Date: Mon, 21 Jun 2004 03:01:52 -0700 From: the_dojang-request@martialartsresource.net Subject: The_Dojang digest, Vol 11 #284 - 2 msgs X-Mailer: Mailman v2.0.13.cisto1 MIME-version: 1.0 Content-type: text/plain To: the_dojang@martialartsresource.net Errors-To: the_dojang-admin@martialartsresource.net X-BeenThere: the_dojang@martialartsresource.net X-Mailman-Version: 2.0.13.cisto1 Precedence: bulk Reply-To: the_dojang@martialartsresource.net X-Reply-To: the_dojang@martialartsresource.net X-Subscribed-Address: kma@martialartsresource.com List-Id: The Internet's premier discussion forum on Korean Martial Arts. 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AAU Taekwondo Newsletter June 2004 (fwd) (Ray Terry) 2. The Evolution of Large Corporations in Korea (Ray Terry) --__--__-- Message: 1 From: Ray Terry To: the_dojang@martialartsresource.net (The_Dojang) Date: Sun, 20 Jun 2004 09:33:31 -0700 (PDT) Subject: [The_Dojang] AAU Taekwondo Newsletter June 2004 (fwd) Reply-To: the_dojang@martialartsresource.net Forwarding... Here is your AAU Taekwondo Newsletter for June 2004. AAU Taekwondo competitions feature both Olympic and Point sparring, and traditional Taekwondo forms, including WTF, ITF, and TSD/MDK forms may be performed. For more information visit http://www.aautaekwondo.org In This Issue: *Record Numbers Coming to AAU Nationals *2005 & 2006 Nationals Cities Announced *AAU Taekwondo Team Stars at the Tekno East Coast Open *Tournament & Events Schedule *Record Numbers Coming to AAU Nationals The AAU National Championship in Ft. Lauderdale is heading into record territory with over 2,300 athletes registered to participate. The Marriott and Embassy Suites are sold out, however, rooms are still available at the many other hotels offering special rates to those attending the AAU Taekwondo Nationals. One full day has been added to this year's event in order to handle the explosive growth that has taken place over the past two years. *2005 & 2006 Nationals Cities Announced AAU Taekwondo has set the following dates and cities for the National AAU Youth and Adult Taekwondo Championships. July 5 - 9, 2005 at the Greensboro Coliseum in Greensboro, NC, and July 4 - 8, 2006 at the Knoxville Convention Center in Knoxville, TN. *AAU Taekwondo Team Stars at the Tekno East Coast Open The 2004 AAU Taekwondo Team took home the Best Overall Team Trophy on May 22nd at the Tekno East Coast Open. Individual team members took home the following medals. Forms: Taren Ogata - Silver Ken Carter - Gold Sparring: 14 - 17 Male Light - Ken Carter - Silver Light Middle - Victor Sinn - Gold Light Middle - Michael Kahnis - Bronze Light Heavy - Gianni Giambi - Gold Heavy - Jarett Blankenship - Silver Heavy - Jacob Gray - Bronze 14 - 17 Female Elizabeth Thome - Gold Welter - Adriel Gray - Bronze Light Middle - Laura Licata - Gold Heavy - Amanda Gottschall - Gold Men Light - Kevin Bair - Gold Welter - Jay Utter - Bronze Middle - Casey McEuin - Bronze Heavy - Curtis Barnett - Silver Women Fin - Taren Ogata - Gold Fly - Elizabeth Thome - Gold Bantam - Andreea Kovacs - Silver Feather - Rikki Valle - Silver Light - Mary Ann Thomas - Silver Welter - Stephanie Hicks - Silver Heavy - Sharon Williams - Gold Heavy - Brenda Beardall - Bronze Congratulations Team! *Tournament & Events Schedule July 6-10, 2004 2004 AAU National Youth and Adult Taekwondo Championship Ft. Lauderdale Convention Center Registration packets available at http://www.aautaekwondo.org/ August 4-7, 2004 2004 AAU Junior Olympic Games Des Moines, IA This event limited to 6-17 year old Red/Brown and Black Belts only. Registration packets available at http://www.aautaekwondo.org/ *Order AAU Merchandise Online Need an AAU coach's shirt, AAU patches, pins, ties, training videos, or gup rank certificates? Now you can order them online (no more printing out order forms). Just go to http://www.aautaekwondo.org And get all the things you need! *The AAU Taekwondo Web Site Can Help You Want news, AAU Dan Certification info, tournament results, AAU merchandise, club or individual membership registration, or just the phone number of your Sport Chair? Visit: http://www.aautaekwondo.org ************************************************************** Introductory Offer Exclusively for AAU Members from Summit Flexible Products. Buy 50 or more CardioFlex(tm) or CardioFlex Twin martial art mats and get tapered safety edge strips FREE. Call 888-FOR-MATS or email: summitinfo@aol.com ______________________________________________________________ The AAU Taekwondo Newsletter is brought to you by the AAU Taekwondo Program at http://www.aautaekwondo.org Edited by David Mazor --__--__-- Message: 2 From: Ray Terry To: the_dojang@martialartsresource.net (The_Dojang) Date: Sun, 20 Jun 2004 09:37:09 -0700 (PDT) Subject: [The_Dojang] The Evolution of Large Corporations in Korea Reply-To: the_dojang@martialartsresource.net The Evolution of Large Corporations in Korea: A New Institutional Economics Perspective of the Chaebol_, by Jwa Sung-hee. Cheltenham, UK: Edward Elgar. 256pp. (ISBN: 1-8406-4883-X). reviewed by Matthew Shapiro University of Southern California mattheas@usc.edu The Evolution of Large Corporations in Korea was written to show why all current government intervention into the market, specifically that which affects the functioning of Korea's chaebol, or large corporations, must cease. As stated in the introductory chapter, "the role of the [Korean] government should be limited to defining the external economic and social environments, and should be confined to preserving the spontaneity and endogeneity of the market order." The text, thus, continues the neoliberal-developmental state debate of the World Bank, Alice Amsden, and other scholars of East Asian political economy. Author Sung-Hee Jwa focuses upon the chaebol for several reasons. First, the chaebol fit nicely into the "agent-organization-institutions" framework, which adheres to the tenets of new institutional economics. Such a framework attempts to show how government intervention into the market skews patterns of competition and disrupts the incentive structure. Such disturbances have greatly affected the chaebol, exemplified in the text with a pointed look at the failings of Samsung Motor Company. A second reason, however, that