• Journal of Technology Innovation
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• v.5 no.2
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• pp.155-177
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• 1997

Since 1995 the Korean Ministry of Science and Technology has introduced and implemented a project based system (PBS) for awarding R&D funds. While capital investments for national laboratories such as buildings and research facilities are supported by the government, normal operating expenses including personnel expenses should be earned by national laboratories through open competition under PBS. The project budget includes both direct research costs and indirect costs. The purpose of this paper is to examine the components of indirect costs and to examine determinants of indirect costs of national laboratories in Korea. The indirect costs of nineteen national laboratories are examined. The direct personnel costs and indirect personnel costs out of total personnel costs are 72% and 28%, respectively. The average indirect cost rate is 74.1% of direct personnel costs. Major components of indirect costs are general operating costs, indirect personnel costs, taxes and dues, and expenses related to the usage of equipment. The significant determinants of indirect cost are indirect personnel ratio. the ratio of unique projects, the type of national laboratories (pure research laboratories or other), and asset activity ratio measured as research divided by total assets. The high indirect personnel ratio, the high ratio of unique projects, the laboratories classified as other, the low asset activity ratio are related to high indirect cost rates.

• Journal of Technology Innovation
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• v.7 no.1
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• pp.151-175
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• 1999

This study develops principles for determining and managing costs applicable to grants and cooperative agreements for basic research. We investigated financial management policies of funding agencies and foundations in the United States, United Kingdom, Canada, Germany, Japan and Korea. Also we surveyed opinions of researchers and research fund administrators in Korean universities. Based on our review of funding agencies and our survey, the recommended management policies for grants and cooperative agreements are as follows: (1) Cost Structure. Cost of a sponsored agreement is comprised of the allowable direct costs and allocable portion of the allowable indirect costs. Direct costs can be further divided into salaries and wages, equipment, and other direct costs. (2) Salaries and Wages. Salaries and wages applied to a grant are paid for services rendered to the project during the period of performance of the particular agreement. In order to give researchers financial incentive, researcher allowance can be paid up to 30% of his/her regular salary. (3) Equipment. Any property purchased with grants which has an acquisition cost of 5,000,000 won or more per item and a normal life expectancy of two years or more is defined as equipment. Expenditures for special purpose equipment are allowable provided the acquisition of items is necessary for the research supported by the grant. (4) Other Direct Costs. Other direct costs are comprised of travel (both domestic and foreign), materials, other costs. Other costs may not exceed 30% of total other direct costs. (5) Indirect Costs. Since there is no clear consensus on indirect costs and additional budget is necessary to support actual indirect costs, the practical policy at the moment is to give a research support expense in lieu of indirect costs. In the future, however, some form of actual indirect costs should be supported. This study develops principles for determining and managing costs applicable to grants and cooperative agreements funded by the Ministry of Science and Technology. This research can be applied to other governmental agencies to give consistency and uniformity in administration of grants and cooperative agreements.

• Journal of Preventive Medicine and Public Health
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• v.39 no.1
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• pp.21-29
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• 2006

Objectives: We wanted to estimate the annual socioeconomic costs of alcohol drinking in Korea. Methods: The costs were classified as direct costs, indirect costs and the other costs. The direct costs consisted of direct medical costs, indirect medical costs and subsidiary medical costs. Particularly, the medical costs and population attributable fraction for disease were considered to reflect the calculation of the direct medical costs. The indirect costs were computed by the extent to which the loss of productivity and loss of the workforce might have occurred due to changes in mortality and morbidity according to alcohol drinking. The other costs consisted of property loss, administration costs and costs of alcoholic beverage. Results: The annual costs, which seemed to be attributable to alcohol drinking, were estimated to be 149,352 hundred million won (2.86% of GDP). In case of the latter, the amount includes 9,091 hundred million won for direct costs (6.09%), 62,845 hundred million won for the reduction and loss of productivity (42.08%), 44,691 hundred million won for loss of the workforce (29.92%), and the other costs (21.91%). Conclusions: Our study confirms that compared with the cases of Japan (1.9% of GNP) and the other advanced countries (1.00-1.42% of GDP), alcohol drinking incurs substantial socioeconomic costs to the Korean society. Therefore, this study provides strong support for government interventions to control alcohol drinking in Korea.

