Korean National Economy Research Articles

Economic impacts of the coal extraction sector on the South Korean national economy: An input-output analysis

This article applies input-output (IO) techniques to appraising the role and economic impacts of the coal extraction sector (CES) in South Korea. IO tables for five years, namely 2000, 2005, 2010, 2015, and 2019, are used. Three IO models are utilized to deal with various economic impacts by treating the CES included in the endogenous sectors as an exogenous one. The impacts of a production or investment in the CES on inducing production, value-added, and wages in the national economy have been gradually increasing, which is interpreted as the result of the restructuring of the CES that the South Korean government has promoted over the past 20 years. However, the value-added coefficient, employment coefficient, and employment creation impact have gradually decreased, which seems to be due to the worsening profitability due to the gradual phasing out of the CES. Both the impact of production disruptions in the CES on other sectors’ production and the impact of a change in the output price of the CES on that of other sectors have been gradually decreasing. Thus, the government can continue to phase out the CES without creating the burden of production disruptions and inflationary pressure in the national economy.

The economic role of industrial equipment sector in the Korean national economy

ABSTRACT After Japan began to regulate the exportation of core semiconductor materials in July 2019, the Korean government initiated a policy to strengthen the competitiveness of the local industry value chain (LIVC), encompassing the materials, components, and equipment sectors. Specifically, the government began to nurture the equipment sector in earnest. Based on Korea’s three most recent benchmark input-output tables, we define the equipment sector, including nine subsectors. Then, we consider them exogenous and estimate their economic spillover effects on the Korean economy from the LIVC perspective. We find that the equipment sector is characterized by high production-inducing (dominated by the backward-linkage effect) and low supply-shortage effects. However, we observe a decrease in its production-inducing and supply-shortage effects on the economy in terms of low localization in intermediate goods and a reduction in the cost of supply shortages. At the same time, we find heterogeneity in the economic spillover effects across different subsectors. Lastly, we observe the dispute and policy effect from the time-series analysis of domestic production, import reliance on Japan, and total trade balance. They indicate that policy makers should support the sector in terms of LIVC development and global competitiveness, with subsector-specific policies that incorporate its economic spillover effects.

Analyzing the Factors Influencing Time Delays in Korean Railroad Accidents

Railroads play a pivotal role in the Korean national economy, necessitating a thorough understanding of factors influencing accidents for effective mitigation strategies. Unlike prior research focused on accident frequency and severity, this study delves into the often-overlooked aspect of time delays resulting from railroad accidents. Analyzing 15 years of nationwide data (2008–2022), encompassing 3244 human-related and 3350 technical events, this research identifies key factors influencing delay likelihood and duration. Factors considered include event type, season, train type, location, operator size, person type involved, facility type, and causes. Despite an overall decrease in events, variable delay times highlight the need to comprehend specific contributing factors. To address excess zeros, the study employs a two-stage model and a zero-inflated negative binomial (ZINB) model, alongside artificial neural networks (ANNs) for non-linear pattern recognition. Human-related delays are influenced by event types, seasons, and passenger categories, exhibit nuanced impacts. Technical-related delays are influenced by incident types and facility involvement. Regarding model performance, the ANN models outperform regression-based models consistently in all cases. This study emphasizes the importance of considering both human and technical factors in predicting and understanding railroad accident delays, offering valuable insights for formulating strategies to mitigate service disruptions associated with these incidents.

Effects of the Forest industry on the South Korean national economy: evidence from an Input-Output analysis based on the special classification for the Forest industry

Following the Fourth Industrial Revolution, the forest industry sector now combines cutting-edge technology with other industries. Hence, the Special Classification for the Forest Industry was established to clearly define the scope of the forest industry. Therefore, we reclassify the 2018 input-output table of the Bank of Korea based on the Special Classification of the Forest Industry. Specifically, we calculate the proportion of the forest industry that contributes to the products and services of each industry and divide them into forest and non-forest industry sectors to create the input-output table of the forest industry. We find that a direct and indirect production inducement effect of KRW 193.4 million occurs when KRW 100 million is invested in the forest industry. The import inducement coefficient is 0.221 and the value-added inducement coefficient is 0.779. In the labor sector, the total workers inducement coefficient is 12.9 and the employee inducement coefficient is 8.5.

