Jae Wan Cheong

Evaluation of Korean SMEss Management Status in Southeast Asia and Policy Implications)

Korean Abstract: 기존 진출기업 지�?정책�?� 수출촉진�?� 위해 진출 �?�전단계�? 집중한 나머지 기(旣)진출기업�? 대한 지�?�?� 간과했다. 진출기업 지�?정책�?� 새로운 방향으로 �?�남아 기(旣)진출기업과 신규 진출기업 간�?� 신(新)�?태계 형성�?� 위한 지�?�?� 필요하다. 본 연구는 �?�남아 지역�?서 활�?� 중�?� 중소기업�?� 경�?실태를 분�?하여 효과성 높�?� 해외진출 중소기업 지�?정책�?� 방향성�?� 제시하는 것�?� 목�?으로 하고 있다. �?�를 위해 �?�남아 주요국�?� 주요 대내외 경제여건 변화를 정리하고 �?�남아 진출 한국 중소기업�? 미친 �?향�?� 분�?할 �?만 아니�?�, 설문조사 �? 현지 조사를 통해 �?�남아�? 기(旣)진출한 중소기업�?� 우리나�?��?� 수출확대와 신규로 �?�남아 진출�?� �?��?하는 중소기업�?� 안정�?�?� 진출 토대로 기능할 수 있�?��?� 확�?�한다. 마지막으로 진출기업 지�?정책�?� 새로운 방향성으로 기(旣)진출기업과 신규진출 기업 간�?� 협업�?� 통한 새로운 �?태계 형성 지�?방안�?� 제시하고 있다. 기존 진출기업 지�?정책�?� 수출촉진�?� 위해 진출 �?�전단계�? 집중한 나머지 기진출기업�?� 간과한 측면�?� 있었다는 �?�?서 정책�?으로 새로운 접근�?��?� �?�?한다. English Abstract: The entry pattern of Korean small- and medium-sized enterprises (SMEs) into Southeast Asia was influenced by the ASEAN FTA in 2007 and the global financial crisis in 2008. SMEs that have entered the market with the aim of utilizing the low-wage labor force have been placing the most importance on entering the local market since 2007. In addition, after the global financial crisis in 2008, large corporations reshaped their production network rapidly to Southeast Asia, but not to SMEs, which were vulnerable to risk. Fortunately, since 2014, SMEs’ investment in Southeast Asia has recovered to pre-2008 levels, mainly in Vietnam and Indonesia. As Golovko and Valentini (2011) pointed out, it is possible to measure the business performance of the enterprise to the extent that the small- and medium-sized enterprises enter the overseas market. While many Korean SMEs have moved into Southeast Asia, there are still very few studies that have conducted fundamental research into their management status. Instead, there have been abundant studies about how to enter Southeast Asia in order to meet the needs of Korean companies that want to go there. Considering the shortage of information on the management status of Korean SMEs participating in the regional production network (RPN) Korean large corporations have newly established in the Southeast Asian region, data on the Korean SMEs in Southeast Asia is required to prepare the future direction and the support policies for the SMEs. This study was conducted to meet this demand. The second chapter summarizes how the economy of Southeast Asia is affected by changes in the external environment, such as slowing growth in the Chinese economy, low prices of raw materials, collapse of mega-FTAs, and the recent strengthening of protectionism. Chapter 3 analyzes the investment strategy of Japanese SMEs in Southeast Asia. We examine the response of the Japanese government and SMEs to changes in domestic and international economic conditions in Southeast Asia. Chapter 4 analyzes the management status and business performance of SMEs entering Southeast Asia through surveys.

An Analysis of Urbanization in Africa and Its Implications for Korea: Future Demands for Urban Infrastructure

