ICT and construction industries is the key to the success of the smart city industry. The crucial industries related to the smart city industry are identified based on an analysis of the forward and backward linkage effects, the results of which suggest the importance of the relevant service industries. The economic effects on the national economy induced by the governmental program for smart city demonstration are estimated using input-output analysis results. Overall, the results of this study indicate that facilitation of the smart city industry plays a key role not only in the sustainable city, but also in the growth of the national economy.

Comments by Sung-Chun Jung, on The Technical Progress and Resilience in Productivity Growth of Korea's Growth-Leading Industries

June 01 2016 Comments by Sung-Chun Jung, on The Technical Progress and Resilience in Productivity Growth of Korea's Growth-Leading Industries Author and Article Information Online Issn: 1536-0083 Print Issn: 1535-3516 © 2016 by the Earth Institute at Columbia University and the Massachusetts Institute of Technology2016Massachusetts Institute of Technology Asian Economic Papers (2016) 15 (2): 192–193. https://doi.org/10.1162/ASEP_a_00440 Cite Icon Cite Permissions Share Icon Share Facebook Twitter LinkedIn MailTo Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Search Site Citation Comments by Sung-Chun Jung, on The Technical Progress and Resilience in Productivity Growth of Korea's Growth-Leading Industries. Asian Economic Papers 2016; 15 (2): 192–193. doi: https://doi.org/10.1162/ASEP_a_00440 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAll JournalsAsian Economic Papers Search Advanced Search Sung-Chun Jung: Over the past decades, Korea's economy has thrived and following its economic development model can be helpful for other developing economies. Several years after the 2008–09 global financial crisis (GFC), and right after the U.S. Federal Reserve started its monetary tightening, emerging market economies (EMEs) expected many future challenges and frustrations. Those EMEs (in particular, natural resource-rich countries, which have enjoyed economic prosperity from high prices and expanding demands for their natural resources) face tough years ahead. Without creating a whole new growth model, however, these countries are unlikely to grow at higher or even the same growth rate than before because the global economic condition has completely changed from an era where there was plenty of global liquidity to one where money supply has tightened in recent years. Developing a new growth model and finding alternative growth sources have become the most urgent national tasks to be... You do not currently have access to this content.

The Growth of Korean Companies and Their Contributions to the Miracle of the Han River

Over the past six decades, the Korean economy has witnessed remarkable growth. In the 1950s, when the government was first established, Korea was the one of the poorest countries in the world. Now, it has grown as a global economic power with a solid industrial base. Korea’s economic success since then has been named “the Miracle of the Han River”. Along with the growth of the economy, there is an enormous contribution from Korean companies which probably started from small shops and have grown to become global giants. There are some studies about the Korean economy and Korean companies, especially Chaebols. These studies mainly focus on the relationship between value and ownership structure, and the gap between controlling power and cash flow ownership. However, there is a controversy over how the companies have contributed to the success of the Korean economy. These critical issues have attracted the attention of not only academic scholars but also policy makers. This study aims to present the outstanding post-war development of the Korean economy with a particular concentrate on the role played by Korean companies. First, the growth of Korea economy is reviewed. Second, we cover the growth of Korean firms, which have contributed remarkably to the national economic development. Third, we provide an overview of government policy and the external environment facing Korean firms, and discuss about the intervention of government in business activities that lead to industrialization. Fourth, we show how Korean businessmen have carried out business activities in conjunction with the government-directed economic policies. Findings from this study highlight many implications for the developing countries and their business sector.

The Republic of Korea's Economic Growth and Catch-Up: Implications for the People's Republic of China

This study investigates the economic growth and catch-up of the Republic of Korea over the past half-century. The gap of output per worker between the Republic of Korea and United States has decreased rapidly, as the Republic of Korea’s lower per capita income, relative to its potential level, has led to higher growth, confirming the prediction of a conditional convergence theory. Cross-country regression further suggests that the Republic of Korea’s catch-up to the United States is also attributable to strong investment, lower fertility, greater trade openness, and improvements in human resources and rule of law, while improvement in democracy tends to slow the pace of the catch-up. Yet as the Republic of Korea catches up to the United States and its steady-state level in per worker output, it is subject to growth slowdown unless it improves institutions and policy factors. While manufacturing- and export-oriented development served the Republic of Korea’s success well, poor productivity performance in the services sector has hampered overall productivity growth. The Republic of Korea’s experience implies that the People’s Republic of China’s potential growth rates are likely to slow in the coming decades due to the convergence effect and with the rebalancing toward a domestic consumption and services-based economy. The People’s Republic of China needs to upgrade its institutional quality and improve productivity, particularly in its services sector, to sustain strong growth.

