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제 25 호 Catchphrase Trademark Protection

Kicker: SOCIETY Catchphrase Trademark Protection by Sumin Lee , Reporter minnida_@naver.com In last November when the biggest event for students was approaching, have you ever heard of the topic created by a product called "Lucky Bikimochi," which was released as a cheering gift for students the famous ice cream brand Baskin Robbins? The reason this product became a problem was that it was not directly dealt with by using the word Lucky Vicky, a combination of Jang Wonyoung's popular word with her English name(nickname), without asking for consent to use it. Do you know that buzzwords familiar to us are legally protected, and commercial use is punished by copyright law? As of 2025, when technology is developing and the Internet society is highly deepening, various new legal systems and the right to protection are proposed one by one, and let's take a look at how we can use it and what we should pay attention to when using new buzzwords and words. The news report of the right of publicity https://www.dailymotion.com/ytnnews24 What is the “The right of Publicity”? First of all, the so called buzzword property right, which is the topic of discussion in this phenomenon, refers to the right of the right holder to exclusively control and use factors with property values representing individual characteristics such as names, portraits, and voices. This term is similar to the right of portrait rights to own portraits, but it has a difference in emphasizing the right as a property right that is more likely to be used for profit. This right cannot be transferred to another person, but may be used for profit by another person if permitted by the party. However, contrary to the beliefs and values of the owner of the publicity right, withdrawal may be required if others use personality indications. History of the law The reason why this right came into existence was in 1953, a long time ago. It was first acknowledged as the "Haelan Laboratories, Inc. V. Topps Chewing Gum, Inc." Incident. It is an incident in which a gum manufacturer signed an exclusive contract with famous professional baseball players for advertising using their photos, but a rival company filed a lawsuit to double-sign and ban the same advertising contract. The defendant, rival company claimed that the right to use the photo was based on the right to privacy, which cannot be transferred as a personality right, also the exclusive property right cannot be obtained through a photo use contract. However, since the Court of Appeals judged that it could file a lawsuit against a third party who infringed on it if it was transferred separately from the right to privacy, it is also a case in which the court recognizes that filming and reporting the performance of celebrities in the 1970s is a serious violation of economic value. The legal character is divided into the view that it is a kind of privacy right that takes on the characteristic of personality rights and the view that it is a kind of intellectual property right that takes on the characteristic of property rights. If you look at it as a type of privacy right, you can claim damages for personal and mental damage, but if you look at it as a type of intellectual property right, you can take remedies for infringement of property rights. How is it reflected in Korea Let's see how these rights work in Korea. In Korea, no explicit Supreme Court ruling on publicity rights has been made, and some lower-ranking judges ruled that most countries cannot recognize this right due to legalism, but others ruled that infringement of identity is illegal under civil law and that independent economic values are worth protecting themselves. Although there was no basis under the actual law, the act of infringing on other people's economic interests was newly established as a type of unfair competition by unauthorized use of other people's names, portraits, voices, and signatures, which are widely recognized in Korea. The scope of this Act must be for transactions with specific targets, and it is defined as a protected thing that is electronically managed, accumulated and subject to disclosure with economic value. Similar cases and current responses In addition to the recent proposal, there was another controversy centered on these rights. The development of AI technology was also active, and it was about "AI cover songs" that appear in many communities. If you look into this concept briefly, this is a song that uses advanced AI technology to make songs and release them to the public in the voice of other singers who are not the original singers. Even if you don't use the original singer's voice, you can create the same song as other singers, and it has become a new method of content production. If you look at why this technology became the center of controversy, you can see in many voices that it is urgent to create legal protective devices because it negatively affects the image of the original author in the process of being copyrighted and released to the public quickly.The people at the center of these rights disputes can easily see that there are many externally known celebrities such as faces and voices. People are constantly arguing with two opinions over various sentencing cases that have continued since the past. People who are positive about the need for rights are said to be celebrities, but they are also divided into opinions that it is not right to use them for profit without permission and opinions that celebrities should accept the need for rights, and some say that active use of various buzzwords is not a big problem. As of the 21st century, trends are changing really fast, and influencers have changed and increased the number of words people use, which is also actively used for commercial activities. However, now that individuals' rights to intangible assets have been strengthened, society has become a society that needs to have an attitude to use buzzwords after considering various perspectives. What do you think about this social controversy? How will the scope of property rights change in the future, and in what direction will the future judgment of property rights on the buzzwords that have become the center of this article proceed? Sources: https://www.sisunnews.co.kr/news/articleView.html?idxno=17420 https://terms.naver.com/entry.naver?docId=2118209&cid=40942&categoryId=31693 https://www.kocca.kr/n_content/vol24/subp/issue_hotTrend3.html

• 작성일 2025-03-01
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제 25 호 The New Economic Trend :The GG (Grand Generation)

