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[News] The Spread of Shared Economy
In the course of the global economic crisis that began in the 2000s, potential consumers became more interested in collaborative consumption in the form of alternative consumption rather than purchasing new products, and the popularization of various smart devices such as smartphones and smart pads played a crucial role in the spread of shared economy by reducing the time and space distance between consumers and suppliers.
In other words, it created an Internet-based shared economy ecosystem where anyone could easily access a shared platform anytime, anywhere, evolving into a new ICT-based business area that expanded from a local market centered on a particular community to a borderless global market in the past. In addition, solving the limitations of the cost of sharing in the past through the network has resulted in the reduction of the burden of sharing costs and an increase in the effect of sharing, which has led to the development of sharing as an important means of generating the interests of society as a whole. The shared economy concept, which began with the sharing of idle resources, is now expanding to a model where anyone in the public can be the main driver of economic and value production, enabling individuals who used to be passive consumers to be the main driver of the economy that provides direct service.
Currently, the shared economy business model is implemented in various ways according to the social, economic and cultural environment of each country and region. As for the components of a shared economy, we generally agree that the shared economy does not "own" but "use" as a key factor, and based on the platform formed by the development of the Internet and SNS, the main interest seems to be in the new economic activity that anyone can become an entrepreneur. In addition, the proliferation of these shared-economic models is changing the process of building mutual trust between suppliers and consumers who are most important in the transaction of goods. As third parties' reputation can be viewed through SNS and others, indirect trust verification is being made possible, and the risk of doing business with strangers who don't know at all through Internet-based shared economic platforms is also gradually low.
While the overall size of the shared economy has not been officially estimated since the smartphone app ecosystem began to be created in foreign countries, a survey by PwC (Pricewaterhouse Cooper), a multinational accounting audit firm, predicts that the market will be worth about $335 billion by 2025. U.S. market researcher eMarketer expects the number of users of shared economic services in the U.S. to grow to 66.3 million in 2018 and 86.5 million in 2022.
As such, a shared economy has innovative potential as a representative example of a transitional phenomenon that emerged in the course of the disintegration of a long-standing capitalist order. A new paradigm element in shared service models, such as Uber and Airbnb, is strongly conveying a challenging message about the existing private ownership system in terms of consumption. In terms of discovering the problem of ownership and consumption-centeredness and presenting alternatives, the shared economy has built a value ecosystem by incorporating network technology into the resources of dormant individuals, proving that it is possible to create value just by sharing and exchanging resources owned by individuals. However, despite having new paradigm elements, the shared economy still has many limitations. The way it operates, legal deficiencies, and centralized systems resulting from government regulation are causing various conflicts. In addition, the exponential spread of shared economic service models such as Uber and Airbnb has led to the emergence of new types of problems such as conflict, competition with existing industries, mix of use rights such as goodwill, ownership and access rights, taxation issues, and privacy issues.
In particular, in the case of Uber-like ride-sharing services, which have strong conflicts with the taxi industry, Korea currently allows only those who are eligible to provide services to the extent that they are completely banned or conform to the current law. Recently, Kakao Carpool Service announced its formal implementation of the service, and conflicts with the taxi industry are reaching their limits, but no significant solution has been prepared. It must have introduced a new paradigm that a shared economy can improve productivity without relying on overcapacity and overconsumption of resources, and the spread of shared-economy service models is an undeniable trend worldwide. Therefore, if we make good use of the shared economy, which can be the basis for new technological and economic paradigms in Korea, it will be an opportunity to transform our society into a virtuous circle structure that increases the dynamics of our society as a whole. Rather than unconditionally regulating the shared economy to act as a catalyst for the recovery of our society, which is currently in a slump, we need to consider what is the best way for the shared economy service model to develop in the horizontal relationship of various members of society.
In the course of the global economic crisis that began in the 2000s, potential consumers became more interested in collaborative consumption in the form of alternative consumption rather than purchasing new products, and the popularization of various smart devices such as smartphones and smart pads played a crucial role in the spread of shared economy by reducing the time and space distance between consumers and suppliers.
In other words, it created an Internet-based shared economy ecosystem where anyone could easily access a shared platform anytime, anywhere, evolving into a new ICT-based business area that expanded from a local market centered on a particular community to a borderless global market in the past. In addition, solving the limitations of the cost of sharing in the past through the network has resulted in the reduction of the burden of sharing costs and an increase in the effect of sharing, which has led to the development of sharing as an important means of generating the interests of society as a whole. The shared economy concept, which began with the sharing of idle resources, is now expanding to a model where anyone in the public can be the main driver of economic and value production, enabling individuals who used to be passive consumers to be the main driver of the economy that provides direct service.
Currently, the shared economy business model is implemented in various ways according to the social, economic and cultural environment of each country and region. As for the components of a shared economy, we generally agree that the shared economy does not "own" but "use" as a key factor, and based on the platform formed by the development of the Internet and SNS, the main interest seems to be in the new economic activity that anyone can become an entrepreneur. In addition, the proliferation of these shared-economic models is changing the process of building mutual trust between suppliers and consumers who are most important in the transaction of goods. As third parties' reputation can be viewed through SNS and others, indirect trust verification is being made possible, and the risk of doing business with strangers who don't know at all through Internet-based shared economic platforms is also gradually low.
While the overall size of the shared economy has not been officially estimated since the smartphone app ecosystem began to be created in foreign countries, a survey by PwC (Pricewaterhouse Cooper), a multinational accounting audit firm, predicts that the market will be worth about $335 billion by 2025. U.S. market researcher eMarketer expects the number of users of shared economic services in the U.S. to grow to 66.3 million in 2018 and 86.5 million in 2022.
As such, a shared economy has innovative potential as a representative example of a transitional phenomenon that emerged in the course of the disintegration of a long-standing capitalist order. A new paradigm element in shared service models, such as Uber and Airbnb, is strongly conveying a challenging message about the existing private ownership system in terms of consumption. In terms of discovering the problem of ownership and consumption-centeredness and presenting alternatives, the shared economy has built a value ecosystem by incorporating network technology into the resources of dormant individuals, proving that it is possible to create value just by sharing and exchanging resources owned by individuals. However, despite having new paradigm elements, the shared economy still has many limitations. The way it operates, legal deficiencies, and centralized systems resulting from government regulation are causing various conflicts. In addition, the exponential spread of shared economic service models such as Uber and Airbnb has led to the emergence of new types of problems such as conflict, competition with existing industries, mix of use rights such as goodwill, ownership and access rights, taxation issues, and privacy issues.
In particular, in the case of Uber-like ride-sharing services, which have strong conflicts with the taxi industry, Korea currently allows only those who are eligible to provide services to the extent that they are completely banned or conform to the current law. Recently, Kakao Carpool Service announced its formal implementation of the service, and conflicts with the taxi industry are reaching their limits, but no significant solution has been prepared. It must have introduced a new paradigm that a shared economy can improve productivity without relying on overcapacity and overconsumption of resources, and the spread of shared-economy service models is an undeniable trend worldwide. Therefore, if we make good use of the shared economy, which can be the basis for new technological and economic paradigms in Korea, it will be an opportunity to transform our society into a virtuous circle structure that increases the dynamics of our society as a whole. Rather than unconditionally regulating the shared economy to act as a catalyst for the recovery of our society, which is currently in a slump, we need to consider what is the best way for the shared economy service model to develop in the horizontal relationship of various members of society.