• Environmental and Resource Economics Review
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• v.19 no.3
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• pp.459-483
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• 2010

This paper constructs the two-part tax-a combined form of output tax and entrance fee-for polluting oligopolists under endogenous entry. In the presence of external damage that varies exogenously with aggregate output, we show that the two-part tax produces the ex post Pigouvian rule and thus achieves the first-best optimum. We also examine a detailed analysis of the impact of the two-part tax on social welfare and government revenues. Finally, when estimation errors exist in the process of regulation, we identify the incentive conflicts between interest groups and analyze the effects of estimation errors on determining optimal tax. In particular, we show that if the regulator takes care of both welfare loss and revenue gain under the proposed two-part tax, not only over-estimation on the slope of external damage but also under-estimation on the slope of market demand should be taken into the policy consideration.

• Environmental and Resource Economics Review
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• v.21 no.2
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• pp.371-416
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• 2012

This study has developed Computable General Equilibrium (CGE) model reflecting endogenous growth economic theory, with the aim of analyzing double dividend hypothesis. This study analyzes possibility of economic growth and environmental improvement at the same time when government recycles the revenue of carbon tax to reduce existed taxes such as consumption tax, labor income tax, corporate tax. It also assesses the case of subsidy on R&D investment of renewable energy. With new and renewable generation technology adopted and disseminated, GDP loss would be lessened to a great degree. Tax recycling would provide economic gain by reducing distortion existed in the existing fiscal structure. The magnitude of economic gains from carbon tax recycling is biggest for recycling into corporate tax, and labor income tax, and then consumption tax in this order. It is also shown that double dividend effects occur in dynamic terms when government uses a carbon tax revenue to subsidize on R&D investment. At the end of the analysis period, emissions reduction would not result in GDP loss but in GDP gain. In particular, recycling into R&D increase would produce the largest and fastest GDP gain. Thus, implementing emissions reduction target would require careful consideration of economic effects by various policy instrument, including carbon tax.

• 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.

• International Commerce and Information Review
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• v.13 no.1
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• pp.217-241
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• 2011

The basic purpose of Customs Drawback System of the material for export goods is export support as cut a price down the export goods' price. Especially the trade volume between South Korea and China is the greatest in comparison with other countries in 2010. Therefore companies involved China is necessary to understand exactly for China's tariff system(duty drawback system). Due to inconsistent policies, it is difficult to understand VAT-related provisions on exports goods of China compared with South Korea Tax System. Accordingly, the results of this study is significant in China-related companies. In South Korea and China, amount of customs duty drawback is very large 4.017606 billion won 732.8 billion yuan respectively. Thus, the amount of customs duty drawback is greater, a comparison of customs duty drawback in South Korea and China is very necessary on Customs Drawback System.

• The Journal of the Korea Contents Association
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• v.21 no.4
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• pp.96-110
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• 2021

Korea is faced with the challenge of adapting to the world's fastest - growing low birthrate, aging society, and low growth with low interest rate era. With low fertility and aging population, the factors of financial income of health insurance are decreasing, and the increase of public interest in health, high cost medical technology and the development of medicine are leading to increase expenditure of health insurance. In this study, I will examine the strengthen protection of health insurance, financial stabilization, and fairness of medical care. First, the present status and limitations of health insurance were identified through domestic policy report, domestic and foreign literature, and precedent research. Second, the foreign health insurance policy measures to stabilize the finances were examined separately. Based on this study, in order to maintain sustainable health insurance through reinforcement and financial stabilization of health insurance, the current financial income structure of health insurance must be renovated. It will be necessary to expand government subsidies and discover new tax revenues. In addition, a policy to save finances by reorganizing the medical bill payment system and medical delivery system will also be needed.

• Proceedings of the Korea Contents Association Conference
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• 2009.05a
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• pp.537-542
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• 2009

The Question is to expend Non-Provide Taxes(so on Local Income Tax and Local Consumption Tax). Can we legislate Non-Provide Taxes and levy them to a taxpayer? This Paper is to study a Scheme of Solution for Expansion of Fiscal Decentralization and search Laws and Ordinance, Theories and Case Law of the Major states. Therefore This Study is to aim for expanding at Legislation Power of Local Tax.