Kicker: SOCIETY The New Economic Trend : The GG (Grand Generation) by Sumin Lee , Reporter minnida_@naver.com In Korea, which has been greatly affected by the social phenomenon of low birth rate and aging, an issue that has been continuously emerging for a long time, the number of registered residents aged 65 or older exceeded 10 million in July last year. This is the same as saying that Korea has entered a super-aged society similar to the flow of the world's population. In line with this trend of population change, the University Chamber of Commerce and Industry released a report on the GG (Grand Generation) market on January 30, 2025, providing new services and product proposals tailored to the Grand Generation generation, which is gradually replacing the MZ generation as major consumers. In this article, I would like to talk about the Grand Generation generation, which has become such a target audience in many industries and is changing the brand's image. What is the “GG”? Grand Generation People enjoying their life https://v.daum.net/v/20240611093828392 First, GG stands for grand generation. This generation consists of middle-aged and elderly people in their 50s and 70s born between 1950 and 1971, who are about to retire or continue their economic and social leisure activities even after retirement. In the past, this age group was classified as the elderly, but today's GG generation has a difference from traditional seniors. The most notable part is that people of this age continue to engage in vigorous economic activities and social participation and exercise strong influence in the consumer market. In addition, there is a strong tendency to live at the so called "sensitivity age" that feels more than 10 years younger than the biological age, and even people in their 60s consume products and services based on their individuality and interest in the form of consumption in their early 50s. It is also noteworthy that they consume for themselves rather than for their families and actively utilize various digital services such as FinTech and SNS. Finally, it can be seen that the consumption of the surrounding people is greatly affected by the consumption of the role model, and that the number of single person households in their 60s and older is increasing, and that there is a lot of consumption that tries to relieve loneliness. Changes in the Market with the advent of the GG generation Senior Models of the department store Culture Club https://www.yna.co.kr/view/PYH20190926106100013 In line with these changes, industries in various fields are creating a market that combines the GG generation, which is competitively the center of current consumption. For the GG generation who invests for their individuality and interests, the market related to learning and hobbies is growing, and services related to culture and hobbies are increasing. In addition, a new trend has emerged to pursue nature suitable for the age of "proaging," and digital health and nursing services are also deepening, such as the increase in AI-based health monitoring services and personalized medical services. As a representative example, in the medical/beauty industry, tools that GG generation can easily use to improve skin, develop high functionality and convenience, and provide products that adjust the font size of the product to make it visible in large letters. In addition, the department store cultural center is expanding opportunities to learn more by providing model classes for seniors and premium services such as yoga/golf. It is also enhanced and offers more customized services. It provides services such as those that can relieve the loneliness of single-person households through custom-made shared housing models, and various hobby life activities support services through hobby/community facilities in shared spaces, and provides flexible residential services through a won-based rental system that is slightly different from a Silver Town. A view of changes in the market Now that so many industrial changes are taking place, how should new branding be done for the GG generation? For the GG generation, who have financial leeway and are interested in investing in improving their quality of life, they need to develop premium experiences such as luxury tours, advanced services, and silver line products. In addition, for those who are gradually getting used to digital devices, we can optimize app design to minimize inconvenience, increase convenience, and help them access the deepening digital environment more easily. In addition, it can be recognized that the changes in the market are still changing, such as providing community services for those who have enough time to enjoy hobby activities such as golf and mountain climbing so that easier encounters and hobbies can be shared. However, there is also an opinion that it is dangerous to see the GG generation only as a major consumer. There are many people who still make up this generation who are struggling to adapt to digital devices and the environment, and there is a negative opinion that not all generations of members are financially rich, so they can accelerate hierarchical division. It is also necessary to propose and develop points of consultation between these opinions. Companies that need to change in line with the continuous change in the consumption oriented generation and those who are preparing to become members of such companies need to worry about what subjectivity to approach this trend, and why don't you take a neutral view of this situation and think about the opportunities it may offer? Sources: https://www.ktnews.com/news/articleView.html?idxno=135314 https://www.econovill.com/news/articleView.html?idxno=683295 https://www.pharmnews.com/news/articleView.html?idxno=246049 https://www.khan.co.kr/article/202501301536011

• 작성일 2025-03-01
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제 24 호 The Number of Young Unemployed Exceeds 700,000

Kicker: SOCIETY The Number of Young Unemployed Exceeds 700,000 by Ji-Won Choi, Reporter support0321@naver.com The number of young South Koreans who are unemployed has recently surpassed 700,000. According to the Korea National Statistical Office, 680,000 young people in their 20s and 30s reported that they were simply "resting" without any specific reasons such as illness or disability. This is the highest number since the relevant statistics were first compiled in 2003 and represents a 20,000-increase compared to 2020, when the COVID-19 pandemic hit. The fact that the youth, the future of our society, are unable to find jobs is a serious issue. So, what are the reasons behind this growing trend? Why Young People Are Resting A survey conducted by the Statistics Korea showed that the main reasons why young people are unemployed are: 'difficulty in finding a job that meets their expectations,' 'taking a break to prepare for the next job,' 'poor health,' and 'lack of jobs,' in that order. The primary reason for these responses is economic. South Korea's economic growth rate was only 1% in 2023. In such a low-growth environment, job instability and a shortage of jobs are inevitable. Due to the lack of jobs, the number of good jobs is limited, leading to fierce competition for high-paying positions. In a situation where there are no alternatives to this problem, the structural contradiction of the labor market, which expects young people to simply lower their expectations, exacerbates this phenomenon. As a result, young people are excessively focused on building their resumes. Furthermore, government policies have not been very effective. Only 1,058 young people found jobs through the government's "National Employment Support Program," which is less than 20% of young people. For this reason, the number of "freeter," young people who make a living solely through part-time jobs without seeking full-time employment, is on the rise. The reason why young people cannot find the jobs they want is the large gap in wages between large and small companies. The number of what we consider "good jobs" is small and limited. As a result, young people's values are changing, and they believe that it is better to work part-time than to feel burdened by organizations and social life. Impact of Youth Unemployment Increase So, what are the implications of this phenomenon? First, young people may become socially isolated, negatively impacting their personal lives. There are about 510,000 "reclusive youth" nationwide who do not go outside or engage in social activities. These individuals may experience deteriorating mental health, lowered self-esteem, and a decline in their quality of life. This also affects society as a whole. As the number of young people not engaged in economic activities increases, government spending also increases, burdening the national budget. In fact, unemployment benefits and basic livelihood benefits are provided to young people who are not working. This expenditure exceeds 200 billion won annually. Additionally, national productivity decreases, leading to a decline in GDP. Moreover, if young people's entry into society is delayed, the time at which they can live on a stable income is also delayed. This delays the timing of young people's homeownership, marriage, and childbirth. Therefore, the issue of youth unemployment is not simply a matter of an increasing number of unemployed young people but a societal issue. The Efforts of the World's Nations to Help Young People Become Employed Youth unemployment is a global issue, not just a domestic one. Accordingly, governments around the world are proposing solutions. The United States has defined individuals aged 16-24 who have not been engaged in employment or education training for at least one year as "disconnected youth." The US supports disconnected youth by focusing on programs that provide education to help them re-enter the labor market. Germany emphasizes an "educational chain program" for unemployed youth. As a solution, it ensures that young people successfully complete vocational training. It provides personalized support so that students can systematically explore careers at an early age. This includes individual potential analysis, career exploration programs, career choice paths, and support for vocational training. Finland provides jobs, learning spaces, workshops, and rehabilitation periods within three months for graduates or unemployed young people. South Korea should also strengthen its system for addressing youth unemployment by referring to the cases of these countries. Unlike Germany, South Korea's support policies are fragmented. It tends to focus on creating short-term jobs, such as public service and part-time work, making it difficult for young people to find stable employment. Moreover, there is a tendency to focus on increasing short-term employment rates while neglecting the development of diverse career exploration programs that allow individuals to discover their strengths and interests. Furthermore, there is a tendency to attribute these phenomena to individual problems of young people. Negative terms such as "N-generation" are used to create negative perceptions. It is necessary to change the negative social perception of "unemployed youth." Youth unemployment is no longer an individual problem but a societal challenge that demands our collective attention. Governments must implement comprehensive support programs to empower young people to build stable lives, while businesses should prioritize hiring and nurturing young talent. It's imperative that we, as a society, rally behind our youth, fostering an environment where they can thrive and contribute meaningfully. The time has come for us to invest in our future generations. Sources: https://www.mk.co.kr/news/economy/11068815 http://www.m-economynews.com/news/article.html?no=45533 https://www.chungnamilbo.co.kr/news/articleView.html?idxno=792904

