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2009, Vol.18, No.2

  • 1.

    A Preliminary Study for Constructing the Fairness Evaluation System of Subcontracting Transactions: Application of AHP Method

    Kwanbo Kim | KYUNGJIN CHAE | 김명수 | 2009, 18(2) | pp.3~33 | number of Cited : 9
    Abstract PDF
    The purpose of this article is to construct the sustainable 'Fairness Evaluation System of Subcontracting Transactions' and calculate its fairness indices for evaluating the fairness of subcontracting transaction. First, the fairness concepts are categorized into three types for constructing the fairness evaluation system of subcontracting transaction: 1) procedural fairness, 2) result (outcome) fairness, and 3) mutual interaction (win-win cooperation) fairness. Second, both evaluation sectors (items) and detailed evaluation indicators are drawn from the subcontracting-related laws and win-win (cooperation) agreement and are linked to the concepts of subcontracting transaction fairness. Third, based on these findings, AHP (analytic hierarchy process) analysis is conducted to explore the degree of mutual importance and weight of evaluation sectors and their indicators. Finally, the 'Fairness Evaluation System of Subcontracting Transactions is created. The system includes three evaluation sectors: subcontracting contract conclusion, subcontracting contract execution, and subcontracting win-win cooperation. Also the system has 11 evaluation indicators and 22 detailed measurement indicators. The primary level analysis result of AHP has shown that subcontracting contract execution is the most important sector in the construction, manufacturing, and repair industries, while subcontracting contract conclusion is the most important item in the service industries. The secondary level analysis result of AHP with 11 evaluation indicators has demonstrated that subcontracting price decision and adjustment in the subcontracting contract execution is the most important indicator across all industries. The comprehensive weight and overall ranking results of all evaluation indicators have represented that subcontracting price payment is first, unfair subcontracting price reduction is second, and subcontracting decision and adjustment is third in all industries. The sectoral fairness index (SFI) and the composite fairness index (CFI) are calculated to apply the ‘Fairness Evaluation System of Subcontracting Transactions.'
  • 2.

    The Effect of GDP Levels on the Determinants of Tobacco Consumption?: An Evidence from the World Data

    Kang Dong Kwan | 2009, 18(2) | pp.35~62 | number of Cited : 3
    Abstract PDF
    The substantial efforts and polices are underway to control tobacco consumption in most countries using the ways of increasing prices and taxes and tightening regulations on it. However, these ways should be differentiated depending on GDP levels because the higher GDP countries have relatively the higher level of education and the better awareness of health costs or bad effects from smoking they recon. Using the data of 75 countries, which is collected from Tobacco Control Country Profiles 2003 published by WHO, I find that price control is the best way to decrease tobacco consumption in the lower GDP countries. On the contrary, the regulations such as counter-advertising and sponsorship regulation, youth access limitations, and smoke- free-environment do not seem to be a way to decrease the tobacco consumptions in these lower GDP countries but in the higher GDP countries, Therefore, this study suggests that the government polices to the tobacco consumptions should be changed depending on the level of its GDP: relatively lower GDP countries should place great importance on price while higher GDP countries should give priority to the non-price regulation rather than to price control.
  • 3.

    A Study on the Comparison between Fuel Taxes and Social Costs in Road Transport

    Lee Jaimin | SangYong Han | 2009, 18(2) | pp.65~94 | number of Cited : 3
    Abstract PDF
    We decompose the social costs in using transport facilities, expecially road facilities, into the internal and external costs. When economic agents drive their cars and use roads, they have to bear the road construction and maintenance costs, which is internal costs. They create air pollution material and greenhouse gases, which are external costs. Until now, Korean government impose fuel taxes on gasoline, diesel, and LPG for transport without considering the social costs. We compare the fuel taxes with the social costs in gasoline, diesel, and LPG. Especially, we compute the external costs per liter or per kilometer as well as the internal costs per liter or per kilometer in gasoline, diesel, and LPG. We use these costs to compare with the fuel taxes of gasoline, diesel, and LPG. In considering environmental external costs such as air pollution damage costs and greenhouse gas costs, the fuel tax rates of gasoline and diesel are above and below each their social costs respectively. The fuel tax rates of LPG are almost similar to its social costs.
  • 4.

