• Journal of Navigation and Port Research
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• v.26 no.2
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• pp.167-175
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• 2002

Busan Port which is the representative social overhead capital facilities for international trade of goods has need the driving force for economic development in Korea. Therefore, the central government should play the major role in building a rear road to Busan Port in order that it may function as a moor port of Northeastern Asia through the systemization of mutual assistance among connected facilities, completely equipped with port-related facilities befitting to the principal port of imports and exports. In this study, the validity of container tax is being examined, analyzing container tax which is considered as an obstacle to the development of Busan Port and its purpose, and grasping the present conditions by the realistic speculation on container tax issues and its abolition. First, the port rear road as a social overhead capital facilities, which connects port and expressway, should be considered as part of port, and port is social overhead capital invested by government. Second, the Busan City imposes taxes on container. As a result, a shipper and a shipping company are paying a double charge by paying container tax with port dues. Third, Empty container and Tranship container are the factor of Busan city traffic jam but their was excluded from container tax. This is deviate from equilibrium of the tax object. Forth, it has bad influence upon the competitiveness of Busan Port as Northeastern logistics base, as other ports who are competing with Busan Port like china, Taiwan, Japan's port make their competitiveness strong by decreasing the cost of port dues.

• Environmental and Resource Economics Review
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• v.15 no.4
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• pp.673-692
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• 2006

In order to test for the dynamic optimality condition for the use of nonrenewable resource, it is necessary to estimate the shadow value of the resource in situ. In the previous literatures, a time series for in situ price has been derived either as the difference between marginal revenue and marginal cost or by differentiating with respect to the quantity of ore extracted the restricted cost function in which the quantity of ore is quasi-fixed. However, not only inconsistent estimates are likely to be generated due to the nonmalleability of capital, but the estimate of marginal revenue will be affected by market power. Since firms will likely fail to minimize the cost of the reproducible inputs subject to market prices under realistic circumstances where imperfect factor markets, strikes, or government regulations are present, the shadow in situ values obtained by estimating the restricted cost function can be biased. This paper provides a valid methodology for checking the dynamic optimality condition for a nonrenewable resource by using the input distance function. Our methodology has some advantages over previous ones: only data on quantities of inputs and outputs are required; nor is the maintained hypothesis of cost minimization required; adoption of linear programming enables us to circumvent autocorrelated errors problem caused by use of time series or panel data. The dynamic optimality condition for domestic coal mining does not hold for constant discount rates ranging from 2 to 20 percent over the period 1970~1993. The dynamic optimality condition also does not hold for variable rates ranging from fourth to four times the real interest rate.

• Review of Culture and Economy
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• v.17 no.2
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• pp.3-28
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• 2014

The characteristics of performing arts differ from those of utilitarian goods in terms of economics. Factors other than price need to be considered to understand the demand for performing arts. Audience surveys as well as econometric demand studies have confirmed that socio-economic factors such as age, income, employment, and education are major determinants of the demand for performing arts. This study focused on the attributes of concerts rather than consumer characteristics to determine the concerts audiences select in terms of transaction cost. Genre, price, internet search trends, and the purpose of performance as well as price are tested as determinants of demand by using the data set for a major concert hall in Seoul. Genre and the specific purpose of concerts influence the demand for concerts. Internet search trends of the performer are used as indicators of popularity and information exposure, which are positively correlated with demand. This result supports the hypothesis that larger audiences would attend concerts that require lower information search costs. To note, price has a positive effect on demand in the higher price range, which means that concerts at higher prices attract larger audiences, whereas normal goods have a negative slope in the demand curve. This result can be explained by the hypothesis that consumers use price as an indicator of the quality expected of a concert. Transaction cost for selecting classical concerts thus forms an inverse-U shape curve against ticket price. These results provide some explanation of why audiences of classical music choose to attend concerts at high ticket prices while offering evidence in favor of the hypothesis that performing arts are selected in a social context.