Cities and urban areas function as engines for economic growth as they mobilize labor and capital to create economies of scale through the agglomeration of production factors and increase productivity. They also create a consumer base through whose consumption of manufactured products encourages economic growth. Consequently, cities generate economic value that amount up to 80 percent of the global GDP. They also expand as rural labor is pushed out as a result of green innovation and technological development. Interestingly, Africas cities have expanded neither through industrialization nor technological innovation. Africas urban population is relatively small compared to other regions of the world but its growth is expected to accelerate in the near future. However, this rate of expansion and attention is unaccompanied by an improvement in physical and institutional infrastructure. As a result, Africas urban areas are sprawled by the expansion of slums while social infrastructure such as road, power, water and sanitation, and industrial production facilities is far from sufficient. As Africas urbanization comes with many side effects triggered by the infrastructure deficit, the development of economic and social infrastructure could aid its economic transformation. Using the various methods of pooled OLS, fixed effects model and system GMM, estimations on the future demand for infrastructure in the road, water and sanitation, and power sectors were conducted. Results indicate that demand is highest in the power sector followed by road and then by water and sanitation. Based on Koreas experience and expertise and in consideration of the calculated estimations, Korea can cooperate with Africa by developing policies for urban planning (soft infrastructure), building physical infrastructure (hard infrastructure), and providing assistance in the establishment of industrial complexes. Detailed examples include reforming land regulation systems, establishing the Intelligent Transport System (ITS) and utilizing co-financing capital for infrastructure development.

Localization Strategies in Response to Recent Changes in the Southeast Asian Labor Market Environment

Southeast Asia still has the potential to attract FDI from Korean firms even though the labor market environment has been changing at a very swift pace as of late. For example, as the increase in FDI improves the total factor productivity of firms operating in Southeast Asia, the wages of workers in this region have accordingly skyrocketed. As income growth led workers in the region to devote greater attention to democracy and human rights. Ongoing changes in Southeast Asias labor market are likely to have an adverse impact on Korean firms operating in the region, though the extent of the impact will differ across industries, firm sizes, and technology levels. Therefore, we suggest that government policies for FDI should be redirected to support localization efforts of firms operating in Southeast Asia. As these firms operate in foreign countries, they do not create jobs domestically. The existing literature, however, tells us that they positively affect domestic productivity and employment. This provides a reason for governments, including Korea’s, to identify effective policy measures that can support firms to successfully meet challenges and localize in these ever-changing markets of Southeast Asia.

Strategies to Strengthen Industrial Cooperation with Major Emerging Countries in Southeast Asia

This study examines the trade structures by production process of the largest export businesses between Korea and three Southeast Asian countries (Indonesia, the Philippines, and Vietnam), and takes a look at Koreas production networks focusing on the top export industries with these countries based on questionnaire surveys with Korean enterprises operating in these markets. In addition, an analysis was conducted comparison of trade structures by production process and production networks of Korea/China/Japan with three Southeast Asian countries. At the same time, this study suggest the strategies to reinforce industrial cooperation with emerging countries in Southeast Asia.

International Responses to Myanmar's Transformation

The transformation of Myanmar marks perhaps one of the least predicted international developments in the past twenty years. The new government that came into power in 2011 introduced sweeping political and economic reforms. The international responses to Myanmar’s reforms have been largely positive and in many instances enthusiastic. Western governments acknowledged and supported the reforms by easing or lifting sanctions on Myanmar. The change in Western policy about Myanmar also opened doors for expanded trade and investment opportunities with the rest of the world. Myanmar’s reemergence on the international stage has led to varied responses from Asian countries, among which China and Japan play major roles.

China's Advance into Emerging Markets - A Focus on ASEAN, Latin America and Africa

In 2001, China adopted “Go Global” as its official policy agenda, which pertains to Chinese businesses in overseas. The policy was set as the primary means of foreign economic cooperation in the 10th 5-year plan (2001-2005). Consequently, in 2009 and in 2008 were legislated. Moreover, the Export-Import Bank of China and the China Development Bank provide policy loans and preferential loans for financial support. In line with this, the Chinese government’s flexible diplomatic and political stance contributes to Chinese businesses in emerging markets.

Trade Patterns and Determinants of International Specialization Structure between ASEAN and China

China and ASEAN are recognized as the most important markets in the world, hence they have emerged as global factories and parts production bases. And trade between China and ASEAN is rapidly expanding and ASEAN has taken position as one of Chinas three major trading partners. Over the last 20 years, there has been a rapid increase in intra-industry trade where differentiated products are traded within the same industries between China and ASEAN countries. Empirical analysis on determinants of the international specialization structure between China and ASEAN countries shows that the deepening structure of vertical international specialization between the two regions over the past 20 years has been directly influenced by variables representing national characteristics, such as distance (trading cost), common language, the size of the national economy and income gap as well as intra-regional foreign direct investment.