• Journal of the Korea Academia-Industrial cooperation Society
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• v.8 no.4
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• pp.881-893
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• 2007

IT(Information Technology)-based industries have caused a recent digital revolution and the appearance of various types' information service, being largely expanded toward info-communication device company, info-communication service company, software company etc.. Therefore, the needs to evaluate the company value of IT business for M&A or liquidation are growing tremendously. Unlike other industries, however, IT industry has a short lift cycle and so it doesn't have not only a company value-evaluating model for general businesses but the objective one for IT companies yet. So, this thesis analyzes various value-evaluating technique and newly rising ROV. DCF, the change method of company's cash flow including tangible assets into future value, had been applied during the past industrialization economy era and has been persuasively applied to the present. However, the DCF valuation has no option but to make many mistakes because IT companies have more intangible assets than tangible assets. Accordingly, it is ROV, recognized as the new method of evaluating companies' various options normally and quantitatively, that is brought up recently. But the evaluation on the companies' various options is too subjective and theoretical up to now and due to the lack of objective ground and options, it's not possible to be applied to reality. In this thesis, it is found that ROV is more accurate than DCF, comparing DCF and ROV through four examples. As the options applied to ROV are excessively limited, we tried to develop ROV into a new method by deriving five invisible value factors within IT companies. Therefore, on this occasion, we should set up the basic valuation methods on IT companies and should research and develop an effective and various valuation methods suitable to each company like an internet-based company, a S/W developing enterprise, a network-related company among IT companies.

• The Journal of Fisheries Business Administration
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• v.25 no.1
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• pp.1-17
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• 1994

Coastal economic activities usually generate externalities to other economic activities. The conflicts between coastal economic activities, especially land fillings and reclamations, and fisheries in coastal waters pose a typical one, which sometimes causes some social conflicts. In this regard, as the contents and requirements for rules and regulations on fisheries compensation may have important implications for solving such problems, important is to review rationales fur the formulas in calculating fisheries compensation. The purpose of this paper is to review the formulas for fisheries compensation from the economic view points, to highlight some problems and to suggest more appropriate formulas. It is found that the current formulas of fisheries compensation are not properly based on economic concepts and valuation techniques. Main problems are related, as followings, to the coefficient(0.8) employed in the formula, to fishermen's own wages and to current values of invested assets such as fishing boats and nets, etc.. First, it is not clear what the coefficient(0, 8) means. In Japan's case, the coefficient was assumed to reflect the opportunity cost of fishermen's own wages, but it was disappeared from the formula after the self-wage came to be included in totaling fishing cost. As our new formula will include the self-wage in fishing cost, the coefficient(0.8) should be excluded. Second, according to our formula, the current value of invested assets is added to total operating compensation, which will overestimate total compensation. Therefore, it is suggested that total present value of the assets to be invested during the business life should be deducted from total operating compensation. Third, as the self-wage will be included in total cost, opportunity cost for finding new jobs should be newly added to the formula. Finally, this paper also conducted a comparative case study considering above-mentioned factors. The case study showed that the current formulas overestimated total fisheries compensation.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.46 no.1
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• pp.91-104
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• 2023

