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2017-08 31

[Academics][Researcher of the Month] What Makes People Pro-Environment? (1)

“Whenever I go on a trip or big festivals, I always worry about all the trashes people throw away. It’s just too much.” Professor Hyun Sung-hyup of the Division of Tourism recently published his paper, "Fostering customers’ pro-environmental behavior at museum". The paper thoroughly investigates the affective and cognitive factors of individuals visiting museums and analyzes which factor has the most impact on their pro-environmental intentions. Hyun emphasized that most people are very environmentally friendly in their house. They recycle well, try not to waste food or water. However, the point is that the very same people behave entirely differently from the moment they leave their house. Trashes are disposed not separately, which then has to be combusted, letting carbon into the air. Tissues, water, food and all kinds of resources are wasted. Hyun wondered what is behind the people’s paradoxical behavior. He also wanted to figure out what needs to be triggered in order to resolve such paradox and to motivate eco-friendly behavior from the general public. A table showing relations of each factor and their effects (Photo courtesy of Hyun) Over the course of a year, Hyun went to a broad range of museums which deal with themes like art, war, and tradition to interview, survey and observe the visitors. From the data collected from 321 tourists, he ran statistical analysis simulation program to construct a conceptual framework that can predict people’s behavior in public spaces. He also sought for professional advice from other fields such as environmental specialists or professors in engineering for further insight. Based on his field research with dozens and hundreds of related papers he studied, Hyun found out that ‘Environmental Knowledge (EK)’ out of five cognitive factors, was the most significant factor in determining one’s environmentally responsible decision-making process. Hyun is explaining the process of his research. Hyun asserted that environmental education on a regular basis is essential. People with more professional knowledge on the vulnerability of the environment or the impact of their action is more inclined to show consistent behavior both in and outside of their home. "It seems like a lot of people lack education regarding the environment in both public and private sectors," said Hyun. Lamenting at such reality, Hyun wishes environmental education to be part of the public education curriculum in the near future. When asked what inspired him to become a researcher in Tourism, Hyun smiled and answered that his professors during college years influenced him a lot. “Hanyang University offers the best curriculum on Tourism, with respectful professors. I always looked up to them.” Hyun said he decided to study further because there are so much intriguing topics to research in the field of Tourism. He encourages future researchers in the field to boldly try out, because tourism is very future oriented, interdisciplinary and economically significant field of study. Hyun himself plans to vigorously research further on issues related with environment and tourism. “Researching while lecturing, mentoring and living personal life is tough but I still enjoy it,” said Hyun, with affection to his work. Kim So-yun dash070@hanyang.ac.kr Photos by Choi Min-ju

2017-08 22

[Academics]Beyond the Matter of Life and Death

Most people do not enjoy postoperative scars, especially on the visible parts of their body. Professor Tae Kyung of Department of Medicine recently reported the outcomes of newly developed operation method in his paper “Functional and cosmetic outcomes of robot-assisted neck dissection by a postauricular facelift approach for head and neck cancer”. As from the title Tae’s research compared surgical outcomes of both conventional neck dissection and his new facelift approach, which takes cosmetic aspects of the patients into account. “Nowadays, it is more than just life and death. Quality of life after the operation is also important.” (Photo courtesy of Tae) In the case of patients with head and neck cancer, cancer cell often spreads to the lymph node of cervical (neck) area. The conventional surgical method to treat the lymph node metastasis is to give vertical and transverse cervical incision (cut), which leaves permanent mark in the patient’s neck. As always having interest in plastic surgery – which is part of Otolaryngology (Head and Neck Surgery) – Tae concerned for postoperative quality of life. Therefore, he took the facelift approach which is still mostly used for cosmetic purposes, especially to unwrinkle one’s face. This way, the scar is left in the back side of the patient’s ear alongside the hairline, which is significantly less visible. The paper “Functional and cosmetic outcomes of robot-assisted neck dissection by a postauricular facelift approach for head and neck cancer” specifically reports the postoperative outcomes of the revolutionary implication as short as one day after the surgery to as long as 12 months. From 2013 Tae and his co-researchers collected data of 113 patients who underwent unilateral neck dissection both through the particular approach and the conventional approach. As a result, the team led by Tae was able to compare the functional and cosmetic outcomes which proved that Tae’s method is advantageous. Namely, patients suffered from less neck edema (swelling of neck) and sensory loss. Cosmetically patients reported significantly lower satisfaction scores. (Note that the higher the satisfaction is, the lower the scores are.) Both neck edema and sensory loss is lower in the robotic procedure, as shown in the tables. (Photo courtesy of Tae) Another specialty of Tae’s method of operation is that it requires robotic assist called Da Vinci robot because the operation makes a very thin tunnel inside the neck, making it physically impossible for the surgeons otherwise. Tae, as one of the first person in the world to conduct robotic neck dissection wanted to further develop the method and evaluate it. This report is one of his efforts trying to keep evaluating and improving his new surgical method. “It is still early to report the cure rate of cancer through this method, but now we know about the postoperative sensory loss, motion limitations, and the satisfaction of patients through this research,” said Tae. Tae also struggles to improve Otolaryngology in Korea and Asia. He mentioned that he chose to become head and neck surgeon because the area was less developed and researched at that time, and that challenged him. Now he is a general secretary of Asia Pacific Society of Thyroid Surgery which he founded, wishing well for the future of the field. “I wish my students to improve Korea as much to be the leading country in Otolaryngology and become global leaders.” Kim So-yun dash070@hanyang.ac.kr Photos by Choi Min-ju