• 작성일 2024-11-27
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제 23 호 Dynamic Capabilities

Kicker: Society Dynamic Capabilities by Si-ho Park, Reporter pnshse05@naver.com Dynamic capabilities are the abilities needed in the changing business environment to reorganize capabilities within a company and acquire new capabilities. Recently, the business environment has been changing so rapidly that it is difficult to predict and cope with change. As changing capabilities are so important when the environment changes, dynamic capabilities are emerging as an essential keyword nowadays. According to David J. Teece, a Doctor of Business Administration who has studied dynamic capabilities in-depth, dynamic capabilities are the firm’s ability to integrate, build, and reconfigure internal competence to address, or in some cases to bring about, changes in the business environment. Dynamic Capabilities Framework To accurately understand dynamic capabilities, it can be compared with the existing 5 forces theory and resource-based perspectives. Michael Porter's 5 forces theory is a framework that analyzes the structure of a stable industry without competition, and the resource-based perspective analyzes differences in the capabilities of companies in the same industry. While a resource-based perspective is a theory that analyzes "core competencies," the "dynamic capabilities" theory focuses on changes in competencies in a rapidly changing environment. Dynamic capabilities differ in that they have a higher degree of premised crisis and uncertainty compared to the two existing theories, and their goal is to analyze corporate disruption. In addition, in this theory, the factor that determines the success or failure of a company is viewed as the company's management system and the ability to reconstruct business models. There are three abilities required for companies to gain dynamic capabilities. The first is “sensing,” the ability to clearly detect and grasp the dynamically changing threats in the business environment and to properly understand their essence. The second ability is “seizing,” which refers to the ability to capture and create opportunities. The third ability, “transforming,” is the ability to quickly reorganize and execute resources and core competencies. Meanwhile, “organizational agility” is also required to accompany a strategy for companies to demonstrate dynamic capabilities. In other words, dynamic capabilities fundamentally require agility, which means that all organizations in a company need a strategy to quickly and wisely rearrange their capabilities. This is because dynamic capabilities are required for each process handled by organizations that are each subject to the process of properly establishing and executing strategies. Dynamic Capabilities SENSE Identify Opportunities SEIZE Design and Refine Business Model; Commit Resources TRANSFORM Realign Structure and Culture Technology Possibilities Technology Development Anticipate Competitor Reactions Defend Intellectual Property Align Existing Capabilities Invest in Additional Capabilities Figure 1. Simplified schema of dynamic capabilities, business models, and strategy Dynamic Capabilities of Netflix To analyze Netflix based on the dynamic capability framework, Netflix's chronology can be divided into three stages to distinguish major events: cycle 1 to cycle 3. The first cycle runs from 1997 when Wilmot Reed Hastings, Jr., began devising a business model with Marc Randolph, his co-founder at the time, to May 2002 when Netflix was listed on Nasdaq to unveil the company. At that time, Netflix focused on a business model that rented DVDs by mail while also selling them to customers who wanted to purchase DVDs. Netflix was concerned about the stability and speed of delivery, which were the factors that determined the rise and fall of the DVD business. Thus, Netflix successfully built a fast DVD mailing process, with 50 distribution centers that would enable same-day processing and next-day delivery. The second cycle is from May 2002, when the company launched its company on NASDAQ, to 2009. Netflix faced a major challenge due to the new expansion of online DVD rental businesses by major retailers such as Walmart and Amazon. Netflix not only felt a sense of crisis but also realized that the competitive environment was difficult. Netflix realized that the longer the competition for DVD rental through mail delivery was prolonged, the less secure the future would be, so it explored the technological potential of video streaming, which many of its competitors thought was premature, and turned the crisis into an opportunity through a successful transition. The third cycle corresponds to the period from 2010 to 2020 when it started to target overseas markets. Instead of providing content that reminded people of the past, Netflix began to provide new content including dramas and movies that it outsourced in 2013, which served as a driving force for Netflix to secure a competitive advantage in the OTT market. In addition, around this time, Netflix entered the overseas market beginning with Canada in 2010, Korea in 2016, and lots of other countries. As a result, Netflix has provided services all over the world except for North Korea, Syria, China, and Crimea. Since then, Netflix has experienced COVID-19 and a change in the business environment. In this cycle 3, Netflix is facing fierce competition with emerging entertainment companies. Netflix accurately detected when the market had shifted from a DVD-centered market to an online streaming market and from content distribution to content production, captured the changing business environment, and quickly reorganized its core competencies throughout the three cycles. Therefore, Netflix was able to achieve great success by constantly differentiating its company from other operators and taking a position that no one could match in a rapidly changing environment. Dynamic capabilities are necessary not only for companies but also for all individuals living in this changing environment. Recently, the environment surrounding us has been changing very rapidly, and we should design our future career paths and reorganize our own capabilities by adapting to the emergence of AI, technological advances, and changes in ethical concepts. This might be an essential way for us to live a good life. Then, through what kind of effort could you be equipped with dynamic capabilities and live a good life? You should also try to gain dynamic capabilities according to the changing environment. Sources: Jang-soon Kim (2021), A Case Study on the Strategy of Netflix: Dynamic Capabilities of Global Companies, Korean Management Consulting Review, 21:1, 387-397 David J. Teece (2018), Business models and dynamic capabilities, Long Range Planning 51, 40-49