Impact of the connected & autonomous vehicle industry on the Korean national economy using input-output analysis

This study estimates Korea's connected and autonomous vehicle (CAV) industry's economic impact using a multiple-stage input-output (I-O) analysis. To overcome the rough and arbitrary industry matching process of traditional I-O analysis, we designed a modified I-O analysis that can estimate the Korean CAV industry's economic impact with a sophisticated and reasonable range of values by introducing a new, elaborate mapping stage. We estimated the economic impacts of the CAV industry in various ways through the evolution of CAV technology (autonomous vehicle and automated vehicle). The results show that full adoption and commercialization of CAV will transform the current automotive industry, which tends to be a final demand manufacturing industry, into an intermediate-demand manufacturing industry. These results empirically support previous studies demonstrating that CAV can be combined with mobility as a service (MaaS).

Nadzór właścicielski nad przedsiębiorstwami z udziałem Skarbu Państwa w Korei Południowej i Singapurze w kontekście dyskusji dotyczącej reformy systemu nadzoru właścicielskiego w Polsce

State-owned enterprises supervision system in South Korea and Singapore, within the context of the debate about reforming state-owned enterprises supervision system in Poland State-owned enterprises are a part of most modern economies. Therefore, it is substantial to elaborate which model of supervision system is the most suitable for the challenges of each country. Since the 2015 there is an ongoing debate in Poland, about the shape of a stateowned enterprises supervision system. It was considered to establish a national holding company, which would perform the ownership function for Polish state-owned enterprises. An inspiration for this idea was the South Korean state-owned supervision system and the impact of the chaebols on the Korean national economy. The aim of this article it to examine Korean solutions, and to present the state-owned supervision system which function in Singapore, because in many ways it seems to be a more adequate inspiration for the needs of Polish decision-makers.

МАСШТАБИ ТА ОРГАНІЗАЦІЙНІ ВИМІРИ ДІЯЛЬНОСТІ ПІВДЕННОКОРЕЙСЬКИХ КОРПОРАЦІЙ В УМОВАХ ЇХ ЦИФРОВОЇ ТРАНСФОРМАЦІЇ

An article examines the activities of the largest South Korean corporations, the impact of the information and communications technologies on the corporate development and their competitive leadership in the global paradigm of the global scientific and technological progress. Author has been conducted a historical digression into the process of the country’s economic model formation, focused attention on the government’s support in the field of the patenting in the technological sectors of South Korean economy. The comparative analysis of the largest South Korean high-tech corporations has been conducted by the most important financial indicators: net profit, market capitalization, assets and sales. It’s proved that due to the influence of the information and communication technologies on the traditional business, the significant transformations have been completed in the industry and production sectors. It is noted, that the companies, which have digital service as a main product in their production, increases importance and strengthen of their positions in the modern digital society. Maintaining the global competitive leadership positions and been flexible business structures on the internal and external markets, chaebols became the most influential players in South Korean National economy. Due to the influence of the Industry 4.0 and using in the mass production the information and communications technologies in Korean industry, allowed country to became an innovation leader of the technologies and maintain the competitive leaderships on the global markets. The constant intensification of competition on the global markets increase the pressure on the all actors and directly enforce them to develop innovative projects and diversify their business activity using the information and communications technologies. With the acceleration of the scientific and technological progress due to protecting and financially stimulating inventors on the Government level during the last 40 years, the local Korean companies had been able to renovate technologies and to retain intellectual capital in the country.

Impact of the smart port industry on the Korean national economy using input-output analysis

Recently, state-of-the-art technologies such as the Internet of Things and information and communications technology have been applied to the port logistics field in accordance with the advent of the fourth industrial revolution globally. In line with this trend, developed countries are developing and applying smart port technology in the port industry. However, few studies have investigated the economic impact of this activity. Thus, by reviewing the various definitions and policies of the smart port industry and applying a modified hybrid methodology combining Delphi surveys and input-output analysis, this study estimates the economic impact of the smart port industry on the Korean economy with a sophisticated yet reasonable range of values. The smart port industry is dominated by the forward linkage effect, which means the smart port industry is used as an intermediary material or process in other industries. Furthermore, compared with the port industry, the smart port industry has an especially large impact on productivity, value added, and employment.

