Purpose-In response to concerns over regulatory gaps involving foreign e-commerce platforms, this paper examines how Korea's E-Commerce Act can be effectively applied and enforced. It aims to ensure that foreign platforms meet their consumer protection obligations, cooperate with the Korea Fair Trade Commission (KFTC), and prevent discrimination between domestic and foreign businesses. The paper highlights the role of the domestic agent and explores how it can be institutionalized. Design/Methodology-The analysis begins by confirming that the KFTC has applied the E-Commerce Act to foreign platforms and imposed sanctions. It then considers whether an explicit extraterritoriality clause is needed. The study further evaluates the effectiveness of the domestic agent system, analyzes the 2024 amendment bill, and presents specific policy recommendations. It also considers trade-related concerns, including the Korea-U.S. Free Trade Agreement. Findings-The study finds that adding an explicit extraterritoriality clause to the E-Commerce Act is unnecessary. Instead, emphasis should be placed on effective enforcement. This requires domestic agents with adequate capacity and legal authority. In this regard, a foreign platform's Korean subsidiary can be considered a candidate to serve as a domestic agent. However, mandating this by law requires caution, as this may raise trade disputes. Likewise, imposing turnover-based surcharges for violations of the domestic agent requirement would be premature at this stage. Originality/Value-With the rise of cross-border direct purchases, this study explores concrete measures to effectively apply and enforce the E-Commerce Act against foreign e-commerce operators. It also presents practical ways to introduce a domestic agent system under the E-Commerce Act.
Purpose-This paper examines whether East Asia's production networks have reverted toward their pre-2018 configuration after the 2018 US-China trade conflict or entered a state of enduring decoupling and non-reversion. Design/Methodology-A harmonised multiregional input-output (MRIO) framework for nine economies (2007-2023) is used to derive the value-added-to-exports (VAX) ratio and the average propagation length (APL). An event-study and difference-in-differences strategy identifies dynamic and persistent structural adjustments. Findings-Results indicate a significant and symmetric decline in both backward and forward APL after 2018, with effects persisting into 2021-2023. The contraction reflects a structural shortening of production networks on both the input and output sides. VAX ratios remain broadly stable, suggesting that the adjustment occurred through network compression rather than a reduction in domestic value-added generation. Originality/Value-By combining VAX and APL within a unified MRIO framework, this study provides new empirical evidence of the non-reversion of East Asia's production systems, revealing a durable shift from efficiency-driven globalisation to more regionally anchored reconfiguration in the post-2018 era.
Purpose-Logistics safety leadership is critical to logistics safety and reducing safety incidents. It refers to the influence of on-site supervisors in enabling workers to handle logistics tasks safely in logistics sites. This study aims to analyze the causal relationships between logistics safety leadership, participation and compliance, and performance of logistics companies; the mediating effect of logistics safety participation and compliance; and the serial mediation effect of logistics safety compliance through logistics safety participation. Design/Methodology-Based on prior research on logistics safety and safety leadership, a research model and hypotheses were developed. A survey was conducted with employees working at logistics companies. Structural equation modeling (SEM) and serial mediation analyses were employed. Findings-Logistics safety leadership significantly influence logistics safety participation and compliance and logistics safety performance. Logistics safety participation had a significant effect on logistics safety compliance but not on logistics safety performance. Moreover, logistics safety compliance was found to have a significant effect on logistics safety performance. Furthermore, logistics safety compliance significantly mediated the relationship between logistics safety leadership and logistics safety performance, whereas logistics safety participation did not. The serial mediation effect of compliance through logistics safety participation was found to be significant. Originality/Value-This study applied safety leadership theory to logistics and analyzed the causal relationships as well as the mediating and serial mediation effect of logistics safety leadership, logistics safety participation and compliance, and logistics safety performance. The results of the empirical analysis highlight the importance of active and voluntary practice of logistics safety behavior in logistics companies.