• 작성일 2024-09-09
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제 23 호 A Car’s Tragedy: a Sudden Acceleration Accident

Kicker: Society A Car’s Tragedy: a Sudden Acceleration Accident By Su-Young Kim, Editor /kimsuyoung1342@gmail.com Recently, there has been a lot of news about the accidents related to the sudden acceleration of the cars. In a situation where drivers are embarrassed and difficult to deal with, victims continue to hear a lot of sad news. On the other hand, the perpetrator must prove himself that the cause of the accident is the sudden acceleration of the car. Therefore, let's find out how these sudden acceleration accidents occur, why the perpetrator has no choice but to prove the accident, and what you need to know to prevent an accident. On July 1, at 9 p.m., a car driven by a man in his 60s broke into the sidewalk in front of Seoul City Hall, causing several casualties. In addition, on December 6, 2022, a 68-year-old woman's vehicle was accelerating on a road in Gangneung, Gangwon-do, and collided with a vehicle, hit the boundary stone of the road, and crashed into an underground passageway. The driver was seriously injured and booked for violating the Special Act on Traffic Accidents, and the driver's grandchild lost consciousness and was taken to the hospital, but eventually died. What these incidents have in common is that both of drivers insisted that they were caused by the sudden acceleration of the vehicle. Therefore, anxiety about sudden acceleration of vehicles is growing, and on average, about 30 cases are reported as suspected of sudden acceleration every year, but so far, no vehicle acceleration has been recognized in Korea. As a result of analyzing the affected vehicles by oil type, diesel and gasoline were the most common with 78 and 73, respectively. Next came 33 electric vehicles, 26 LPGs, 33 hybrids, and 1 hydrogen. In the case of electric and hybrid vehicles, the number of reports also increased as the supply of vehicles increased. Then, what is the cause of the sudden acceleration of the car? First, there is a possibility of defects in ECU parts, which are electronic devices that control automobiles. In 2022, the U.S. ordered the recall of its 21-year-old Ford Mustang Mach-E electric vehicle model because of unintended acceleration or deceleration symptoms. Due to a software defect in the powertrain control module (PCM) electronic component, Ford has solved the problem by updating the software. Given this, it would be difficult to say that electronic equipment related to vehicle control manufactured by manufacturers is 100% reliable equipment. Secondly, there is a possibility that electronic equipment may malfunction due to moisture. Winter weather is fatal, and internal condensation is likely to occur due to the warm temperature of the engine and cold weather. Third, it is possible that it is the battery problem of the car. If the battery itself is defective, it causes problems such as swelling or not uniformly supplying power. Unfortunately, however, the reality is that the exact cause of the sudden acceleration of vehicles is unknown. Even if it is reported as a suspected sudden acceleration accident, the verification process is difficult and the burden of proof is not on the manufacturer's side, so there are many difficulties in relieving consumers. As consumer anxiety rose due to such accidents, the national assembly proposed an "Amendment to the Product Liability Act" that required manufacturers to prove that there were no vehicle defects in the event of a suspected car sudden acceleration, but it did not proceed. Toyota is said to be the only U.S. case that has been recognized for sudden acceleration overseas. In the case of the United States, manufacturers must prove that there are no vehicle defects during the trial, and if they fail to do so, they must compensate consumers. In 2014, the U.S. Department of Justice agreed to close the investigation under the Deferred Action Agreement (DPA) on the condition that Toyota pay a $200 million fine. However, even at that time, the cause of the sudden acceleration was not clearly identified. As the driver has to prove the sudden acceleration of the vehicle, the installation of a black box with a pedal that takes pictures of the driver's foot is spreading like a trend. The Ministry of Land, Infrastructure and Transport said it plans to recommend domestic and foreign automakers to install pedal black boxes, but car manufacturers said it is difficult to analyze the cause of the accident with accident recorders and change the design of cars for installation. Therefore, it will be difficult to mandate the installation of the pedal black box right away, but it would be good if the supply gradually expanded, and it would be proved that the suspected sudden unintended acceleration was the manufacturer's responsibility or the driver's fault. picture1https://www.hani.co.kr/arti/economy/car/1076741.html Many people seem to be worried and anxious because of the recent surge in suspected automobile acceleration. For people to drive safely without feeling uncomfortable, I hope the bill related to sudden acceleration will be revised or countermeasures will be prepared as soon as possible. Sources: https://n.news.naver.com/article/024/0000090167?sid=102 https://www.yes-doit.com/2023/10/Causes-and-countermeasures-for-sudden-car-acceleration-accidents.html https://n.news.naver.com/article/422/0000673530?sid=102

