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2020 KCI Impact Factor : 0.79
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2021, Vol.30, No.2

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    Welfare Effects of Regulating Handset Excess Subsidy

    Chung, Hoe Sang | 2021, 30(2) | pp.11~33 | number of Cited : 0
    Abstract PDF
    This study examines the effects of handset subsidy regulation on mobile carriers’ profits, consumer surplus, and social welfare. I consider three cases of regulating handset subsidies. The first case is when excess subsidies are permitted. The second case is when the subsidy cap is set. The third case is when the subsidy regulation is abolished. Considering two carriers competing in subsidies in existing and new markets, I show that the carriers’ profits are highest in the first case. If competition in a new market is sufficiently intense and the subsidy cap is sufficiently high, then consumer surplus is highest in the second case. Otherwise, it is highest in the third case. Social welfare is highest in the second case. The results suggest that from the viewpoint of social welfare, setting a subsidy cap may be effective. If the objective of policy is to increase consumer surplus, the regulatory agency needs to consider the level of competition in a new market and the subsidy cap.
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    Socio-Economic Benefits Analysis of Improvement of Cloud Security Certification System (CSAP)

    Su-Ah Lee | Shinhoi, Heo | Tae-Yun Kim | 2021, 30(2) | pp.35~68 | number of Cited : 0
    Abstract PDF
    The purpose of this paper is to prove that the current CSAP acts as an entry regulation, increasing the opportunity cost in the national socio-economic environment. To this end, the socio-economic benefits that arise from improving CSAP were evaluated and measured. In particular, it was intended to confirm the practical benefits of opening to global cloud service providers (CSPs) in the public and medical fields. The socio-economic benefits of introducing cloud services in the public and medical sectors were evaluated and measured in terms of flexibility & cost efficiency, stability, service diversity, and innovation. As a result of evaluation and measurement, the total socio-economic benefit that would occur when cloud services were introduced in the public and medical fields was 4,197 billion won + 2ɑ. However, there were no theoretical studies or practical examples of related indicators in the analysis of the socioeconomic benefits of introducing cloud services in the public and medical fields, so a proxy had to be used. As a result, there remains a limitation that there is inevitably an error in estimating benefits. Nevertheless, this study is significant in that it attempted to estimate the quantitative effect in the absence of studies related to the socio-economic benefit analysis of the introduction of cloud services in the public and medical sectors. In addition, this study shows that the current CSAP is acting as an entry regulation for global CSPs, resulting in socio-economic opportunity costs.
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    Mergers and Acquisitions and the Competition in Korean Cement Industry: Focusing on the 2010s

    Seongmin Seo | 2021, 30(2) | pp.69~109 | number of Cited : 0
    Abstract PDF
    This study analyzes the Korean cement market competition in the 2010s, when mergers and acquisitions across firms was active. We divided the cement market into the Portland Cement Market and the Entire Cement Market including portland cement and slag cement, derived marginal costs per unit of each market by classifying production costs for each item of cement firms, estimated the demand function of each market suggested by Steen and Salvanes(1999), and derived the price elasticity of demand by annual. Based on it, we analyzed the competitiveness of the cement market in the 2010s by obtaining the elasticity-adjusted Lerner index. As a result of the analysis, the Portland Cement Market is comparable to Cournot equilibrium with 1 to 2 identical firms, and the increment of the elasticity-adjusted Lerner index after the mergers and acquisitions was less than 0.1. As a result, it was judged that the mergers and acquisitions across cement firms in the 2010s was their attempt to restore the profitability to the level before the price war in response to worsening profitability due to the the price war among the firms in the 2000s. In the analysis of the Entire Cement Market, it was analyzed that the market was comparable to Cournot equilibrium with 2 to 3 identical firms. This implies that the market's average collusiveness of conduct is similar or somewhat lower than that of the Portland Cement Market.
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    A Study on the Gap between Border Areas due to the Regulations for Capital Areas and Policy Level Improvement Measures

