DOCSLIB.ORG

Review of Status of Wind Power Generation in South Korea: Policy, Market, and Industrial Trends

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Review of Status of Wind Power Generation in South Korea: Policy, Market, and Industrial Trends International Journal of Engineering Research and Technology. ISSN 0974-3154, Volume 13, Number 12 (2020), pp. 4943-4952 © International Research Publication House. http://www.irphouse.com Review of Status of Wind Power Generation in South Korea: Policy, Market, and Industrial Trends Ji-Won Hwang1, Jung Keun Kook2, Han-Bin Jeong3, Ju-Hyun Mun4, and Sanghee Kim5,* 1Department of Architectural Engineering, Kyonggi University, Suwon 16227, South Korea 2Department of Architectural Engineering, Jeonbuk National University, Jeonju 54896, South Korea 3Department of Architectural Engineering, Kyonggi University, Suwon 16227, South Korea 4Department of Architectural Engineering, Kyonggi University, Suwon 16227, South Korea 5Department of Architectural Engineering, Kyonggi University, Suwon 16227, South Korea Abstract industrial and power generation sectors is a key means to realize reduction in GHG emission, and the aim of Various policies in South Korea have been implemented to implementing this system is to manage companies that emit reduce greenhouse gas emissions and to spread new and significant quantities of GHGs. To achieve the national GHG renewable (N&R) energy, and the cumulative wind-power reduction goal (reduction of the total emissions in 2017 by generation capacity was increased by approximately 2.6 times 244/1,000 by 2030), this system designates companies with from 2012 to 2018. The Korean version of the New Deal policy large GHG emissions and high-energy consumption as has been officially announced, and aggressive investment in companies to be managed, assigns reduction targets for GHG wind power generation has been secured. In this regard, this emissions and energy consumption, and verifies and manages study aimed to review related trends in the energy policy, their performances (Table 1). The targets of this system are market, and the overall industry. The government has companies and businesses whose average GHG emissions and established a total of four plans in relation to green energy. The energy consumption over the last three years (as of January 1st Fourth Plan is currently being implemented; its goal is to of the corresponding year) exceeded the criteria mentioned in increase the average annual growth rate to 16.5%. Companies the “Enforcement Ordinance of the Framework Act on Low have also invested to develop large-capacity wind turbines and Carbon and Green Growth.” Second, the ET offset system in components such as blades with a length of 60–80 meters and the industrial and power generation sectors is operated to a speed increaser of 2.5 MW. Incidentally, despite being green achieve the national GHG reduction goal (37% by 2030 energy, the power generation complex has raised many issues compared with Business As Usual (BAU)) in an efficient and in energy production or installation, especially low-frequency cost-effective manner. The purpose of this system is to improve noise (12.5-80 Hz). To overcome some issues, residents and the the flexibility of companies with GHG emissions in terms of government agreed on a peaceful solution, which involves the GHG production. The contents of this system are categorized profit-sharing and recovery model and the government into three. First, the government allocates emission permits to providing guidelines for low-frequency noise, including workplaces with GHG emissions for a year based on ET, so that management procedures and solutions. the workplaces can perform emission behavior within the Keywords: Renewable energy, Wind-power generation, allocated range. The practical GHG emissions of the Greenhouse gas, Korean New Deal. workplaces are evaluated to allow transactions between them for remaining or insufficient emission permits. Second, external businesspersons can sell the Korea Offset Credit (KOC) I. INTRODUCTION issued through external businesses to companies subjected to the allocation of emission permits based on the offset system; The seriousness of greenhouse gas (GHG) emissions has been then, the companies can convert the purchased KOC into acknowledged and understood throughout the world, as Korean Credit Unit (KCU) and perform offset or transactions manifested by the adoption of the Tokyo Protocol in 1997. under the ET scheme. Third, GHG emissions are reduced, Accordingly, many countries have initiated efforts to reduce absorbed, or removed in a way that meets international GHG