• 작성일 2024-09-09
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제 22 호 What Is Marketing?

Kicker: SOCIETY What Is Marketing? Marketing that shows why luxury goods are luxury goods By Myung-Kwan Kang Kmmg199999@naver.com The sales of overseas famous brands in department stores have been increasing rapidly every year, and in 2024, luxury brand sales also rose. What is luxury, and why do people love luxury goods enough to buy them even during an economic downturn? Let's find out.People have various reasons for purchasing luxury goods. Some buy them because others have them, for gifting purposes, out of necessity, or simply because they like luxury brands. However, when it comes to deciding which brand of product to buy, brand marketing plays the most significant role.Then what is marketing? It refers to planning activities to smoothly transfer products from producers to consumers and includes market research, product planning, advertising, and sales promotion. https://www.pinterest.co.kr/pin/604045368802329502/ A brand called a luxury brand is one of the most popular brands around the world. However, in order to maintain high quality and aesthetic value, a high price range and appropriate marketing are essential. Accordingly, luxury brands are conducting all-out marketing to sell expensive products. Marketing Strategy One of the representative marketing strategies of luxury brands is building their brand image. Luxury brands build their own unique brand image by emphasizing high quality and aesthetic value. To this end, luxury brands are strengthening their brand image by collaborating with celebrities and holding fashion shows and events. In addition, luxury brands are conducting strategic marketing to customers who want to purchase luxury goods by partnering with high-end department stores that sell their products. After establishing a brand image, a crucial step is to strengthen it through social media. Platforms like Instagram and Facebook consistently share stylish photos of the brand's products and announce new launches, fostering direct communication between the brand and its customers. Influencer marketing is particularly effective in this realm, as showcasing popular influencers using the brand's products heightens interest and awareness, leaving a lasting impression on consumers' minds and ultimately driving sales. Now I will introduce the marketing strategy of LVMH, a globally renowned company. For those who may not be familiar with LVMH, let me provide a brief overview. LVMH is a French multinational luxury goods conglomerate established in 1987 following the merger of Moët Hennessy and Louis Vuitton. LVMH encompasses over 70 prestigious brands across diverse sectors, including fashion, leather goods, perfumes, and watches. Among its notable brands are Louis Vuitton, Dior, Fendi, Givenchy, Celine, and Kenzo. With a global presence, LVMH operates in more than 70 countries worldwide. LVMH generates revenue by cultivating brands renowned for expertise, quality, and exclusivity, catering to affluent consumers who appreciate luxury goods. Moreover, its marketing strategy revolves around core ideas such as exclusivity, innovation, and storytelling. Brand Storytelling LVMH has crafted compelling narratives for each of its brands, emphasizing their rich histories, exceptional craftsmanship, and meticulous attention to detail. For instance, Louis Vuitton's story revolves around a legacy of travel and exploration, while Dior is renowned for its timeless elegance and sophisticated fashion designs. Utilizing these narratives in its marketing endeavors, LVMH aims to foster emotional connections with customers, enabling them to forge deeper bonds with the brand. Celebrity Endorsements LVMH has leveraged celebrity endorsements to enhance brand awareness and credibility. Renowned figures such as Rihanna, Jaden Smith, and Emma Stone have collaborated with the company to endorse its brands and products. Through these partnerships, LVMH gains access to wider audiences, introducing its products to new consumers. Limited Editions and Collaborations LVMH strategically employs limited editions and collaborations to generate buzz around its brand and products. For instance, Louis Vuitton has partnered with acclaimed artists and designers, such as Jeff Koons and Virgil Abloh to create exclusive, limited-edition designs that captivate consumers and drive sales. These collaborations ignite excitement within the market and reinforce the brand's innovative and creative identity. Digital Marketing LVMH enhances brand recognition through social media, email marketing, and various online channels. Additionally, they have curated engaging content on social media and prioritized e-commerce investments to facilitate seamless product purchases for customers. Experiential Marketing LVMH has invested in crafting immersive experiences that provide customers with fresh and exciting ways to engage with the brand. For instance, the company opened a pop-up store and presented the brand's extensive history and exceptional craftsmanship through captivating brand experiences like the Louis Vuitton time capsule. In addition, LVMH utilizes a 4P strategy known as the marketing mix. This marketing mix encompasses product, price, place, promotion, and more, constituting a significant portion of marketing. Alongside the marketing mix, we prioritize customer service and brand image. Moreover, Using STP strategies to help brand reputation and make it more attractive to people The differences between high-end brands and mid-range brands encompass various factors such as price, quality, and brand value. However, the distinction between luxury items and non-luxury items ultimately arises from marketing strategies such as brand storytelling, celebrity endorsements, limited editions and collaborations, digital marketing, experiential marketing, the 4P strategy, and the STP strategy. The criteria for what defines a luxury item can vary from person to person. However, the hallmark of a luxury brand is the effort the brand puts into its creation process, and this ultimately leads to consumers choosing it as a luxury item. Why luxury goods are expensive and their consumption is increasing When prices rise, consumption goes down, and conversely, when prices fall, consumption increases. But luxury goods defy this law of demand. What is the reason for this? The first reason is luxury goods. Luxury goods were items used by the royal family and nobles, so they were very popular items for people who wanted to show off. The second reason is scarcity. For example, Hermes does not make a product if the quality of the leather is not satisfactory, and its products are made step by step by craftsmen from start to finish. Hermes' bags take at least 18 hours to make, and the company sometimes produces only two products a week. This is why rare luxury goods are expensive because not everyone has them, and even if you have money, you cannot obtain them. The third reason is that luxury goods are positional goods. Objects in this world are divided into material goods and positional goods. Most items, such as TVs, computers, and cell phones, are material goods and have absolute value. However, some goods do not have absolute value but rather relative value or social value. These are positional goods, and luxury brands are a representative example. Positional goods must not be common to have relative and social value, so luxury goods are priced high from the beginning, and the more they are sold, the higher the price. In this article, we have explored the concept of marketing and what sets the marketing of luxury brands apart. While many people perceive marketing as merely advertising and promotion, it encompasses everything that represents the brand itself. The future of marketing will see advancements in digital marketing and the utilization of AI and automation technology, driven by the progression of digital technology. Furthermore, with environmental issues having become increasingly prominent, brands with a sense of social responsibility, including environmental protection and social contribution, will thrive. Among these brands, Hermes, Louis Vuitton, Chanel, Gucci, and Dior are anticipated to demonstrate steady growth, as indicated by brand rankings and comprehensive evaluations in 2023. Sources: https://www.fnnews.com/news/202401260846252144 https://ko.dict.naver.com/#/entry/koko/180551d517b449fab2d8968f6110cc27 https://www.youtube.com/watch?v=Nd8LmNTxKrw https://dbr.donga.com/article/view/1203/article_no/10844 https://www.youtube.com/watch?v=gs3cX2TNi78 https://brandirectory.com/rankings/luxury-and-premium https://www.youtube.com/watch?v=B9HbXw4oXschttps://www.youtube.com/watch?v=B9HbXw4oXsc 무엇이가격을결정하는가?, 마이클마이넬리, 이안해리스, 2012.11.0 https://www.pinterest.co.kr/pin/604045368802329502/ https://pixabay.com/ko/illustrations/%EA%B8%B0%EC%97%85%EA%B0%80-%EB%94%94%EC%A7%80%ED%84%B8-%EB%A7%88%EC%BC%80%ED%8C%85-%EC%82%AC%EC%97%85%EA%B0%80-7157631/