    KANG SEONG WOO | 2021, 30(2) | pp.111~147 | number of Cited : 0
    Abstract PDF
    This study intended to compare the gaps between border areas that occur when the regulations for capital areas are applied uniformly based on administrative districts without considering regional characteristics and potentials and consider policy level improvement measures. This study analyzed the difference between indicators depending on whether or not the regulations for capital areas apply to the areas where administrative districts are divided by the same water system within the nature conservation zone. Over the past 20 years, the population and the number of companies and workers in the manufacturing industry showed greater growing trend in border areas in non-capital areas than capital areas. The number and average area of industrial complexes were absolutely higher in non-capital areas. The regulations had the effect of pressing down the concentration of population and manufacturing industry, which is the purpose of the regulations for capital areas. However, there was a contradiction that industrial locations were allowed in non-capital areas that are in the upstream areas when regulations for industrial locations were for the conservation of water and environment, which is the purpose of designating nature conservation areas. As a result of examining the proposals from the National Assembly and Gyeonggi Province related to the regulations for capital areas regarding these problems, there were continuous discussions to give selective regulatory exceptions by considering regional characteristics commonly under special situations or exclude them from the capital area altogether to avoid the application of regulations. As a plan to alleviate regional gaps in border areas on the policy level, it is necessary to promote regional economic revitalization by promoting joint cooperation projects between local governments of cities and counties and selectively applying regulatory exceptions through the designation of special economic zone for specialized regional development. In the long term, it is necessary to fundamentally improve various location regulations including border areas. It is necessary to apply subdivided application of the regulations according to regional characteristics rather than applying them based on administrative districts uniformly. Although the need for regulations for capital areas for balanced national development and protection of the natural environment is acknowledged, it is deemed that more differentiated policies should be implemented by considering a sense of relative deprivation in areas that are underdeveloped than non-capital areas and to improve equity among local governments in border areas.
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    The Relationship Between Government Regulations and Income Equality: An Empirical Analysis Using the Regulatory Index and Gini Coefficients of OECD Countries.

    Rhea KIM | Jiseok NA | Minho LEE | 2021, 30(2) | pp.149~181 | number of Cited : 0
    Abstract PDF
    Some argue for the need for active deregulation to secure new growth engines for our economy, while others argue that deregulation causes market inequality and increases income inequality. However, there are few empirical studies on how deregulation actually affects economic distribution. Additionally, most studies focus only on specific cases at the individual country level, so the current understanding of how the effects of regulation impact distribution remains limited. In this context, this study attempts an empirical analysis of the relationship between the degree of government regulation and income inequality. Following a regression analysis examining the relationship between the regulatory index and the Gini coefficient of 38 OECD countries, it was found that the degree of income inequality intensifies as the level of government regulation decreases. However, it is still rather tenous to assume that this inverse relationship between government regulation and income inequality can be observed with a high degree of clarity since this result was confirmed at a relatively low level of statistical significance. While an increase in regulatory levels is difficult to judge in relation to positive outcomes concerning lessening income inequality gaps, the idea that deregulation will undermine social equity is not necessarily true either. The results of this empirical analysis emphasize the need for a balanced and strategic approach to prevent impairment of social equity while also pursuing the goal of economic growth in the process of promoting regulatory reform including deregulation. This paper recommends that more detailed deregulation measures should be designed to coordinate the extremes of "economic growth" and "equilibrium". In particular, policies designed to offset the negative distribution effects of deregulation should be further discussed in greater depth before their implementation.
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    The Paradox of Policy, Income-led growth policy - for whom does the policy work? : Focusing on coherence between policy goals and policy alternatives

    Haeyoon Lee | 2021, 30(2) | pp.183~219 | number of Cited : 0
    Abstract PDF
    This study investigates the paradox of policy by analysing the coherence between policy goals and policy alternatives for income-led growth policies. The income-led growth policy was designed to resolve income polarisation and low growth by securing stable domestic demand via income increase of low-income families with high consumption propensity. The impact of transfer income, social insurance income, and earned income, which are major tools of income-led growth policy, on gross income was analysed with the KLIPS(Korean Labor and Income Panel Survey) conducted from 1998 to 2019. This study found that transfer income, earned income, and social insurance income - in that order - had an effect on the gross income of low-income families. When the minimum wage was sharply raised in 2018, which was one of the policy instruments for income-led growth policy, the family-income increase was not higher than that of other years. This study suggests that income-led growth policies need to be improved. It is necessary to consider ways to manageearned income by lowering the level of the minimum wage increase rate, maintaining competitiveness in labour-intensive industries such as manufacturing and working the role of low-income families as consumers in the stable domestic market.
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    Structural power of platform business and regulatory policy changes: Focusing on ‘Coupang’

    JUSANG KIM | Kim, Haneul | Song, Gayoung and 2other persons | 2021, 30(2) | pp.221~262 | number of Cited : 0
    Abstract PDF
    The purpose of this study is to explore the changing factors of platform business regulation policy. By applying the flash point concept presented by Thelen (2018), attention was paid to which issues formed a public consensus and even drew public opinion on the formation of regulations for platform businesses. Text mining techniques such as word frequency analysis, weighted log Odds ratio analysis, and topic modeling analysis were conducted. The structural power arising from the consumer - platform business alliance delayed regulation for a certain period of time, but the rapid spread of specific flash points was linked to changes in regulatory policy for platform business. This study is meaningful in that it theoretically developed the process of regulating and responding to platform business in a Korean context.