    Inefficiency of Garbage Collectors and Efficiency Gain from Deregulation: The case of Seoul

    hyungho youn | Keeyoung Yoo | 정진아 | 2009, 18(2) | pp.95~129 | number of Cited : 5
    Abstract PDF
    The self-ruling districts of Seoul do not choose garbage collectors strictly according to their efficiency but do with discretionary power considering topographic traits of their jurisdiction, positions of garbage collectors, or administration convenience, and appoint their territorial boundaries for operation. This practice is criticised as having small-sized collectors marginally survive and yielding inefficiency industrywide. This study measures efficiency for each of 108 garbage collectors using their input and explores why such inefficiency occurs. Also, a simulation test provides a useful information about how much deregulation measures pursued by the central government can increase efficiency such as permitting business across self-ruling districts, and merge and acquisition.
  • 5.

    Unfair Intercompany Transaction and Regulation on Tunnelling

    최승재 | 2009, 18(2) | pp.131~166 | number of Cited : 20
    Abstract PDF
    Tunnelling was regulated by a number of devices in Korean law. Shareholder's derivative litigation in Commercial Law, violation of fiduciary relationship of the directors and shadow (de facto) directors in Criminal Laws were sort of tools for the regulation of Tunnelling. In the past the other devices except for Unfair Intercompany Transaction rule Monopoly Regulation and Fair Transaction Act (MRFTA) was only one activated rule for the purpose of regulating the Tunnelling, but not any more. Korean Constitutional Court rendered decision that Unfair Intercompany Transaction regulation in MRFTA is constitutional due to four reasons. Constitutional Court's rationale can be summarized as follows: Unfair Intercompany transaction will enhance the Market Concentration and hinder the entry of independent company to the market where a certain conglomerates are resident in. Competition in those markets are very difficult for the not-related company with the Chabeol Companies. Unfair Wealth Transfer can be one of the agenda that can be obtained through the MRFTA, however that object can also be achieved by the other devices in Commercial law, penal code, and tax code with different angles. Usurpation of Corporate Opportunity rule will be able to utilized for the unfair prevention of the Wealth Transfer. Considering the past achievement by Unfair Intercompany Transaction Rule (Article 23 §1 para. 7), now is the time to think the repeal of that rule more seriously.
  • 6.

    An Analysis of the Effect of Service-Based Competition Policy in European Telecommunications Markets

    김성환 | 김형찬 | 2009, 18(2) | pp.167~192 | number of Cited : 1
    Abstract PDF
    Service-based competition policy is the policy that promotes competition at the service level by letting the existing operators provide their facilities for the new operators at the regulated access fees. While service-based competition enables quick introduction and diffusion of competition, there is a criticism that such effect is limited and incentives for facility investment may be affected. The existing empirical studies are in disagreement over the effect of service-based competition policy. This paper conducts a new empirical analysis making use of data and methodology that are distinguished from the existing works. From the analysis with data on EC countries, we could find the effect of the policy contributing to the growth and the investment increase of new operators while the effect of deterring the investment incentives of the existing operators is not clear.
  • 7.

    An Empirical Study on the Effectiveness of Administrative Sanctions of the Korea Communications Commission

    CHOI, Jin-Wook | 구교준 | 2009, 18(2) | pp.193~222 | number of Cited : 0
    Abstract PDF
    Along with the convergence of the communications and the broadcasting industries, regulatory functions over those industries were consolidated into the Korea Communications Commission (KCC) in 2008. Under these circumstances, how to effectively regulate anticipated market failures is crucial for the KCC to promote fair competition, protect the interests of consumers, and achieve economic gains from industrial integration. Nonetheless, administrative sanctions, one of the most important and commonly used regulatory tools deployed by the former KCC, were not effective to deter market violations. This study attempts to analyze the positive as well as normative effectiveness of administrative sanctions on the one hand, and to identify the determinants of effectiveness on the other hand. The results of empirical analyses show that administrative sanctions were limited in both positive and normative effectiveness. This study suggests that the current KCC should not only improve incentive structures regarding administrative sanctions to increase positive effectiveness, but also alter the perception of the communications industry with regard to regulatory laws to enhance normative effectiveness.