• 작성일 2024-06-07
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제 22 호 ESG Management: How Is It Different From CSR, CSV, and SDGs?

Kicker: SOCIETY ESG Management: How Is It Different From CSR, CSV, and SDGs? by Si-ho Park, Reporter pnshse05@naver.com With the recent experience of global climate change, the COVID-19 pandemic, inflation, etc., consumers’ interest in “sustainability” has highly increased. Now, not only financial performance but also non-financial factors are acting as important indicators in evaluating companies. In line with these changes, ESG, a framework for assessing sustainability through non-financial indicators including Environment, Society, and Governance, has become an indispensable element of business management. Companies’ sustainable development can only be achieved by considering transparent management, such as eco-friendly corporate activities, socially responsible management, and governance improvements. Then, let's look at the specific definition of each ESG field, its connection with sustainability, how it differs from the concepts of CSR, CSV, and SDGs, and how ESG is applied to real companies. What Is ESG Management and How Does It Work? In order to practice ESG management, companies strive to be eco-friendly, make social contributions, and maintain governance transparency. This explains the sustainability of a company based on environmental pollution prevention activities, consideration of workers and stakeholders, the composition of the board of directors, and the way of decision-making. Then, why is ESG management so important for companies? Companies can create a warm and competent image through ESG management. By this positive image, customers’ perceptions of price fairness for products or services are positively affected. Again, based on the positive corporate image, customers’ attitudes toward the company, loyalty, and willingness to pay additional costs are also improved. In other words, customers perceive that it is worth paying more for its product or servicebecause this company is good and smart. How Is ESG Different From CSR, CSV, And SDGs? When ESG principles are effectively reflected in a company's management activities, the “sustainability” of a company can also be increased. “Sustainability,” which can be evaluated through ESG management, is a term emphasized in companies along with ethical management. This concept of sustainability is widely applied not only in management but also in other areas. The concepts of CSR, CSV, and SDGs are also based on the notion of “sustainability,” but these are not identical. CSR, which refers to Corporate Social Responsibility, is the concept of a "good company" that seeks to manage its reputation by engaging in social contribution activities. On the other hand, CSV, an abbreviation for Creating Shared Value, is the concept of a "wise company" that seeks shared value by considering social responsibility and corporate interests together. Recognizing the two concepts, the difference in domestic and international trends is very interesting. Overseas, CSR was discussed at a more multifaceted level, while CSV was said to have no difference from CSR, which did not receive much attention. However, in Korea, CSR was recognized as a fragmentary social contribution activity, while CSV was discussed as a more innovative concept. Comparing ESG to these two concepts, these two are concepts that look at social responsibility from the perspective of a company, while ESG is a concept of a “healthy company” that weighs non-financial factors from the perspective of “evaluating” a company rather than the company itself. Lastly, the SDGs, Sustainable Development Goals, are the international action plan agreed upon in 2016 for “prosperity of people and the planet, freedom and universal peace” under the 2030 Agenda of the UN (United Nations) Conference on Sustainable Development. This is a common language that is the global standard for sustainability, with 169 specific action goals presented in 17 areas. SDGs are a broad concept being discussed in various fields such as education, technology, etc., as well as management. How Do Companies Execute ESG Management? Let's take a look at the examples of companies such as Microsoft, Coupang, and Walmart to see how ESG management actually works. First of all, the software company Microsoft ranked first in the Investor's Business Daily (IBD) ESG evaluation ranking. Microsoft is investing in biodiversity protection in the western United States for the environment and working with suppliers for environmental sustainability. Socially, it provides education and learning support programs for digital technology, develops a Supplier Diversity Program, and develops technology utilization solutions for public health protection. In the case of governance, efforts are being made by organizing various boards of directors and providing shareholders with a sufficient voice in decision-making. Walmart is called an ESG management exemplary company in the distribution industry after overcoming the corporate crisis with ESG. Walmart is building a sustainable value network that reduces carbon emissions from all supply chains with the strategy of an “ecosystem approach” and pursuing meaningful environmentally friendly activities. Lastly, Coupang, Korea's leading e-commerce company, is creating environmental and social values through advanced logistics technology-based business models. It is contributing to the development of local communities, the creation of new jobs, and the growth of small business owners by reducing carbon emissions and expanding logistics infrastructure through an end-to-end strategy that innovatively shortened the logistics stage. To sum up, our society is able to grasp the non-financial elements of each company more systematically through “ESG management.” However, there are still some limitations. In the case of Coupang and Walmart introduced earlier, ESG management activities are mainly focused on the environmental aspects, so social responsibility and governance management are evaluated as insufficient. In particular, in the case of governance, the concept is not clearly defined, and many people are not accurately aware of it. Therefore, for the successful implementation of ESG management, more detailed and accurate research into each ESG field is needed, and companies have to seek and implement differentiated ESG management development plans. As ESG is a newly emerging concept, it would be good for you all to think about the implications, limitations, importance, and implementation plans of ESG. Sources: https://doi.org/10.17657/jcr.2022.4.30.4 https://query.prod.cms.rt.microsoft.com/cms/api/am/binary/RW1e53b https://www.microsoft.com/en-us/investor/corporate-governance/faq-factsheet.aspx