• Tuberculosis and Respiratory Diseases
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• v.82 no.1
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• pp.27-34
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• 2019

Background: Understanding the burden of disease is important to establish cost-effective treatment strategies and to allocate healthcare resources appropriately. However, little reliable information is available regarding the overall economic burden imposed by chronic obstructive pulmonary disease (COPD) in Korea. Methods: This study is a multicenter observational research on the COPD burden in Korea. Total COPD costs were comprised of three categories: direct medical, direct non-medical, and indirect costs. For direct medical costs, institutional investigation was performed at 13 medical facilities mainly based on the claims data. For direct non-medical and indirect costs, site-based surveys were administered to the COPD patients during routine visits. Total costs were estimated using the COPD population defined in the recent report. Results: The estimated total costs were approximately 1,245 million US dollar (1,408 billion Korean won). Direct medical costs comprised approximately 20% of the total estimated costs. Of these, formal medical costs held more than 80%. As direct non-medical costs, nursing costs made up the largest percentage (39%) of the total estimated costs. Costs for COPD-related loss of productivity formed four fifths of indirect costs, and accounted for up to 33% of the total costs. Conclusion: This study shows for the first time the direct and indirect costs of COPD in Korea. The total costs were enormous, and the costs of nursing and lost productivity comprised approximately 70% of total costs. The results provide insight for an effective allocation of healthcare resources and to inform establishment of strategies to reduce national burden of COPD.

• Journal of Preventive Medicine and Public Health
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• v.39 no.6
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• pp.499-504
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• 2006

Objectives : The aim of the study was to estimate the annual socioeconomic cost of diseases in Korea. Methods : We estimate both the direct and indirect costs of diseases in Korea during 2003 using a prevalence-based approach. The direct cost estimates included medical expenditures, traffic costs and caregiver's cost, and the indirect costs, representing the loss of production, included lost workdays due to illness and lost earnings due to premature death, which were estimated based on the human capital theory. The cost estimates were reported at three different discount rates (0, 3 and 5%). Results : The cost of diseases in Korea during 2003 was 38.4 trillion won based on 0% discount rate. This estimate represents approximately 5.3% of GDP The direct and indirect costs were estimated to be 22.5 trillion (58.5% of total cost) and 15.9 trillion won (41.5%), respectively. It was also found that the cost for those aged $40\sim49$ accounted for the largest proportion (21.7%) in relation to age groups. The cost of diseases for males was 23.5% higher than that for females. For major diseases, the total socioeconomic costs were 16.0, 13.4, 11.3 and 11.19% for neoplasms, and diseases of the digestive, respiratory and circulatory systems, respectively. Conclusions : This study can be expected to provide valuable information for determining intervention and funding priorities, and for planning health policies.

• Journal of Preventive Medicine and Public Health
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• v.43 no.4
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• pp.341-351
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• 2010

The purpose of this study was to estimate the socioeconomic costs resulting from alcohol drinking among adolescents as of 2006 from a societal perspective. Methods: The costs were classified into direct costs, indirect costs, and other costs. The direct costs consisted of direct medical costs and direct non-medical costs. The indirect costs were computed by future income losses from premature death, productivity losses from using medical services and reduction of productivity from drinking and hangover. The other costs consisted of property damage, public administrative expenses, and traffic accident compensation. Results: The socioeconomic costs of alcohol drinking among adolescents as of 2006 were estimated to be 387.5 billion won (0.05% of GDP). In the case of the former, the amount included 48.25% for reduction of productivity from drinking and hangover, 39.38% for future income losses from premature death, and 6.71% for hangover costs. Conclusions: The results showed that the socioeconomic costs of alcohol drinking among adolescents in Korea were a serious as compared with that of the United States. Therefore, the active interventions such as a surveillance system and a prevention program to control adolescents drinking by government and preventive medicine specialist are needed.

• The Journal of Korean Obstetrics and Gynecology
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• v.23 no.1
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• pp.72-82
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• 2010

Purpose: This study was conducted to estimate the annual socioeconomic costs of menopausal syndrome treated with oriental medicine in Korea 2008. Methods: Study subjects selected were patients aged 40 years or older who had national health insurance(NHI) claims record with menopausal syndrome(KCDO codes: K04, K04.0, K04.2, K04.3, K04.4) for oriental medicine treatment in 2008. Direct medical cost of oriental medicine treatment for menopausal syndrome were measured from NHI claims records. Direct non-medical costs were estimated as transportation costs incurred when visiting hospitals. Indirect costs were defined as patients' productivity loss associated with office visits or hospitalization. Also, the costs of unpaid-household chores were calculated. Results: The total cost for the oriental medicine treatment of menopausal syndrome in the nation was estimated to be 743,091,219 Korean won(KRW) which included direct costs at 442,971,637 KRW and indirect costs at 300,119,583 KRW. Conclusion: This study provides an important perspective of socioecnomic influence due to menopausal syndrome treated with oriental medicine. And this results can be used as elementary data for menopausal syndrome-related health policy of oriental medicine.

