• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.4
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• pp.77-88
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• 2023

The purpose of this study is to confirm whether the current technology appraisal model for investment, which is designed to identify high-growth SMEs in sales, which is one of the characteristics of gazelle companies, has the possibility of expanding employment effects. For SMEs classified as technology investment adequate firms(TI1-TI6) through technology appraisal for investment between 2016 and 2018 were targeted. At this time, the employment effect was analyzed by dividing the absolute employment effect and the relative employment effect. As a result of the analysis, it was confirmed that the technology appraisal items for investment defined as innovation characteristics did not have significant explanatory power for the absolute employment effect. However, for the relative employment effect, among innovation characteristics, technicality(TC) was found to have significant explanatory power, and this is because the item appraised based on future growth potential. In particular, the relative employment effect is meaningful in terms of the actual employment effect, and the conclusion is drawn that the current technology appraisal model for investment is an appraisal model with the possibility of expansion in terms of employment effect.

• IE interfaces
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• v.12 no.2
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• pp.285-293
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• 1999

This paper analyzes the facility investment appraisal process of a real world shipyard and proposes several improving points. For this purpose the investment appraisal sheets are investigated in terms of the theory of the discounted cash flow (DCF) method. Through this investigation, the differences between the theory and its application are clarified and it is tried to resolve the gab by applying the DCF method appropriately including explicit use of actual cash flows in revenue and expense expressions. It is also proposed that some portion of the capital loss caused by defending facility sales may not be the sunk cost and that the portion can conceptually be calculated by the difference between economic value and sales price.

• Journal of the Korea Safety Management & Science
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• v.13 no.2
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• pp.267-273
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• 2011

Since 'The Act on Private Investment of The Infrastructure' was established in 1994, private investment as well as government's investment in transport infrastructure has been active. However investment in transport infrastructure has more risks than others' due to uncertainty both in traffic volume and in construction cost. In the current appraisal procedure of deciding transportation infrastructure investment, instead of risk management, the sensitivity analysis considering only the changes of benefit, cost and social discount rate which are main factor affecting economic feasibility is carried out. Therefore the uncertainty of various factors affecting demand, cost and benefit are not considered in feasibility study. In this study the problems in current investment appraisal system were reviewed. Using Delphi technique the major factors which have high uncertainty in feasibility study were surveyed and then improvement plan was suggested in the respective of classic 4 step demand forecasting method. The range estimation technique was also mentioned to deal with the uncertainty of the future.

• Journal of Korean Society of Transportation
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• v.32 no.4
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• pp.336-346
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• 2014

Recently interest and concern about the effectiveness of the transportation investment policy have been increasing because lots of transportation projects reflected to the National Transportation Plan are suspended or delayed during pre-feasibility study. For instance, the criticism such as overlap and deficiency in consistency in appraisal system were aroused because of the waste of budget, time and man-power etc. This is because the Korea government adopted pre-feasibility study for the purpose of efficient use of national budget, but the methodology and the appraisal contents are similar to the existing feasibility study. Also, the feasibility appraisal study was adopted in 1999 for the purpose of establishing efficient transport networks but the feasibility study has been substituting the function which should be conducted by feasibility-appraisal study. In this study, by reviewing the current situation and the purport of introducing these policies, the understanding of these policies could be increased. Then, the plans for improving the efficiency of transportation appraisal system are suggested in the context of strengthening the connectivity between these policies. This study is expected to play an important role in increasing the rationality, consistency and efficiency of transportation investment policies.

