Industry In South Korea Research Articles

An Input–Output Analysis for the Economic Potential of a New Convergence Industry: A Focus on the Autonomous Vehicle Sector in South Korea

While it is crucial to grasp the economic potential in emerging convergence industries in order to develop effective policies and strategies for digital transformation, evaluating the potential is still challenging. This study develops a novel input–output model suitable for analyzing the economic potentials of subsectors in a new convergence industry. Furthermore, this research quantitatively assessed the economic potential of three sectors—components, vehicles, and services—within the autonomous vehicle industry in South Korea using the method newly proposed by this study and contrasted the results with those obtained from a traditional approach. It is found that the experimental approach introduced in this study can capture both the inter-sectoral relationships within the emerging convergence industry and its fundamental characteristics related to other sectors. As an empirical result, the autonomous vehicle service sector is found to drive the highest level of increase in production and labor for other industries. The vehicle sector has relatively high forward and backward-linkage effects, functioning as both supply and demand across the value chain of the autonomous vehicle industry. It also shows that the components sector has a relatively higher ripple effect on industries related to the infrastructure of autonomous vehicles, such as maintenance and energy fields. To rapidly establish an autonomous vehicle ecosystem and enhance its economic impact at the national level, it is essential to develop a “Soft Power” corresponding service sector. Consequently, the implementation of supportive and market-driven policies in this area is imperative.

Who drives the green shift? EV and battery policymaking and systemic marginalisation of auto suppliers in South Korea

The swift global transition to electric vehicles (EV) and batteries in the automotive industry highlights the nature of governments’ efforts towards a green economy, marking a transition from environmental regulations to industrial policies. This shift has led to renewed interest in industrial policies, especially in East Asian developmental states, like South Korea. The EV and battery industries in South Korea have grown rapidly along with the government's efforts to mobilise the entire economy through aggressive green industrial policy, particularly during the Lee Myung-bak administration (2008–2012). Big Korean automobile and electronics manufacturers have participated directly in setting the country's industrial agenda, leading the green industrial policy with their business interests. However, the process of EV and battery policymaking also marginalized auto suppliers in the existing manufacturing sector from agenda setting. Focusing on business’ structural power, this paper explains how big business elites systematically alienate small and medium-sized suppliers from the new growth policy thanks to their strong information monopoly in the hierarchical structure of production in the automobile industry and EV policies in South Korea.

An empirical analysis on the start-up status and survival of service industries in South Korea

An empirical analysis on the start-up status and survival of service industries in South Korea

Comparative Analysis of Key Success Factors in S&OP: Focusing on Manufacturing and Retail Industry in South Korea

The global supply chain is facing unprecedented challenges due to pandemics, geopolitical tensions, volatile commodity prices, and rapid changes in consumer demand. The Sales and Operations Planning (S&OP) process can be an important solution by integrating supply and demand with business strategy and operational planning. However, previous studies have developed single frameworks or maturity models without considering industry-specific factors, overlooking the structural and operational characteristics of different industries that can have a significant impact on the approach and success factors of S&OP. Therefore, this study identifies and compares the key success factors of S&OP in the manufacturing and retail industries using the Analytic Hierarchy Process (AHP) technique. The results show clear differences in the prioritization of success factors between two industries. In the manufacturing industry, strategic support and leadership were evaluated as the most critical factor, while in the retail industry, operational processes were emphasized. In addition, the relative importance was concentrated on the top-ranked factor in the manufacturing industry, but the relative importance was distributed among several factors in the retail industry. This study provides valuable insights into the critical success factors for S&OP implementation in different industries and offers an understanding of how industry-specific characteristics influence the effectiveness of S&OP strategies.

