Research Reports
An Analysis of Forestry Corporation Management
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AuthorJang, Woowhan
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Publication Date2003.12.01
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Original
An Analysis of Forestry Corporation Management
The objectives of this study are as follows: First, to analyze the actual conditions faced by the Forestry Corporation (FC); second, to establish the constructive directions to develop the FC in the future and then to provide some measures for the effective management of FC.
This study consists of the three parts: The first part touches upon the survey on the current situation of private forests in Korea. The second part explains the background and the necessity of FC system introduction. The third part deals with the legal and institutional improvement necessary to manage the FC effectively in the future. In order to survey current situations of the FCs, we directly interviewed some Local Government officials, City and County Forestry Cooperatives (CCFC), National Forestry Cooperatives Federation (NFCF), and FCs. Also we used mail questionnaires in some cases.
FC system was introduced for the purpose of deregulation rather than activating the management of private forests. All kinds of forest business were undertaken exclusively by the CCFC or NFCF before 2000. FCs could enter into the forestry business after the Government eased the regulation. The purpose of deregulation in the forest business was to activate competition between CCFC (or NFCF) and FC and then to improve the quality and technology level of forest activities.
Introduction of FC system has many advantages in improving technology level of forest activities and forest quality but at the same time caused some negative problems. The result of survey on FC system shows that most FC and CCFC (or NFCF) have competed to occupy forest activities and caused some troubles rather than being cooperative to each other. Also we found that legal and institutional measures for the effective management of FC were not prepared.
To address negative effects, first of all, current registration system should be revised in order to improve quality of forest activities and to foster FC. New guideline should be drafed which includes provisions on registration retraction, inspection, and some penalties.
Second, all forest business including some activities exclusively managed by timber merchants should be opened. Transparency of the business need to be raised through the switch from the current private contract system to public auction system.
Third, timber merchants should register to participate in public auction. As a result, only registered FCs can attend public auctions for the forest business.
Researchers: Jang Woo-Whan and Chang Cheol-Su
e-mail Address: wwjang@krei.re.kr, cschang@krei.re.kr
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