• KIPS Transactions on Computer and Communication Systems
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• v.11 no.8
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• pp.269-280
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• 2022

With the rise of a decentralized finance market (so called, DeFi) using blockchain technology, users and capital liquidity of decentralized finance applications are increasing significantly. The Automated Market Maker (AMM) is a protocol that automatically calculates the asset price based on the liquidity of the decentralized trading platform, and is currently most commonly used in the decentralized exchanges (DEX), since it can proceed the transactions by utilizing the liquidity pool of the trading platform even if the buyers and sellers do not exist at the same time. However, Automated Market Maker have some disadvantages since the cost efficiency of each transaction using Automated Market Maker depends on the liquidity size of some liquidity pools used for the transaction, so the smaller the size of the liquidity pool and the larger the transaction size, the smaller the cost efficiency of the trade. To solve this problem, some platforms are adopting Transaction Path Routing Algorithm that bypasses transaction path to other liquidity pools that have relatively large size to improve cost efficiency, but this algorithm can be further improved because it uses only a single transaction path to proceed each transaction. In addition to just bypassing transaction path, in this paper we proposed a Multi-Path Routing Algorithm that uses multiple transaction paths simultaneously by distributing transaction size, and showed that the cost efficiency of transactions can be further improved in the Automated Market Maker-based trading environment.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.35 no.6
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• pp.1405-1412
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• 2015

In Korea, public infrastructure projects employ "long term continuation (LTC) contracts," which require budgets to be reevaluated and re-appropriated annually throughout the multi-year life of the project. However, such contracts also make it susceptible to frequently changing government policies, in which budgets required for existing projects are allocated to new projects and thus does not provide a consistent stream of capital to multi-year projects. Each year, the KEC needs to attain government funds for construction of its multiple highway construction sites. Because it is difficult to know the amount that may be actually appropriated to KEC in a given year, it is in turn difficult to anticipate and provide sufficient funds necessary for construction to run smoothly and continuously. The lack of a good logic for appropriation has resulted in projects having a skewed distribution of capital. To get better budget appropriations from the central government, the KEC first needs a systemized approach that rationalizes the annual construction capital optimally required for its individual sites. The goal of this research was to devise a way that allows the KEC to determine and calculate the optimal construction costs that would be required for its individual construction sites on an annual basis. Both the optimal progress rate and the essential work types were assessed through a workshop with 24 professionals (KEC employees and contractors) who had extensive experience in KEC projects and also were currently working in these projects.

• Journal of Technology Innovation
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• v.20 no.1
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• pp.45-73
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• 2012

In this paper, we analyse empirically the effects of financial characteristics on the relationship between R&D investment and market value of firms listed on Korea Exchange. The main results of this study can be summarized as follows. Firm size increase the market valuation of R&D investment because it provides economies of scale, easier access to capital market, and R&D cost spreading. Market share also positively effects the relationship between R&D investment and firm value. Alternatively, free cash flow has a negative effect on the relationship between R&D investment and firm value because firms with high free cash flow could be tempted to use the free cash flow to undertake negative NPV projects. The dependence on external finance is a handicap negatively assessed by the market when firms undertake R&D projects due to the higher information asymmetry associated with this kind of project. Labor intensity has a negative effect on the relationship between R&D investment and firm value because the abnormal profits arising from R&D investment are diluted among employees. Capital intensity also has a negative effect on the relationship between R&D investment and firm value due to the greater financial constraints faced by capital intensive firms. In conclusion, several financial characteristics(firm size and market share) positively effect the relationship between R&D investment and firm value, while others(free cash flow, dependence on external finance, labor intensity, and capital intensity) exert a negative effect. Therefore, we conclude that the effectiveness of R&D investment depends on these financial characteristics.

