South Korean Market Research Articles

A Study on the Phenomenon of Conspicuous Consumption in South Korea’s Luxury Market Under Economic Uncertainty

This paper investigates the phenomenon of conspicuous consumption in South Korea’s luxury market under conditions of economic uncertainty. While traditional economic theories suggest that luxury spending should decrease during periods of financial instability, the South Korean market demonstrates a contrasting trend, where luxury consumption not only persists but often intensifies. Through qualitative interviews with consumers, industry experts, and market analysts, this study explores the cultural, social, and psychological factors driving this behavior. The findings reveal that social status, identity, and emotional coping mechanisms play crucial roles in sustaining luxury consumption, even amidst economic downturns. Furthermore, the influence of K-Culture and social media amplifies the desire for luxury goods, especially among younger consumers. The study also highlights the complex interplay between economic variables, such as GDP growth, unemployment rates, and consumer confidence, and their impact on luxury spending patterns. This paper contributes to a deeper understanding of the unique dynamics at play in the South Korean luxury market and offers insights for luxury brands, marketers, and policymakers to develop effective strategies in this rapidly evolving environment.

Analisa Potensi Pasar Korea Selatan untuk Produk Kehutanan

The use of wood as a high-value product does not stop there. Paper, furniture, carbon, and rubber are examples of other non-timber forestry products that are often found in everyday life but are sourced from forests. The purpose of this study is to analyze South Korea's market potential for forestry products. In this study, we use qualitative methodology to understand and evaluate the opportunities and problems faced by Indonesian forestry products, as well as the global market potential for these products. The potential of Indonesian wood commodities and wood products to enter the South Korean market with minimal domestic supply still holds great potential. With abundant supply, offering quality, competitive prices and guaranteeing the required legality documents, it is believed that Indonesia has the opportunity to answer the needs of wood and wood products in the South Korean market in the future.

Strategic Navigation in Global Markets: Unveiling International Marketing Challenges

In the realm of international marketing, strategic navigation proves essential as companies confront a myriad of challenges. This thesis starts from complexities surrounding global markets, shedding light on distinct facets such as psychic distance between different markets and self-reference criterion, the standardization versus adaptation dilemma, brand-name power dilution and partner selection challenges. As companies embark on the evolutionary process of entering new markets, they must navigate linguistic, cultural, and competitive disparities. Effectively addressing these challenges demands strategic foresight and adaptability in the ever-evolving global business landscape, marking a crucial aspect of successful global market engagement. Concrete examples, such as Mary Kay Cosmetics’ unique whitening products in Japanese market, IKEA’s adaptive strategies in the Chinese market and Samsung-Tesco’s commitment to overcoming brand-name power dilution in South Korean market, serve to illustrate the practical implications of these challenges.

Heterogeneous macroeconomic factors' effects on stocks across sizes, styles, and sectors in the South Korean market.

Knowledge of the key macroeconomic variables that influence stock volatility across capital sizes, styles, and sectors can provide clues for investment strategies and policy decisions. We use the GARCH-MIDAS model with feature selection to analyze Korean Benchmark Indices from 2009 to 2022. This study maximizes memory retention through an optimal fractional differentiated price series and uses an adaptive lasso penalty for feature selection. The housing price-sales index and realized volatility were consistently influential across most indices and sectors. The GARCH-MIDAS model, paired with these variables, significantly improves long-term stock volatility forecasts. This study underscores the need to monitor housing prices in South Korea because of their substantial effects on long-term stock volatility.

Integrating Multimodal and Generative AI in Design Research: Enhancing Ethnographic Methods with Data-Driven Analysis

This research examines the application of Multimodal and Generative AI in analyzing interior design trends within the South Korean market. The objective is to enhance traditional ethnographic research methods with AI's quantitative capabilities, offering a more comprehensive understanding of design preferences. This methodology uses AI tools to systematically analyze and categorize design elements from a large dataset of interior design images sourced from a relevant online platform. This process involves extracting key visual trends and patterns using AI-driven semantic analysis and clustering techniques. The study identifies and classifies four dominant design trends, providing a structured overview of current market preferences. By integrating AI into design trend analysis, the study demonstrates a novel approach to understanding consumer preferences, potentially influencing future design decisions. This use of AI in design research broadens the scope of traditional ethnographic studies in design and provides practical insights for designers and industry practitioners, suggesting a shift towards more data-driven design practice.

