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2015, Vol.24, No.1

  • 1.

    Preliminary Study on the Effect of Negative Regulation : Focused on Investment and Job Creation of Saemangeum Special Economic Zone in Korea

    Tae-Yun Kim | 이수아 | 2015, 24(1) | pp.3~50 | number of Cited : 2
    Abstract PDF
    This study aims at evaluating the effect of the introduction of negative regulatory method. For this purpose, we developed a model and indicators based on theoretical foundation, and quantitatively evaluated the effect of negative regulatory method on corporate regulations in Saemangeum Special Economic Zone in Korea. The main results are as follows. First of all, the investment attraction, the start-up of new firms, the creation of added value, the sales and the job creation in Semangeum area would increase, and the regulatory burden would decrease. Also, the investment attraction and productivity improvement of firms in Saemangeum area were expected to generate production induced effect, added value induced effect, employment and labor induced effect across the country. However, if we considered the introduction of negative regulatory method not only to corporate activities sector but to other sectors, such as education, healthcare, tourism, etc, the effect would be much larger.
  • 2.

    The Effect of Entry Regulation and Firm Size on Net Job Creation in the Korean Service Industry

    이병기 | Ki Bum Noh | 2015, 24(1) | pp.51~81 | number of Cited : 1
    Abstract PDF
    The present study addresses two issues important to job creation in the Korean service industry: the effect of entry regulations and firm size in generating jobs. Studies in other countries have shown that various types of entry regulations act as strong deterrents to entry into new markets in that they hinder job creation. Many such regulations currently exist in the Korean service industry. In spite of the important impact of such regulations, little research has been done on the effect of Korean entry regulations on job creation. The present study addresses the impact of such regulations on net job creation. A second point of controversy is the correlation between firm size and job creation: We therefore also examined the effect of business size on net job creation after controlling for the firm age . For our empirical analysis, we applied employment weighted least squares regression after generating a saturated dummy variable model using data from the annual Korean Establishment Census for the years 2000 through 2012. Our study shows that sectors in the service industry without entry regulations result in higher net job creation than those with entry regulations. As to our second inquiry, we found that the bigger the company, the higher the net job creation. These findings indicate that to the extent that entry regulations can be reduced, net job creation can be expected to go up. They further suggest that Korean job-creation policy should provide incentives for large businesses and more incentives for new businesses rather than focusing exclusively on small and medium size businesses, as it now does.
  • 3.

    Improvement of Dismissal Laws

    Kim Hee Sung | 2015, 24(1) | pp.83~107 | number of Cited : 6
    Abstract PDF
    The desirable direction of the improvement in the dismissal legislation will be to increase the flexibility of the labor market, as well as to harmonize the working conditions and the job security of the non-regular workers, and especially to improve the regulation of individual dismissals of regular workers. Specifically as the market shifts to the increasingly competitive environment, the need for the ordinary layoff for the job misfits and low performers are growing. Hence, it is required that the government set a guideline to clarify the types and justification range of the ordinary dismissals, so that to reduce the uncertainty thus the companies to utilize the ordinary dismissal system. Such guideline shall be especially useful reference for the court when making the judgment for the low performers’ layoffs. Examples for the personal reasons for the ordinary layoffs guideline could be 1) when there is serious misfit(in job performance ability including working attitude and teamwork) such as to cause severe hindrance or damage in business management, and 2) when warning, training, education or transferring positions of workers to correct such misfits show no sign of improvement, and et. The legislation of the contractive dismissal(Änderungskündigung) system is required for the appropriate operation of the employment system and to protect the employee. The contractive dismissal system of Germen which allows the employer to change the working condition under certain requirement with the premise of employment continuity, needs to be adopted. Especially for low performers and misfit workers, it would be reasonable to apply the contractive dismissal system at first, and then apply ordinary layoffs if such contractive dismissal was not accepted.
  • 4.

    An Effect on the Banking Institutional Soundness of LTV Regulation

    Jeheon Moon | Kim Gab-Youl | 2015, 24(1) | pp.109~124 | number of Cited : 4
    Abstract PDF
    The LTV regulatory policy was adopted for improving asset soundness of financial institutions by FSC in 2002. Administrative rule made by FSC also states that aims. But, it is a current picture to use tightening or easing the LTV regulation as an instrument which affects macro economy at large as well as real estate sector. The purpose of this study is to check up on coinciding with aims in statute and operation of reality through empirical analysis at this time over 13 years after bringing in the regulation system. It proved that easing the LTV regulation affects improving a soundness indicator of banking institutions, NPL ratio and BIS ratio, on the contrary. It means on other way that tightening the LTV regulation brings about lowering the soundness. Those paradoxical phases comes from reverse effect that tightening(or easing) of the regulation causes decreasing(or increasing) loans each. On the other hand, it affected the policy variables of central bank, total currencies and interest rate, normally. Further more it has a significant description capacity. These results implies that it is necessary to rebuild regulatory governance of LTV policy.
  • 5.

    A Brief Review of Current Issues about Judgement Criteria for Administrative Regulations

    Lee Hye Young | Juchan Kim | 2015, 24(1) | pp.125~151 | number of Cited : 6
    Abstract PDF
    This study aims to analyze current issues about criteria on whether a certain article (or clause) is an administrative regulation based on the results of survey asked to government departments. According to the analysis result, the existing issues are as follows: Judging whether a certain article is an administrative regulation by its purpose instead of its effect, the interpretation of exceptional clauses, matters of administrative penalties, regulations for public agencies, exceptional rules in applying the Framework Act on Administrative Regulations, matters related to patents on new devices and copyrights, non-mandatory provision, mandated regulations of private independent agencies and business associations, rules about subsidies and funding, excessive restriction compared to civil law and commercial law, matters related to proclamatory clauses or social normative rules. From the analytical review, revision or supplementation is needed in regard to exceptional rules in applying the Framework Act on Administrative Regulations, rules about subsidies and funding, and excessive restriction compared to civil law and commercial law. In addition, more systematic criteria or procedures are required when it comes to non-mandatory provisions and proclamatory clauses or social normative rules.
  • 6.

    An Economic Analysis on the Relevant Geographic Market and the Supreme Court’s Unfairness Decision in Posco’s Trade Refusal Case

    Jeon, Seonghoon | Hahn Shik Lee | 2015, 24(1) | pp.153~183 | number of Cited : 1
    Abstract PDF
    In this paper, we discuss issues involved with decisions of Korean FTC and the Supreme Court on the case of Posco’s trade refusal against Hyundai Hysco in 2001. We also present evidences of economic analyses for identifying the relevant geographic market. As for the empirical study, Granger causality test and critical loss analysis using AIDS demand system estimation are employed. The results show that the relevant geographic market for hot coil is not restricted to domestic region, but should include North-Eastern Asian countries. The results suggest that Posco’s trade refusal case should not be regarded as an abuse of market-dominating position. They lead to the same implication with the Supreme courts’ decision that it should not be regarded as an unfair conduct restraining competition, but suggest the different basis of judgement.