Purpose-This study analyzes the impact of dependence on domestic automakers on the internationalization performance of Korean auto parts companies. Drawing on resource dependence theory (RDT) and network theory, it categorizes dependence into underdependence and overdependence and investigates their differential effects on internationalization performance. Design/Methodology-To empirically test the proposed framework, survey data are collected from 201 Korean auto parts firms and analyzed using quantitative methods. Findings-The results indicate that underdependence has a significant positive effect on internationalization performance, whereas overdependence has a significant negative effect. These findings suggest that Korean auto parts suppliers should strategically manage their dependence on domestic automakers when formulating internationalization strategies. Originality/Value-This study makes two key theoretical contributions. First, by integrating RDT and network theory, it extends existing theoretical frameworks for explaining the internationalization of automotive parts firms, highlighting the differential effects of supplier dependence on automakers from the perspective of component firms. Second, it advances dependence research by distinguishing between underdependence and overdependence and empirically examining their distinct effects, thereby introducing the concept of relative dependence based on industry averages, which moves beyond the conventional high-low dependence dichotomy.
Purpose - This study examines the impact of the Korea-China Free Trade Agreement (KCFTA) on bilateral trade during 2011-2019, focusing on the heterogeneous effects of the agreement products, industries, regions, and trade shocks. Design/Methodology - Using a difference-in-differences approach based on gravity model, we analyze the effect of KCFTA implementation on Korea-China trade using China's detailed provinceproduct-level trade data with over five million observations. Trade is disaggregated by product type and region to identify specific trade patterns affected by the agreement. Findings - Tariff-exempted products under the KCFTA experienced a 17.3% rise in bilateral trade and a 15.8% increase in Korea's exports to China, while China's exports to Korea remained insignificant except in select categories. These findings remained robust when excluding semiconductors. This asymmetric response suggests a divergence based on global value chain roles. The agreement reinforced processing trade, intermediate goods, and trade with China's eastern coastal provinces. It also strengthened exports aligned with comparative advantages- labor-intensive goods for China and R&D-, high-skill-, and advanced technology-intensive goods for Korea. Industry-level effects include notable growth in China's apparel and Korea's machinery exports. Furthermore, while the US-China trade war prompted Chinese export diversification toward Korea, its influence on KCFTA outcomes was limited. Originality/Value - This study highlights KCFTA's varied and industry-specific impacts, showing how it reinforced comparative advantages rather than fostering uniform trade growth. It contributes novel empirical evidence on bilateral free trade agreement effects at a detailed product and regional levels, addressing gaps in the existing literature.
Purpose-This study proposes a deep learning-based approach for forecasting national container throughput in South Korea, emphasizing the need for disaggregation-based and policy-aware forecasting in maritime logistics. The objective is to improve predictive accuracy and stability by addressing both structural heterogeneity and institutional influences within container flow dynamics. Design/Methodology-The proposed Disaggregated and Policy-aware Temporal Fusion Transformer (DP-TFT) extends the standard Temporal Fusion Transformer by incorporating two key innovations: category-specific disaggregation and policy-aware conditioning. The model simultaneously forecasts four categories-Export Loaded, Export Empty, Import Loaded, and Import Empty-within a unified multi-output architecture. Monthly national container throughput data from June 2014 to June 2025 were used to train and evaluate the model against three benchmarks: SARIMA, the LSTM benchmark, and a Transformer. Findings-DP-TFT reduced MAE by 13.0-33.3% relative to SARIMA and by 8.1-13.4% relative to the deep learning baselines across all four categories. Structural disaggregation and policy-aware conditioning jointly improved accuracy and temporal robustness, yielding stable month-to-month predictions during disruption regimes such as pandemic shocks and geopolitical conflict. Originality/Value-By combining scalability with policy adaptability, this study advances the application of deep learning in logistics forecasting. The DP-TFT offers a flexible framework for integrating temporal, contextual, and policy dimensions, supporting data-driven decision-making in national trade and port management under dynamic global conditions.