Jwa writes so fervently in favor of liberalization of the Korean market can be inferred through his affiliation with a self-stated neoliberal research institute, the Korea Economic Research Institute (KERI). Funded by the Federation of Korean Industries, it is in KERI's (and Jwa's) interest to produce research that supplements the existing Korea-related neoliberal literature. Note that key sources throughout the discussion, Inhak Hwang and Byoung Ki Lee, are similarly affiliated with KERI, hinting at a biased selection of evidence. Throughout the text, Jwa examines the interaction between the government's industrial policies and the chaebol's responses and shows that the chaebol have relied upon a 30-year policy pattern of entry barriers, support, and exit barriers. Jwa acknowledges that the study does not consider the effects of non-economic institutions upon the relationship. For the sake of parsimony and "positive" economics, therefore, cultural and political institutions have been excluded from the analysis. Examining industry concentration ratios (via the Herfindahl index) and market concentration ratios, Jwa shows that high levels of concentration by the chaebol are correlated with market inefficiency. Nonetheless, he goes on to say that chaebol ownership and management concentration - distinguishing features of Korea's large corporations - do not necessarily produce detrimental results, in relative terms. What is important, Jwa argues, is that the government establish an institutional framework to correct the distorted incentive structure which may be observed in the chaebol's behavior. In other words, let changes in corporate governance arise from a competitive and unconstrained market. Building upon these conclusions and applying the methods of new-institutional economics, Jwa concludes that chaebol formation, the particular managerial behavior of the chaebol, and excessive diversification of the chaebol resulted from a lack of credibility among Korea's property rights system. This lack of credibility caused chaebol owners to spread the risk of future losses by extensive diversification. Jwa details this phenomenon within the context of theoretical and empirical works by Coase, North, Williamson, and Eggertsson. To validate his hypothesis, Jwa also presents a regression of several nations. While this econometric model does partially account for the determinants of Korean firms' diversification behavior, it does not directly support the neoliberal call for termination of government intervention. A much more salient model, thus, would have analyzed the effects of government reforms upon competitiveness. Since Jwa does not venture into the realm of non-economic institutions, such a model is not possible in the context of the book. The book concludes with a call for a secure property rights system, transparency in corporate governance, and increased market competition in order to remedy the defects of the Korean economic system. What is lacking from this list of proposals, however, is a call for extensive scrutiny of the chaebol to determine their role in these defects. Jwa does mention the chaebol's moral hazard practices (dishonest behavior in situations in which behavior is not perfectly monitored), but does not attempt an explanation beyond the fact that they are the result of government intervention. What may be necessary is a more specific look at the "two stage decision-making model" presented earlier in the text, moving beyond a superficial look at how the chaebol receive economic allocations through non-market means (i.e., business and political relations) and how such allocations are invested. Such a detailed examination would require Jwa to look specifically at the function of moral hazard in the evolution of the chaebol. Jwa repeatedly asserts that the recent increase in anti-chaebol sentiment among the Korean populace is unwarranted and misplaced, but this view does not recognize that there is indeed widespread antipathy towards the government, largely due to an increasingly unconstrained media. Rather than frame the chaebol as a victim of interventionist government policies, Jwa should recognize that the public is well aware of the government's failings. Furthermore, had Jwa preferred to test empirically whether anti-chaebol sentiment is unwarranted, he could have examined Korea's Gini coefficient (a measure of income distribution) and unemployment rates. According to available data, income distribution has been relatively equal, but unemployment rates increased following the currency crisis. Given the large number of people negatively affected by the decreasing productivity of chaebol, increases in the unemployment rate should be correlated with increasing antipathy towards the chaebol. The reasons why Jwa avoids this key macroeconomic indicator are not clear. Although The Evolution of Large Corporations in Korea is a well-packaged and thorough presentation of chaebol development within the context of neo-liberal precepts, the discussion would have been much more effective if it had, within the parameters of new-institutional economics, brought qualitative evidence for economic reforms into play. Anecdotes, interviews, and detailed histories of the chaebol's evolution are much more appropriate for such an elaborate attempt to explain the evolution of these conglomerates. Similarly, analyses of the roles of Korean culture and Confucianism should have been introduced. No matter the success of neo-liberal reforms, testing the effect of personal connections and human relationships on business dealings in Korea will remain difficult. Citation: Shapiro, Matthew 2004 _The Evolution of Large Corporations in Korea: A New Institutional Economics Perspective of the Chaebol_, byJwa Sung-hee (2002) _Korean Studies Review_ 2004, no. 09 Electronic file: http://koreaweb.ws/ks/ksr/ksr04-09.htm --__--__-- _______________________________________________ The_Dojang mailing list The_Dojang@martialartsresource.net http://martialartsresource.net/mailman/listinfo/the_dojang http://the-dojang.net Old digest issues @ ftp://ftp.martialartsresource.com/pub/the_dojang Copyright 1994-2004: Ray Terry and http://MartialArtsResource.com Standard disclaimers apply. Remember September 11. End of The_Dojang Digest