emissions since 2005. South Korea has also been standards in emission facilities or activities outside the implementing various policies to reduce GHG emissions. boundaries of companies subjected to the process of allocation Currently, the three main GHG reduction policies in Korea are of emission permits through external businesses. Third, the ET 1) GHG and energy target management system, 2) emission reduction facility support project is proposed for the industrial trading (ET) offset system, and 3) ET reduction facility support and power generation sectors; the purpose of this project is to project in the industrial and power generation sectors [1]. First, induce the practical GHG emission reduction effect of the the GHG and energy target management system in the companies subjected to the process of allocation of emission 4943 International Journal of Engineering Research and Technology. ISSN 0974-3154, Volume 13, Number 12 (2020), pp. 4943-4952 © International Research Publication House. http://www.irphouse.com permits and to reinforce their ET implementation capacity by sea on three sides, and more wind power plants will be built in supporting the introduction of GHG and energy reduction the future. In July 2020, the President of South Korea set the facilities. This project supports the installation cost of facilities goal of joining the global top five countries in terms of offshore with excellent GHG and energy reduction effects for small and wind power by 2030 [8]. To this end, three directions were medium-sized companies among the companies subjected to established for increasing the offshore wind power of 124 MW the process of allocation of emission permits in the industrial generated from three complexes by 100 times to 12 GW in 2030. and power generation sectors. The president also mentioned that the government would provide active support for systematically developing large- scale wind power generation complexes led by local Table 1. Criteria for designating companies to be governments. He announced that sites with excellent business managed for GHG emissions [1] potential and small damage to the fishing industry would be GHG Energy identified, and that the licensing procedure would also be simplified for smooth project implementation. It was also Category (total (Tera announced that the initial demand could be created with large CO2) Joule) projects for domestic companies to increase their price competitiveness and technology competitiveness, and that the Company 125,000 500 Until December 31, investment in technology development would be continued. 2011 The president also said that a growth engine would be created Workplace 25,000 100 in response to the climate crisis using green energy and “offshore wind power.” Company 87,500 350 From January 01, 2012 As mentioned above, wind-power generation has attracted Workplace 20,000 90 considerable attention as a renewable energy source in Korea. Therefore, this study aimed to summarize the policies, international cooperation projects, and market and industrial Company 50,000 200 trends of wind-power generation in South Korea. In addition, From January 01, 2014 an attempt was made to predict the future of the wind-power Workplace 15,000 80 generation industry in South Korea. One of various methods used to reduce GHG emissions is the II. GOVERNMENT POLICIES use of new and renewable energy. Efforts to develop and utilize The Korean government has established policies mainly on the renewable energy have also been actively made in South Korea. “goal of developing, using, and spreading technologies,” Consequently, the “New Energy and Renewable Energy “proportion of the power generated,” and “implementation Development, Use, and Spread Promotion Law” [2] was method” since 2001 to promote the development, use, and established, and the “Fourth Basic Plan for the Development, spread of N&R energy technologies [1]. Starting with the Use, and Spread of New and Renewable Energy Technologies announcement of the “Basic Plan for the Development and (2014–2035)” is currently being executed [3]. The term “new Spread of Alternative Energy Technologies” in February 2001 and renewable energy (hereinafter referred to as N&R energy)” [9], the “Second Basic Plan for the Development, Use, and is used in Korea, and is defined as alternative energy sources Spread of N&R Energy Technologies (December 2003 to that can replace fossil fuels [4]. For N&R energy, new energy 2012)” was announced in December 2003 [10]. The “Third comprises three areas, namely, fuel cells, coal Basic Plan for the Development, Use, and Spread of N&R liquefaction/gasification, and hydrogen energy. Renewable Energy Technologies (December 2008 to 2030)” was energy comprises eight areas, namely, solar heat, photovoltaics, announced in December 2008 [11], and the “Fourth Basic Plan biomass, wind power, hydropower, geothermal heat, marine for the Development, Use, and Spread of N&R Energy energy, and waste energy. Among various N&R energy sources, Technologies (2014 to 2035)” was announced in September there is recently growing interest in wind-power generation. 2014 [3]. The