Purpose-This study examines the impact of logistics performance indices on agri-food trade, depending on the type of agri-food products, with a focus on Korea's exports to 12 South and South-East Asian (SSEA) countries. By categorizing agri-food into processed and fresh foods, we attempted to analyze the disparity in the impact of both the overall LPI and each of its six factors on agri-food trade. Design/Methodology-This study employs a gravity model within a multilevel framework. The dataset comprises six years of export data encompassing 85 agri-food products across 12 SSEA countries. It was classified into a three-level multilevel model (Level 1: years, Level 2: type of agrifood products, and Level 3: countries) and subsequently analyzed. Findings-This study found that the impact of logistics performance on the agri-food trade between the two countries differs depending on the type of agri-food products. Specifically, the importing country's LPI had a significantly positive impact on overall agri-food trade. By product type, all LPI components except LPI_Tracking and Tracing and LPI_Timeliness-had a positive impact on processed food exports. However, neither LPI nor its components had a significant impact on fresh food trade. Furthermore, the results indicate that countries with high LPI scores tend to import more agri-food. Originality/Value-This study is the first attempt to investigate the role of logistics performance in the agri-food trade, depending on the type of agri-food products, by utilizing a multilevel model. Considering that most SSEA countries are developing nations, our approach and findings might contribute to developing logistics policies to expand agri-food trade.
Purpose-This research examines how cultural values shape managers' perception of competitive density (i.e., the number of competitors) and consumers' interpretation of it. Motivated by the possibility of cultural misalignment between managerial and consumer perspectives, this study investigates the dual influence of individualism-collectivism on both sides. Design/Methodology-A mixed-methods approach is employed. Study 1 uses World Bank Enterprise Surveys data to assess whether a country's individualism-collectivism score predicts aggregate manager-reported competitive density, controlling for key confounding variables. Study 2 employs an experimental design that compares brand attitudes of U.S. (individualistic) and South African (collectivistic) consumers exposed to a brand under low (two competitors) or high (eight competitors) competitive density conditions. Findings-Study 1 finds that countries higher in individualism exhibit lower levels of manager-reported competitive density, even after controlling for national wealth, innovation output, and market concentration. Study 2 reveals that individualistic (vs. collectivistic) consumers associate more (vs. fewer) competitors with higher product quality and exhibit more favorable attitudes toward the brand. Together, the studies suggest a culturally driven mismatch: individualistic (collectivistic) managers are predisposed to frame their competitive environment as low (high) in density, while individualistic (collectivistic) consumers respond more favorably to high (low) competitive density. Originality/Value-Using cross-national archival data, this research proposes individualism-collectivism as a novel predictor of managers' perceived competitive density. Furthermore, it identifies a potential misalignment between how managers define their competitive landscape and how consumers respond to such information-offering strategic implications for firms exporting across cultures.
Purpose-Article 25 of the United Nations Convention on Contracts for the International Sale of Goods (CISG) defines a "fundamental breach of contract" in abstract terms, which leads to interpretive uncertainty and unpredictability in its application. Consequently, courts and arbitral tribunals frequently differ in their assessments of whether a breach is fundamental. This study examines judicial and arbitral rulings in Korea under Article 25 to elucidate interpretative trends and mitigate legal ambiguities for exporters and importers. Design/Methodology-This study integrates qualitative and quantitative evaluations of Korean CISG cases. The qualitative analysis categorizes eight cases based on the type of fundamental breach, whereas the quantitative analysis categorizes 27 cases and utilizes text-mining methods in R, such as co-occurrence network analysis, cosine similarity, and keyword-in-context (KWIC) rule-based tagging, to identify linguistic and interpretive patterns in judicial reasoning. Findings-In the analyzed corpus, Korean courts and arbitral institutions frequently discuss "fundamental breach" in connection with the availability of avoidance as a remedy, while the texts exhibit substantial linguistic variation. These results underline the significance of quantitative linguistic methods in reducing interpretive ambiguity and establishing a basis for forthcoming comparative CISG jurisprudence. Originality/Value-This study provides an empirical view of interpretive patterns in the Korean application of the CISG by integrating quantitative text-mining methods, including co-occurrence network analysis, cosine similarity, and KWIC-based rule-based tagging, with traditional case analyses. The study illustrates how corpus-based linguistic methods can improve doctrinal clarity while encouraging harmonization in international sales law.