The records system is believed to have started in Italy in the 14th century in line with trade developments in Europe. In 1491, Luca Pacioli, a mathematician, and an Italian Franciscan monk wrote the first book that described double-entry accounting processes. In many countries, including Korea, the government accounting standards used single-entry bookkeeping rather than double-entry bookkeeping that can be aggregated by account subject. The cash-based and single-entry bookkeeping used by the government in the past had limitations in providing clear information on financial status and establishing a performance-oriented financial management system. Accordingly, the National Accounting Act (promulgated in October 2007) stipulated the introduction of double-entry bookkeeping and accrual accounting systems in the government sector from January 1, 2009. Furthermore, the Korean government has also introduced International Financial Reporting Standards (IFRS), and the System of National Accounts (SNA). Since 2014, Korea owned five national accounts. In Korea, valuation began with the 1968 National Wealth Statistics Survey. The academic origins of the valuation of national wealth statistics which had been investigated by due diligence every 10 years since 1968 are based on the 'Engineering Valuation' of professor Marston in the Department of Industrial Engineering at Iowa State University in the 1930s. This field has spread to economics, etc. In economics, it became the basis of capital stock estimation for positive economics such as econometrics. The valuation by the National Wealth Statistics Survey contributed greatly to converting the book value of accounting data into vintage data. And in 2000 National Statistical Office collected actual disposal data for the 1-digit asset class and obtained the ASL(average service life) by Iowa curve. Then, with the data on fixed capital formation centered on the National B/S Team of the Bank of Korea, the national wealth statistics were prepared by the Permanent Inventory Method(PIM). The asset classification was also classified into 59 types, including 2 types of residential buildings, 4 types of non-residential buildings, 14 types of structures, 9 types of transportation equipment, 28 types of machinery, and 2 types of intangible fixed assets. Tables of useful lives of tangible fixed assets published by the Korea Appraisal Board in 1999 and 2013 were made by the Iowa curve method. In Korea, the Iowa curve method has been adopted as a method of ASL estimation. There are three types of the Iowa curve method. The retirement rate method of the three types is the best because it is based on the collection and compilation of the data of all properties in service during a period of recent years, both properties retired and that are still in service. We hope the retirement rate method instead of the individual unit method is used in the estimation of ASL. Recently Korean government's accounting system has been developed. When revenue expenditure and capital expenditure were mixed in the past single-entry bookkeeping we would like to suggest that BOK and National Statistical Office have accumulated knowledge of a rational difference between revenue expenditure and capital expenditure. In particular, it is important when it is estimated capital stock by PIM. Korea also needs an empirical study on economic depreciation like Hulten & Wykoff Catalog A of the US BEA.

• The Journal of Society for e-Business Studies
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• v.17 no.3
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• pp.73-84
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• 2012

With transition to Knowledge society and introduction of information industry, there are many companies which have higher stock price than the suggested value from its financial information. To explain similar cases in capital markets, many researchers focus on non-financial information such as Web Traffic data or intangible assets such as intellectual property rights rather than traditional financial analysis. Besides, the relationships between financial and non-financial information with firm value are changed according to industry lifecycle. As Industry grows, financial information of company is more important for firm valuation in Capital market. We'd like to review the changes of relationships between financial information and firm valuation in Capital market especially for "Software", "Digital Contents", and "Internet" companies listed in Kosdaq market during 2000~2011. The result of data analysis shows the financial information gets more important after 2007. Inversely, it provides analytical bases that related industry gets mature. Also we show that intangible properties are more relevant to stock price of those technical based companies than others.

• Journal of the Korean Institute of Landscape Architecture
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• v.21 no.2
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• pp.34-49
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• 1993

This research aimed to analize the cognitive intensity of valuation(C.I.V) on urban environment as a first stage of the works on evaluative urban image under the hypothesis that it could be interpreted with a correlation analysis between the C.I.V and attitude(Satisfaction of unsatisfaction Intensity) toward urban environment. As a method of a study, 118 cognitive elements were selected representing an urban environment, and each of elements was suggested to citizens of Kyungju with 7 point Likert Scale. The analysis of C.I.V was operated under the three criteria: The first, three of urban space scale(urban scale, neighborhood scale, and housing scale), the second, four elements of urban living environment(safety, amenity, healthfulness, and effectiveness), and the last, thirteen urban unit environment(housing, traffic, education, tourism, medical/health, culture, etc.). The results were as follows: C.I.V to each of 118 elements was cleary defined, showing the possibilities of being applied to a method for subjective, or cognitive evaluation on urban environment: It was revealed that citizens'C.I.V was rather higher in non-physical, qualitative elements than in physical and quantitative ones. This shows well the limitation of the objective method of evaluation of urban environment: The results of the others' studies on the image of Kyungju based on the cognitive approach, being focused on the analysis of the visual aspects of urban structure, cultural assets, historic site and tourism, were almost same as this study but it was quite different for this research to reveal well the citizens' cognition on their living environment of traffic, education, medical, etc..