Load more

Recommended publications
  • FTSE Korea 30/18 Capped
    2 FTSE Russell Publications 19 August 2021 FTSE Korea 30/18 Capped Indicative Index Weight Data as at Closing on 30 June 2021 Index weight Index weight Index weight Constituent Country Constituent Country Constituent Country (%) (%) (%) Alteogen 0.19 KOREA Hyundai Engineering & Construction 0.35 KOREA NH Investment & Securities 0.14 KOREA AmoreG 0.15 KOREA Hyundai Glovis 0.32 KOREA NHN 0.07 KOREA Amorepacific Corp 0.65 KOREA Hyundai Heavy Industries 0.29 KOREA Nong Shim 0.08 KOREA Amorepacific Pfd. 0.08 KOREA Hyundai Marine & Fire Insurance 0.13 KOREA OCI 0.17 KOREA BGF Retail 0.09 KOREA Hyundai Merchant Marine 1.02 KOREA Orion 0.21 KOREA BNK Financial Group 0.18 KOREA Hyundai Mipo Dockyard 0.15 KOREA Ottogi 0.06 KOREA Celltrion Healthcare 0.68 KOREA Hyundai Mobis 1.53 KOREA Paradise 0.07 KOREA Celltrion Inc 2.29 KOREA Hyundai Motor 2.74 KOREA Posco 1.85 KOREA Celltrion Pharm 0.24 KOREA Hyundai Motor 2nd Pfd. 0.33 KOREA Posco Chemical 0.32 KOREA Cheil Worldwide 0.14 KOREA Hyundai Motor Pfd. 0.21 KOREA Posco International 0.09 KOREA CJ Cheiljedang 0.3 KOREA Hyundai Steel 0.33 KOREA S1 Corporation 0.13 KOREA CJ CheilJedang Pfd. 0.02 KOREA Hyundai Wia 0.13 KOREA Samsung Biologics 0.92 KOREA CJ Corp 0.11 KOREA Industrial Bank of Korea 0.22 KOREA Samsung C&T 0.94 KOREA CJ ENM 0.15 KOREA Kakao 3.65 KOREA Samsung Card 0.08 KOREA CJ Logistics 0.12 KOREA Kangwon Land 0.23 KOREA Samsung Electro-Mechanics 0.81 KOREA Coway 0.36 KOREA KB Financial Group 1.78 KOREA Samsung Electronics 25.36 KOREA Daewoo Engineering & Construction 0.12 KOREA KCC Corp 0.12 KOREA Samsung Electronics Pfd.
    [Show full text]
  • Posco International Corporation
    POSCO INTERNATIONAL CORPORATION Sustainability Report 2019 About This Report The 2019 POSCO INTERNATIONAL Sustainability Report, the forth annual publication, illustrate the Company’s performance fulfill- ing its economic, social, and environmental responsibility. POSCO INTERNATIONAL aims to transparently disclose its sustainability management activities for the year 2019 and communicate with wide-ranging stakeholders. Reporting Guidelines Global Reporting Initiative(GRI) Standards: Core Option Reporting Period January 1, 2019 ~ December 31, 2019 * 2017 ~ H1 of 2020 for a portion of the performance data Reporting Scope Economy: On a consolidated basis in accordance with the K-IFRS 〮 Society & Environment: POSCO INTERNATIONAL Headquarters, 〮 POSCO SPS1), and overseas worksites (Myanmar, Indonesia, and Uzbekistan) Areas where major operations are based: Republic of Korea 〮 1) This refers to the STS Division, the TMC Division and the Plate Fabrication Division that were split off as subsidiaries in April 2020. Reporting Cycle Annually(publication of the most recent report: 2019) Assurance Financial data: Earnst & Young Han Young 〮 Non-financial data: DNV GL 〮 Contact Details Address: 165 Convensia-daero(POSCO Tower-Songdo), Yeonsu-gu, Incheon, Republic of Korea Tel: +82-2-759-2861 Department in charge: Sustainability Management Section E-mail: [email protected] POSCO INTERNATIONAL CORPORATION Sustainability Report 2019 03 Global CSR Activities 01 We Make Sustainability 02 Sustainability Management Strategy 102 Global CSR Overview
    [Show full text]
  • Hyosung Corporation and Subsidiaries
    Hyosung Corporation and Subsidiaries Consolidated Financial Statements December 31, 2014 and 2013 Hyosung Corporation and Subsidiaries Index December 31, 2014 and 2013 Page(s) Independent Auditor’s Report ........................................................................................................ 1 - 2 Consolidated Financial Statements Consolidated Statements of Financial Position....................................................................................... 3 Consolidated Statements of Income ....................................................................................................... 4 Consolidated Statements of Comprehensive Income.............................................................................. 5 Consolidated Statements of Changes in Equity...................................................................................... 6 Consolidated Statements of Cash Flows ................................................................................................ 7 Notes to the Consolidated Financial Statements ..................................................................……... 8 - 97 Independent Auditor’s Report (English Translation of a Report Originally Issued in Korean) To the Board of Directors and Shareholders of Hyosung Corporation We have audited the accompanying consolidated financial statements of Hyosung Corporation and its subsidiaries (collectively the “Group”), which comprise the consolidated statements of financial position as of December 31, 2014 and 2013, and the consolidated