Purpose-This study examines whether multinational enterprises' environmental, social, and governance (ESG) activities moderate the negative relationship between tax avoidance and investment efficiency, as prior research has shown that managerial private benefit-seeking through tax avoidance leads to inefficient investment. In low accounting transparency environments, such as Korea, Investors and stakeholders of active ESG firms are expected to engage with management and strengthen the monitoring of governance, environmental, and social issues, thereby constraining managers' extraction of private benefits from tax avoidance. Design/Methodology-Using Korea Composite Stock Price Index-listed firms from to 2011 to 2020 post-IFRS adoption, investment efficiency is measured following prior methods, and tax avoidance is proxied by the five-year cash effective tax rate. Firms are partitioned into active and inactive ESG firms based on ESG ratings, and regression tests assess (i) the tax avoidance-investment efficiency association and (ii) the moderating role of ESG activity. Findings-Tax avoidance is significantly and negatively associated with investment efficiency. This association is not significant among active ESG firms, but remains significant among inactive ESG firms. These results are consistent with stronger stakeholder monitoring of discipline in active ESG firms, which limits managers' ability to translate tax avoidance into private benefits that distort investment choices. Originality/Value-This study extends ESG research to tax-related behaviors, showing that active multinational ESG engagement strengthens stakeholder oversight and prevents tax avoidance-induced private benefits. In Korea's low-transparency setting, this demonstrates ESG's role in mitigating inefficient decisions, supporting mandatory ESG reporting initiatives.
Purpose-Given Japan's 2019 export restrictions, technological self-reliance and strategic frameworks are imperatives in South Korea's semiconductor and display industries. This study examines the determinants of R&D investment decisions in terms of corporate financial stability and profitability with the contribution of intangible assets to firm performance. It aims to identify strategic investment priorities for SMEs operating under financial constraints and to establish an empirical foundation for government support policies. Design/Methodology-The sample includes South Korean and Japanese firms in the semiconductor and display industries affected by Japan's export restrictions from 2018 to 2024. The data are from DART and DataGuide (South Korea) and the EDINET database (Japan). This study applies regression models based on panel data analysis. The first model investigates how firms' financial indicators affect the scale of R&D investment. The second model evaluates how intangible assets as R&D investment outcomes influence profitability and growth potential, among others. Findings-Korean firms with superior equity ratios and stable sales growth have a higher propensity for R&D investment. R&D expenditures are a short-term financial burden but enhance long-term profitability by improving technological competitiveness. Japanese firms with high interest coverage ratios have more robust R&D investments. For both nations, intangible asset accumulation is essential for securing a sustainable competitive advantage and long-term viability. Originality/Value-This research offers timely academic insights into technological independence by comparing technological leaders and followers during an industrial dispute. Crucially, the results indicate that SMEs should prioritize intangible assets despite short-term profitability loss.
Purpose-This paper empirically investigates the relationship between the autonomy of Korean subsidiaries of multinational corporations and management performance and examines the moderating effect of digital capabilities on the relations held by subsidiaries. Design/Methodology-Our empirical model classified the management performance of local subsidiaries of multinational corporations operating in Korea into financial and non-financial performance, and the analysis was conducted on subsidiaries entering the Korean market. Findings-Our main findings indicate that the autonomy of Korean subsidiaries had a significant positive effect only on financial performance among management performance indicators. In addition, it was found that subsidiaries' digital capabilities positively regulate autonomy and financial performance. Originality/Value-The results of this paper show that the autonomy of local subsidiaries of multinational corporations can be a prerequisite that positively affects only financial performance among management performance. In addition, it implies that subsidiaries' digital capabilities can complement each other, along with their autonomy regarding financial performance. The results of this study suggest that the autonomy of subsidiaries not only improves the financial indicators of Korean subsidiaries of multinational corporations but can also be a driving force for both subsidiary autonomy and digital capabilities to enable bilateral management.