The growth patterns of firms in the industrial value chain using the hidden markov model: Evidence from the Korean semiconductor industry

Having steadily grown over the last 40 years, the semiconductor industry in South Korea has emerged as one of the leading industries in the world. However, it has recently entered a period of great change because of the volatility in the global value chain caused by trade conflicts and protectionism in the pursuit of technological sovereignty by countries. To cope with these changes, the South Korean government has endeavoured to strengthen the competitiveness of domestic materials and equipment segments, which are the backbone of the semiconductor industry. Nevertheless, most previous studies on the semiconductor industry in South Korea focused on the downstream of the value chain (which means the manufacturing of finished components). However, only a few attempts were made to investigate the upstream part of the industry, that is, materials and equipment segments. Therefore, this study analyses the growth patterns of firms engaged in the Korean semiconductor industry value chain, including finished components, materials, and equipment. For this objective, we applied the Hidden Markov Model to time-series sales data collected from 1998 to 2019 for 1,259 firms in the value chain. The analysis results indicated that the growth of these firms could be modelled using six stages, based on which nine patterns of growth were identified. This study proposes a novel data-driven approach for tracking firm growth across the domestic industry value chain from a longitudinal perspective. Thus, we provide valuable policy insights for nurturing the domestic industry’s value chain.

The Economic Impacts of Farm Animal Housing Restrictions: The Mandatory Group Housing for Sows in South Korea

Beginning January 1, 2030, South Korea will mandate group housing for sows in the domestic hog production. The purpose of this article is to examine the economic implications of the new sow housing regulations on the hog and pork industry in South Korea. This article developes an economic simulation model to quantify the regulation impacts within a calibrated equilibrium framework. With three scenarios differentiated by the regulation costs in production, the simulated outcomes indicate that the regulations will result in a 2% to 11% increase in hog prices, a 1% to 5% decrease in domestic hog quantities, and a 0.5% to 3% decrease in hog producer surplus in South Korea. An increase of 10% in the willingness to pay for domestic pork would be sufficient to offset the loss in producer surplus caused by the regulations, in the scenario with relatively high incremental regulation costs of production.

Analysis of volatile organic compounds in Korean-bred strawberries: insights for improving fruit flavor.

The strawberry industry in South Korea has witnessed a significant 65% growth over the past decade, surpassing other fruits and vegetables in production value. While sweetness and acidity are well-recognized flavor determinants, the role of volatile organic compounds (VOCs) in defining the desirable flavor profiles of strawberries is also crucial. However, existing research has predominantly concentrated on a limited range of commercial cultivars, neglecting the broader spectrum of strawberry varieties. This study embarked on developing a comprehensive VOC database for a diverse array of strawberry cultivars sourced both domestically and internationally. A total of 61 different strawberry cultivars from Korea (45), the USA (7), Japan (8), and France (1) were analyzed for their VOC content using Tenax TA Thermo Desorption tubes and Gas Chromatography-Mass Spectrometry (GC-MS). In addition to VOC profiling, heritability was assessed using one-way ANOVA to compare means among multiple groups, providing insights into the genetic basis of flavor differences. The analysis identified 122 compounds categorized into esters, alcohols, terpenes, and lactones, with esters constituting the majority (46.5%) of total VOCs in Korean cultivars. 'Arihyang', 'Sunnyberry', and 'Kingsberry' exhibited the highest diversity of VOCs detected (97 types), whereas 'Seolhong' showed the highest overall concentration (57.5mg·kg-1 FW). Compared to the USA cultivars, which were abundant in γ-decalactone (a peach-like fruity aroma), most domestic cultivars lacked this compound. Notably, 'Misohyang' displayed a high γ-decalactone content, highlighting its potential as breeding germplasm to improve flavor in Korean strawberries. The findings underscore the importance of a comprehensive VOC analysis across different strawberry cultivars to understand flavor composition. The significant variation in VOC content among the cultivars examined opens avenues for targeted breeding strategies. By leveraging the distinct VOC profiles, particularly the presence of γ-decalactone, breeders can develop new strawberry varieties with enhanced flavor profiles, catering to consumer preferences for both domestic and international markets.

