[Title Page]
Contents
I. Introduction 9
II. Type of Market Participation by Public Institutions and Alternatives 11
1. Theories of Market Participation by Public Institutions 11
A. Market Failure 11
B. Grounds in Relation to Economic Development and Industrial Policies 12
2. Classification of Market Participation by Public Institutions and Alternatives 13
A. Type 1: Function with High Public Interest and Low Profitability(To Address Undersupply) 14
B. Type 2: Function with High Public Interest and High Profitability(For Market Regulation Purposes) 16
C. Type 3: Function with Low Public Interest and High Profitability(For Cross-subsidization Purposes) 18
D. Type 4: Function with Low Public Interest and Low Profitability(To Utilize Idle Resources) 20
III. Market Participation by Public Institutions and Competitive Neutrality 23
1. Concept and Principles of Competitive Neutrality 23
2. Case Studies of Competitive Neutrality in Market Participation by Public Institutions 24
A. Analytical Method of Competitive Neutrality and Subject 25
B. Analysis of Application of Competitive Neutrality 26
C. Analysis of Competitive Neutrality Compliance among Public Institutions' Market Participation Businesses 34
IV. Case Studies of Market Participation by Type 36
1. Validity Assessment Method for Market Participation 36
2. Case Studies of Market Participation by Type 38
A. Korea Land and Housing Corporation’s Rental Housing Business(Type 1-1) 38
B. Korea Resources Corporation’s Resources Development(Type 1-2) 42
C. Korea Transportation Safety Corporation Authority’s Vehicle Inspection and Maintenance(Type 2-1) 48
D. Korea National Oil Corporation’s Economical Gas Station Business(Type 2-2) 51
E. Korea Tourism Organization’s Duty-free Shop Operation(Type 3-1) 55
F. Korean Standards Association’s Education Business(Type 3-2) 58
G. Korea Agro-Fisheries and Food Trade Corporation' aT Center Operation(Type 4-1) 62
H. Korea Coal Corporation’s Production and Sale of Anthracite(Type 4-2) 66
V. Conclusion and Policy Implications 71
References 75
〈Table II-1〉 Classification of Market Participation Functions: Four Types 14
〈Table II-2〉 Eight Types of Market Participation Functions 21
〈Table III-1〉 Analysis of Applicability of Competitive Neutrality 27
〈Table III-2〉 Compliance to Competitive Neutrality 33
〈Table IV-1〉 Type of Housing Construction Projects 39
〈Table IV-2〉 Economic Analysis of Public Rental Housing Service 40
〈Table IV-3〉 Current Situation of KORES's Foreign Resources Direct Development 43
〈Table IV-4〉 Independent Development Rates of Six Mineral Resources by Year 44
〈Table IV-5〉 Current Status of Investment in Foreign Resources 46
〈Table IV-6〉 Major Facilities of the aT Center 63
〈Table IV-7〉 Domestic Anthracite Production by Year 67
[Figure IV-1] Procedural Flowchart to Assess Validity of Market Participation 36
[Figure IV-2] Type 1-1: Validity Assessment of Market Participation... 41
[Figure IV-3] Type 1-2: Validity Assessment of Market Participation... 47
[Figure IV-4] Ratio of TS Vehicle Inspections to Private Sector Inspections... 48
[Figure IV-5] Type 2-1: Validity Assessment... 50
[Figure IV-6] Type 2-2: Validity Assessment... 53
[Figure IV-7] Validity Assessment of Market Participation of the KTO's... 57
[Figure IV-8] Type 3-2: Validity Assessment of Market Participation... 61
[Figure IV-9] Type 4-1: Validity Assessment of Market Participation of the aT's... 65
[Figure IV-10] Type 4-1: Validity Assessment of Market Participation of KOCOAL's... 69