South Korea's Economy at a Crossroads: Challenges and Chances

South Korea's Economy at a Crossroads: Challenges and Chances

IT Spillover Effects on Korea Economy: for the Creative Economy based on IT

Objectives: The studies in the unit of nation revealed that the IT productivity is in the course of influencing GDP. Therefore, this study analyzed the TFP (Total Factor Productivity) of IT hardware and IT service industries and their productivity spillover effect on each industry. Methods/Statistical Analysis: This study used linked input-output tables to reclassify the IT industry into IT hardware and IT service, obtained the TFP of the IT hardware and IT service, and analyzed the effect of each TFP on other industries. In this way, unlike conventional labor productivity based IT productivity, it was possible to obtain TFP and price-based qualitative numerical values in terms of the productivity effect on other industries. Findings: According to the analysis, the TFP of IT hardware was 2.313 in 2000 and 3.906 in 2005, which was the highest of the TFPs of 30 industries. The TFP of IT service was 0.990 in 2000 which was the 11th position, and 0.988 in 2005 which was the 8th position. Application/Improvements: The study results bring about the following suggestions: First, the productivity of the IT industry positively influenced the Korean economy, and the influence was on the rise. Secondly, the spillover effect of the IT industry expanded from the secondary industry to the tertiary industry. The effect of IT hardware on the tertiary industry was also charged greatly in terms of importance. Thirdly, the IT industry evenly influenced overall industries, rather than particular industries, with the lapse of time.

North Korea's Economic Integration and Growth Potential

This paper analyzes the future growth potential of the North Korean economy, conditional on economic reform and integration with South Korea. The growth projections based on cross-country evidence show that, if North Korea embarks on substantial policy reforms toward a market-oriented and open economy, it could achieve higher economic growth in the long run. Using an empirical gravity model of trade and direct investment, we forecast that, when the two Koreas pursue economic integration and cooperation without military conflicts, North Korea’s trade with South Korea can increase significantly, that is, up to 36 percent of North Korea's gross domestic product (GDP) and its foreign direct investment (FDI) flows from South Korea up to 6 percent of GDP. Overall, by promoting trade and FDI integration with South Korea, North Korea can boost its GDP growth by about 3 percentage points per year. Combined with a market-oriented reform, which can bring an additional boost to GDP growth, the North Korean economy could grow by about 4.7 percent per year over the next decades. Conversely, if more rigid sanctions imposed on North Korea become effective, its trade and investment will decrease and its GDP growth rate is expected to fall by approximately 2 percentage points per year.

South Korea's Economy: Moderate Expansion Fuelled by Stimulus Policies

South Korea's gross domestic product expanded 2.6% in 2015, from 3.3% in 2014. The feeble private consumption following the Middle East respiratory syndrome outbreak and slumping exports held down growth. The unclear export prospect has led Korean policymakers to remain dependent on extra government spending for maintaining growth in 2016. In the long run, its growth will depend on its shift from exporting intermediate goods to high technology intensive products and high value-added services.