Strategies to Promote the Export Competitiveness of the Laver Industry in South Korea: Focusing on the SWOT-AHP Method

Purpose - Currently, South Korean laver is called the semiconductor of the food industry, and it has become a representative K-Food. However, these positive achievements are counterbalanced with challenges such as the deterioration of water laver productivity due to climate change and the increase in global competition for laver. In particular, the recent issue of discharge of contaminated water from Fukushima could pose a threat to the growth of the South Korean laver industry. Accordingly, this study attempted to present a development direction that could help the South Korean laver industry maintain sustainable growth and create market opportunities. Design/Methodology - This study sought to provide insights and implications that could contribute to enhancing the export competitiveness and sustainable growth of the South Korean laver industry. To conduct this study, the SWOT factors of the South Korean laver industry were derived through literature research using the latest research data. Based on this, an AHP analysis was conducted on laver industry experts to derive a SWOT matrix and present business strategies and policies. Findings - The development strategies based on the results of this study are as follows. The SO strategy was identified as the first priority. This strategy requires maximizing cost-effectiveness and quality, which are the strengths of South Korean laver, and actively seeking overseas market opportunities triggered by the high interest in Hallyu. The WO strategy was identified as the second priority. This strategy requires fostering and industrializing new varieties of laver with significant resistance and high quality, and expanding the demand for South Korean laver by actively capitalizing on the opportunities created by the popularity of Hallyu. Originality/value - Given the lack of studies on the promotion of the export competitiveness of the South Korean laver industry, this study is expected to provide the theoretical foundation for research on the development of the South Korean laver industry and contribute to the expansion of research to secure K-Food’s global competitive advantages. Additionally, the SWOT matrix proposed in this study is expected to enhance the competitiveness of South Korean laver in overseas markets.

Implications of the Carbon Border Adjustment Mechanism on South Korean industries: Challenges and policy recommendations

This study examines the effects of the European Union's Carbon Border Adjustment Mechanism (CBAM) on South Korean industries. Concerns about carbon leakage, where carbon emissions increase in countries or regions with less stringent climate policies, have grown recently. Specifically, firms strategically relocate their operations to countries with lower carbon costs, where they can produce goods more cheaply and without carbon constraints. CBAM is a carbon tariff on carbon intensive products imported by the European Union. While the CBAM has the potential to reduce global carbon emissions, it poses significant risks to South Korea, which relies heavily on exports of CBAM-affected products. This study provides an overview of the potential effects of the CBAM on industries in South Korea, applies event study analysis to quantitatively evaluate how the financial market has reacted to CBAM-related events. Based on the research findings, as the details of CBAM become clearer, there is a shift in perception from environmental goals to broader issues across industries. Building on this understanding, we discuss issues related to the CBAM enactment: firm-level carbon accounting, EC-certified accreditation institutions, and the carbon allowance price gap between the EU and South Korea. We propose necessary short-term and long-term policies to attenuate CBAM-related risks.

The Political Economy of Exchange Rates and Export-Led Industrialization in South Korea*

ABSTRACT South Korea’s economic trajectory has been one of the most successful stories of post-war catch-up industrialization. The Korean developmental state has used various tools, including the exchange rate, to become an export powerhouse in the twenty-first century. However, the export-led growth strategy has had a distributive conflict with Korea’s working class. Based on post-Keynesian and structuralist economics, this paper assesses the political economy of exchange rate depreciation and export-led industrialization in South Korea. I show that exports as a share of GDP have constantly risen to become the most important growth engine in the Korean economy. This long-term trend, however, has coincided with a decline in the labor income share in South Korea. I formulate the structuralist macroeconomic model to explain dynamics of real wages, real exchange rates, exports, and output. I finally use a vector autoregression (VAR) analysis to show that exchange rate depreciations during modern South Korea (1989Q1–2023Q1) are inflationary and contractionary in the short run. Currency depreciations have ambiguous effects on exports, but they clearly reduce output gaps. On the other hand, an increase in nominal wages is expansionary or varies positively with output gaps.

Nectar Characteristics and Honey Production Potential of Five Rapeseed Cultivars and Two Wildflower Species in South Korea

