• Journal of the Korean Regional Science Association
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• v.13 no.2
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• pp.25-43
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• 1997

This paper empirically estimates gains from capital inflow to a regional ecomomy. It will be a usefulc for indicator for a local government to build a policy for attracting capital. We estimate the respective Cobb-Douglas production function for 11 provinces of Korea, derive its marginal productivity of capital, and then calculate the amount of capital moved between two provinces and gains from the capital movement. With no barriers to capital movement, there would be a strong motive for capital inflow to Seoul, Pusan, and Kyungki, whereas capital outflow would be expected in Chonnam, Chungbuk, Chungnam, and Kyungbuk. The ratio of gains from capital movement to the regional domestic from capital movement to the regional domestic product(RDP) is high in Cheju, Kangwon, Chungbuk, and so on. It turns out that capital flows from an area with lower productivity of capital to one with hihger productivity. This implies that if the local government of an underdeveloped region wants to lure capital investment from outside, it needs to provide it with strong incentives of eax reduction and special loans.

• Asia-Pacific Journal of Business
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• v.11 no.2
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• pp.133-143
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• 2020

Purpose - This study seeks to summarize the tax changes in stock trading and analyze K-OTC stock trading data in 2017 and 2018 to infer the effects of the application of capital gains taxes by individual investors. Design/methodology/approach - This study analyzes the case of the expansion of the 2018 capital gains tax exemption in the K-OTC market, which exempts capital gains tax on the proceeds from the sale of individual investors of certain stocks under the temporary special law. Findings - In the K-OTC market, the amount of transactions has expanded since the capital gains tax exemption in 2018, but the volume of transactions and transaction turnover have decreased. In particular, the result of lower transaction turnover after the expansion is contrary to expectations. To control the macroscopic effects of the stock market, further analyses the transactions of capital gains tax-exempt stocks and non-exempt stocks. The turnover rate of exemption stocks is higher than that of the non-exempt stocks. In the case of transaction turnover, the two results are not consistent. However, the latter result is more meaningful because the comparison of exempt and non-exempt reduces distortion by macro effects. Research implications or Originality - To mitigate the impact of capital gains taxes on stock market, government authorities need to consider the gradual expansion of the scope of taxation, the application of separate taxation in the introduction of capital gains, the reduction tax rate on transfer income of listed shares, and the reduction tax rate on long-term holdings.

• Korean Business Review
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• v.17
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• pp.111-136
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• 2004

The aim of this study is to review the improvement method of Korea capital gains tax according to the alienation of the real estate, and to suggest an improvement plan. The study has been carried out by reviewing the related literatures. Capital gains tax could be calculated either using the actual price of sale or the standard prices. Korea capital gains tax has been revised many times since 1975 when it was first enacted. Initially the actual price of sale was the default rule and the standard prices was allowed only exceptionally if the actual price of sale could not be detected. The actual price of sale rather than the standard prices should be used for determining the capital gains tax on the transfer. By doing so, the desired principles of taxation such as "principle of taxation on tax paying ability". In conclusion, the present capital gains tax of Korea should be improved in many aspects in order to promote income redistribution function and efficient allocation of resources.

• Journal of the Korean Regional Science Association
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• v.14 no.2
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• pp.51-64
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• 1998

This paper investigates how the factor inputs of firms are affected by the expectation about land-price increase in the future. We develope a two-factor (land and labor) model, in which expectation about land-price increase plays a key role in determining the "optimal" input level of labor and land. Expecting capital gains from input of the land when land price increases, firms input land up to the point where the marginal productivity of land falls short of the marginal cost of purchasing the land, in order to maximize the "joint-profit". That is, firms have an incentive to use more land than they do when capital gains are not expected. We mean joint-profit by profit in the standard sense plus capital gains. Once the land is input "excessively", the productivity of labor increase and labor is also input more, since land and labor are assumed as complementary in production. This mechanism works in the opposite direction when land price decrease. This paper suggests that land price fluctuation is a major destabilizer of an economy.or destabilizer of an economy.