South Korea and the South China Sea: A Domestic and International Balancing Act

South has long been unclear on its stance regarding the territorial disputes in the South Sea. For many years, the closest thing the government had to an official position was the consistent but vague statements of successive spokespeople from the Ministry of Foreign Affairs. These statements essentially noted that the Republic of (ROK) supported freedom of navigation in the South Sea and hoped the parties involved would resolve the disputes in a peaceful manner through dialogue.In 2015, however, there was a slight but crucial change in that position. There had long been rumors that South was under pressure from the United States to clarify its position on the South Sea. Then, in November, Defense Minister Han Min-goo delivered remarks at the ASEAN Defense Ministers' Meeting-Plus (ADMM-Plus) stating that freedom of navigation and overflight must be guaranteed and that the disputes should be resolved in a peaceful manner.1 Later that month, President Park Geun-hye went a step further at the East Asia Summit in Malaysia when she stated that concerned parties should observe the Declaration on the Conduct of Parties in the South Sea and that disputes should be resolved according to international law. She went on to assert that concerned countries must respect the promise of demilitarizing the South Sea, which was widely interpreted as supporting the U.S. position on the disputes. At the 2015 East Asia Summit, Park argued that Korea has consistently stressed that the dispute must be peacefully resolved according to international agreements and code of conduct and China must guarantee the right of free navigation and flight. 2Despite these recent clarifications by the president and defense minister, South Korea's position on the disputes in the South Sea has been quite vague and ambivalent. While South does not claim any territories in the South Sea and has no direct military or strategic interests there, to fully understand the country's position, it is important to understand what stakes the ROK does have in the resolution of the current disputes. This essay examines these issues and draws implications for South Korea's relations with both the United States and China.South Korea's Economic and Diplomatic Interests in the South SeaThough lacking direct strategic and military interests in the region, South nevertheless has huge economic interests in the South Sea. As the world's sixth-largest trading nation by volume, it is highly dependent on the free flow of goods. In 2014, more than 1.1 billion tons of its trade passed through the South Sea. South is also highly dependent on energy resources from overseas. Approximately 86% of its oil consumption is supplied by imports from the Middle East, almost all of which must transit the South Sea.3 In sum, any undesirable events in the South Sea or a consequential blockade of its sea lanes would be devastating to the South Korean economy.The ROK's diplomatic interests in the region are just as important as trade. First, in recent years, South has developed a close partnership with the Association of Southeast Asia Nations (ASEAN) countries, and two of the most vocal South Sea claimants-the Philippines and Vietnam-are ASEAN members. South fears that when it discusses security cooperation with the ASEAN countries, its position on the disputes may be on the agenda, which is likely to put it in an awkward position. Additionally, South frequently calls on ASEAN countries for support on Korean Peninsula issues such as North Korean denuclearization. If some ASEAN countries were to ask it to support ASEAN's position on the South Sea disputes in return for their supporting South on the Korean Peninsula, then Seoul would face a dilemma.South Is Caught between the United States and ChinaCompared with the potential impact of the South Sea disputes on South Korea's relations with the United States and China, the dilemma with the ASEAN countries is secondary. …

Tradition and Future of the Korean Society of Plastic and Reconstructive Surgeons.