• 작성일 2024-06-04
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제 21 호 Social Polarization

Kicker: Society Social Polarization by Si-ho Park, Reporter pnshse05@naver.com Recently, the word “polarization” has been heard more often around us. Polarization means that different classes or groups become more and more different and distant. The conflict between two classes or groups deepens as prejudice and discrimination become more severe. This polarization often manifests itself in many aspects: social, economic, cultural, political, etc. Since economic, cultural, and political polarization are all things that happen in society, I will bind all together to social polarization, and let’s look specifically at the three polarizations in terms of economy, culture, and politics. Economic Polarization According to UNESCWA (United Nations Economic and Social Commission for Western Asia), social polarization is associated with the segregation within a society that may emerge from income inequality, real-estate fluctuations, economic displacements, etc., and result in such differentiation that would consist of various social groups, from high-income to low-income. As in this definition, economic polarization manifests itself as income inequality or the gap between the rich and the poor. Compared with other East Asian countries, South Korea has relatively lower levels of income inequality, mostly due to the fact that its national income growth was more equally distributed in the early stages of the economic take-off in the 1980s. Yet, income inequality has worsened over the last three decades. And especially, COVID-19 widened economic disparity more. Research published by Shinhan Bank in April this year showed that the top 20 percent earned 9.48 million won a month as of early 2022, while the lowest 20 percent made 1.81 million won, a 5.23-times difference and a clear deterioration from 4.76 times in 2019. The pandemic accelerated corporate digitalization; many low-income workers have lost their jobs and high-income workers have been able to make more money from digital-based growth. This has pushed wealth to one side, and the gap has widened. https://www.koreatimes.co.kr/www/biz/2024/02/602_339243.html Cultural Polarization Cultural polarization is polarization caused by socio-cultural characteristics, and the cracks between races or genders, which are caused by social prejudice, are representative. Racial discrimination has been a serious global issue for a long time. And in South Korea, gender conflicts have been particularly serious enough to become a political issue. The cultural polarization is closely related to the aforementioned economic polarization. When poverty, inequality, and discrimination are caused and intensified by economic polarization, it becomes cultural polarization, creating a gap in society. To overcome this vicious cycle, we must practice sharing and induce wealth redistribution, showing deep interest and consideration for the socially unprivileged. Political Polarization Political polarization is the divergence of political attitudes away from the center, towards ideological extremes. This means the intensification of the ideological conflicts or divisions between the left and the right. And the Pew Research Center defines it as “the vast and growing gap between liberals and conservatives, Republicans and Democrats.” The opinions of the Korean public are particularly divided. Ideological polarization is intensifying among Koreans on all issues, such as the importance of economic growth or welfare, the need for redistribution, and the preference for the Korea-U.S. alliance. Korea's political polarization is evident in the recent knife attack on Lee Jae-Myung. Lee Jae-Myung, who is the head of South Korea’s Democratic Party, survived the attack in Busan. The elderly man who stabbed him did so wanting to prevent the progressive politician from winning the country’s next presidential election in three years. There’s some other evidence of Korea’s political polarization. There was an event set up by a group critical of Yoon that featured a booth where you could shoot toy arrows at photographs of Yoon, his wife, and Justice Minister Han Dong-hoon. Meanwhile, somebody defaced the grave of Lee Jae-myung’s parents, in Bonghwa, North Gyeongsang Province, and buried a stone inscribed with curses there. And there is also a huge polarization between the U.S. Democrats and Republicans. In the U.S. 2024 presidential election, which is just around the corner, Donald Trump supporters and Joe Biden supporters are split to the extreme. But the hatred between the two parties can just hurt each other. We should reduce political polarization and free ourselves from this political civil war. We need to stay firm and not be swayed by hate-mongering extremists. We need to learn the wisdom of co-existing with people who adhere to different political beliefs. I believe that democracy is all about coexistence. Recently, the polarization of citizens in all areas of society - economy, culture, and politics - has been getting worse by the day. What is causing this division to worsen? What makes people so angry and divided? As I mentioned at the end of the Political Polarization section, we should be able to live with people who have different opinions. So, when we can finally coexist and learn from each other, we can grow. I am hoping for the day when we open our ears, listen to each other's opinions, coordinate, and work together to create a growing society. Sources: https://www.nytimes.com/2024/01/03/world/asia/south-korea-opposition-leader-stabbing.html https://archive.unescwa.org/social-polarization https://wid.world/news-article/income-inequality-in-south-korea-1933-2022 https://www.koreatimes.co.kr/www/biz/2024/02/602_339243.html https://english.hani.co.kr/arti/english_edition/e_national/1085151 https://www.wsj.com/world/asia/south-koreas-opposition-head-was-stabbed-to-stop-him-becoming-president-police-say-2a2ec63f