• The Journal of Health Technology Assessment
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• v.6 no.2
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• pp.123-132
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• 2018

Objectives: Maternal morbidity and mortality are important healthcare issues. However there have been few studies on cost of illness (COI) from maternal disorders. This study aimed to estimate the COI due to maternal disorders in Korea. Methods: By reviewing previous studies and consulting expert we determined the scope of maternal disorders. We operationally defined maternal disorders as maternal hemorrhage, maternal sepsis, hypertensive disorders of pregnancy, obstructed labor, and abortion for maternal disorders. The reference period of this study is the year 2015. Main source of data were the National Health Insurance Service claims data, cause of death statistics from the Korea National Statistical Office, and the Korea Health Panel study. We classified the total costs into direct and indirect costs. The direct costs cover healthcare costs and non-healthcare costs. The indirect costs consist of productivity losses due to morbidity and premature death. Results: The cost of maternal disorders in 2015 was 229.7 billion won. The direct and indirect costs of maternal disorders were 165.2 billion won and 64.5 billion won respectively. The largest cost item for maternal disorders was healthcare cost (138.3 billion won, 60.2%). By age groups, the COI in 30-39 years old women were the highest (165.1 billion won, 71.9%). Abortion was the disorder with the highest COI among maternal disorders (71.9 billion won, 31.3%). Conclusion: The COI due to maternal disorders in Korea is quite substantial. Economic burden of maternal disorder increased when being compared with the year 2012 data despite the continued low birth rate in Korea. Therefore, it is necessary to continuously monitor the social costs of the maternal disorders in Korea.

• Journal of the Korean Society of Child Welfare
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• no.53
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• pp.25-50
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• 2016

For child abuse prevention in Korea, this study estimated the socioeconomic costs of child abuse. Based on previous studies, the present study organized component categories for estimable direct and indirect costs of child abuse, and estimated the cost of each category in 2014 through the collection of existing data and through Delphi survey techniques among experts. The total socioeconomic costs of child abuse were compared to Korea's GDP. The results of this study were as follows. First, the socioeconomic costs of child abuse in Korea in 2014 ranged from 389.9 billion KW(0.03 percent compared to GDP) to 76 trillion KW(5.1 percent compared to GDP). Second, the indirect socioeconomic costs of child abuse are much higher than the direct costs. Third, costs related to productivity loss and unemployment accounted for the largest proportion of the total costs. In addition, the proportion of the child protection budget in Korea was very low compared to developed countries. These findings suggest that there is a need to increase Korea's child protection budget and to take urgent action to detect unrevealed child abuse cases. Furthermore, in order to reduce indirect costs, it is important to provide abused children with early professional treatment.

• Environmental Analysis Health and Toxicology
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• v.30 no.sup
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• pp.6.1-6.4
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• 2015

Objectives This study is conducted to estimate the cost paid by the public suffering from disease possibly caused by chemical and to examine the effect on public health. Methods Cost-benefit analysis is an important factor in analysis and decision-making and is an important policy decision tool in many countries. Cost-of-illness (COI), a kind of scale-based analysis method, estimates the potential value lost as a result of illness as a monetary unit and calculates the cost in terms of direct, indirect and psychological costs. This study estimates direct medical costs, transportation fees for hospitalization and outpatient treatment, and nursing fees through a number of patients suffering from disease caused by chemicals in order to analyze COI, taking into account the cost of productivity loss as an indirect cost. Results The total yearly cost of the diseases studied in 2012 is calculated as 77 million Korean won (KRW) per person. The direct and indirect costs being 52 million KRW and 23 million KRW, respectively. Within the total cost of illness, mental and behavioral disability costs amounted to 16 million KRW, relevant blood immunological parameters costs were 7.4 million KRW, and disease of the nervous system costs were 6.7 million KRW. Conclusions This study reports on a survey conducted by experts regarding diseases possibly caused by chemicals and estimates the cost for the general public. The results can be used to formulate a basic report for a social-economic evaluation of the permitted use of chemicals and limits of usage.