• 사회경제평론
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• v.31 no.3
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• pp.55-92
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• 2018

Moon Jae-In government, which took power through the candlelight revolution, has put forward a "People First Economy". To realize this goal, the government promised to increase the growth rate of fiscal spending and the proportion of welfare spending compared to the conservative government in the past. This direction is desirable, but it does not meet the expectations of the progressive camp, which has hoped larger-scale welfare through active increased taxation. Above all, it would be hard to overcome the structural risks facing our economy through this policy. More bold fiscal policy is needed. For the time being, it is desirable to push for taxing on top-income households, corporations, and high-value assets, and to make sure that the tax levied on rental income is well established. If these tasks are well realized, it is necessary to move toward the next stage of welfare expansion and increased taxation.

• Journal of Environmental Policy
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• v.7 no.2
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• pp.1-32
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• 2008

This study examined the income distribution effect of the environmental taxes in the energy sector by applying the Urban Family Survey and the Household Income and Expenditure Survey to the Kakwani index. The results analyzed are as follows: first, taxes of the non-transportation energy sector show progressive tax schemes, while those of transportation energy show regressive ones. Second, we calculated the scenario-specific progressivity index on basis of the existing energy price structure. Contrary to the previous works claimed to be regressive, the progressivity in scenario I got higher than before, except for the congestion taxes. Also, the index by the total sum of taxes in scenario II showed just a little bit higher progressive tax system. In scenario III, both the value added tax and the total sum of taxes have a little regressive structure, but the indexes in the environmental taxes, heat capacity taxes, and those which the environmental tax and the congestion tax and heat capacity taxes are summed up, are in general progressive. Third, subsidizing the tax revenues raised from the environmental taxes to the poor classes by a simulation approach shows more progressive as expected, implying the more subsidy the higher the progressivity index. As a result, it is said that the implementation of the environmental taxes has no negative impact on the income distribution, and the subsidy of the tax revenue raised from it to the poor can make the income inequality improve.

• KDI Journal of Economic Policy
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• v.13 no.4
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• pp.141-153
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• 1991

The optimal choice of the tax rate and the inflation rate framework is extended to yield relevant interpretations for the optimal fiscal and monetary policy regime in Korea. To study the relationship between the government budget and monetary growth in different environments of policy coordination, two models assuming different degrees of fiscal dominance are developed. By modelling differing institutional arrangements of the fiscal and the monetary authority from an optimal government finance viewpoint, we find the optimal relationship among some important fiscal and monetary variables. By testing the existence of the relationship empirically, we find the characteristics of the optimal policy-mix regime in Korea. The first model-the strong from of fiscal dominance-studies the optimal collection of seigniorage in a period-by-period optimization with standard assumptions on the income velocity of money, deriving a general testable result: the optimal inflation/tax rate ratio co-vary with the marginal revenue ratio. The second model-the weak form of fiscal dominance-studies an implication of the inflationary bias of discretionary monetary policy in the presence of fiscal side distortions. This model shows that the tax rate and the inflation rate can have a positive correlation. Empirical tests of the theoretical results are done for the Korean economy for 1972-1989 period. The test results show that the macroeconomic policy regime in Korea can be characterized by the strong form of fiscal dominance, implying the importance of the government budget in explaining money growth and inflation.

• Korea Trade Review
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• v.42 no.4
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• pp.93-114
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• 2017

Under the FTA agreement, preferential tariffs between FTA members will result in tariff reductions. In order to ensure the stable use of the FTA tariff system, it is necessary for the customs authorities to determine whether the origin goods are clearly applicable. This study analyzed the procedure of appeal according to the origin verification system based on the decision made by Korea Customs Service and Tax Tribunal. From this, we examined whether the rate of re-claiming a case rejected in the 'Review System of the Legality Before Taxation' differs. In addition, we carried out a quantitative analysis using bootstrapping technique in order to overcome the scarcity cases of verification of origin among FTA members. The implications of this paper are summarized as follows: First, we tested the hypothesis that the re-claiming rate of Western countries is higher. Second, some issues represented higher re-claiming rate. Third, there was no significant difference between the verification group and the re-claiming rate. Finally, even if an applicant makes a claim again, there is a possibility of being rejected again.