Current day Hallyu (Korean wave) culture is rapidly spreading throughout Asia and the world, moving from the periphery of global culture towards the center. 'Plastic Surgery Hallyu' has joined K-pop, TV dramas, dancing, and food as one of the pillars of the Hallyu craze, and the Korean Society of Plastic and Reconstructive Surgeons (KSPRS) is showing the its outstanding results in both surgery and research. In 2015, The Washington Post published a portrayal of plastic surgery in Korea, saying that Korea is the plastic surgery capital of the world [1]. In 2016, KSPRS will welcome the 50th anniversary of its founding. The inaugural assembly of the Korean Society of Plastic and Reconstructive Surgeons was held on May 15, 1966, initiated by around thirty professional doctors interested in the field of plastic surgery, including general surgeons, orthopedic surgeons, otorhinolaryngologists, and ophthalmologists, with Yonsei University's School of Medicine playing a key role. After this, a specialized training system was implemented in 1973, and Korea produced its first plastic surgeon specialist in 1975 [2]. Developing during the 60's and 70's into the 'Miracle on the Han River', South Korea's economy grew with dazzling speed, and this was accompanied with similarly dazzling developments in Korea's plastic surgery field. In just the short period since its founding, KSPRS has developed dynamically, growing into a large professional organization with over two thousand members. We have become the third largest such organization for plastic surgeons in the after those in the United States and Brazil [3]. In addition, we have entered into a formal partnership with the American Society of Plastic Surgeons (ASPS), and in 2013, we participated in the ASPS's annual scientific meeting as a guest nation. The official journal of KSPRS is the Archives of Plastic Surgery (Arch Plast Surg, APS). A Korean-language journal with the title Journal of the Korean Society of Plastic and Reconstructive Surgeons began being published in 1974, and in 2012, after the name change that accompanied its transition to being produced in English, it started being published six times yearly. A peer-reviewed journal, APS is currently indexed and tracked in the PubMed, PubMed Central, CrossRef, Scopus, Embase, and Google Scholar databases. There have been tangible results achieved during the four years since this transition to English, and we are devoted to striving to become more than just the representative journal of Korea, but the highest quality journal for plastic surgery in the Asia-Pacific region. As part of this effort, we continue to work hard to achieve indexing in the Science Citation Index Expanded (SCIE). APS will play a central role in the development of KSPRS's clinical scholarship [4,5]. Since its founding, KSPRS has held an annual conference. The 20th anniversary of its founding in 1986 saw the invigoration of scholarly activity, which resulted in an additional spring conference held every year, and as of the 30th anniversary, an integrated scholarly conference has been held in tandem with affiliated conferences of the Korean Society for Surgery of the Hand and the Korean Society for Aesthetic Plastic Surgery. Through these many years of dedicated work, the scholarly conference has become an international event, providing a steady foundation for advancing Korea's practice of plastic surgery onto the world's stage. In commemoration of the 50th anniversary of KSPRS's founding, PRS Korea 2016 is scheduled to take place November 17–20. Under the slogan '50 Years: Beginning of a New Era', we will invite many distinguished foreign scholars to the meeting and share recent advances and techniques. Looking back at the history of KSPRS, we can understand our present position and can prepare for tomorrow's work. KSPRS will begin the work needed to plan its vision and put forward its future core values in order to become an organization that can continue in the footsteps of its 50-year tradition. Moving forward, KSPRS will expand its international footing and revitalize international exchange. We will take steps to further expand our participation and exchange with leading international societies through meetings such as the Global Leadership Forum. We will work hard to further raise the international status of KSPRS by expanding opportunities for presenting at international conferences and by finding and fostering outstanding members. Through continued dedication, we will do everything possible to become the vanguard, taking the lead in the global era of plastic and reconstructive surgery, as we continue with our contribution to the development of the field of medicine.

창조 일자리 분류체계 및 추세분석

The objective of this study is developing a classification scheme of the creative employment and analyzing trends of the creative employment in Korea. Many countries have pursued the creative economy to generate new jobs and tried to estimate the creative employment as a way to measure the creative economy. However, the definition of the creative employment is still ambiguous partly because it depends on the characteristics of diverse industries and the direction of economic policies that each country has. Therefore, we propose a classification scheme of the creative employment, which reflects the creative economy in Korea. Then, we examine how the creative employment changes in Korea. Our results show that the jobs requiring the highest level of creative skills increase stably and steadily over the years.

Welfare States and Care Arrangements: Care Time Mix Approach and Its Application to Japan and Korea

This article suggests how notions of replacing, supplementing and valuing care by the family can be linked with policy instruments of childcare services, leave provisions, and cash for care by family, to influence care arrangements at collective and individual levels. It analyses care arrangements in Japan and Korea, estimating their changes over approximately ten years using the care time mix approach. The findings suggest that at the beginning of the new millennium, care arrangements in both countries were configured as female>non-state>male>state. A decade later, Japan remains the same, whereas Korea has become a paid care economy configured as non-state>female>male>state. Unpaid care economy remains gendered, but over time, Japanese men's contribution has marginally increased, with the opposite being true in Korea. The article discusses what the transformation of the paid care economy in Korea, and its expansion in Japan, imply for social structures in the respective countries.

Financial Development and Investment in Korea

In this study, we investigate whether financial development could have a positive effect on the real economy in Korea through the investment channel. After deriving an investment function in which a firm’s investment is subject to financial restriction, we analyze whether financial development has reduced a firm’s financial restriction and analyze whether financial development has reduced a firm’s financial restriction by expanding available external financing that the firm faces. Using firm-level data in Korea from 1994 to 2011, we find that financial development affects a firm’s investment by reducing the firm’s financial restrictions. However, the effects of financial development on a firm’s financial restrictions are varied by industry or firm size. We also find that the financial crisis could deteriorate the effect of financial development on corporate investment.