Paradigm shift

Paradigm shift (패러다임 전환/模式轉換) means a change in the basic assumptions, or paradigms, within the ruling theory of science. The term was first used by scientist Thomas Kuhn in his influential book The Structure of Scientific Revolutions (1962).

In Natural sciences
According to Wikipedia, some of the "classical cases" of Kuhnian paradigm shifts in natural science are:
 * The transition in cosmology from a Ptolemaic cosmology to a Copernican one.
 * The transition in optics from geometrical optics to physical optics.
 * The transition in mechanics from Aristotelian mechanics to classical mechanics.
 * The acceptance of the theory of biogenesis, that all life comes from life, as opposed to the theory of spontaneous generation, which began in the 17th century and was not complete until the 19th century with Pasteur.
 * The acceptance of the work of Andreas Vesalius, whose work De humani corporis fabrica corrected the numerous errors in the previously-held system created by Galen.
 * The transition between the Maxwellian Electromagnetic worldview and the Einsteinian Relativistic worldview.
 * The transition between the worldview of Newtonian physics and the Einsteinian Relativistic worldview.
 * The development of quantum mechanics, which replaced classical mechanics at microscopic scales.
 * The acceptance of plate tectonics as the explanation for large-scale geologic changes.
 * The development of absolute dating.
 * The acceptance of Lavoisier's theory of chemical reactions and combustion in place of phlogiston theory, known as the Chemical Revolution.
 * The acceptance of Mendelian inheritance, as opposed to pangenesis in the early 20th century.

In Social sciences
In Kuhn's view, the existence of a single reigning paradigm is characteristic of the sciences, while philosophy and much of social science were characterized by a "tradition of claims, counterclaims, and debates over fundamentals."

Others have applied Kuhn's concept of paradigm shift to the social sciences.
 * The movement, known as the Cognitive revolution, away from Behaviourist approaches to psychological study and the acceptance of cognition as central to studying human behaviour.
 * The Keynesian Revolution is typically viewed as a major shift in macroeconomics. According to John Kenneth Galbraith, Say's Law dominated economic thought prior to Keynes for over a century, and the shift to Keynesianism was difficult. Economists who contradicted the law, which implied that underemployment and underinvestment (coupled with oversaving) were virtually impossible, risked losing their careers. In his magnum opus, Keynes cited one of his predecessors, John Atkinson Hobson, who was repeatedly denied positions at universities for his heretical theory.
 * Later, the movement for Monetarism over Keynesianism marked a second divisive shift. Monetarists held that fiscal policy was not effective for stabilizing inflation, that it was solely a monetary phenomenon, in contrast to the Keynesian view of the time was that both fiscal and monetary policy were important. Keynesians later adopted much of the Monetarists view of the quantity theory of money and shifting Philips curve, theories they initially rejected.

Paradigm shifts in Korea
The term "paradigm shift" has found various uses in Korea, representing the notion of a major change in a certain thought-pattern — a radical change in personal beliefs, academic theories or complex systems, replacing the former way of thinking with a radically different way of thinking.

Asset-backed secuitization
To overcome the IMF Crisis, the government rushed to enact the Asset-Backed Securitization (ABS) Act, which proved to be highly useful in securitizing mountains of non-performing loans in the banking sector. The ABS Act was drafted by studying the U.S. bankruptcy case law and existing laws of such foreign countries as Japan and Thailand. ABS mechanism begins with pooling of assets to be securitized, then establishing a special purpose company (SPC) for the purpose of "bankruptcy remoteness", and making the SPC issue asset-backed securities or trust beneficiary certificates.

Acceptance of a variety of Paper companies
Conventionally a paper company had been regarded as a ghost company or shell company until the ABS Act acknowledged such a paper company as an SPC. As a matter of fact, sometimes it was held illegal and tax evasive. Thereafter a variety of paper companies have come to existence like restructuring-specialized paper company and real estate investment trusts (REITs).

New assessment of cash flows
ABS Act 시행을 계기로 cash flows를 중시하고 장기 안정된 cash flows는 무엇보다도 든든한 담보로서 구실을 하게 되었다. 부동산 가치를 평가할 때에도 당해 부동산에서 나오는 cash flows를 할인하여 현재가치로 환산하는 기법 이 보편화되었다.

Unsolicited infrastructure projects
종전에는 social overhead capital (SOC)는 정부가 재정사업으로 추진하는 것을 당연하게 여겼으나 정부예산이 부족할 경우에는 private capital을 유치하는 것도 필요하다고 생각하게 되었다. 나아가 정부가 고시하는 사업뿐만 아니라 민간이 제안한 사업도 정부가 채택하면 일정 수익을 보장해주고 시행하게 하였다. 다만, Minimum revenue guarantee (MRG)는 재정부담을 가중시킨다 하여 폐지되었다.

Business model employed by mobile carriers
Initially the information and communications projects belong to the public sector. The central and local governments have to invest in information and communications infrastructure. 특히 이동통신사업은 처음부터 민간사업자가 전국 곳곳에 기지국을 건설하여 통신망을 구축하는 식으로 전개되었다. 대신 이동통신사업자는 휴대폰 가입자로 하여금 2-3년의 약정 기간 중에는 통신회사를 바꾸지 못하게 하여 cash flow 수입을 보장해 주었다. 이통통신사업자는 특정 device를 채택하는 대가로 휴대폰 제조회사로부터 여러 가지 혜택을 받기도 한다.

Creative Economy
Park Geun-hye government declared "Creative economy" from the inauguration of President Park to level-up nation's economy and create more jobs. Creative economy refers to the eocnomic activities or phenomena with daring paradigm shift at the core which converge industries with other industries or culture based on information technology or scientific technology, thus breaking the walls between industries and creating brand-new businesses and job opportunities. To this end, the government has encouraged start-up of new businesses by means of intellectual property-based financing.