۱- Introduction

۲- Government organization of Korea’s shipping and shipbuilding

۳- Research design

۴- AHP analysis

۵- Conclusion

References

Abstract

This study aims to explore the optimal model for the Korean government’s organization (KGO) of the maritime industry using the analytical hierarchy process (AHP). The result of the AHP analysis revealed that most respondents of the survey firstly weighted realistic possibility (0.473), and goal orientation (0.316) and institutional stability (0.221) were secondly and thirdly evaluated. The sub-criteria were systematically classified as suitability (0.279), competency (0.139), reliability (0.125), efficiency (0.115), political coordination (0.098), feasibility (0.095), equity (0.076), independence (0.044), and cooperation (0.041). Finally, shipbuilding and offshore plants under the unification with the Ministry of Ocean and Fisheries should be considered as the optimal KGO of the maritime industry in terms of the evaluation of AHP alternatives.

Introduction

We first provide an overview of the history of the collapse of Hanjin Shipping (HJS). The so-called China effect, influenced by China’s special procurement demand to cope with several constructions for the 2008 Beijing Olympic Games, brought not only a boom in the construction economy but also a boom in the shipping economy (BSE). The Baltic Dry Index (BDI) rose to 10,844 points in May 2008. Most Korean ship owners (KSO) chartered vessels during the irrational boom from 2007 to mid2008 at higher prices than normal. However, since May 2008, the shipping market situation has worsened, due to the global financial crisis. There has been an oversupply vessels stage ever since. The BDI fell to 747 in December 2008. This dramatic change in the shipping economy occurred in only 7 months. In addition, the BDI reached its lowest ever level in February 2016. If we look back to 1997, we can understand why KSO had to charter vessels at higher prices. In 1997, most KSO sold their vessels because the Korean government asked them to decrease their debt by 200% in response to the IMF financial crisis (Ha, 2012; Ha and Chung, 2003; Lee, 1999). Unfortunately, after the Korean Chaebol group restructuring was complete, the shipping boom began. Korea’s shipping lines therefore had to charter vessels at higher prices.