Impacts of DSS on the Industry:Korea Case Study

Impacts of DSS on the Industry:Korea Case Study

Dr. YoungDr. Young--Woo ParkWoo Park

8 November 20078 November 2007

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1. Expansion of the impact of yellow sand and dust storm

2. Impacts of yellow sand and dust storm (YSDS)

3. Measures applied to reduce the damage

4. Proposal to reduce the damage

Contents

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1. Expansion of the impact of yellow sand and dust storm

Yellow sand and dust storm is an annual phenomenon caused by strong spring winds carrying dust from Mongolia and China across Korea

• Yellow sand and dust storm(YSDS) is a serious environmental phenomenon in Northeast Asia, which involves strong winds that blow a large quantity of the dust and fine sand particles from the ground and carry them over a long distance which cause severe social and environmental impacts along its way

yellow sand and

dust storm?

Global warming worsens the expansion of desert areas

•The origins of YSDS storm have expanded from mid/upper stream of Yellow River to inner Mongolia regions

• The rate of desertification is increasing by 3,436 km2 each year

FEATURES

Expansion of YSDS Origins

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1. Expansion of the impact of yellow sand and dust storm

YSDS affecting Korea is carried by the prevailing westerlies and a jet stream from Mongolia and Neimenggu(������) in China

Source: Jungang SUNDAY Special Report, 2007

Origin1

Rising2 Moving (3000~5000km)

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Fall4Ulan Bator

Jet Stream

Beijing

Seoul Korea Japan

Gobi Des.

Turbulent Flow Pacific Ocean,

USA

20% : Move to the surrounding area

30% : Go down to the origin

50% : move to Korea, Japan, and sometimes to USA

Affected regions

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10

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25

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10

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20

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27�(’01)

0

10

20

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2001 2002 2003 2004 2005 2006 2007

The number of YSDS occurring days in Korea has continuously increased:

4.0 days/yr (1980s) -> 6.9 days/yr (1990s) -> 12 days/yr (2000s)

• YSDS occurred 11days in 2007 in Seoul. Of that 7 times occurred just between January and July.

• Increase 92% more than the annual average frequency(5.7days) since 1965

• Recently becoming stable(’03~’07)

Influencing industrial sector, ecosystem, and people’s daily life

1. Expansion of the impact of yellow sand and dust storm

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2. Impact of YSDS

Areas being affected: human health, industry, transportation, education, people’s daily life, the ecosystem, etc.

Detrimental effects by fine dust, heavy metals, pollutants carried by YSDS

health • Respiratory disease patients increased by 4.9 %; ear, nose, and throat related patients by 7.2% during YSDS occurring period

• Children and teenagers ( 4~18 years old) affected relatively more 

industry• Increase in product defection rate and decrease productivity rate especially in the Precision Manufacture Industry

• Negative impacts on commercial activities due to the delayed activities in logistics/distribution and import‐expert areas

• Decline in outdoor business due to decrease in outdoor activities

Transportation& education

• Restriction on transportation and vehicle operation, etc.

• Damage to education, e.g., school closed or class hours shortened

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2. Impacts of YSDS

Estimated damage on industrial sector and national economy: $10.3 mil

Source: A Study on the Analyzing Northeast Asian Dust and Sand Storm Damages and the Regional Cooperation Strategies I, KEI, 2003.12

Damage types Key related industries

Damaging production and sales activitiesGlass, construction, shipbuilding, and

transportation such as aviation and passenger ship

Directly influencing on production process

Precision Industries such as semiconductor, electronics, etc.

Reduction on demands• Dairy, painting, tourism and leisure, department stores, sports, local markets, car wash

Negative impacts on supply of inputs • Assembling and processing related products

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Manufacturing sector:Manufacturing sector: Increase in product defection rate & equipment and facilities repair and maintenance costs

Decrease in sales and occurrence of additional production costs due to the increase in product defection rate

Damage especially to semiconductor & electronics industries

0 5 10 15 20 25 30 35

Installment of new facilities & equipment(2.7%)

Decrease in sales decrease(8.2%)

Etc.(31.5%)

Repair and maintenance cost(26.1%)

Product defection rate(31.5%)

2. Impacts of YSDS

Areas of additional cost occurred

Source: KEI, 2003.12

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Transportation (esp. Aviation) :Transportation (esp. Aviation) : Sales loss by flight cancellation* (’02) 102 airplane cancellation → Sales loss: about $0.64 mil.