    [Show full text]
  • Transportation Beginning of Restructuring: Supply Is the Key Variable
    2020 Outlook Transportation Beginning of restructuring: Supply is the key variable Jay JH Ryu +822-3774-1738 [email protected] Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the U.S. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT. Contents [Summary] 3 I. Airlines 4 II. Mobility 17 III. Logistics 32 IV. Shipping 37 [Conclusion] 45 [Top picks] 46 [Summary] Momentum to diverge based on supply management OP vs. P/B: Amid market down cycle, earnings momentum to diverge based on each company’s supply management (Wbn) (x) OP (L) P/B (R) 1,500 2.5 Oil price decline; Air cargo Minimum Global Global High oil prices; greater Oil rebound; wage hike; Slowdown in Inventory housing financial shipping market logistics price LCC growth; economic Chinese stimulus restocking bubble crisis restructuring momentum rebound M&As slowdown 1,000 2.0 500 1.5 0 1.0 -500 0.5 -1,000 0.0 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18 1Q19 Source: Datastream, Mirae Asset Daewoo Research 3| 2020 Outlook [Transportation] Mirae Asset Daewoo Research I. Airlines: Weak demand to prompt restructuring Economic slowdown and • Outbound demand on Japan routes has declined, hurt by a slowing economy and the Korea-Japan diplomatic row. bottoming out of Japan • Japan routes appear to be bottoming out; declines in load factor should stabilize in early 2020, supported by supply cuts. route demand Sharp decline in outbound demand on Japan routes Passenger traffic growth on Japan routes ('000 persons) (%) (%, %p) 3,500 Korean outbound travelers (L) YoY (R) 35 20 YoY passenger growth L/F indicator 30 3,000 10 25 0 2,500 20 Week of -10 Chuseok 2,000 15 -20 1,500 10 5 -30 1,000 0 -40 500 -5 -50 0 -10 14 15 16 17 18 19 Source: Bloomberg, KTO, Mirae Asset Daewoo Research Source: Air Portal, Mirae Asset Daewoo Research 4| 2020 Outlook [Transportation] Mirae Asset Daewoo Research I.
    [Show full text]
  • Hanjin Transportation (002320 KS) Parcel Delivery and Stevedoring to Lead the Way
    Hanjin Transportation (002320 KS) Parcel delivery and stevedoring to lead the way Logistics An asset-based logistics provider oriented toward parcel delivery Hanjin Transportation, the logistics arm of the Hanjin Group (established in 1958), Initiation Report mainly engages in ground transport, stevedoring, shipping, and parcel delivery October 28, 2015 operations. As of 2014, parcel delivery accounted for 27.3% of revenue, ground transport 27.2%, and stevedoring 15.8%. Among the company’s business divisions, we believe investors should pay particular attention to parcel delivery, which generates (Initiate) Buy more than 27% of revenue and 47% of operating profit. Investment points: Urban logistics complex and container terminals Target Price (12M, W) 60,000 1) Parcel delivery reinforced by the new Seoul Integrated Freight Terminal : Major Share Price (10/28/15, W) 45,100 retailers and manufacturers (cargo owners) are increasingly coming to realize the importance of delivery service competitiveness. The new Seoul Integrated Freight Expected Return 33% Terminal commenced operations in September, boosting Hanjin Transportation’s terminal capacity by 30%. Given rapid market growth, as well as the favorable location and state-of-the-art facilities of the new complex, we expect terminal utilization ratio to OP (15F, Wbn) 46 reach the mid-80% level in 4Q15 . Volume growth should lead to operating leverage Consensus OP (15F, Wbn) 47 effects, further lifting margins. EPS Growth (15F, %) 149.3 2) Opportunities from container terminals: We believe stevedoring will grow into a Market EPS Growth (15F, %) 20.6 major business that contributes 10-13% of the company’s operating profit (vs. 3.2% in P/E (15F, x) 5.0 2014), driven by the Pyeongtaek Container Terminal (which was acquired in 2Q15) and Market P/E (15F, x) 11.9 Incheon New Port Terminal A (which is set to open in early 2016).