2017-08 15

[Academics]Upgrading Transcriptome Map

Incredible amount of transcriptomes encoded by eukaryotic genomes has been produced as RNA-sequencing reads are published in piles. The transcriptome is the sum of all RNA information contained in a body’s cells, which is an indispensable data when creating the transcriptome map of the body. The current map, however, is not its apotheosis since it was constructed based on RNA-seq reads that lack their orientations and certain boundary information. In his paper “High-confidence coding and noncoding transcriptome,” Professor Nam Jin-wu of Department of Life Science has presented the transcriptome map with RNA-seq reads with high accuracy and efficiency. “What makes this research valuable is its contribution to the scientific community. It will function as an indispensable infrastructure.” RNA and the map In the past 10 years, with the technology of next generation sequencing (NGO), data of individual’s genome and transcriptome has been developing at a rapid pace. Genetic information of both healthy and diseased individuals aggregates to approximately 10 peta bytes from all over the world, from which Nam focused specifically on analyzing the transcriptome, disregarding the genome for the moment. A critical difference between the two is that genome has orientation while transcriptome lacks it. This indicates that it would be extremely difficult and inconvenient to arrange the little pieces of information to form the whole genetic map of transcriptome. “What it means by ‘lack of orientation’ is, simply picture this situation: putting batteries in a remote control which has no plus or minus indicators. You would have to find the right direction by just trying. It is also like jigsaw puzzles where you have to search thoroughly the scattered pieces and find and put the right ones together until you get the whole picture,” explained Nam. Constructing a genetic map with orderless pieces of information could be an arduous task, since the massive bio-big data offers a tremendous amount of genetic information and they lack orientation. What Nam has created through his research is an algorithm that predetermines the orientation and boundaries of transcripts and genetic information. This will not only lessen the work of constructing the transcriptome map by assembling RNA-seq reads that lack orientation but also increase the accuracy and quality of the resulting maps. The outcome of his research, in a word, orients the directionless RNA-seq reads and locate them where they belong. Now with the more accurate and systematic transcriptome map, the amount and structure of RNA in a cell in the body could be figured. Nam first started this research three years ago, spending the first two years constructing the algorithm and spending the last year producing data using NGS. He is currently researching on the noncoding RNA (RNA that does not produce protein), which is highly related with various types of cancer and other rare diseases. The ultimate goal of Nam’s studies is to solve the mystery of unexplored RNA. 98% of RNA in human body belongs to the noncoding category, so how exactly do they affect the way a human being is and how do they account for different anomalies? “A good question begets a good study.” Jeon Chae-yun chaeyun111@hanyang.ac.kr Photos by Choi Min-ju