Sector Impact Influenced parties

Sales loss by flight cancellation Airline Co., air cargo Co., customers

Increase in repair & maintenance costs Aviation industry

Increase in repair & maintenance costs Shipping & Railroad industries

Sales loss by operation day limitation Shipping & Railroad industries, Customers

Aviation

Marine

&

Land

2. Impacts of YSDS

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Agriculture and Livestock industries: Agriculture and Livestock industries: Decrease in production rate due to lack of shinny days, disturbance of plant growth, diffusion of germs

•Production rate decrease by 10% due to the lack of sunlight

•Decrease in fruit production due to the pollination interruption

AgricultureAgriculture

•Livestock respiratory diseases increased by 20%

•Increase potential of increasing foot -and -mouth disease due to the virus being carried by YSDS

LivestockLivestock

2. Impacts of YSDS

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Leisure Industry: Leisure Industry: Decrease in sales due to the decline in the outdoor activities

The number of people using amusement parks decreased by 50% - 70%

The number of people climbing mountain and using parks decreased by 50~75%

Cancelation of outdoor sport games, e.g., baseball game

During

YSDS period

2. Impact of YSDS

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Aviation Industry

•YSDS carries fine particles and much salt as well

•YSDS on airplanes decay the body and have negative impact in aviation by increasing the body weight

•Particles between circuits may decay a circuit board

•Particles may scratch the surface of semiconductor Semiconductor

Industry

2. Impact of YSDS

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3. Measures applied to reduce the damage

As impacts of YSDS grow, affected industries taken damage reduction measures and others tried to find new business opportunities

Infrastructure investment and process reengineering to minimize damage

•Shortened filter replacement period and installed air-washing system between processes

•Installed external air inflow prevention system

Samsung Electronics, etc

•Shortened washing period of airplane engine and bodyAsiana Airlines

•Re-shatter proof by using company dust wagon

•Required employees to wear Inhaler and safety goggles

•Made preventive planning measures by using YSDS alarm system

Hyundai Heavy Industries, STX

Shipbuilding, etc

•Installed air curtain at entrances to prevent fine particles inflow Hanwha Galleria

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Find new business opportunities

Products Changes in sales Feature

YSDS prevention Mask Increased by ten times

Air freshener Increased by 70%

A weather strip for all seasons Increased by 30%

Fine dust Removal

Detox foods

Beverages n.a.A health drink(Vitamin etc.)

Sunglasses, Scarf Increased by 25% , 19.7% Protects skin from YSDS

Soap, Portable oxygen n.a. Sterilization and dust removal

Pork etc. Increased by two times

• Develop new products and ideas to increase sales

• Increase in YSDS related patents

3. Measures applied to reduce the damage

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3. Measures applied to reduce the damage

Promotion of the projects to combat desertification

• ‘The forest of Peace’ campaign to help forestation in North Korea

•Established ‘The Northeast Asia Forest Forum’in China and Mongolia to prevent desertification in the Northeast Asian Region.

YuhanYuhanKimberlyKimberly

•Started forestation named ‘Korean Air forest’ in Ulan -Bator in Mongolia since 2004

•Sending newly employed to plant trees in Mongolia as a part of training activities

Korean Korean AirAir

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3. Measures applied to reduce the damage

Establishment of the Korea-China YSDS Joint Observation Network

(Korea Meteorological Administration)

•The first establishment of quantitative and systematic observation network for YSDS

- Established observatory to monitor quantitatively dust storm in China

- Established communication network to share data between Korea-China

Holding a joint workshop and exchange the experts

- Having workshop every year to exchange views comprehensively, including long-term forecasting of YSDS Zhurihe Dalian Tongliao

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4. Proposal to reduce the damage

Install YSDS prevention facilities & early warning system

Develop and link forestation projects to CDM

Strengthen early earning system and information sharing activities

• Semi-conductor sector : Install preventive equipments to reduce defection rate and strengthen maintenance management

• Transportation sector : Optimize business activities by operating YSDS information system

• Initiate desertification prevention activities to deal with YSDS at its root• Acquiring carbon credits by employing (re)forestation projects• Government support to the desertification prevention activities initiated by business sectors

• Strengthen early warning system and Observation by expending Korea-China cooperation activities• Develop and disseminate to utilize Meteorology & YSDS related information solutions for business-use

Government : Strengthen Observation & early warning system andSupport prevention activities of the industry

Industry : Make continuous effort to minimize the damage and expand forestation projects as an preventive action

Thank you for your attention!