    [Show full text]
  • One Laptop & One Big Hope
    OneGrowth Laptop and Technological & One big hope Development of the Korean Shipbuilding Industry Juan Carlos Capuñay Executive Director, APEC Sungsoo Song* 1. INTRODUCTION The shipbuilding industry is considered the representative success case in the history of the Korean industry. The country's shipbuilding tonnage was only 15,000 GT in 1972, but grew to 1.4 million GT in 1982 and surpassed 10 million GT in 2000. Based on ship orders, the country's shipbuild- ing industry ranked first in the world from 1999 to 2008 (excluding 2001). Korea surpassed Japan, which had long led the global shipbuilding industry, and emerged as a new shipbuilding power. However, it is also undeniably true that China, which has fostered its shipbuilding industry by es- tablishing a large shipbuilding complex at the national level, is rapidly catching up with Korea and threatens the country's status as the world’s leading shipbuilder. TABLE 1 Global Market Share of Major Shipbuilding Countries Unit: 1,000 CGT, % Classification 1997 1999 2001 2003 2005 2007 Size of global market 36,480 28,940 36,667 74,041 161,331 167,522 Korea(share) 6,764(29.2) 6,325(33.3) 6,990(29.6) 18,810(42.9) 13,571(32.4) 32,861(37.7) Japan(share) 8,790(37.9) 4,934(26.0) 7,932(33.5) 12,335(28.1) 9,446(22.6) 10,017(11.5) China(share) 1,211(5.2) 1,924(10.1) 2,802(11.8) 6,107(13.9) 6,606(15.8) 31,382(36.0) Note: These statistics include only ships of over 100 GT and are based on commissioned orders.
    [Show full text]
  • Korea Companies in US with Products
    Multinational Corporations to Be Given Rights Beyond the Rights of U.S. Companies Under the Korea Free Trade Agreement Source: Uniworld & Public Citizen Rep. Last District Company Address Rep. First Name Name Party State Product Description 4600 Postmark Dr., # NB 216, Anchorage, AK AK-00 KOREAN AIR 99502-1038 Donald Young R AK International passenger and cargo air transport. HYUNDAI MOTOR MANUFACTURING AL-02 ALABAMA, LLC 700 Hyundai Blvd., Montgomery, AL 36105-9622 Bobby Bright D AL Mfr., sales and service of automobiles. Mfr. automobile parts specializing in internationally competitive state-of-the-art chassis AL-03 MANDO AMERICA CORPORATION 4201 North Park Dr., Opelika, AL 36801-9667 Michael Rogers R AL components and systems. 2312 Center Hill Dr., Ste. A, Opelika, AL 36801- Mfr. quartz countertop surfaces and interior AL-03 HANWHA L&C ALABAMA, LLC 7279 Michael Rogers R AL building materials. Mfr. tires, steel products, electronics, AL-05 HYOSUNG USA, INC. 500 19th Ave. SE, Decatur, AL 35601-3424 Parker Griffith R AL fabrics/yarns, and musical instruments. 201 James Record Rd., Huntsville, AL 35824- Technology services; consumer electronics, home AL-05 LG ELECTRONICS ALABAMA INC. (LGEAI) 1513 Parker Griffith R AL appliances and mobile communications. AL-05 EKO PEROXIDE LLC 1455 Redhat Rd., Decatur, AL 35601-7588 Parker Griffith R AL Mfr. chemicals and petrochemicals. AZ-02 LG SOLID SURFACE LLC 8009 W. Olive Ave., Peoria, AZ 85345-7109 Trent Franks R AZ Mfr. chemicals. 1702 E. Highland Ave., Ste. 400, Phoenix, AZ Manufacturing and sales of electronically AZ-04 SNTECH INC. USA 85016-4630 Edward Pastor D AZ commutated motors (ECM).