2017-08 08

[Academics]Founding Father of the Pragmatic Application of Stepping Motors

Every moving object needs a power plant. In the industrial world, permanent magnet stepper motors are widely used, which are designed with permanent motor (PM) rotors that are commanded by electrical pulses. In his paper “Nonlinear H2 Control for a Nonlinear System with Bounded Varying Parameters: Application to PM Stepper Motors,” Chung proposes a new nonlinear H2 controller for the PM motors that can increase the efficiency both in its speed and practicality. Chung is the pioneer in South Korea to discover new methods of applying nonlinear H2 control for a nonlinear system. Utilization of the PM motors vary from household purposes such as printers to industrial purposes such as gas systems and cars. Since its earlier usage from the 1970s, these motors have thrown questions to scientists and engineers on its formula. “Despite the fact that these motors are popularized in the industry, there are constraints in the PM motors, such as speed restriction,” said Chung. To solve this problem, engineers have discovered the DQ (direct quadrature) transformation of the motors which is a tensor that rotates the reference frame of a element vector matrix to simplify the analysis of it. “My research team has found that DQ is comparatively inefficient in terms of energy saving and cost control. Thus, we detected a new mathematical method to replace the DQ transformation,” said Chung. Often times, engineers used the linear system to control the PM motors. A linear motor is an electric motor that has its stator and rotor unrolled, so that instead of producing a torque, it produces a linear force along its length. However, linear motors are not necessarily straight, which causes restrictions in speed. “Formula of the linear system consists of homogeneity and additivity, and the main point of our research was to minimize the relationship between them using the H2 control system,” emphasized Chung. This FOC (Field Oriented Control) with the H2 system went through an experiment with other traditional methods for a comparison. “The results were outstanding as more simplified version of mathematical calculation and less usage of sensors beforehand were required, while the tracking errors and energy cost were reduced respectively,” said Chung. The green line of case 3, which uses the FOC (Field Orientation Control) of the H2 control shows the extreme distinction in tracking errors. (Photo courtesy of Chung) The most desired application of this method is on the intelligence vehicle, which is a car that can drive by itself without any interference of a driver. “Learning about the motion control, which is the main issue of my paper, is the most important criteria of designing a self-driving vehicle. This study allowed me to grow this industry rapidly in five years,” astonished Chung. Currently, Chung’s research lab for the intelligence vehicle based on motion control is the best in Korea which acquire all the knowledge on the sensors, actuators, and control algorithms. Chung’s passion for science was conspicuous from the days he used to make a radio on his own. When he started gaining interests in engineering, motion control grabbed his sight. “The stepping motors and their control system are fundamental technologies. I thought that developing them into pragmatic applications would be exciting,” reminisced Chung. Currently, Chung is passionately contributing to the scientific and technological advancement. For the visible result, he had launched the IEEE (Institute of Electrical and Electronics Engineers) ‘s CDC (Conference on Decision and Control) conference at Jeju Island, South Korea. “This is the first time ever that the CDC conference is being held in South Korea and I consider this the greatest achievement of my academic life so far,” smiled Chung. Chung is currently working on developing more advanced intelligence vehicles. Chung’s everlasting hope for his students is that they could study both science and liberal arts. “I wish South Korean educational system could teach students to embrace the joy of learning. This will eventually rear the bright sprouts of Korea,” said Chung. Kim Ju-hyun kimster9421@hanyang.ac.kr Photos by Choi Min-ju

2017-07 30

[Academics][Researcher of the Month] World Class Solar Cell Developed

Professor Kim Eun-kyu of the Department of Physics is July’s Researcher of the Month for his active role in spreading knowledge in the field of physics. In his paper, “Iodide management in formamidinium-lead-halide-based perovskite layers for efficient solar cells”, Kim explains how he has created the ‘perovskite solar battery’ with the best efficiency in the world. Perovskite batteries have high efficiency and low production cost which is how it is gaining interest for the next generation solar energy source. Kim is explaining about the perovskite solar battery. Perovskite is material created out of anion, cation, and halide and is used inside the solar battery to create electricity. Kim has carried out his study along with Ulsan National Institute of Science Technology (UNIST) and Korea Research Institute of Chemical Technology (KRICT) and the paper has been introduced in the world renowned academic journal, Science. The research has been carried out through the support of Ministry of Science, ICT and Future Planning. The key theme of the research has been that through the control of halide, efficiency was to be raised from 20.0% to 22.1%. Currently, solar batteries are created with silicon materials but with the newly developed technology, new solar batteries could produce the highest efficiency with half the cost. Not only could it be used in the solar batteries, but they could also be used to produce new and renewable energy in the future with further integration of different technologies. Graphs showing the efficiency of the solar battery at 22.1% (Photo courtesy of Kim) Kim has started this study since all types of batteries should implement high level of efficiency. With high efficiency follows the lower production cost which was why this was important for the commercialization of the solar battery field. Kim and his research team are the best in the field currently showing the highest level of efficiency and still working for better technology. Although the technology itself has been developed to produce the most efficient solar batteries, mass production and commercialization problem is yet to be solved. Kim and his team are currently working on the perovskite battery to further test its safety and to control the halide. Although Kim and his research team have already reached their goal of creating the efficient battery and printing their paper on Science, further studies will be carried out to make the lives more convenient for people. Kim wishes to develop a more efficient solar battery in the future. Kim Seung-jun nzdave94@hanyang.ac.kr Photos by Kim Youn-soo