Strategic Suggestions for Video Content Firms: Focusing on YouTube and Netflix of the South Korean Market

Strategic Suggestions for Video Content Firms: Focusing on YouTube and Netflix of the South Korean Market

플러스 사이즈 모델의 지각된 사이즈가 신체 만족에 미치는 영향 : 지각된 유사성과 신체 사이즈 변화 가능성에 대한 암묵적 신념의 조절된 매개 효과

The use of size-inclusive advertising in Western fashion markets has been well-received by consumers. However, the effect of such advertising on South Korean consumers has yet to be fully understood. To address this gap, we investigated the effect of inclusive advertising using plus-size models in the South Korean fashion market. Specifically, we examined the influence of perceived size of a plus-size model and perceived similarity to a plus-size model on body satisfaction, considering the moderated mediation effect of implicit belief about the malleability of body sizes. Data were collected through an online survey administered to 307 South Korean women in their 20s and 30s and analyzed using the SPSS Process Macro. Our findings show that perceived size of a plus-size model had a negative impact on body satisfaction. Furthermore, perceived similarity to a plus-size model mediated this causal relationship. We also discovered that the mediated relationship was moderated by implicit belief about the malleability of body sizes. This study highlights that, unlike Western consumers, South Korean consumers still respond unfavorably to size-inclusive fashion advertising featuring plus-size models. Therefore, differentiated advertising strategies are necessary for this market.

The value of time and the impact on the air freight product portfolio - A study of the South Korean market 2017–2021

Traditionally, time was a crucial factor in determining competitiveness in the air cargo market. This study demonstrates that products whose value changes drastically over time could increase the air transport demand. This study represents that the shipper having products with enormous time sensitivity is more willing to endure the higher fare, indicating the possibility that time-sensitive products will drive the air cargo market's growth. This study also provides empirical evidence for the influence of time factors by showing that time-sensitive products are being transferred from sea to air transport based on ICN and South Korean data. The analysis results are as follows. First, an emerging type of cargo, not a traditional type of cargo, has a significant effect on increasing air transport share. The emerging type of items appeared before Covid-19, and Covid-19 has accelerated their growth. Second, even if airfares increase relatively, the proportion of air transportation does not decrease. It seems to be the result that an emerging type of cargo with higher time sensitivity significantly affects the recent increase in air freight volume. Demand increases in an emerging type of cargo, more sensitive to time, can affect the rise in the air transport share, restricting the negative effect from a relative increase in air freight rates. Last, Covid-19 significantly affects the increase in air transport share. In this regard, this study provides practical implications for the recent growth drivers of the air cargo market. Especially in addition to variables traditionally considered to impact air freight volumes, such as income and price, this study suggests changes in transport items as a growth driver for the recent air cargo market.

Women Employment Market Post-Covid 19 Pandemic in South Korea and Indonesia

This article compares South Korean and Indonesian women's labor market policies to explore post-covid-19 policies. The two countries took different paths to activation after covid-19, and the decisive difference lies in the scale of direct job creation programs compared to vocational training and employment services. The diverse socio-economic contexts and democratic landscapes further shape the repertoire of activations available to the governments of both countries. We examine this issue from various perspectives that prevent women from entering the labor market, especially during the COVID-19 pandemic. In addition, economic crises and political instability shape the various evolutions of each country's labor market policies. This study contributes to an understanding of the dynamics of social policy change, especially post-pandemic and highlights the circumstances that lead to policy change.