한국 및 일본 정유산업의 국민경제적 역할 비교 분석

한국 및 일본 정유산업의 국민경제적 역할 비교 분석

The role of transportation sectors in the Korean national economy: An input-output analysis

The transportation industry has been playing an important role in the economic development of Korea and, thus, has become a critical factor in sustaining the well-being of the Korean people. This paper attempts to analyze the economic impacts of four transportation modes using input-output (I-O) analysis, with specific application to Korea. To this end, we apply the I-O models to the Korean I-O tables generated by the Bank of Korea, paying particular attention to the four transportation sectors in Korea (rail, road, water, and air transportations), considering them as exogenous, and then determining their impacts. Specifically, the production-inducing effects, supply shortage effects, sectoral price effects, forward linkage effects, and backward linkage effects of the four transportation modes are quantitatively derived over the period 2000–2010. For example, the production-inducing effect of a KRW 1.0 production or investment in transportation is larger in the petroleum and transportation equipment sectors than in other sectors. Furthermore, the rail and road transportation sectors have greater supply shortage effects than the other transportation sectors. Finally, the potential uses of the results of this analysis are presented from the perspective of policy instruments, and policy implications are discussed.

An Estimation of the Contribution of the International Meeting Industry to the Korean National Economy Based on Input—Output Analysis

This paper presents the contribution of the international meeting industry to the Korean national economy. To obtain more accurate results, the study adopted three improvements over previous research: consideration of both supply and demand; direct expenditure surveys of participants and hosts; and re-categorization of related business sectors. The results of the input-output analysis showed that per capita expenditure for international and domestic participants was US$2,432.4 and US$459.3, respectively, and the per capita average budget was US$562.1. Based on these findings, the total contribution of the international meeting industry to the Korean economy exceeds US$1,343.2 million in output, US$236.6 million in personal income, US$589.3 million in value added, US$61.5 million in tax revenue and 16,336 full-time-equivalent jobs. These results provide two key implications, providing evidence of the importance of both the supply and demand sides and the relative importance of each sub-industry for increasing economic benefit.

부가통신서비스산업의 경제적 파급효과 분석: 산업연관분석을 이용하여

부가통신서비스산업은 통신서비스 산업과 국가 경제 발전에 중요성이 증대되고 있다. 따라서 본 연구는 산업연관분석을 이용하여 2000년, 2005년 2009년 세 개년도 동안 부가통신서비스 산업의 역할에 대해 조사하였다. 분석을 위해 수요유도모형에 따른 생산유발효과, 부가가치유발효과 그리고 취업유발효과, 공급유도모형과 레온티에프 가격 모형에 따른 공급지장효과, 물가파급효과 그리고 전후방연쇄효과에 대해 알아보았다. 분석 결과 생산유발효과는 2000년 0.5253원, 2009년 1.31314원, 부가가치유발효과는 0.25112원에서 0.5337원으로 취업유발효과는 0.09749명에서 0.21025명으로 성장하였고, 공급지장효과는 1.29003원에서 2.12048원, 레온티에프 가격모형에 의한 물가파급효과는 0.0022%에서 0.00258%로 상승하였다. 마지막으로 산업연쇄효과에 따르면 최종 수요적 원시산업형의 특징을 가지는 것으로 나타났다. The value added network service industry has played and important role in the telecommunication service industry and in the economic development of Korea. This study uses input-output analysis to investigate the role of value added network service sector in the Korean national economy for the period 2000, 2005, 2009, focusing on four topics in its application: production inducing effects, value-added inducing effect, employment-inducing effects by demand-driven model and supply shortage effect by supply-driven model, inflation impacts by the Leontief price model, finally analysing inter-industry linkage effects. The results of this study are as follows: production inducing effects analysis 2000 0.5253won to 2009 1.31314won, value-added inducing effects 0.25112won to 0.5337won employment inducing effects from 0.09749 to 0.21025 people grew, the supply shortage effect from 1.29003 to 2.12048won, price impact of Leontief price model was increased from 0.0022% to 0.00258%. Finally, inter-industry linkage effects, appeared to have the characteristics of final demand raw industrial.