The growing beekeeping industry in South Korea has led to the establishment of new honey plant complexes. However, studies on honey production from each species are limited. This study aimed to assess the honey production potential of various Brassica napus cultivars and two wildflower species. The nectar characteristics of B. napus varied significantly among the cultivars. Absolute sugar concentrations differed among the cultivars, but sugar composition ratios were similar. In contrast, the amino acid content remained relatively uniform regarding percentage values, irrespective of the absolute concentrations. Estimations of honey potential production per hectare (kg/ha) resulted in the following ranking among cultivars: ‘JM7003’ (107.1) > ‘YS’ (73.0) > ‘JM7001’ (63.7) > ‘TL’ (52.7) > ‘TM’ (42.4). The nectar volume of Pseudolysimachion rotundum var. subintegrum and Leonurus japonicus increased during the flowering stage. P. rotundum var. subintegrum was sucrose-rich and L. japonicus was sucrose-dominant. Both species predominantly contained phenylalanine, P. rotundum var. subintegrum had glutamine as the second most abundant amino acid, and L. japonicus had tyrosine. The honey production potential was 152.4 kg/ha for P. rotundum var. subintegrum and 151.3 kg/ha for L. japonicus. These findings provide a basis for identifying food resources for pollinators and selecting plant species to establish honey plant complexes.

Manufacturing Revolutions: Industrial Policy and Industrialization in South Korea

Manufacturing Revolutions: Industrial Policy and Industrialization in South Korea

How does leaders' managerial coaching impact followers' in-role and extra-role behaviors? The mediating roles of intrinsic motivation and self-efficacy

PurposeThe purpose of this study is to investigate the effects of leaders' managerial coaching on followers' organizational citizenship behavior (OCB), creativity and task performance. This study also examined the mediating role of intrinsic motivation and self-efficacy, recognizing the follower’s attitude and cognition as essential elements of behavioral changes.Design/methodology/approachThis study collected data from 20 companies across multiple industries in South Korea, and a total of 386 leader–follower dyads' data were used.FindingsThe results show that leaders' coaching is positively associated with OCB directly, but a direct impact of coaching on creativity and task performance was not supported. The results also showed that intrinsic motivation partially mediates the effect of coaching on OCB and fully mediates the effect of coaching on creativity and task performance. Self-efficacy played a role as a full mediator between coaching and task performance.Originality/valueThis study considered both the cognitive and affective aspects of managerial coaching and examined the influence of managerial coaching on the followers' in-role and extra-role behaviors (i.e. OCB, creativity and task performance) using responses from both the leaders and the followers at multiple organizations. Specifically, the results of this study empirically illustrated that managerial coaching by leaders serves as a mechanism mediated through intrinsic motivation and self-efficacy, linking to employees' OCB, creativity and task performance. This provides a clear explanation of the processes through which managerial coaching impacts employees and offers insights into the specific aspects that organizational leaders should focus on when engaging in managerial coaching.

Rapid detection of Japanese eel endothelial cell-infecting virus (JEECV) and Anguillid herpesvirus (AngHV-1) in Japanese eel (Anguilla japonica) using a qLAMP assay

Two DNA viruses, Japanese eel endothelial cell-infecting virus (JEECV) and Anguillid herpesvirus 1 (AngHV-1), cause serious diseases in eels that can negatively affect the economy of eel aquaculture industries in South Korea. Efficient virus detection is crucial for disease management; however, the practical application of current methodologies is challenging, in part owing to extensive time and specialized equipment requirements. The aim of this study was to develop a rapid real-time quantitative loop-mediated isothermal amplification (qLAMP) technique for the detection of JEECV and AngHV-1. Six different primers were designed to target eight different regions of the large T-antigen gene for JEECV detection, and the DNA polymerase catalytic subunit gene for AngHV-1 detection. Both sets of primers worked optimally at 65 °C. The qLAMP assay exhibited a minimum detection limit of 2.39 × 104 copies/μL for JEECV and 2.37 × 104 copies/μL for AngHV-1. Moreover, the primers demonstrated excellent specificity, showing no reaction with two major viruses, namely ostreid herpesvirus-1 microvariant (OsHV-1 μvar) and red sea bream iridovirus (RSIV). In addition, JEECV primers did not react with AngHV-1, and vice versa. Based on the standard curve and coefficient of determination values, both viruses could be quantified using this method. The qLAMP assay was validated with 104 clinical samples, including 72 infected and 32 healthy eels, and the assay findings were compared with previously reported duplex qPCR results that reported high sensitivity and specificity. The qLAMP results concorded well with the previous results. Evaluation of the threshold time (Tt) of the qLAMP results revealed that the samples could be analyzed in less than 15 min. The clinical diagnostic sensitivity (dSe) and diagnostic specificity (dSp) were assessed based on the confusion matrix; dSe and dSp for JEECV were 100% and 94.1%, respectively, and dSe and dSp for AngHV-1 were 96.8% and 77.8%, respectively. The Kappa values, which were used to represent the level of agreement between qLAMP and duplex qPCR results, for JEECV and AngHV-1 were 0.956 and 0.755, respectively, indicating that the qLAMP assay is a promising detection method for those viruses. Thus, the qLAMP assay developed herein could be applied as a rapid and sensitive tool to diagnose diseases caused by JEECV and AngHV-1 in the eel aquaculture industry.