• 작성일 2024-02-20
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제 21 호 Abolish Mandatory Holiday Closures for Large Retailers

Kicker: SOCIETY Abolish Mandatory Holiday Closures for Large Retailers By Yun-Seo Jung, Reporter yysj1230@naver.com Where do you usually visit more, the conventional market or the big mart? Or have you ever gone to a big supermarket blindly on Sunday and just returned home because it was a holiday? At a public debate on January 22, the government announced that it will expand weekday closures of hypermarkets led by local governments to ease the inconvenience of people's lives, and remove the principle of designating mandatory holidays in the Distribution Industry Development Act. In other words, the government has decided to abolish the mandatory closures on the second and fourth Sundays of the month for Korean hypermarkets and allow online delivery during the restricted hours. It has not yet been decided when this will be implemented, but the policy is already being applied in some regions. The current Distribution Industry Development Act stipulates that the head of a local government agency can order large supermarkets and Super SuperMarkets(SSM) to limit business hours or designate mandatory holidays. The head of a local government agency can limit business hours to between 00:00 a.m. and 10:00 a.m. and designate two public holidays per month as mandatory holidays. Weekdays can also be designated as mandatory holidays, but they must go through an agreement process with stakeholders such as mart labor unions and small business organizations. Gyeonggi-do Province has already amended its ordinance to designate Wednesday as the duty closing day for big mart and semi-large supermarkets. It includes 14 places, including Goyang, Anyang, Paju, Gimpo, Osan, and Gwacheon.etc. In the case of Daegu, the mandatory holiday was switched to Monday instead of Sunday from February last year, and Seocho-gu and Dongdaemun-gu, Seoul, also switched the mandatory holiday to Wednesday from February. Agreement to the Abolition of the System So why are there arguments to abolish the policy? First, in order to know the reason for the abolition, it is necessary to know the reason why the policy was implemented. In 2012, the government mandated that large supermarkets be closed for two days every month in order to support small merchants, including traditional markets and neighborhood supermarkets, and to ensure workers' health rights. However, with the rapid growth of online retailers, such as online shopping malls and e-commerce, people did not go to traditional markets or local marts on the days when the Super Super Market (SSM) are closed, but are instead shopping at home easily. In addition, more people are using online retailers because early morning delivery is also possible. Therefore, the government has decided that the purpose of this regulation, which was implemented to protect traditional markets and small business owners, has become useless. In fact, while big marts were closing, e-commerce companies were reaping the benefits. According to the Ministry of Trade, Industry and Energy, the rate of sales at large retailers among major retailers has steadily fallen from 27.8 percent in 2014 to 12.7 percent in 2023. On the other hand, the proportion of online retailers' sales nearly doubled from 28.4% to 50.5% during the same period. Naturally, the traditional markets, which were the protected target, did not see the light of day. According to the analysis of big data on card spending by 1.19 million people in Seoul from July 2019 to June 2023, consumption at traditional markets and alley commercial areas did not increase on the second and fourth Sundays of the mandatory closure of supermarkets. Opposition to the Abolition of the System However, there are many voices of concern about the working hours of workers at large retailers. The mandatory holiday was able to guarantee the day off for workers at large retailers, but the elimination of mandatory closures means that workers' hard-earned weekend rest will be curtailed. They said that taking time off work on the weekends allows them to spend quality time with their families, but taking time off during the week reduces the amount of time they can spend with their families. They also argued that it is difficult to adjust shifts or take vacations because more people have to work in stores on Sunday as they are crowded with visitors. Like this, there are various opinions on the abolition of mandatory holidays for large supermarkets. As convenience facilities have diversified in big marts, more and more people come to spend time with their families on weekends, and because the original purpose of the policy has become useless due to the development of e-commerce, there are some people who welcome the abolition of the system, and others who are concerned about workers' right to rest and the opposition of self-employed people in the same industry. Even if the system is revised in the future, they need to try to find a win-win solution for everyone, so I think it will be a future task to reach the middle ground that can satisfy companies, workers, self-employed people, and consumers. Sources : https://www.kmib.co.kr/article/view.asp?arcid=0924343173&code=11151100&cp=nv https://www.bntnews.co.kr/article/view/bnt202402100044

• 작성일 2024-02-19
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