• The Journal of the Korea Contents Association
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• v.9 no.9
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• pp.218-225
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• 2009

The present research aims to analyze empirically the effect of group cohesiveness and supervisor trust which tax investigators recognize while performing tax administrative duties on the team commitment and in-role behavior. The result of the analysis showed that tax investigators' higher group cohesiveness and supervisor trust resulted in higher team commitment, and that higher team commitment in turn resulted in higher in-role behavior, thereby raising the efficiency of tax investigators' activities as well as tax payers' satisfaction with tax services. Therefore in order to improve the efficiency of tax organizations and team performance, the managers of the organizations must set solid goals, develop solid strategies appropriate for situation, and make proper compensations for investigators' achievements. In addition, there would have to be an organic improvement In all the relevant areas, including organization, personnel management, work style, compensation and welfare, in order to raise tax investigators' work desire.

• KDI Journal of Economic Policy
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• v.34 no.3
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• pp.31-65
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• 2012

We study the sustainability of the current fiscal policy of Korea, and the effects of the social welfare policy expansion, which has been recently discussed among the political circles, on the government budget and the generational equity, using generational accounting. We follow the generational accounting approach, considering the fact that most of the social welfare policies are the entitlement programs, which imposes the limitation of the policy maker's discretion to control the cost of their provision. The social welfare expenditure will change due to the change in the policy environments of the future, such as population aging. Therefore, we need to take into account the government cash flow of the future as well as of the present to investigate its effects on the fiscal sustainability, which implies that the national debt or the budget balance is not a proper index for the investigation. Our findings are as follows. The current fiscal policies are not sustainable, and the long-term budgetary imbalance is shown very serious. The required tax adjustment, which is defined as the percentage change of tax burden required to attain the long-term budgetary balance, is very large. Unless the level of the government expenditure is properly controlled, the tax burden and the social contribution level will rise to the untolerable level. Moreover, the expansion of the social welfare policies, which has been discussed among the political circles, will substantially increase the fiscal burden of the future generations. Even though the provision of the free lunch to the primary and the secondary school students, the free child care, and the discounted college tuition do not increase the fiscal burden much, because their magnitude at present is not large and will decrease due to the decrease in the number of the newborns and the students resulting from the fall in the fertility rate, that of the free health care service will increase tax burden of the future generations very much, because the magnitude of the government expenditure needed at present is very large and the population aging will further increase the magnitude of the health care expenditure. The findings indicate that the structural reforms, to prevent the explosive increase in the social welfare expenditure in the future, are necessary before the implementation of the welfare policy expansion. In particular, the cost control of the social transfers to the elderly needs to be made, because the speed of the population aging of Korea is among the highest in the world. The findings also indicate that the budget balance or the national debt can cause the fiscal illusion, which makes the Korean government budget look sound, even though the fiscal policy will rapidly increase the social welfare expenditure in the future, as the population ages. The generational accounting, which takes into account the cash flow of the future as well as of the present, unlike the budgetary balance and the national debt, which shows the results of the government financial activities of the past and the present, is a useful method to overcome the fiscal illusion.

• Journal of Digital Convergence
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• v.11 no.6
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• pp.23-42
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• 2013

Congress enacted the sex offender registration and notification act in order to prevent sexual offenses and protect public safety in the U.S.. Namely, in 2006, the Jacob Wetterling Act and Megan's Law were integrated into the Adam Walsh Child Protection and Safety Act as a comprehensive sex offender supervision and management scheme. The AWA aims to eliminate loopholes and gaps formed by inconsistent state laws and statutes as well as to provide the federal standards for sex offender registration and notification. However, the AWA contains over-inclusive sex offender registration requirements and punishments. For this reason, the implementation of the AWA may cause problems for states, sex offenders, and citizens, both as taxpayers and as beneficiaries of the AWA. Therefore, the AWA that does not differentiate between violent and non-violent offenders should be reformed to allow law enforcement officials to focus on sex offenders convicted of violent and heinous crimes. That is, the AWA should not apply to sex offenders who are not dangerous, not likely to recidivate, and who committed non-violent crimes. In addition, because the AWA requires juvenile offenders to registrate on public notification forums, it may result in a greater risk to community safety and potential risk of reoffense. Accordingly, juvenile offenders convicted of non-violent sex offenses and not likely to recidivate will be provided appropriate treatments to be rehabilitated as members of community.

• KDI Journal of Economic Policy
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• v.14 no.4
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• pp.51-62
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• 1992

The purpose of this paper is to estimate the ratio of under-reported business income and related tax to that which is actually reported. The business income and tax are vulnerable to being under-reported. Information about the business income and thus income tax is private information. Without information costs, the tax agency cannot collect all the information about the business income and income tax. In Korea there are more than 600,000 proprietors. Therefore, the costs to investigate the accuracy of the taxpayes' reports are substantial. The tax agency sets a level over which proprietors should report income ratio to total sales, which induces the under-report. To estimate the ratio of under-reported tax, the expenditure method is employed. By this method, the under-reported income can be easily presumed based on expenditures since expenditures are closely related to income. First, the consumption function is estimated by using cross-section data of 1986-89. Generally, the estimation results show the expected sign of the coefficients of the explanatory variables such as income, wealth, and family size. Second, the extent of under-reported business income and related tax is estimated by using the estimation results. The estimated ratios of under-reported tax and income to the actual tax and income fall in the range of 13~39% and 8~25% respectively. This estimation confirms the increasing tendency of the tax detection ratio in previous studies. However, it should be noted that this study is not based on data of the tax report but those of the urban household survey. Therefore, there still remains the possibility that the ratio of under-reported tax could be underestimated.