2017-07 23

[Academics]Vitalization in Detecting NO2 in Daily Life

As environmental pollution is deteriorating, various hazardous gas face people unrecognizably in their daily lives. Professor Kim Hyoun-woo of the Division of Material Science and Engineering is an active researcher in various sensors that could help identify various gas, humidity, or even radiation. His recent paper “Enhancement of gas sensing properties by the functionalization of ZnO-branched SnO2 nanowires with Cr2O3 nanoparticles” proposes another effective method of detecting a particular gas, NO2. Kim expaining the nanostructure of his paper. His research aimed for an effective NO2 detecting nanostructure, which is a structure made from molecules. NO2, also called as nitrogen dioxide, is required to be detected since it can be found relatively easily through the atmosphere even when it is a toxic, air-contaminant gas. Kim mentioned “Once a practical method through this nanostructure is constructed, I wish people can be easily detect this toxic gas.” This nanostructure is composed of three different substances. First of all, a SnO2 (tin oxide) nanowire is required. A nanowire is a nanostructure of an extreme, fine line which has a diameter of one nanometer (10−9 meters). Next, ZnO (zinc oxide) nanowires are branched on the SnO2 nanowire. Then the last substance, which are Cr2O3 (chromium oxide) nanoparticles, would grow on the ZnO nanowires. With a completed nanostructure, detecting NO2 become possible. An illustration of Cr2O3 -functionalized ZnO branched SnO2 nanowires. (photo courtesy of Kim) This nanostructure mentioned in his paper is highly sensitive, which makes it a significant structure. A current always flows within a structure, and a resistance is made whenever there is a current. However, the resistance differs when there is an inflow of another gas. The external gas takes away the electron in the structure, therefore heightening the resistance of the structure. The sensitivity is determined through resistance within the sensor. When the sensitivity is elevated, a structure can perceive more NO2 than the one with low sensitivity even when there’s a same amount in the air. The nanostructure mentioned in the paper is indeed a unique technology. However, Kim also mentioned the insufficiency of this nanostructure. In order to detect NO2, this gas needs to be heated in an extremely high temperature; in the case of the paper, 300’C. Therefore, there is a difficulty for people to sense the gas in the current stance. Kim mentioned that he wants to improve this difficulty through further research. He is currently working on methods that could allow this nanostructure to detect NO2 in a room temperature. Kim wishes to develop a practical nanostructure. Kim is an enthusiastic researcher. He constantly works on structures that could benefit people in their daily lives. He is striving for extreme-high sensitivity in his structures so that people could quickly recognize and react to the contamination. Kim mentioned “I want to make a structure that can be commercialized. A lot of the inventions disappear due to the lack of cost competency or efficiency. I wish to contribute to the promotion of mankind welfare.” On Jung-yun jessica0818@hanyang.ac.kr Photos by Kim Youn-soo