The role of the capture fisheries and aquaculture sectors in the Korean national economy: An input–output analysis

The aquaculture industry can meet food security needs and reduce the pressure on marine resources. The expansion of aquaculture allows the fisheries industry to restructure from hunting to farming, and thus drives the need for an analysis of the economic impacts of aquaculture industry in consideration of the interdependence between capture fisheries and aquaculture industry. This study attempts to analyze the economic impacts of two fishery sectors using input–output (I–O) analysis, with specific application to Korea. To this end, this study applies the I–O models to the Korean I–O tables generated by the Bank of Korea, paying particular attention to the two fishery sectors in Korea, considering them as exogenous, and then determining their impacts. Specifically, the production-inducing effects, employment-inducing effects, supply shortage effects, sectoral price effects, forward linkage effects, and backward linkage effects of the two fishery sectors are presented over the period 1995–2010. For example, the production-inducing effect of a KRW 1.0 change in fisheries investment is larger in the petroleum and chemical sectors than in other sectors. Moreover, the aquaculture sector has larger employment-inducing effects than the capture fisheries. Finally, the potential uses of the results of this analysis are presented from the perspective of policy instruments, and policy implications are discussed.

The impact of electricity price changes on industrial prices and the general price level in Korea

Electricity has played an important role in the economic development of Korea and, thus, has become a critical factor in sustaining the well-being of the Korean people. This study attempts to investigate the impact of electricity price changes on industrial prices and the general price level using input–output (I–O) analysis. To this end, we apply the I–O price model to the 2011 I–O table recently produced by the Bank of Korea, paying particular attention to the electricity sector by considering it as exogenous and then investigating its impacts. The impacts of the electricity price changes on each industrial sector's prices and the general price level are quantitatively derived. For example, the overall impact of a 10% increase in electricity price on the Korean national economy is estimated to be 0.4367%. We also report the results from the model with the electricity sector endogenous and the model with endogenous electricity and labor sectors. This information can be usefully utilized in decision-making regarding price management for electricity.

The Korean Wave: An Asian Reaction to Western-Dominated Globalization

AbstractIn this article I analyze “the Korean Wave (hallyu),” the term coined by Chinese media towards the end of the last millennium to describe the meteoric rise in the popularity of Korean pop culture in Asian countries. It has attracted the attention of not only the general public, but also academic and other researchers because of the far-reaching ramifications in terms of the Korean national economy and the cultural unity and exchange among the Asian peoples.The world of popular entertainment has seen a high degree of globalization with Hollywood as its utopia. However, Hollywood has proved to be a dystopia to the peoples of Asia, in that it is dominated by non-Asians, and underpinned by the contemporary Western ethos, i.e. individualism, commercialism and sensationalism. Scenes containing unadulterated sex and violence, which offend the sensitivities of the Asian general public, are almost an integral part of many a commercially successful film. Opportunities for big roles are almost non-existent to ethnic Asian actors. Romantic heroes and heroines are very rarely played by Asian actors, who usually appear as weird villains or, very rarely, wizards with supernatural powers.In contemporary Korean cinemas, TV dramas and pop music, globalization is also evident. The stars follow the world trend in performance, presentation and fashion, and emulate their Western compatriots. English is often used as lyrics in songs. However, the big difference is that the performers have distinct Asian physical features, and the dramas reflect the traditional Asian values and ethos, which helps to make the Asian fans feel at home. The “Asian-ness” is no longer something weird or marginal, but takes center stage. Therefore there is a sense in which the Korean Wave is a reaction of the Asian people to the West-dominated globalization in popular culture. But what distinguishes the Korean Wave from other similar phenomena, such as Bollywood and Nollywood, is the juxtaposition of globalized and traditional Korean cultures.

태평양 심해저 망간단괴 개발사업의 경제적 파급효과

The securing of raw material is an important requirement for economic development. Many countries, including Korea, actively seek out a stable supply of minerals such as manganese. Manganese nodules are rock concretions on the sea bottom formed of concentric layers of iron and manganese hydroxides around a core and include several strategic minerals necessary for economic development. In particular, the manganese nodule development project (MNDP) plays an important role in the Korean national economy. This study attempts to apply input-output (I-O) analysis in investigating the economic impacts of the MNDP in the Korean national economy. A static I-O framework was employed, focusing on four topics in its application; the production-inducing impacts, the value-added-inducing impacts, the employment-inducing impacts and R&D-inducing impacts of MNDP investments on other sectors. To this end, several versions of the demand-driven models are utilized. In addition, inter-industry linkage analysis is performed to obtain information on the forward and backward linkage effects of industries, including MNDP, to quantify the strength of causation among these industries.

