• Journal of the Korea Institute of Information and Communication Engineering
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• v.19 no.8
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• pp.1893-1900
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• 2015

The government has the responsibility to prevent abuses of monopoly and promote competition in order to maximize consumer welfare. The government should address the asymmetry in the information as much as possible and ensure consumer choice. The subsidy seems to reduce the burden on the consumer service charges and handset prices but it actually distorts the market through price discrimination. The government caused the principal-agent problem by neglecting their appropriate role to prevent distortion of the mobile telecom market. The money used as subsidy is part of excess profit and could be transferred to down the price of mobile phone and charges and it would become a benefit to consumers. Separate announcement of subsidies by Mobile Communications Terminal Distribution Structure Improvement Act is a little developed policy but it was not actually realized. The market price close to that from perfect competition structure is plausible, ultimately.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.33 no.6
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• pp.2455-2464
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• 2013

This study is focused on the effect of reformation of public transportation system on the efficiency of bus route system as a result of change of government subsidy scheme. Two types of government subsidy scheme has been considered and before and after analysis by Data Envelopment Analysis technique has been carried out for bus routes in Ulsan Metropolitan City. The analysis output has shown that there is no clear evidence to clarify the relationship between the change of government subsidy scheme and the efficiency of bus route system. There are two types of backgrounds may be suggested for this situation such as more longer period necessary to identify the policy effect and limitation to increase the number of passenger in a provincial city. Tobit regression analysis has also been conducted to discover the most effective variables for maximum efficiency and three variables including route length, frequency per vehicle per day, and headway are found to be influential. It is also seen that strategy to minimising input factors and service upgrade plan such as shortened route length and headway, increasing frequency per vehicle are necessary to develop the efficiency of bus routes operated in Ulsan city.

• Journal of Korean Society of Rural Planning
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• v.15 no.2
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• pp.97-110
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• 2009

The objective of this research was to develop a rural settlement demand model to analyze the determinants of settlement demand of urban residents. The point aimed at from model development was deriving stated preference of potential consumers towards rural settlement through setting a hypothetical market, and using settlement subsidy as a surrogate variable for price in the demand model. The adequate demand model deducted from hypothetical market data was derived from the basis of Hanemann's utility difference theory. In the rural settlement demand model, willingness to accept was expressed by a function of settlement subsidy. Data utilized in the analysis was collected from surveys of households nationwide. According to inferred results of the demand model, settlement subsidy had a significant influence on increasing demand for rural settlement. A significant common element was found among variables affecting demand increase through demand curve shift. The majority group of those with high rural settlement demand sought agricultural activity as their main motive, due to harsh urban environments aggravated by unstable job market conditions. Subsequently, restriction of income opportunities in rural areas does not produce an entrance barrier for potential rural settlers. Moreover, this argument could be supported by the common trend of those with high rural settlement demand generally tending to have low incomes. Due to such characteristics of concerned groups of rural settlement demand, they tended to react susceptibly to the subsidy provided by the government and local autonomous entities.

• Current Industrial and Technological Trends in Aerospace
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• v.6 no.2
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• pp.11-21
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• 2008

This paper focuses on finding the way of aerospace industry promotion in Korea compatible with fair trade system under international rules by considering and analysing the WTO subsidy rules and WTO dispute settlement cases. As for subsidy rules in WTO, the paper deals with two matters such as financial contribution and benefit and further studies provisions on the prohibited subsidies and actionable subsidies. And as for the dispute settlement matters, it reviews the Brazil-Canada case and the US-EC case on civil aircraft export subsidies. While aerospace industry in Korea is not yet internationally competitive still requiring government's continuous supports, it must not be in conflict with subsidy rules under WTO mechanism. This paper makes several suggestions to meet these conditions.

• The Journal of Asian Finance, Economics and Business
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• v.4 no.2
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• pp.25-36
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• 2017

Subsidies are an instrumental policy making tool for many governments, but their importance depends on the market situation of the national economy. Efficient subsidy implementation would allow the government to correct market failure thereby aligning social and private costs and benefit. The general objective of this study is to justify the need to rationalise subsidies for food items such as flour. This study assessed the structure and conducts of the general purpose flour market in Malaysia; and analysed the impact of subsidies on market performance to recommend policies to increase market efficiency under the subsidy rationalisation program. To accomplish these objectives, the study adopted a microeconomics market analysis as well as the standard structure and performance analysis method. These two approaches showed the characteristics of an industry's consumer behaviour, competition, as well as the efficiency associated with government regulatory policies on the flour industry. One of the biggest influences on the domestic market is related to the food consumption behaviour of the general population. Food consumption behaviour reflects global trends. As income rises, food trends tend to be consumed in processed form or in such a way that adds value in another manner such as the preparation of food products.