2017-07 18

[Academics]Developing and Improving MRI Contrast Agent

Contrast agents are the substances injected inside or outside of the digestive tract or blood vessels in order to show tissue or blood vessels more clearly during radio graphic examinations such as magnetic resonance imaging (MRI) and computerized tomography (CT) imaging. Its role is crucial as it improves the diagnostic value by artificially increasing the X-ray absorption of each tissue, which makes it more easy to distinguish the biomechanical structure or the lesion from the surroundings. Professor Lee Dong-yun (Department of Biotechnology), through his paper “MRI-sensitive contrast agent with anticoagulant activity for surface camouflage of transplanted pancreatic islets,” has presented an inventive contrast agent that kills two birds with one stone. “When I was conducting this research regarding treatment of diabetes, my biggest concern was whether the outcome would be useful in the medical field or not. Even if the research is flawless, it is of no use if it cannot be put into real uses.” A contrast agent could evoke two main issues: the issue of MRI detection and of blood coagulation. Lee’s research, however, has overcome the two problems. In hopes of creating medical technologies that are valuable and pragmatic, specifically concerning contrast agents in this research, Lee has gone through detailed research and experiments. “The cell therapy products can be said to be ‘coated’ with contrast agents.” The contrast agent Lee has formulated approaches the body in a different manner. Instead of directly injecting the contrast agent into the patient’s body, Lee attached them on the cell therapy products through chemical reaction and then instill the contrast-agent-dissolved cell therapy products into the body. This not only makes detection of cells through MRI or CT imaging possible but also enables controlling of blood coagulation and prevent fibering clot. In Lee’s research, which specifically deals with patients of diabetes, a technology to transplant insulin-secreting cell has been devised for the sufferer. As shown in the diagram, islets (clusters of cells) are implanted into the blood vessels of the liver through catheter, which leads to the problem of accumulation of blood platelets on the surface of the newly implanted cells. This would eventually result in blood coagulation, creating thick fibering clots, further resulting in destruction of the cells. This means the cell therapy products lose their original function and go into nullity. However, with Lee’s research, as the contrast agents are acting as a layer to prevent accumulation of blood platelets and prevent blood coagulation and allow MRI detection at the same time, the use of the newly developed contrast agent is expected to be put in various uses. ' Lee's contrast agents allow MRI detection and prevent blood coagulation. (Photo courtesy of Lee) Jeon Chae-yun chaeyun111@hanyang.ac.kr Photos by Choi Min-ju

2017-07 09

[Academics]Speech Privacy in High-Speed Train Cabins

Professor Jeon Jin-yong of the Department of Architectural Engineering is an expert in the field of architectural acoustics. His paper, “Control of interior surface materials for speech privacy in high-speed train cabins,” discusses a novel method of using the sound masking technique along with the interior sound dynamics inside the train itself. At times, Speech Transmission Index (STI) is required in Europe and North America for announcements made in trains. During the period of 2012-15, with the support of Korea Agency for Infrastructure Technology Advancement (KAIA), Jeon had the opportunity to create architectural sound design for trains. Jeon is explaining about the importance of speech privacy. Jeon has experienced a serious problem about five years ago while riding a KTX train and had a chance to hear the ladies talking at the back about seven rows away from him. All the speeches being made by the ladies were being bounced on the shelves of the KTX and reached the other passengers which meant that everyone was listening to their conversation. After the experience, Jeon has decided to set up a new guideline on high speed trains for speech privacy between people. There are also surveys that point out that the most annoying noise on KTX users being the conversation between people by 31.8%. It is suggested by Jeon that the back of the chairs should be high and there should be the minimum space between the chairs in order to block out the conversation from being overheard. Since sound travels through the air and bounces from walls to ceilings, less space being provided for it to move around freely is a way to retain speech privacy. In addition, the material for chairs, ceilings, and side walls being high sound absorption material is suggested to reduce the interior noise. There is yet to be studies made on its fire resistance performance evaluation, weight lightening, and maintenance. Using sound tracking devices, Jeon was able to redesign the interior of the KTX. (Photo courtesy of Jeon) Sound masking has been one of the solutions as to provide speech privacy. It is the beating, squeaking and rattling noises that are created outside the train being intentionally flow into the train to cover up the conversation between people at about 50 to 60 dB. Speed trains with no interior noise has the features that allows the sound of human voice to travel through the space such as low ceiling, long space, and narrow walls. However, sound masking does not suggest interior noise to be too high since it would make the passengers dissatisfied. It means that there has to be enough interior noise in order to secure the speech privacy. Through Jeon’s studies made with computer programs and 1:10 scale sized KTX models, it is now suggested that high speed trains being produced nowadays provide enough speech privacy. After having contributed to the society through his novel findings, Jeon wishes to continue with the studies even further to solve the problem of noise complaint issues between neighbors through deep learning programs. Jeon wishes to contribute to the society through his sound interior designs. Kim Seung-jun nzdave94@hanyang.ac.kr Photos by Kim Youn-soo

