Comments on: The Fix is In http://www.rjkoehler.com/2007/10/04/the-fix-is-in/ Korea... in Blog Format Wed, 9 Jul 2008 08:17:00 +0000 http://wordpress.org/?v=2.5.1 By: Brendon Carr http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111610 Brendon Carr Thu, 04 Oct 2007 04:24:38 +0000 http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111610 Regardless of "how business is done" the fact is that for whatever reason -- whether it's because of a real commitment to change, or for window-dressing to appear as an "advanced economy" -- Korea has a competition law (the Monopoly Regulation and Fair Trade Act) which makes cartel behavior unlawful. Enforcement of that law gladdens the heart. Regardless of “how business is done” the fact is that for whatever reason — whether it’s because of a real commitment to change, or for window-dressing to appear as an “advanced economy” — Korea has a competition law (the Monopoly Regulation and Fair Trade Act) which makes cartel behavior unlawful. Enforcement of that law gladdens the heart.

]]> By: Wedge http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111603 Wedge Thu, 04 Oct 2007 03:16:50 +0000 http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111603 #8: I have had such bids in my hands numerous times while engaged in a previous occupation, which I will not elaborate on here. It was mainly for the reason that they would rather do business with my company vs. the French, whom they really didn't like to business with. Yes, the free market is an illusion here. #8: I have had such bids in my hands numerous times while engaged in a previous occupation, which I will not elaborate on here. It was mainly for the reason that they would rather do business with my company vs. the French, whom they really didn’t like to business with.

Yes, the free market is an illusion here.

]]> By: mins0306 http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111602 mins0306 Thu, 04 Oct 2007 03:08:54 +0000 http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111602 In addition to what Linkd has commented, Korean organizations also routinely pass on to their favored bidders, the quotations of the other bidders, so the favored ones would know how the cards are stacked before a bidding process. Another case of how regular biz is done here. In addition to what Linkd has commented, Korean organizations also routinely pass on to their favored bidders, the quotations of the other bidders, so the favored ones would know how the cards are stacked before a bidding process.

Another case of how regular biz is done here.

]]> By: Linkd http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111599 Linkd Thu, 04 Oct 2007 02:42:05 +0000 http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111599 Ah, but I'll share this little anecdote I just remembered: Some years ago I knew a mid-level manager for one of the makers of large construction equipment in Korea. He was in charge of sales for a certain area. He told me one day he was going to have lunch with his counterpart at one of the two other makers of such equipment. Huh? I said. Why would you do that? He said the two of them get together every few months and talk about "things", that they shared with each other a lot of info about their sales activities, and that it was mutually beneficial, since they were oligopolistic suppliers dealing with oligopolistic customers. Just to show it's not all about billionaires getting together and cutting huge deals now and then. It's how regular biz is done even at the 차장 level, for just a dumptruck or two. Ah, but I’ll share this little anecdote I just remembered: Some years ago I knew a mid-level manager for one of the makers of large construction equipment in Korea. He was in charge of sales for a certain area. He told me one day he was going to have lunch with his counterpart at one of the two other makers of such equipment. Huh? I said. Why would you do that? He said the two of them get together every few months and talk about “things”, that they shared with each other a lot of info about their sales activities, and that it was mutually beneficial, since they were oligopolistic suppliers dealing with oligopolistic customers.

Just to show it’s not all about billionaires getting together and cutting huge deals now and then. It’s how regular biz is done even at the 차장 level, for just a dumptruck or two.

]]> By: Linkd http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111597 Linkd Thu, 04 Oct 2007 02:30:32 +0000 http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111597 Nice to have you back in action, Dram_man. I've no time at the moment to get into the debate on whether cartels are as evil as they first appear, but for the interested, this is my favorite paper on South Korea's (unique-ish) development model. I think it explains quite well what mins0306's professor was talking about. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=731036 Nice to have you back in action, Dram_man.

I’ve no time at the moment to get into the debate on whether cartels are as evil as they first appear, but for the interested, this is my favorite paper on South Korea’s (unique-ish) development model. I think it explains quite well what mins0306’s professor was talking about.

http://papers.ssrn.com/sol3/pa....._id=731036

]]> By: mins0306 http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111596 mins0306 Thu, 04 Oct 2007 01:46:46 +0000 http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111596 During a course on Korean economics in college, the instructor mentioned that Korea isn't a capitalist economy but an economy that is a mix of communist central planning and capitalism. That was on 1998, one year after the so called IMF crisis. I guess old habits die hard. During a course on Korean economics in college, the instructor mentioned that Korea isn’t a capitalist economy but an economy that is a mix of communist central planning and capitalism. That was on 1998, one year after the so called IMF crisis.

I guess old habits die hard.

]]> By: Brendon Carr http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111595 Brendon Carr Thu, 04 Oct 2007 01:35:25 +0000 http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111595 I wrote about this move of the Korea Fair Trade Commission on September 9 over at my <a href="http://www.korealawblog.com/entry/fair_trade_commission_to_regulate_appropriate_profit/" rel="nofollow">Korea Law Blog</a>. All in all, I'm glad to see the KFTC actively working to uncover the cartels and price-fixing schemes you enumerate above, Dram, but I share your disgust at the idea the government ought to be watching against profit-taking. The profit motive is the prime mover behind improvements in the standard of living. I wrote about this move of the Korea Fair Trade Commission on September 9 over at my Korea Law Blog. All in all, I’m glad to see the KFTC actively working to uncover the cartels and price-fixing schemes you enumerate above, Dram, but I share your disgust at the idea the government ought to be watching against profit-taking. The profit motive is the prime mover behind improvements in the standard of living.

]]> By: Wedge http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111594 Wedge Thu, 04 Oct 2007 01:31:48 +0000 http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111594 While they're at it, how about rent control? I want the right to live in a shabby, ill-maintained but cheap abode that is falling down around me. And then let's look at the effect of a fixed price:cost ratio. What do you want to bet costs start to ease up as execs see no need to be stingy on overseas golf junkets or room salon outings? Holy unintended consequences, Batman! While they’re at it, how about rent control? I want the right to live in a shabby, ill-maintained but cheap abode that is falling down around me.

And then let’s look at the effect of a fixed price:cost ratio. What do you want to bet costs start to ease up as execs see no need to be stingy on overseas golf junkets or room salon outings? Holy unintended consequences, Batman!

]]> By: Dram_man http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111592 Dram_man Thu, 04 Oct 2007 01:18:40 +0000 http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111592 Dogbertt> Thanks for the sharp eyes. I tried a different program to write this post, and it did not turn out well. I wish the Marmot would get Mac friendly blogging tools. Dogbertt> Thanks for the sharp eyes. I tried a different program to write this post, and it did not turn out well. I wish the Marmot would get Mac friendly blogging tools.

]]> By: dogbertt http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111589 dogbertt Thu, 04 Oct 2007 01:14:36 +0000 http://www.rjkoehler.com/2007/10/04/the-fix-is-in/#comment-111589 <blockquote>Are Korean companies dedicated to improve efficiency’s?</blockquote> Are they dedicated to improv(ing) efficieny's what? <blockquote>Is there anyway to have BOTH sides loose on this one?</blockquote> I'd say both sides ARE already loose.

Are Korean companies dedicated to improve efficiency’s?

Are they dedicated to improv(ing) efficieny’s what?

Is there anyway to have BOTH sides loose on this one?

I’d say both sides ARE already loose.

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