• Journal of Digital Convergence
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• v.10 no.4
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• pp.181-190
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• 2012

Cost of capital is one of the key factors of accounting regulation policy for telecommunication market. This paper aims at investigating efficient policy improvements concerning accounting regulation for telecommunication market focused on cost of capital calculation methods and its application. At First, cost of capital estimating method should be improved. In estimating the cost of equity capital, it is necessary to use benchmark method for Equity risk premium. It will reduce analytical errors caused by a rapid economic change and inflation. It is also more desirable to use debt premium adding method for the cost of debt capital. Optimal capital structure method may be considered a better way to estimates capital structure. Secondly, cost of capital estimating process also has to be reformed. Telecommunication industry changes rapidly so it does not reflect fast environmental changes. Therefore, cost of capital should be calculated every year. Cost of capital should be calculated by individual companies. There is information asymmetry between regulators and regulatees. Because of that cost of capital calculating process takes long time and cost a lot. To solve this problem, regulator should legislate on cost of capital calculation and then regulating companies report the calculating result. Lastly, major telecommunication companies are all listed now and it is possible to calculating it separately. We must continuously improve the estimating method and application of cost of capital and due to the fast growing of telecommunication industry. The process of determining the calculating method must be discussed and best method chosen.

• The Journal of the Korea Contents Association
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• v.21 no.6
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• pp.588-597
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• 2021

In Korea, the standard for calculating the profit of a general insurance, which constitutes the loading in the premium, is not specified, and most of the non-life insurance companies reflect 2~5% of the premium as profit margin. Although the transparency of pricing is required due to the nature of insurance products, there are insufficient standards and empirical studies on the determination of insurance price factors in the domestic insurance industry. In this study, we propose a method of calculating the expected profit margin of general insurance. A way for calculating the expected profit margin of the general insurance is to reflect the shareholder demand on the capital that the insurance company should secure against the risk of loss due to the profit/loss volatility, as a ratio to the insurance premium. Shareholders should be compensated for the risks associated with their insurance operations, and the opportunity cost of these shareholders is to be reflected in premiums. In this study, we calculate the amount of capital that the company should accumulate to prepare insurance risk for each product, and insurance risk is defined as the volatility of insurance operating profit/loss. And insurance risk is calculated using stochastic simulation based on Dynamic Financial Analysis (DFA) methodology. Finally, we calculate the expected profit margins for 25 products and analyzed the difference between those and the profit ratio of domestic general insurance.

• Information Systems Review
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• v.20 no.4
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• pp.79-96
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• 2018

This study started by focusing on the internalization of the technology appraisal model into the credit rating model to increase the discriminative power of the credit rating model not only for SMEs but also for all companies, reflecting the items related to the financial stability of the enterprises among the technology appraisal items. Therefore, it is aimed to verify whether the technology appraisal model can be applied to identify high-stability SMEs in advance. We classified companies into industries (manufacturing vs. non-manufacturing) and the age of company (initial vs. non-initial), and defined as a high-stability company that has achieved an average debt ratio less than 1/2 of the group for three years. The C5.0 was applied to verify the discriminant power of the model. As a result of the analysis, there is a difference in importance according to the type of industry and the age of company at the sub-item level, but in the mid-item level the R&D capability was a key variable for discriminating high-stability SMEs. In the early stage of establishment, the funding capacity (diversification of funding methods, capital structure and capital cost which taking into account profitability) is an important variable in financial stability. However, we concluded that technology development infrastructure, which enables continuous performance as the age of company increase, becomes an important variable affecting financial stability. The classification accuracy of the model according to the age of company and industry is 71~91%, and it is confirmed that it is possible to identify high-stability SMEs by using technology appraisal items.

• Journal of Digital Convergence
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• v.12 no.1
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• pp.325-331
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• 2014

Many saeteomins to settle in South Korea, are materially affluent capitalist countries entered South Korea, but they have not been able to adapt so easily the consumer market and economic activity. In particular, development and support training programs for female saeteomins, 69% of total saeteomins are needed. Therefore, we need to support job programs that they settle in Korea normally and can be a reasonable economic activity. But, we need to operate be the group program because only proceed to the general education program is not enough to settle into a stable. In this paper, we would like to propose a group program for job training and a budget for operating the program to easily settle female saeteomins in South Korea.