ТОРГОВЕЛЬНО-ЕКОНОМІЧНЕ СПІВРОБІТНИЦТВО МІЖ УКРАЇНОЮ ТА РЕСПУБЛІКОЮ КОРЕЯ: СТАН І ПЕРСПЕКТИВИ

The article analyzes the trade and economic cooperation between Ukraine and the Republic of Korea. Statistical data on the trade of goods and services between the two countries indicate an uneven balance of foreign economic relations at present. The aim of the article is to outline the condition and prospects of the development of trade and economic cooperation between Ukraine and the Republic of Korea. Research in this area allows to identifying factors that have hindered the development of Ukraine’s existing trade and economic potential. The main obstacles include the absence of a free trade agreement between the countries, insufficient investment, poor quality of information about market, lack of relevant legal basis for investment protection and intellectual property, and difficulties accessing the South Korean market due to regulatory barriers. The article proposes ways to overcome these problems and increase the efficiency of economic cooperation. These include signing a free trade agreement between the countries, creating joint projects in science and technology, increasing the number of investments, and improving information exchange between business communities. In particular, it is noted that the opening of free trade between the countries may lead to an increase in exports of goods and services from Ukraine to the Republic of Korea, the growth of investment, and the development of such industries as information technology, science, and education. The authors of the article also recommend conducting international forums that will facilitate the exchange of experience and knowledge in the field of business and science. In addition, the export potential of Ukrainian products to the Republic of Korea market has been analyzed, and promising niches in the category of goods and services have been identified. Ways to overcome key problems and obstacles in the declared area of cooperation have been proposed, which allows for predicting the prospects for further development and a positive impact on the economies of both countries.

A cost-effectiveness analysis of fuel cell electric vehicles considering infrastructure costs and greenhouse gas emissions: An empirical case study in Korea

A cost-effectiveness analysis was applied to compare the costs of reducing greenhouse gas emissions by switching to vehicles powered by alternative fuels. We adopted a total cost of ownership analysis to determine the switching costs, and a well-to-wheel analysis to calculate the quantity of greenhouse gases eliminated. We included the costs of the charging infrastructure, which is indispensable for both electric vehicles and fuel cell electric vehicles. We conducted a case study in the South Korean market, where fuel cell vehicles are more common than in most other countries. We found that even vehicles that run on by-product hydrogen require further technological advances to achieve cost-effectiveness despite their relatively low environmental impact. In terms of purchase cost, fuel cell vehicles require a 72.3% reduction to achieve cost-effectiveness, while battery-powered electric vehicles require a 45.3% reduction. Both on-site steam methane reforming and a combination of steam methane reforming and pipeline delivery of hydrogen were less cost-effective than a naphtha-cracking tube-trailer combination in terms of infrastructure costs, despite low transportation costs. Electrolysis of hydrogen was not as economically feasible and produced more greenhouse gases compared to battery-powered electric vehicles.

Foreign Ownership and Capital Structure in Times of Crises: Case of South Korea

This paper presents the results of analysis of the role of foreign investors in capital structure choice. The analysis is conducted using regression analysis of panel data. Operating with data of 809 companies listed in the South Korean market in 1997-2020, we demonstrate that the debt-to-equity ratio of companies with foreign investors is lower than in the rest of thefirms. In this case, foreign investors’ monitoring of a company’s performance can be a substitute for debt financing as a disciplining mechanism for management. Foreign investors also indirectly affect the capital structure by impacting the speed of adjustment to the target leverage. The results of our study show that the speed of adjustment to the target debt-to-equity ratio increases along with a rise in foreign investor participation. The results are most pronounced for over-leveraged firms. Whereas during financial crises, we observe no effect of the presence of foreign investors on the changes in the target debt-to-equity ratio, we find a significant increase in the speed of adjustment to the target leverage in companies withforeign investors. During the current coronavirus crisis, corporate debt of companies with foreign investors is decreasing even more, while the speed of adjustment decreases. We attribute these effects to the non-financial nature of the crisis, which makes the role of foreign investors in monitoring management less meaningful. In practice, results can be used bycompany managers when facing crises or other macroeconomic shocks. The results obtained can also be used by public authorities in shaping policies to stimulate foreign investment.

ON THE RELATIONSHIP BETWEEN ECONOMIC POLICY UNCERTAINTY, GEOPOLITICAL RISK AND STOCK MARKET RETURNS IN SOUTH KOREA: A QUANTILE CAUSALITY ANALYSIS

In this research, we assess the influence of geopolitical risk (GPR), exchange rate (EXCH) and economic policy uncertainty (EPU) on South Korea stock market. Using monthly dataset covering the period from 1997 to 2021, we utilized the novel non-parametric causality-in-quantiles test initiated by Balcilar et al. (2017) to assess these associations. This study discovered that the effect of macroeconomic shocks in South Korea is diverse across the stock market, implying that the influence of these shocks is not consistent across the stock market in South Korea. Furthermore, this study revealed that the causal influence of EPU, GPR on the stock market is visible in mean and variance. Nonetheless, the causal influence of EXCH on the stock market can only be seen in the mean, with no indication of causation in the variance. We consider that these results are significant to South Korean stock market investors for the purposes of foreign portfolio diversification and establishing investing strategies during times of economic uncertainty.