The Role of the Oil Industry in the Korean National Economy: An Input-Output Analysis

The oil industry has played an important role in the economic development of Korea, but recent skyrocketing oil prices are likely to stunt the Korean economy and prevent it from advancing in the long run. This article attempts to apply input-output (I-O) analysis to investigate the role of the oil industry in the Korean national economy. A static I-O framework is employed, focusing on three topics in its application: the impact of oil supply investment on the production of other sectors and the inter-industry linkage effect; the oil supply shortage effect; and the impact of the rise in oil rate on prices of other products. This article pays particular attention to the oil industry sector by taking the sector as exogenous and then investigating its economic impacts. Moreover, potential uses of the results are illustrated from the perspective of policy instruments and some policy implications are discussed.

The Role of the Logistics Industry in the Korean National Economy: An Input-Output Analysis

Ⅰ. Introduction = 1 1.1 The Background and the Purpose of the Research = 1 1.2 The Status and Prospects of Logistics industry = 4 1.3 The National Logistics Cost = 6 1.4 The Domestic Freight Transportation = 10 1.5 Organization of the Research = 14 Ⅱ. Literature Review = 15 2.1 The Definitions of Logistics = 15 2.2 The Definition and Classification of Logistics industry = 18 2.3 The Characteristic of Logistics industry = 23 2.4 The Research on the Logistics industry with I-O Model = 25 2.5 The Research on the Logistics industry = 30 2.6 The Characteristics of this Research = 32 Ⅲ. The Methodology = 34 3.1 The Input-Output Analysis of Logistics industry = 34 3.2 General Framework of the I-CO Analysis = 36 3.3 Demand-driven Model = 37 3.4 Supply driven Model = 42 3.5 Leontief price Model = 44 Ⅳ. Results = 46 4.1 Reconstruct I-O table = 46 4.2 Total yield rate, Rate of inter mediate input, added value ratio = 50 4.3 The Demand driven model analysis = 61 4.4 The Supply-driven model - the supply-shortage effects = 79 4.5 The Leontief price Model - The Pervasive effect of price change = 88 Ⅴ. Conclusion = 93 References = 99

A Study on the Effect of the Improvement of Investment Environment with Investment Incentive on National Economy

This research is to investigate the effect of the improvement of investment environments with investment incentive on Korean national economy by looking into the foreign investment support system in Korea. To this end, first research model was set up based on our literary study and case study was conducted on 150 foreign companies that were located in industrial complex for foreign companies, received the tax benefit and government subsidization. And it was found that even though the foreign companies were contributing to the national economy in general such as in the area of production, export, employment, development of technology, there was no significant contributory difference between the investment incentive beneficiary and non‐beneficiary foreign companies. Therefore it deemed reasonable to reconsider the way Korean government supports foreign companies in Korea and to reinforce foreign companies’ relevance to national policy agenda with additional incentives to foreign companies located in comparatively less developed areas. As a way to promote foreign investment, promotion of investment infra such as improvement of follow‐up services, openness to foreign investment, industrial deregulations in capital area, revitalization of free economic zone, efficient system to promote foreign investment and the reinforcement of public relations were considered necessary, especially the upgrading of economic structure and the integrated management of domestic and foreign investors deemed necessary for the optimal distribution of the industries.

Analysis of the role of maritime freight transport industry in the Korean national economy

The maritime freight transportation industry has played an important role in the Korean economy. The Korean maritime freight transportation industry is faced with a period of transforming it competitively and efficiently in this global age. This paper, therefore, aims to identify the impact of the maritime freight transportation industry in the Korean national economy. Hence, this paper provides policy-makers with accessible and reliable information regarding the role of the Korean maritime freight transportation industry. This study employs input-output (I-O) analysis to examine the role of the maritime freight transportation industry in the national economy for the period 1995-2003, with specific application to Korea. This study pays particular attention to the maritime freight transportation industry by taking the industry as exogenous variable and then investigates its economic impacts. We identify inter-industry linkage effects in 20 sectors, production-inducing effects, added value-inducing effects, and supply-shortage effects of the maritime freight transportation industry.