Success Sweeter than Sugar: New Product Development Strategies of Successful Independent Bakeries in South Korea

It is widely accepted that successful products lead to a business's success as a whole. Therefore, creating new products, or New Product Development (NPD), must be carefully conducted to minimize the risks of new product failure. Economists often debate the effectiveness of customer-led (CL) approaches, market-oriented (MO) approaches, and the degree of product newness in NPD. Unfortunately, there is little existing research on applying these NPD approach considerations in the food industry, specifically the bakery sector, especially regarding independent businesses. In the ultra-competitive bakery industry in South Korea (Korea), independent bakeries must carefully hone their NPD process to attract customers and maintain a competitive advantage. To uncover the NPD processes of successful bakeries in Korea, structured interviews with five bakery owners of successful bakeries were conducted and analyzed for common themes through a thematic analysis. This study found that both CL and MO approaches were used for most of the five bakeries. Additionally, most of the bakeries tended to prioritize technological novelty over consumer perceptions of uniqueness. Further research is needed on the applicability of this study's results in industries with lower levels of neophobia to see if the NPD processes used by Korean independent bakeries are successful in various environments or solely in the Korean bakery market. The findings of this study may help independent bakery owners develop effective NPD processes based on consumer behaviors in Korea and the strategies of their competitors.

Innovation patterns and firm performance under industry maturity: manufacturing industries in South Korea

Although innovation patterns under industry life cycle have been investigated for decades, the impact of change in innovation patterns on firm performance has yet to be fully uncovered. This study empirically verifies the impact of product and process innovation on firm performance by considering industry maturity through hierarchical regression analysis using data from the Korean manufacturing industry. Two different measures for firm performance are utilised: innovative product sales and total sales. The results show that both product and process innovation have positive effects on innovative product sales, and industry maturity negatively moderates the positive effect of product innovation on innovative product sales. However, the moderating effect of industry maturity on the relationship between process innovation and innovative product sales is not significantly verified. Moreover, although the direct effect of product and process innovation on total sales is not significantly verified, total sales tend to decrease as the industry matures. Industry maturity positively moderates the effect of process innovation on total sales, while the moderating effect of industry maturity on the relationship between product innovation and total sales is not significantly verified.

Key barriers to adopting onshore power supply to reduce port air pollution: Policy implications for the maritime industry in South Korea

One of the most serious problems the world currently faces is global warming caused by greenhouse gases and pollution emissions. Despite the effectiveness of onshore power supply (OPS) in seaports for reducing environmental pollution, its use rate in ports in South Korea is low. Nevertheless, no study has analyzed the barriers to using OPS or explored ways to reduce air pollution from vessels. To fill this gap, this study explores why Korean liner shipping companies avoid using OPS. After a comprehensive literature review and expert interviews to identify key barriers, fuzzy AHP is employed to rank 16 barriers under four key factors. The research shows that the technical standards (BF22) of technical factors are the most significant barriers to the use of OPS. In addition, there is a differentiation in the awareness and views of using OPS among Korean liner shipping companies. This study offers insightful recommendations for developing government OPS policies.

Development of Pinaceae and Cupressaceae Essential Oils from Forest Waste in South Korea.