Purpose-This study examines how the strategic flexibility of multinational cosmetics companies affects organizational agility and innovation activities in the rapidly changing VUCA business environment. Given the cosmetics industry's short product life cycles and intense global competition, continuous innovation and rapid response capabilities are essential for sustaining competitive advantage. Design/Methodology-Based on an extensive literature review, a research model was developed examining the relationships among four dimensions of strategic flexibility (operational, market, resource, and coordination flexibility), two types of organizational agility (customer and operational agility), and two forms of innovation (exploratory and exploitative innovation). Survey data were collected from 394 employees of multinational cosmetics companies, and hypotheses were tested using structural equation modeling (SEM) with SPSS 21.0 and AMOS 19.0. Findings-All four dimensions of strategic flexibility significantly and positively affect operational agility, while showing no significant impact on customer agility. Both customer and operational agility positively influence exploratory and exploitative innovation activities, highlighting operational agility as a critical mediating mechanism through which strategic flexibility enhances innovation outcomes. Originality/Value-This study contributes to the literature by providing empirical evidence on the interrelationships among strategic flexibility, organizational agility, and innovation in the context of multinational cosmetics companies. The findings offer practical strategic insights for firms seeking to strengthen competitive advantage through enhanced flexibility and agility, particularly in the post-COVID-19 era marked by the growing importance of untact consumption and online distribution channels.
Purpose-This study analyzes how tariff policies, excise taxes, and regulatory measures affect e-cigarette imports and tax compliance in South Korea, addressing challenges posed by modular product structures and Free Trade Agreement (FTA) tariff disparities. Design/Methodology-A fixed-effects panel regression analysis is applied to an 11-year dataset (2014-2024) on e-cigarette imports, focusing on tariff rates, excise taxes, nicotine import regulations, and the 2022 HS code revision. Findings-Tariff reductions under FTAs significantly and consistently increase e-cigarette imports in both weight-and value-based models. Excise tax hikes demonstrate limited effectiveness: the 2017 tobacco stick tax had minimal effects on import volumes but significantly increased import values, suggesting price pass-through and changes in product mix. The 2022 HS code reclassification had a significant adverse effect in both models, highlighting the importance of regulatory clarity, with stronger moderating effects in weight-based specifications. Originality/value-By integrating trade liberalization, regulatory measures, and tax equity into a single framework, this study highlights structural tensions between FTA-driven liberalization and domestic tax equity. Furthermore, by comparing weight-and value-based outcomes, it provides novel evidence that the measurement of imports can shape the interpretation of policy effectiveness, an aspect rarely addressed in prior tobacco tax research. Policy implications-The findings suggest that policymakers should adopt integrated regulatory frameworks that align tariff policies with excise taxation and strengthen classification clarity. Tax increases should be complemented by regulatory measures, such as HS reclassification and stronger enforcement of nicotine regulations, to ensure equitable taxation and compliance.
Purpose-This study analyzes how forward participation, production length, and environmental policy stringency (EPS) index within the global value chain (GVC) impacts CO2 emissions embodied in international trade. This study aims to understand the interactions between these factors and their implications for sustainable production across various economic contexts. Design/Methodology-Using panel data from 35 countries over 2007-2018, this study applies the feasible generalized least squares (FGLS) method to address heteroskedasticity, serial correlation, and cross-sectional dependence. It examines the effects of forward participation, production length, and the EPS Index on CO2 emissions embodied in international trade, providing insights into the combined influence of these factors on carbon levels within GVC structures. Findings-The results indicate that forward participation in GVC generally reduces CO2 emissions embodied in trade, while longer production lengths increase emissions due to cumulative carbon-intensive processes. Higher EPS values are associated with CO2 reduction, particularly in countries with significant forward participation. The study also reveals how CO2 emission impacts vary between nations, influenced by economic structures and technological levels, highlighting the need for tailored environmental policies. Originality/value-This study provides new insights by exploring the interplay between GVC dynamics and environmental policy stringency. Unlike prior studies that focused on direct emissions or trade volumes, this study emphasizes the role of GVC structures in shaping CO2 outcomes, offering policymakers guidance for sustainable context-specific regulations.