    [Show full text]
  • Growing Motivation for Holding Company Conversion
    Holding companies Growing motivation for holding company conversion 1. End of circular shareholdings Overweight (Maintain) For Korean conglomerates, circular shareholdings are no longer a feasible option for Industry Report maintaining and expanding control over their vast business empires. Under the revision to the Monopoly Regulation and Fair Trade Act (MRFTA), large corporate groups are November 26, 2015 banned from forming new circular shareholdings or strengthening existing one s. Companies are allowed to keep previously established circul ar shareholdings, but are Daewoo Securities CCCo.,Co., Ltd. encouraged to gradually and voluntarily untie their existing shareholdings (which are required to be publicly disclosed). However, we believe there is a possibility tha t existing [Holding Companies/IT Services] circular shareholdings could also be directly regulated, potentially becoming subject to Dae-ro Jeong mandatory removal within a certain period. +822-768-4160 [email protected] Ultimately, the unwinding of circular shareholdings should serve as a major catalyst to convert to a holding comp any. Some of the biggest Korean conglomerates, such as Yoon-seok Seo Samsung, Hyundai Motor Group (HMG), and Lotte, have recently been making great +822-768-4127 efforts to unwind their existing circular shareholdings. By doing so, they may be able to [email protected] avoid potential policy risks whi le also making the transition to a holding company structure easier. In our view, adopting a holding company structure is the best or second-best option for conglomerates looking to tighten their managerial control and ensure ownership succession. 2. Opportune time for holding company conversion The government is introducing various policies to facilitate holding company conversion.
    [Show full text]
  • Tunneling Through Trademarks*
    * Tunneling Through Trademarks Sojung Kim† and Woochan Kim‡ First Draft: August 2019 This Draft: April 2021 Abstract This study documents how trademarks can be used to benefit controlling families at the expense of outside minority shareholders. Using a sample of business groups in Korea, we find evidence in support of this. First, firms are more likely to be licensor firms if the controlling family holds higher cash flow rights. Second, firms are more likely to be licensee firms and subject to higher royalty payments if their controlling family’s cash flow rights are further below those in the licensor firms (i.e., higher cash flow rights differentials) and if their sales volumes are larger. Third, shareholder distributions (dividend payouts and stock repurchases) and market values are negatively associated with royalty payments in firms with higher cash flow rights differentials. Lastly, these results manifest more significantly in pure holding company groups, where the licensor firms have no business operation of their own and, therefore, rely more heavily on trademark revenue. Keywords: Trademark royalties, tunneling, holding companies, business groups, cash flow rights, dividends JEL classification: G3, G32, G34 * We thank Nicolas Eugster, Peter Swan, and the conference participants at the 3rd Sydney Banking and Financial Stability Conference, the 32nd Australasian Finance and Banking Conference, the 2020 Financial Management Association Annual Conference, and the seminar participants at Korea University Business School. We also note that this work was supported by the Korea University Business School and the Ministry of Education of the Republic of Korea (National Research Foundation of Korea grant number NRF- 2019S1A5A2A01034994).
    [Show full text]
  • Will the Chaebol Reform Process Move Forward Under the Moon Jae-In Administration? —Future Directions and Challenges—
    Will the Chaebol Reform Process Move Forward under the Moon Jae-in Administration? —Future Directions and Challenges— By Hidehiko Mukoyama Senior Economist Economics Department Japan Research Institute Summary 1. Collusive links between politics and business were a major focus during South Korea’s 2017 presidential election. In an address to the national after his election victory, President Moon Jae-in promised to carry out reforms targeting the chaebol (industrial conglomerates) and eliminate collusion between politicians and business people. The purpose of this article is to clarify how the chaebol reform process is likely to proceed, what the focal points will be, and the issues that could arise. 2. The economic policy of the Moon Jae-in administration is based on the four pillars of income-driven growth, the establishment of an economy that will generate jobs, fair competition (including chaebol reform), and growth through innovation. Immediately after taking power, President Moon Jae-in announced policies targeted toward income-driven growth. Efforts to achieve growth through innovation began in the fall of 2017. The chaebol reform process has not yet begun. 3. Chaebol reform is necessary for several reasons. First, the concentration of economic power in the hands of the chaebol is producing harmful effects, including growing economic disparity, and a lack of jobs for young workers. Second, there have been numerous fraud cases relating to the inheritance of management rights by members of the chaebol families. Third, the chaebol have repeatedly colluded with politicians. 4. One reason for repeated cases of business-political collusion is the enormous amount of au- thority wielded by the South Korean president.