2017-07 04

[Academics][Researcher of the Month] Ground Breaking Advancement in Medical Magnetic Robot

The era of robots wandering inside a human body for medical treatments is about to face our generation. Though the research is still in the process of developing magnetic fields and improving robots, the actual application of the medical robots is expected to occur in a decade. In his research “Magnetic Navigation System Utilizing Resonant Effect to Enhance Magnetic Field Applied to Magnetic Robots,” professor Jang Gun-hee of the Department of Mechanical Engineering proposes the improvement of the magnetic navigation system (MNS) via RLC (stands for resistor, inductor, and capacitor) circuit in the hope of its medical application. Generation of strong magnetic fields in high frequency When doctors treat for blood vessels related illness like coronary artery diseases or have to execute endoscopic surgeries, they often use catheters (thin tube made from medical grade materials) controlled by their hands and medical, empirical sensations. However, these catheters don’t have the sufficient controllability for the physicians due to their long, flexible wires. “The main point of this research was to minimize the surgical errors that these catheters may incur. So, we decided to make magnetic robots that are microscopic enough to wander inside our vessels,” said Jang. The types of robots currently in technical development are various- fish type robots, wobby-like robots, swimming robots, helical robots, and more. However, the magnetic robots especially intrigue the academia. “Compressed springs inside the robot will spread out, enhancing its drilling capability inside the vessels, which its movements will be guided by the magnetic system. Improvements in this MNS are significantly vital, as every mechanical motion of the magnetic robots is proportional to the external magnetic field,” emphasized Jang. Jang has been working on the magnetic navigation system research for about 12 years, which currently resulted in the torque magnetic field on the right. Through the experiments to unclog the blocked area of tubular environments, Jang and his students researched on a novel MNS with the resonant effect of the RLC circuit. “Simply saying, these robots with the MNS have magnets. When the north pole of the magnet approaches another north pole, it will push, and vice versa in the case of the south pole. This is the simplistic picture of how the magnetic robots and the MNS are working,” said Jang. Advancement to this fundamental phenomenon, Jang refers to the "closed right hand rule" (Ampere Law that relates the net magnetic field along a closed loop to the electric current passing through the loop) to explain his research. “In our newly developed MNS, inside the diameter of 50 centimeters wide spherical environment, we can create and control strong magnetic field in any direction which eventually generates useful various mechanical motions of the magnetic robots,” highlighted Jang. Another unconventional discovery of Jang’s research is the application of resonant frequency in the RLC circuit to amplify the magnetic field of the robot. RLC stands for resistance, inductance, and capacitance which all are in the influential relationships in science. When the alternating voltage is increased, the resistance should be divided to flow the current. However, as the alternating frequency of voltage increases, the current decreases due to the inductance of the coil. “We eliminate the effect of inductance with the application of varying capacitance that leads to maximizing the current and the magnetic field in high frequency,” explained Jang. This phenomenon was able to generate fast drilling motion of the magnetic robot to unclog the blocked area of blood vessels. Furthermore, application of the MNS developed a crawling robot that can also deliver drugs into a human body, which Hanyang University gained its international patent of. (Video courtesy of Jang) Hopes for the scientific improvement It has been a decade since Jang has been working on this magnetic robot research. The beginning of all dates back to when his mother was hospitalized due to her coronary artery disease in the heart. “The doctor told me that the illness is genetic and I may also be in danger. So, I thought that rather than believing in the doctor’s hand and the catheter, I should believe in science to develop this surgical methodology and first test on me,” said Jang. During the several years that Jang has been working with his students, he also began to long for fostering his students and their success. “I was always interested in the concept of a motor since I was young. This academic desire eventually led me to become a scholar, but since I became a professor of many students and a father of two daughters, I began to be intrigued to their life-long academic achievements,” reminisced Jang. Ph.D students of the Department of Mechanical Engineering- Lee Won-seo (left) and Nam Jae-kwang (right), also participated in the research with their professor Jang. It is estimated that after more technical amendments of this mechanical robot, it will be capable of testing on animals, and then applied to human surgeries, which will take about a decade. During this journey to scientific achievements, Jang realized that efforts are what science really value. “Just like my students who endeavored all their desires to science to leap higher, I hope that the South Korean scientific academia will also hope for the brighter future,” reminded Jang. Kim Ju-hyun kimster9421@hanyang.ac.kr Photos by Kim Youn-soo