• Journal of the Korea Institute of Building Construction
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• v.20 no.6
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• pp.555-566
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• 2020

Recently, the aging of public facilities in Korea have accelerated, and the existing framework for facility management is shifting toward to facility asset management in terms of performance-based proactive control. Therefore, the operation of public facility involves both safety assurance from the deteriorated facilities and management capabilities for sustainable maintenance in the required valuation and level of service, such as valuation of facility assets, life-cycle management plans, financing, and so on. In this study, the Facility Asset Management Indicator(FAMI) has been developed for public facility asset management, and it provides the quantitative management grade, based on international standards, such as ISO 55000 series and International Infrastructure Management Manual(IIMM). The FMMI includes 10 key areas to apply a diagnosis model into management capabilities, 113 detailed elements, and 5 maturity grades. As the importance of public facility asset management is increasing constantly, this is expected to identify previously the strengths and weaknesses of public facility operating institutions. Eventually, they can obtain the effective ways to improve their own capabilities, minimize the public funds, establish the strategies for innovating the current management structures, and operate stably the facilities in the required performance.

• Journal of the Korea institute for structural maintenance and inspection
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• v.28 no.5
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• pp.30-37
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• 2024

The valuation of infrastructure assets is typically conducted using the straight-line method, which employs the depreciated replacement cost as a basis. However, this approach has the limitation of failing to accurately reflect the actual value of the facility. In light of these considerations, the performance-based depreciation (PBD) method has been proposed as a means of evaluating the asset value of bridges on the basis of their performance, although it is not designed to take account of the environmental characteristics of individual bridges. This study proposes a hazard-performance based depreciation (HPBD) method that considers the risk level of individual bridges in the PBD method proposed in previous studies. The applicability of the proposed method was evaluated on more than 8,000 bridges. The risk factors for deterioration of bridges were selected, the hazard level of individual bridges was evaluated, and weights based on the hazard level were applied to the PBD method. The evaluation resulted in a present value comparable to that of the PBD method and a relatively high future value. It is postulated that the HPBD method, which considers the risk characteristics of individual bridges, can be used for a more reasonable evaluation and decision-making process.

• Clean Technology
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• v.8 no.4
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• pp.193-198
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• 2002

In a knowledge-based information society, the technology in itself is one of the most valuable information and in common use as assets. Assessment of a technology depends on many factors such as the grade of technology, marketability, and the time of evaluation, which makes it much more difficult to perform than the other tangible properties. Ultimately, it should be extremely important to consider environmental aspect for technology assessment in order to cope voluntarily with the change of uncertain future toward highly reliable evaluation.

• Journal of Korea Society of Digital Industry and Information Management
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• v.8 no.2
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• pp.199-211
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• 2012

There have been studies to evaluate valuation of firms by using patents in various ways. Also, the theory that value of patents helps enterprise's growth is valid in economics. However, when evaluating the value of the company, through the patent evaluation has not been used. Because of previous studies researched relation between patents and firms only at certain points. To solve this problem, this study intends to analyze lag between patent and profitability of the firms. In this study, we classified top 100 software firms in the United States through PBR, PER and value of intangible assets by using cluster analysis. And we applied Almon's distributed lag model to each cluster to find out lag between patent and profitability of the firms. As a result, in the cluster of more valuable companies, patents have an effect on profitability of the firms at regular lags. This study indicates that the patents are an important indicator to assess companies.

• Journal of the military operations research society of Korea
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• v.33 no.2
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• pp.129-150
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• 2007

Most of weapon purchasing countries in the world are using offset trade as an important negotiation means of foreign trade. In particular, Japan and Israel have obtained good results in the new projects and finding a new market for the long run through the offset trade. On the other hand, the USA holds much weight in the aspect of Republic of Korea's record of offset trade performance. However, compared with the record, her achievement known concretely has been evaluated insufficiently. Therefore, we suggest the improvement plans of the offset trade drive systems in this study. So that we analyze foreign countries' priority by offset trade type against the USA, the American offset trade object and priority and the case study of offset trade's post valuation plan. Moreover, we extract management problems of assets and technical materials obtained through the offset trade.