The growing awareness of environmental issues has garnered increasing interest in the use of waste material in a wide variety of applications. From this viewpoint, developing essential oils from forest waste can bring new cost opportunities for the effective and sustainable management of unused forestry biomass. However, better knowledge of the production, chemical constituents, and application of essential oils is necessary. Among the species considered to be of interest from the point of view of their essential oils and forest biomass, Pinaceae and Cupressaceae were selected in this study as potential candidates for commercial essential oils based on previous studies. This current study focuses on investigating Pinaceae (Larix kaempferi, Pinus densiflora, and Pinus koraiensis) and Cupressaceae (Chamaecyparis obtusa and Chamaecyparis pisifera) essential oils extracted from various parts from the perspective of their bioactive compounds and potential applications. This is followed by an overview of the essential oils industry in South Korea, with particular attention being paid to utilising unused forest biomass. Therefore, this is a comprehensive review suggesting that Pinaceae and Cupressaceae essential oils extracted from various parts of forest waste could be utilised in various industries, adding value to the aspect of sustainable industry. Furthermore, our study contributes towards capturing the value of forest resources through the utilisation of native essential oils in South Korea.

Serotype distribution and antibiogram of Streptococcus parauberis isolated from fish in South Korea.

Streptococcus parauberis is the dominant etiological agent of streptococcosis, the most devastating bacterial disease in the olive flounder farming industry in South Korea. In this study, the distribution of serotypes, antimicrobial susceptibility, and presence of antimicrobial resistance genes (ARGs) in S. parauberis isolates obtained between 1999 and 2021 was thoroughly investigated to gain insight into the dynamics of their presence and the relationship between serotypes and antimicrobial resistance. Disk diffusion testing of 103 isolates against 10 antimicrobial agents was performed, and epidemiological cut-off values generated through normalized resistance interpretation analysis were used to classify wild-type (WT) and non-wild-type (NWT) populations. Principal component analysis and hierarchical clustering were implemented to achieve an understanding on the relationship between serotypes and antimicrobial resistance patterns. PCR-based serotyping showed that serotype Ia (67.1%) was the most prevalent in South Korea, followed by serotypes Ib/Ic (25.2%) and II (7.7%). The highest proportion of isolates was assigned to NWT against amoxicillin (80.6%), followed by oxytetracycline (77.7%) and erythromycin (48.5%). The time-scale data showed that recently obtained serotypes Ib/Ic and II isolates tended to be categorized as NWT populations resistant to more antibiotics, possibly due to microbial adaptation to antibiotic pressure. ARGs responsible for resistance to oxytetracycline and erythromycin were found only in NWT populations in serotype Ia [tet(S) and erm(B), respectively], and serotype II [tet(M) and mef(J)-msr(I), respectively]. We also found that the mef-msr gene pair in S. parauberis serotype II might be involved in low-level resistance to erythromycin. IMPORTANCE This study presents serotype distribution and antimicrobial susceptibility data along with the antimicrobial resistance genes (ARGs) of Streptococcus parauberis, which is an important bacterial fish pathogen worldwide. In particular, almost all oxytetracycline and erythromycin non-wild-type (NWT) populations harbored tet(S) or tet(M), and erm(B) or mef(J)-msr(I), respectively. Interestingly, these ARGs were distributed in a highly serotype-dependent manner, resulting in a clear correlation between the antibiogram and serotype distribution. Moreover, recent isolates belonging to serotypes Ib/Ic and II tended to be more frequently categorized as NWT against antimicrobials, including amoxicillin and cefalexin compared to old isolates, while a dramatic decrease in erythromycin and clindamycin NWT frequencies was observed in recent serotype Ia isolates, which lacked erm(B). These variations might be attributed to shifts in the antibiotics employed in South Korean aquaculture over time. The overall findings would provide important background knowledge for understanding the epidemiology of S. parauberis infection in aquaculture.

Financial Experts on the Outside Boards, Financial Stress in Foreign Exchange Markets, and Firm Employment

ABSTRACT This study examines the role of financial experts on the outside boards on firm-level employment decisions under financial stress in foreign exchange markets (FSIFX). Using firm-level data from the manufacturing industry in South Korea from 2001 through 2019, we observe in the Korean FSIFX a negative relationship with employment. We also find that including a financial expert as an outside director plays a significant role in varying the FSIFX-employment relationship. Specifically, the presence of a financial expert on the firm’s outside board contributes to reducing the negative effects of FSIFX on employment. Moreover, these findings are particularly noteworthy for firms that carry steep export ratios.