Purpose-Considering Korea's repeated exposure to global financial shocks-such as the 1997 Asian financial crisis, the 2008 global financial crisis, and the recent COVID-19 pandemic-this paper investigates whether macroprudential policies (MPs) can reduce the likelihood of financial crises in Korea. While theoretical studies suggest that MPs can contain systemic risk, empirical research specifically assessing MPs' crisis-prevention role in the Korean context has been lacking. Design/methodology-We examine the relationship between MPs and four categories of financial crisis-banking, currency, debt, and inflation-using a panel dataset of 27 countries, including Korea, from 1990 to 2017. We use two MP variables: the loan-to-value (LTV) ratio and a composite index aggregating 17 MP instruments. Employing probit and complementary log-log models, we estimate the nonlinear relationship between MPs and crisis probabilities. Findings-Results indicate that tighter MPs are associated with lower probabilities of financial crises, especially debt, inflation, and banking crises. Furthermore, a higher LTV ratio is strongly linked to debt and inflation crises, and in some cases, it can perfectly predict inflation crises. Aggregate MP tightening significantly reduces the likelihood of banking and debt crises. However, MPs appear ineffective in preventing currency crises, which are driven largely by global economic factors. Originality/value-This study helps narrow an existing empirical gap by providing evidence on the role of MPs in crisis prevention, focusing on Korea. The findings suggest that maintaining and refining MPs is crucial to mitigating external shocks and preserving macrofinancial stability.
Purpose-This study aims to empirically investigate the impact of corporate R&D investment on export performance, while also critically examining the limitations of using the export-to-sales ratio as a conventional measure of export performance. Design/Methodology-The analysis is based on panel data covering 963 manufacturing firms listed on the KOSPI and KOSDAQ markets from 2010 to 2023, resulting in 6,912 firm-year observations. Panel regression and multiple regression analyses were conducted. The study introduces alternative measures of export performance to address potential distortions in the export-to-sales ratio, including export growth rate, export amount, and export-to-total assets ratio. Findings-The empirical analysis revealed that the export-to-sales ratio may produce misleading interpretations of export performance, particularly when changes in total sales and exports move in opposite directions. After excluding distorted cases, R&D intensity was found to have a significantly positive impact on export performance. Furthermore, R&D investment consistently demonstrated a positive and significant effect across all models using alternative performance measures. Originality/Value-This study contributes to the literature by highlighting the limitations of commonly used export performance indicators and offering robust alternative measures. It provides practical implications for researchers and policymakers by emphasizing the importance of selecting appropriate performance metrics when evaluating the effects of R&D on firm-level export outcomes.
Purpose-International business scholars have increasingly focused on firms' re-entry strategies in global expansion. Building upon organizational learning theory, this study examines how firms' past experiences influence foreign market re-entry decisions, focusing on two dimensions of experience: general international experience and country-specific experience. We further explore how the reasons for a firm's previous exit, particularly those driven by external factors, shape the effects of these experience types on re-entry decisions. Design/Methodology-We investigated U.S. multinational enterprises listed in the Fortune 500. For international activity data were manually collected from company websites and online news articles through a multi-step process. Other data were gathered from multiple sources, including Compustat, the World Bank, the Heritage Foundation, and The Culture Factor. The proposed hypotheses were tested using a probit model. To address sample selection bias and potential endogeneity, we employed a Heckman two-stage model. Findings-Our findings reveal that firms with diverse internationalization activities, contributing to general international experience, are more likely to consider re-entering the market region from which they previously withdrew. Conversely, firms with substantial country-specific experience in the exited market exhibit a reduced inclination to re-enter. Moreover, this negative effect is stronger when the prior exit is associated with external factors. Originality/Value-This study contributes to the internationalization literature by highlighting the differing roles of prior experiences and by providing new theoretical and empirical insights into international re-entry decisions. Overall, it offers meaningful insights into the dynamic and nonlinear nature of firms' internationalization trajectories.