• KDI Journal of Economic Policy
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• v.14 no.3
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• pp.49-72
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• 1992

This paper examines the increasingly popular belief that higher holding tax will be the ultimate solution for Korea's land problems which include excessive concentration of ownership, high and rapidly increasing land prices, and rampant speculation. In principle, land holding tax can supplement capital gains tax in recapturing capital gains from land or suppress returns from land investment returns in line with other forms of asset. This paper shows, however, that the tax burden must be drastically increased for the tax to achieve such goals, and the resistance from tax payers is sure to be intense. As long as the price expectation remains high, as in Korea where land prices have increased 19% annually during the past 18 years, even such increase in the tax may have little impact on landlords' behaviors, the price trend, or the ownership structure. More effective solutions for Korea's land problems are relaxing land use regulations to encourage the supply for urban land and improving the performance of capital gains tax to recapture windfall gains from land. This paper also notes that the so-called "lock-in effect" of the capital gains tax seems to be exaggerated. Land holding tax should be viewed as a revenue raiser for local governments rather than an anti-speculative policy tool. Abandoning unattainable policy goals and adhering to the general principles of taxation, will make land holding tax much simpler, and will better function as a local revenue source.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.502-506
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• 2013

The cash flow forecasting is normally done by contractors in construction industry at early stages of the project for contractual decisions. The decision making in such situations involve uncertainty about future cash flows and assessment of working capital requirements gains more importance in projects constrained by cash. The traditional approach to assess the working capital requirements is deterministic in and neglects the uncertainty. This paper presents an alternate approach to assessment of working capital requirements for contractor based on fuzzy set theory by considering the uncertainty and ambiguity involved at payment periods. Statistical methods are used to deal with the uncertainty for working capital curves. Membership functions of the fuzzy sets are developed based on these statistical measures. Advantage of fuzzy peak working capital requirements is demonstrated using peak working capital requirements curves. Fuzzy peak working capital requirements curves are compared with deterministic curves and the results are analyzed. Fuzzy weighted average methodology is proposed for the assessment of peak working capital requirements.

• Journal of Venture Innovation
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• v.1 no.1
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• pp.83-98
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• 2018

This paper makes a theoretical approach to the differences between transaction tax and capital gains tax when the financial instruments are traded and imposed taxes in K-OTC market, a newly emerging off-board market. Since it is difficult to reduce risk to the level which investors would like to pursue - depending on the taxation methods of portfolio-composed financial instruments - when it comes to forming a synthetic bond to hedge risk, this paper also seeks for effective taxation methods to make this applicable. First of all, to thoroughly review the taxation balance of synthetic bonds, this paper analyzed the effects of the transaction tax and capital gains tax imposed upon synthetic bonds according to the changes in final stock price and strike price in K-OTC market, and analyzed after-tax profit differences among them depending on whether income tax deduction took place or not. As a result of the research upon the tax gap in transaction tax and capital gains tax according to the changes of final stock prices, it was shown that imposing transaction tax is more likely to be effective for some level of risk hedging with replicating portfolio considering taxation policies and financial markets, since the effect of the transaction tax has a much lower tax gap than that of capital gains tax. In addition, in relation to whether income tax deduction was permitted or not, it was proved that the effect of the transaction tax and the capital gains tax vary depending on the variation in the strike price. Above all, it was shown that if the strike price is lower than the stock price, the transaction tax will be less affected by the existence of income tax deduction than the capital gains tax, while both will be equally affected by the existence of income tax deduction if the strike price is higher than the stock price. Further study would be to demonstrate the validation of this in the K-OTC market with actual financial instruments and, also, to seek for a more systematic hedging method by using a ratio analysis approach to the calculation of the option transaction tax

• Korean Architects
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• s.632
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• pp.228-229
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• 2021

• Korean Architects
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• s.622
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• pp.120-121
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• 2021

• Journal of the Korean Regional Science Association
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• v.10 no.1
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• pp.53-70
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• 1994

The relationships between the Capital gains of housings by tenure, type and size have been analyzed. Major findings are (i) capital gain rate of 'chonsei' housing is larger than that of the owner occupied housing (ii) the small 'chosei' apartment has the highest capital gain rate and the lowest instability index (iii) the smaller the size of housings, the higher the capital gain rate and the smaller the instability index. Even though there is the 'structural change' in the capital gain rates of owner occupied and 'chonsei' housings, they are cointegrated. The capital gain of owner occupied housing is mainly affected by the real estate policies. But, The capital gain of 'chonsei' housing is mainly affected by the business cycle and the aggregate demand management policies.