Forecasting Agricultural Commodity Prices Using Dual Input Attention LSTM

Fluctuations in agricultural commodity prices affect the supply and demand of agricultural commodities and have a significant impact on consumers. Accurate prediction of agricultural commodity prices would facilitate the reduction of risk caused by price fluctuations. This paper proposes a model called the dual input attention long short-term memory (DIA-LSTM) for the efficient prediction of agricultural commodity prices. DIA-LSTM is trained using various variables that affect the price of agricultural commodities, such as meteorological data, and trading volume data, and can identify the feature correlation and temporal relationships of multivariate time series input data. Further, whereas conventional models predominantly focus on the static main production area (which is selected for each agricultural commodity beforehand based on statistical data), DIA-LSTM utilizes the dynamic main production area (which is selected based on the production of agricultural commodities in each region). To evaluate DIA-LSTM, it was applied to the monthly price prediction of cabbage and radish in the South Korean market. Using meteorological information for the dynamic main production area, it achieved 2.8% to 5.5% lower mean absolute percentage error (MAPE) than that of the conventional model that uses meteorological information for the static main production area. Furthermore, it achieved 1.41% to 4.26% lower MAPE than that of benchmark models. Thus, it provides a new idea for agricultural commodity price forecasting and has the potential to stabilize the supply and demand of agricultural products.

Financialization of South Korean non-financial firms: an empirical analysis of the impacts on firms’ real and research and development investments

This study explores financialization’s effects on corporate innovation using data on 711 firms taken from the KIS-Value database (1994–2019) and the generalized method of moments (GMM) model. Scholars warn that aiming solely to maximize shareholders’ interests and short-term financial investments places non-financial firms’ entrepreneurship at risk. Long-term R&D and real investments decline as a result, leading to stagnant growth. This study investigates whether empirical findings from the US and the UK, where financialization negatively affects corporations’ real and R&D investments, apply to the South Korean market. We find that the financialization of South Korean non-financial firms has damaged both real and R&D investments. The first channel of financialization, increased financial investments, reduces real investments and R&D spending. Furthermore, the second channel of financialization, profit-sharing, reduces corporate innovation. The more that South Korean non-financial firms adhere to dividend payments and stock buybacks, the greater the negative impacts on real and R&D investments are.

Особенности применения инноваций и интеллектуальной собственности как стратегического инструмента при разработке стратегии входа на корейский рынок

Abstract. The relevance of this work is due to the fact that the Korean market is one of the most developed and continues to develop dynamically, therefore it is attractive and promising for foreign companies, including Russian. The relevance of this work is due to the fact that the Korean market is one of the most developed today and continues to develop dynamically. This makes it attractive and promising for Russian companies. However, the Korean market is characterized by high competitiveness, and therefore it is necessary to pay special attention to additional strategic tools, which can be innovations and intellectual property of the company. The purpose of this article is to identify the features necessary to take into account when developing a strategy for entering the South Korean market. The use of innovations and intellectual property in strategizing is an actual trend due to the increase in the value of such objects in both domestic and foreign practice. In this regard, the object of the work identified intellectual property and innovation, considered as a strategic tool for the development of competitiveness. The subject of the study is the peculiarities of using the competitive advantages of intellectual property objects when developing a strategy for entering the Korean market. The research was based on the general theory of strategy and the methodology of strategizing, developed by V. L. Quint, Doctor of Economics, Professor, foreign member of the Russian Academy of Sciences. The research methods were analysis and comparison, classification and generalization. The article considered the main economic indicators characterizing the Korean market. In accordance with the characteristics inherent in this market, characteristics were compiled according to the parameters necessary for use in the development of a strategy. Recommendations were given to facilitate the development of a strategy for entering the Korean market, applicable to companies in various fields. The set of parameters considered is relevant for companies with different goals, amounts of resources and time capabilities. The scientific and practical significance of the results obtained consists in supplementing the theoretical base of research and the high applicability of the results obtained in the practical activities of companies with strategic priorities focused on expanding their foreign presence.