• Journal of Information Technology Services
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• v.14 no.4
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• pp.45-60
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• 2015

Governments around the world invest in research and development (R&D) for different purposes : national economy, defence, environment, health, etc. as a means of national survival beyond the means of national competitiveness. These are usually programs with high social impact but low short-term economic impact or large scientific programs that are too expensive and risky for private sector investment alone. The Republic of Korea has also shown a very successful model of economic progress and social development through government R&D programs. However, there have been many corruption scandals behind it while selecting awardees for government R&D programs in Korea. So, the Republic of Korea focused on reforming appraisal system for government R&D and began preparation for "Clean Appraisal System" last year. In this study, first we analyzed the related appraisal tasks through the review of laws and administrative rules and typed appraisal tasks according to the flow of the actors and time. Thus securing the information infrastructure and finally we drew the conceptual model of the system according to an open appraisal tasks by introducing an element of the OECD on open government typed appraisal tasks.

• Journal of Technology Innovation
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• v.14 no.1
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• pp.177-199
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• 2006

Recently, it has become important to establish a technology appraisal system because of increasing a service of technology credit guarantee. Also, there have been many efforts to evaluate a technology in the advanced countries. The technology/credit appraisal model which can measure firms' performance was suggested by Small and Medium Business Administration. In this paper, we analyze a structural validity of the model by confirmatory factor analysis and estimate the model which can distinguish whether an investment is possible or not by discriminant analysis.

• Korean Journal of Agricultural Science
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• v.30 no.1
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• pp.89-101
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• 2003

For the pre-feasibility study and project evaluation, the discount rate or cutoff rate should be given by the government authority. To get the Benefit/Cost Ratio, NPV(Net Present Value) and IRR(Internal Rate of Return) of the public investment projects, the pertinent and realistic discount rate should be determined to be suitable to the present time period. The cut-off rates in Korea were equivalent to 15% in 1970's, 10% in 1980's and 8% in 1990's. The prevailing rate of discount as 8% is considered not to be suitable for the 2000's public project appraisal considering the present interest rates on deposit and national bonds. To determine the socio-economic feasibility of the public projects, the IRR should be bigger than the present cutoff rate. When we still use the high old rate of discount, the analytical results of project appraisal will show always economically unfeasible. Therefore the new rate of discount suitable for present time should be determined by the government. The public projects to be implemented in 2000 year onward are recommended to be adapted 5% of cutoff rate for the project appraisal and evaluation according to the results of reviewing the tendency of discount rates and market rates of interest in Korea.

• Journal of Korean Society for Quality Management
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• v.31 no.4
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• pp.1-18
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• 2003

Quality is a critical competitive factor in today's environment because of the impact of quality on costs and delivery. Many companies regard quality as a key concept of company strategy in order to achieve the competitive edge. Measuring and reporting quality cost is the first step in quality management program. The supposition of quality cost model is that investment in prevention activities will bring rewards from reduced failure costs, and that further investment in prevention activities will show profits from reduced appraisal costs. In this study, the degree of quality cost deviation is conceptualized. This means a deviation between the ideal and present ranking in the amounts of quality cost categories. This study analysed that the effect of its deviation on quality management activity and performance variables. However, there are no difference in these variables. The major reason is that most of companies are endeavoring for quality management but operating quality cost system unsystematically. The review against a prevention and appraisal activity is necessary.

• Asia-Pacific Journal of Business
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• v.4 no.2
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• pp.11-20
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• 2013

This study extends the extant scope of understanding investment decision, beyond the dominant 'technical' emphasis on the application of discounted cash flow techniques. The research methodology draws the positivist and interpretive research paradigms. It uses a deductive approach, survey strategy and principal component analysis for the analysis. Three key sets of factors emerged as important in the investment decision process in the hydropower sector. They are: group consensus (framing), influences on own judgment (heuristics), and application of knowledge & experience (intuition). The use of purposive and convenient sampling might have some unintended impact on the findings. Consequently, any generalizations of the findings to a wider population of organizations and managers need to be made with care. It is hoped that this paper will encourage other researchers to go beyond the analytic techniques of investment appraisal that have dominated investment decision research and seek to balance the emphasis by focusing on human involvement and behavioral aspects of investment decision.

• Korean Business Review
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• v.5
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• pp.1-29
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• 1992