• Journal of the Economic Geographical Society of Korea
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• v.15 no.3
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• pp.404-423
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• 2012

This study is aimed at exploring the impact of the characteristics of the firms on firm's networking. We develop a framework theorizing firm's networking according to sales, size, research facility, the percentage of R&D staff to total employees, the percentage of R&D investment to total sales, the number of the certification, the intention of attending seminars, the experience of participating in the government subsidy program. The results of the analysis show that research capacity, openness to a variety of information source, the experience of participating in the government subsidy program are significant in determining the firm's networking. The government needs to encourage the firms to improve their research capacity, and to train the coordinators to help the firms get higher openness to a variety of information source, use the government subsidy program.

• The Journal of Fisheries Business Administration
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• v.33 no.1
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• pp.43-68
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• 2002

In the fisheries industry, the cost of oil Is the greatest factor, contributing 25% 40% of the cost of production. In order to support fisheries, the government has supplied large amounts of money for oil to the fisheries industry. However, the elimination and restriction against the subsidy of fisheries has been actively discussed throughout international organizations Including the WTO. The purpose of this thesis is to study the existing issue of subsidies on the fisheries Industry, which is currently disputed in international organizations, and predict a future policy about the oil supply that considers the most important factors on fisheries. In chapter 2, the paper begins by outlining the tendencies of discussion in relation to the subsidy on fisheries among international organizations, and categorizes them on the basis of their types. Chapter 3 defines the current conditions and characteristics of the Korean subsidy on fisheries and analyzes which portions of the subsidy on fisheries should be eliminated first when it is prohibited. In chapter 4, procedures and problems for producing tax-free oil are discussed, because tax-free oil has a higher possibility of being ruled out. Chapter 5 proposes a reasonable plan concerning oil supply policies for maintenance or enrichment of the fishing industries, post the elimination of subsidies. Conclusions were drawn in eight areas as a result of this study: 1) securing the large storage of oil, 2) extending customers of oil to include non-fishermen, 3) coordinating the segmentation of marketing area, 4) diversification of the sales goods, 5) producing oil sales experts, 6) developing original brands, 7) expanding the purchasing area to buy oil in the international market, and 8) operating funds to stabilize oil price. It would not be appropriate to wait until international organizations decide to ban the subsidy of fisheries. Corresponding plans ( such as securing the large storage of oil) tend to be large scale and long-term projects because they take a number of years, from designing the oil storage tank to selecting the proper region and initiating the construction. Therefore, it is strongly suggested that any extensive and time consuming projects including preparation for the tax-free oil should be completed in new actions before the ban by the international organizations.

• International Journal of Quality Innovation
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• v.9 no.2
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• pp.1-9
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• 2008

This paper proposes a scheme to estimate the technical efficiency at child care centers for the less-than-three-year-old infants by Data Envelopment Analysis (DEA) and to manage the quality of care service through implementing flexible and efficient government subsidy system. The result of technical efficiency estimation shows that there exists the heterogeneity in technical efficiency a substantial opportunity for improvement in technical efficiency across child care centers. This result implies that government may bring up the competition by giving subsidy differentially based on efficiency and use the money which has been used inefficiently other purposes. Both can improve the quality of child care service.

• Korean Journal of Organic Agriculture
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• v.19 no.spc
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• pp.92-95
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• 2011

The initial investment of rice cultivation by mechanical technique was high. This was only due to the cost of planting machine. We analysed the overall cost (without machine cost) and benefits of the two methods, it manifested that the mechanical method is very much beneficial over traditional rice cultivation technique. We observed that the requirement of soil, irrigation water, number of seeds etc. decreased in mechanical cultivation technique while net income increase by 13.07% with 80% government subsidy. Furthermore, the initial rooting was quicker, growth and development of pot raised seedlings was better than the traditional technique. Hence, this technique can give better return to the farmers with the help of government subsidy.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.10 no.1
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• pp.200-208
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• 2009

Trend of R&D expenditure in Korea during the last 10 years, the R&D expenditure has been constantly increasing at an average rate of 10%. The government R&D ekpenditures or subsidies are increasing rapidly But the studies of evaluating impact of government R&D subsidies are few. This study attempts to empirically investigate the effects of government R&D subsidies on private firm's R&D investment in Korean industry by using Propensity score matching method which sign as to whether the relationship between government subsidies and private R&D investments is on stimulating or displacing private R&D expenditures. Empirically, a firm with government R&D subsidy are 733 million dollar more expenditure then don't receive any government R&D funding. Also Government R&D subsidies greatly increase (statistically significant) company financed R&D expenditures only for large firms but had no effect on the R&D expenditures of small & medium sized firms and venture firms.