Method Validation for Determination of Thallium by Inductively Coupled Plasma Mass Spectrometry and Monitoring of Various Foods in South Korea.

Thallium (Tl) is a rare element and one of the most harmful metals. This study validated an analytical method for determining Tl in foods by inductively coupled plasma mass spectrometry (ICP-MS) based on food matrices and calories. For six representative foods, the method’s correlation coefficient (R2) was above 0.999, and the method limit of detection (MLOD) was 0.0070–0.0498 μg kg−1, with accuracy ranging from 82.06% to 119.81% and precision within 10%. We investigated 304 various foods in the South Korean market, including agricultural, fishery, livestock, and processed foods. Tl above the MLOD level was detected in 148 samples and was less than 10 μg kg−1 in 98% of the samples. Comparing the Tl concentrations among food groups revealed that fisheries and animal products had higher Tl contents than cereals and vegetables. Tl exposure via food intake did not exceed the health guidance level.

Export performance and competitiveness of Indonesian coconut oil and desiccated coconut

Competitiveness is an essential key in market penetration in export destination countries. This study aims to analyze Indonesian coconut oil, refined, bleached and deodorized and desiccated coconut (DC) export performance and its competitiveness in the export market. The competitiveness measurement is seen from comparative and competitive advantages over the two products in each leading export destination market. The analysis method used graphical illustrations and the RCA and EPD covering the period of 2009-2018. The study shows that coconut oil and DC’s export performance increases in all export markets during the analysis period. The Chinese market is a prospective market for coconut oil with the most significant export growth, 10.51% per year, and the largest market share after the USA and South Korea. Meanwhile, the Russian market is the biggest after Germany and Singapore for DC products. The result shows that coconut oil and DC product have comparative competitiveness in all export markets. Coconut oil products are no longer competitive in the South Korean market because their exports are not growing dynamically. The Chinese market is still open, but Indonesia cannot take advantage of this opportunity (lost opportunity). Meantime, DC products have an ideal position in the Russian market and the USA market for coconut oil, namely the rising star. Indonesia gains additional market share with dynamic growth (fast-growing product). Active efforts to find new markets through market diversification and diplomacy while maintaining existing markets can be an option to increase the export of coconut oil and desiccated product.

Hedging Global and Country-Specific Geopolitical Risks With South Korean Stocks: A Predictability Approach

In this study, we examine the potential of South Korean stocks to hedge against global and country-specific geopolitical risks. A predictability approach with a feasible quasi generalized least square (FQGLS) estimator was employed. Our results reveal that global and country-specific geopolitical risks are good predictors of South Korean stock market returns. This implies that the South Korean stock market provides a good hedge against global and South Korean geopolitical risks.

The Globalization and Business Performance of Corporate Value Chain

Purpose - This paper empirically investigates the relationship between the corporate value chain and performance of non- financial businesses of South Korean stock market companies. It aims to explore the evidence that can be used to infer the relationship between value chains and corporate performance in the case of firms forming a value chain with other companies with the means of an equity investment or a special business relationship. Design/methodology - Non-financial corporations listed from 2011 to 2017 on the securities market of South Korea are analyzed. The data used for analysis are found for transactions with the related party by year for all the corporations of non-financial industries in the securities market. Multiple analysis attempts are conducted including the relationship between the value chain and productivity, corporate value, risk-adjusted corporate value, and mediation effects of productivity. The empirical model employs sixteen variables including the value chain index which identifies its impact on various aspects of business performances. Findings - The results of this study clearly supports the phenomenon that corporate productivity and value are enhanced when the corporation expands its value chain established with domestic related firms and overseas companies. Such a positive effect is statistically significant even after the possible risk factors that accompany the expansion of value chain were considered, and productivity plays the role as a medicating variable in the effect of the value chain on the corporation values. Originality/value - The findings of this study confirms that domestic companies’ expansion of their value chain centered on the related firms overseas that helped them in terms of the maximization of their productivity and corporate values. This study shows that Korean government’s policy on expanding the corporate GVC can enhance the productivity and value of firms. The expansion of value chain and its impact on business performance has not been explored thoroughly, although it is getting more and more important in the global trade operation.