• The Journal of Small Business Innovation
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• v.19 no.3
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• pp.1-16
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• 2016

Korean government had used public 'credit guarantee schemes' (CGS) as a counter-cyclical measure. However, it is still controversial about the effectiveness of policy financing on the SMEs. Criticism on policy financing involves the argument that supporting enterprises hampers competition and innovation of SMEs by increasing their dependence on the government and delays the exit of marginal firms. In this paper, we investigate how to effectively build up the rationale of running public CGSs. At the same time, we propose the ways to coexist of public credit guarantee and market-based private finance system for SMEs. First, CGS, as a counter-cyclical function, must coexist with the private financial system by compensating the market failure caused by pro-cyclical behavior of the private financial market. Second, CGS has the comparative advantages, compared to both the interest rate policy of the central bank and fiscal policy of the government. The credit guarantee is the symptomatic treatment that could revitalize the economy shortly by providing liquidity. Also, knowing that CGS is provided based on the leverage ratio defined by outstanding guarantee divided by capital fund, public 'credit guarantee' (CG) has an advantage that is free from the risk of government deficit. Third, the reason for existence of the CGS should be founded in supporting services for SMEs, available only in a public sector that is difficult to expect from private banks. In this regard, it is desirable to strengthen the publicness of credit guarantee over the support for start-ups, growing companies, the improvement of productivity, increase of exports, a long-term investment in facilities, the employment-creating businesses, and innovative enterprises.

• Management & Information Systems Review
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• v.32 no.4
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• pp.127-153
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• 2013

The trend of China's industry has been changed from manufacturing industry based on cheap labor market to service industries gradually as a whole. The investment of Korean corporations toward Chines service industry is gradually being increased. The importance of Chinese service industry related taxations such as business tax and value-added tax are growing. This study, therefore, examines the changes of investment environment and does the business tax and VAT of growing importance in China. From the point of view that the taxation on services is mainly related to the business tax or VAT, this study, also, examines the changes of present condition of investment and corresponding trends of the Korean corporations, in accordance with the domestic investment environment changes tied to the business tax and the VAT in China. With regard to the business tax and the VAT, this study looks into their features and tax requisition and also makes comparison between them and VAT of Korea. This study examines the problems and situations from the cases of separation, integration and trial integration of the business tax and VAT, and also does the development direction of the above two taxation and the corresponding strategy of Korea and her companies The purpose of this study is to provide information about the changing trends of investment environment and the business tax and VAT and to present corresponding plan for the corporations advancing into China.

• Korea Trade Review
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• v.42 no.1
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• pp.69-97
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• 2017

This study purpose to examine the importer's risks that may arise from origin investigation by Customs authorities. We have drawn the important factors affecting the application of FTA preferential tariffs and divided the stages from the conclusion of the contract for the importer to the undergoing origin investigation. In addition, we demonstrate empirically that the risks that arise in areas where importers are difficult to control exist. As a management method of the uncontrollable risk from the importer, we have provided the methods that the seller stipulated the seller's responsibility in the trade contract, prepared for situations in which no one was responsible, and formulated a friendly and cooperative supply chain. Even if the seller's liability is clarified in the contract for sale, the risk of the investigation into the origin of the imported goods is not completely eliminated. This is because, under the current agreement and system, there is no way for the customs authority of the contracting party of the FTA to claim compensation for damages incurred by importers due to breach of agreement such as not returning the result of the origin verification. Importers are subject to customs duties, but there may actually be situations in which no one is responsible for them.

• Korean Journal of Social Welfare Studies
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• v.41 no.2
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• pp.309-334
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• 2010

This study explores gender mechanism of welfare politics in Korea from the perspective of welfare status theory. In the simplistic analysis, it is found that there is no gender difference in welfare attitudes. In the more sophisticated analysis of welfare-status-beased SEM, however, it is found that Korean welfare politics is to be understood in terms of gender-related politics. Three major findings of this study are as follows. Firstly, Korean women possess less pro-welfare attitudes in terms of the status of welfare beneficiary. This is due to the visible gender segregation in the Korean labor market on the one hand and due to the centrality of social insurance programs in the structure of Korean public welfare system on the other hand. Secondly, Korean women have relatively higher level of pro-welfare attitude when it comes to the status of welfare service provider. Thirdly, Korean women tend to be more supportive to pro-welfare parties as they have less chance to be a higher taxpayer. Based on the above mentioned findings, this study concludes that it is possible to make Korean women be more pro-welfare if the Korean welfare state expands more social services that tend to meet urgent needs of women.