    [Show full text]
  • About Lotte Shopping
    LIFETIME VALUE CREATOR ANNUAL REPORT 2017 REPORT ANNUAL LOTTE SHOPPING AN INVITATION TO THE ENRICHED FUTURE OF RETAIL, CREATED BY THE NEW VALUES OF LOTTE SHOPPING Lotte Shopping Annual Report 2017 LIFETIME VALUE CREATOR Lotte Shopping established its vision of being a “Lifetime Value Creator”, which includes our pledge to offer REPORT OVERVIEW UNIQUE FEATURE customers the highest value for every purchase they make from us. In order to create new values that will make their lives 00 ABOUT LOTTE GROUP This annual report informs readers about Lotte Shopping’s This year’s report is designed to demonstrate 02 CEO'S MESSAGE more beautiful and enriched, we are leading the evolution of wide range of initiatives and achievements. In particular, Lotte Shopping’s commitment to adding new values to 06 INTERVIEW WITH THE CEO retail through continuous change and innovation. it introduces in detail our approach to realizing the future of customers’ lives with its new logo, Value Line. retail while strengthening our core competencies in channels, You will see the beautiful and luxurious image of the future innovations, customer satisfaction, and other areas, of retail, shown through the varied colors and shapes of in response to changes in trends, technologies, and lifestyles. Lotte Shopping’s Value Line logo. LEADING TRENDS IN RETAIL EXPERIENCE OMNI PAGE. 10-15 CONVERGING TECHNOLOGY AND INNOVATION EXPECT THE FUTURE OF RETAIL PAGE. 16-21 CREATING NEW LIFESTYLES AND VALUES ENJOY A FULLER LIFE PAGE. 22-27 Reader's Guide ABOUT LOTTE SHOPPING REVIEW OF OPERATIONS CSR MANAGEMENT 30 COMPANY PROFILE 62 LOTTE DEPARTMENT STORE 73 LOTTE SHOPPING’S CSR 32 FINANCIAL HIGHLIGHTS 64 LOTTE MART 74 CUSTOMER-CENTERED MANAGEMENT 34 GLOBAL NETWORK 66 LOTTE HIMART 76 ENVIRONMENTAL MANAGEMENT MORE INFORMATION 36 BOARD OF DIRECTORS 68 LOTTE SUPER 78 WIN-WIN PARTNERSHIPS Links to the related information of the contents in the report.
    [Show full text]
  • Chaebols and Firm Dynamics in Korea
    Chaebols and firm dynamics in Korea Philippe Aghion, Sergei Guriev, Kangchul Jo Abstract We study firm dynamics in Korea before and after the 1997-98 Asian crisis and pro-competitive reforms that reduced the dominance of chaebols. We find that in industries that were dominated by chaebols before the crisis, labor productivity and TFP of non-chaebol firms increased markedly after the reforms (relative to other industries). Furthermore, entry of non-chaebol firms increased significantly in all industries after the reform. Finally, after the crisis, non-chaebol firms also significantly increased their patenting activity (relative to non-chaebol firms). These results are in line with a neo-Schumpeterian view of transition from a growth model based on investment in existing technologies to an innovation-based model. Keywords: Schumpeterian growth, chaebols, Asian crisis JEL Classification Number: O43, L25 Contact details: Sergei Guriev, One Exchange Square, London EC2A 2JN, United Kingdom Phone: +44 20 7338 6805; Fax: +44 20 7338 6111; email: [email protected] Philippe Aghion, College de France and London School of Economics Phone: +33 1 44 27 17 06; email: [email protected] Kangchul Jo, London School of Economics Phone: +44 7477 006402; email: [email protected] Sergei Guriev is Chief Economist at the European Bank for Reconstruction and Development, Professor of Economics at the Institut d’´etudes politiques de Paris (Sciences Po) and Research Fellow at the Centre for Economic Policy Research (CEPR). Philippe Aghion is a Professor of Economics at the College de France and London School of Economics. Kangchul Jo is a doctoral student at London School of Economics.
    [Show full text]