2017-06 26

[Academics]Assessing the Effectiveness of Global Marketing Strategies

Professor Kim Bo-young of the Department of Business has been nominated as the researcher of the week for her active research in the field of international business and marketing. In her paper, “Assessment of the Economic Benefits from US Meat Export Federation’s (USMEF) Marketing Investment in South Korea”, Kim explains how controllable economic factors such as marketing expenditure can have substantial impact on enhancing international trade and business. A photo of Professor Kim (Photo couresy of Kim) More specifically, this research aims to estimate the economic impacts of USMEF marketing investment for commodity on US beef in South Korea. An econometric framework has been developed to assess the effectiveness of USMEF’s marketing strategies and promotional programs in South Korea, by developing an import demand model for US beef and eliciting Benefit-Cost-Ratio (BCR) of USMEF’s promotion investment. From this analysis, 1) the relationships between selected uncontrollable and controllable economic variables and the US beef demand in South Korea are assessed, and 2) with BCR simulation analysis, the return on promotion investment (ROI) of USMEF is derived. In the first stage, the baseline scenario was constructed with the estimated import demand which is set to historical level (i.e.100%) of marketing expenditure, then compared with a counterfactual scenario, where marketing expenditure was hypothetically reduced by 75% below the historical level. The difference between the two scenarios implies the impact of reduction in marketing investment. Hypothetically, 75% reduction in USMEF marketing investment would have decreased US beef import in South Korea, a possible reduction of 20.68% in US beef import demand. (Photo courtesy of Kim) In the second stage, BCR is calculated (i.e.). is the benefit of USMEF promotion investment (i.e. the additional net revenue of US beef due to increased export volume & export price), and is the cost of USMEF promotion investment (i.e. the sum of the various marketing costs). Using this BCR calculation approach, 9 simulated scenarios are generated, which suggest BCRs for US beef with USMEF promotion investments over nine different market and supply conditions. The graph above shows a caculation of BCR. (Photo courtesy of Kim) The study results show that increase in USMEF promotion investment had a significant and positive impact on the net revenue of US beef export to Korea over the period of 2007-2013. The estimates of BCRs ranged from 2.20 to 9.66 under 9 different market scenarios, indicating that on the average, the benefits of USMEF promotion is greater than the cost of USMEF promotion for all 9 scenarios. For example, 9.66 for BCR imply that the benefit of USMEF promotion is 9.66 times greater than the cost. In translation, under the 10% net margin scenario, every dollar invested in USMEF promotion to Korea market generated a return of U$9.66 at most. The incremental benefits for US beef (i.e. additional net revenue) range from U$15.73 million (=10 & =3%) to U$69.95 million (=2 & =10%). Thus, there are substantial returns on USMEF promotion investment. When it comes to international trade of commodity products, there are varying degrees of control over factors that affect their economic benefits in the foreign market. Exchange rates, the price of substitutes, income growth in importing country are some examples of uncontrollable variables affecting commodity exporters. Nonetheless, the study results suggest that there is convincing evidence of commodity promotion expenditure in foreign market, exerting a significant positive influence on the commodity import demand. Thus, promotion investment by international marketing agency can be viewed as an important controllable variable for successful export of commodity. Korean commodity exporters may need to take this as a lesson in developing their export marketing strategies in the future. Currently, Kim is in charge of the Korea Institute of Sustainable Economy (KISE) and her research team is conducting Korea-Japan-China triad comparative analysis on the Omni channel marketing and retailing. By using corporate big data and survey, she is exploring the optimal development of the Omni channel in retail markets in Korea, Japan and China. Kim plans to expand her studies on consumer analytics and international business/data analytics for better understanding of rapidly evolving global retail markets. Yun Ji-hyun uni27@hanyang.ac.kr