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2013, Vol.22, No.1

  • 1.

    Effects of Mandatory Switching to Regular Employment Contracts on the Level of Employment

    변양규 | 2013, 22(1) | pp.3~36 | number of Cited : 3
    Abstract PDF
    National Assembly is competitively proposing new bills holding up the idea that a stronger restriction on the use of non-regular workers may boost the employment of regular head counts. However, majority of the current proposals are intended to directly restrict the use of workforce, which could cause employment contraction. This paper examines the effect of mandatory switching of non-regular workers to regular workers on the level of employment in an economy where workers differ in employment adjustment cost as well as productivity. Simulation result shows that raising employment adjustment cost of non-regular workers by enforcing indefinite-term contract of non-regular workers causes employment contraction. This effect overwhelms employment expansion of regular workers, resulting in employment contraction of the whole economy. The pivotal thing is that the possible segment of workers that could lose their jobs is mostly the current non-regular workers. Thus, this is not in accordance with non-regular worker protection as well as job creation. Instead, lowering employment protection of current standard workers may create more standard and non-standard jobs, and shorten unemployment duration. Thus, reducing employment protection of standard workers can be an effective way of achieving both job creation and worker protection.
  • 2.

    Gambling Addiction and Improvement of the Regulation on Total Sales in Korean Gambling Industries

    Lee, Yeon-ho | Young Mok Bae | Lim, Byung-in | 2013, 22(1) | pp.37~62 | number of Cited : 15
    Abstract PDF
    This paper investigates the determinants of the gambling addiction in six Korean gambling industries by regressing CPGI on various characteristics of games and consumers of gambling industries and draws policy implications to improve regulation on total sales of gambling industries. We find that reimbursement rate, frequency of participation, transportation time, and permission of off-board games have significant positive effects on the gambling addiction. Lottery induces the lowest gambling addiction among six gambling industries because they have less participation time, transportation time, and frequency of participation, and no opportunity for off-board games. Although National Gambling Control Commission has implemented regulation on total sales since 2009, an industry with lower prevalence rate of gambling addiction, i.e., lottery, has become downsized, while industries with higher prevalence rate of gambling addiction(casino, boat race, and cycle race) have increased in proportion to the total sales of six gambling industries. Therefore, we need a policy that correctly balances the proportion of gambling industries with a higher level of addiction.
  • 3.

    A Review on the Effect of Corporate Regulations on Performance

    LEE JIN SEOK | 2013, 22(1) | pp.63~94 | number of Cited : 3
    Abstract PDF
    The purpose of this study is to review the relation between corporate regulations and performance, and then suggest implications of the future regulation system. This study classified 8-matters on corporate regulations and reviewed domestic researches. The summarized results of this paper are as follows. The research on the internal trading showed that, even though the internal trading could cause the decrease of firm value and the transference of shareholder's wealth, the level of operating costs could be down and technology efficiency could be improved. The holding company system could cause the decrease of growth, profitability, and firm value, on the other hands, that system could affect the increase of firm performance and transparency by the improvement of corporate governance. Although the punitive damages system could make the burden for companies, that system could have positive effects on technology competitiveness of industry. The research on the separation of financial and industrial capital showed that, the combination of financial and industrial capital could affect the efficiency of costs, whereas, affect the weakness of competitiveness of financial affiliates operated by industrial capital. The research on the cross-shareholding showed two aspects, which are the decrease of firm value and the regulation of business diversification. The research on the regulation on the large business groups showed that the regulation didn't restricted the concentration of economic power. The research on the class action enactment showed that, even though the enactment could make the burden for companies by high costs of audits and lawsuits, it affected the transparency of posting the corporate information. The weak independence of monitoring organizations could cause the inefficiency of monitoring systems, on the other hands, the efficient operation of monitoring systems could have positive effects on firm value and financial performance.
  • 4.

    The Economic Impact of Korean Legal Service Industry Liberalization and Regulatory Reforms: An Analysis of Legal Service Export Promotion

    choi namsuk | 2013, 22(1) | pp.95~129 | number of Cited : 3
    Abstract PDF
    This paper examines how Korean legal service industry liberalization and regulatory reforms affect value-added and job creation in the Korean economy. Using Korean legal service industry exports and multinational enterprises' FDI data during the period 2006-2011, this paper finds that Korean legal services exports cumulatively increase 3.4 trillion won by the year 2020, and they creates 3.2 trillion won value-added and 43 thousand jobs as a result of Korean legal service reforms. The following tasks across government and private sectors should be done to reform significantly legal service industry. First, domestic law firms must improve its global competitiveness by specialization, organization, and sizing-up of the law firms. Second, partnership between lawyers and law-related licensed professionals should be permitted when law firms decide to open foreign affiliates, and legal service export supports such as insurance and finance need to be increased. Third, by shifting the paradigm on domestic legal services, large law firms' access to foreign legal markets, educating internationally-focused lawyers, and foreign employment of lawyers must be driven forward more aggressively.
  • 5.

    Study on Legitimacy of Regulation on Pharmaceutical Company's Health Campaign

    강한철 | 2013, 22(1) | pp.131~160 | number of Cited : 0
    Abstract PDF
    The Pharmaceutical Affairs Act and the Enforcement Decree on Safety of Drugs, etc. completely prohibit ethical drugs advertising through mass media except for very exceptional cases and in case of violation, impose a criminal punishment as well as an administrative sanction on a breaching pharmaceutical company. Furthermore, such strict prohibition applies not only to commercial advertising referring to a specific drug's brand name but also to a public health campaign sponsored by a pharmaceutical company in order to raise disease awareness among general public or persuade consumers to seek proper medical treatments. However, under the current Korean Constitutional Court's cases, even commercial expressions such as advertisements shall be protected as a fundamental right under the freedom of speech provision in the Constitution and any regulation on the expressions shall be tested by constitutionality scrutiny such as the principle of proportionality. In this context, unlike regulation on the content of advertisement or voluntary prior review system, current blanket prohibition of health campaigns under the Pharmaceutical Affairs Act could be criticized as an excessive regulation deviating from the constitutional principle of minimum damage. Advanced countries such as the United States, Canada and even the European Union have permitted health campaigns among other similar forms of information provision to their medical consumers. To ensure medical consumers' rights to know by providing sufficient information and facilitate the principle of self-governing, it is highly needed to consider more forward-looking measures for solving this excessive regulation issue by, for example, explicitly providing admission of health campaigns in the enforcement decree.
  • 6.

    A Study on Differential Regulatory Effects in the Retail Industry on Total Sales of Manufacturers across Product Categories

    박병무 | Cho Chun Han | 신찬식 and 1other persons | 2013, 22(1) | pp.161~194 | number of Cited : 6
    Abstract PDF
    This paper attempts to investigate how the regulations which are designed to protect small scaled retailers from the competition led by large scaled retailers influence the total sales of manufacturers. The sales data of 61 brands of 10 companies whose products are sold to all available channels have been collected for 50 months before and after regulatory measures were introduced in 2012. The monthly prior year retail sales change and the monthly prior year KOSPI change are adopted as control variables and two regulatory measures are adopted as dummy variables, Among 61 products, the number of products whose sales have been increased is 9, while whose sales have been decreased is 20. The results show that the regulatory effects differ across the product categories. Especially, the products which are classified into the low susceptibility products to in-store promotion show the decreased sales.