• International Commerce and Information Review
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• v.7 no.4
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• pp.367-386
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• 2005

The purpose of this is to analyze environment of foreign direct investment and Act in Korea and to find invitation and extension of foreign direct investment into Korea. Investment incentives, simplification of investment procedures, image improvement, increased public relations and investment support services are all factors which can be enhanced in the short term to positively influence investors decision-making in where to invest. Since the enactment of the Foreign Investment Promotion Act in November of 1998, there has been a signification improvement in Korea's investment environment in terms of policies and systems. It is expected that the foreign direct investment environment in Korea will continue to improve through the improvement in political stability, labor-management relations and easing of political tensions between the North and South, in the long term, as well as through improvements in investment incentives, investment procedures and public relations activities, in the short term.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2003.10a
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• pp.824-828
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• 2003

On February 20, 2003, the FCC, the regulator in US, adopted its UNE triennial Review decision, the most sweeping ruling affecting the telecommunications industry since 1996. The FCC adopted a policy of preserving access to the legacy network, while deregulating new, "next generation" networks utilizing fiber facilities. Baby bell like Verizon, SBC strongly insisted that the FCC should relax the unbundling rules to be enlarged the network investment of telecommunication providers. However, this FCC′s determination looks like the partial acceptance of their assertions. This paper mainly will review the existing studies about the impact of UNEs on investment incentives and then find out some implications to be applied in Korea.

• International Commerce and Information Review
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• v.17 no.1
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• pp.115-134
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• 2015

Stable economic growth and job creation through the attracting companies is a major challenge for local governments. Companies are asked to select a place to invest and finally considering the conditions. Local governments will take advantage of a variety of incentives to attract companies the means to overcome the unfavorable position relative to conditions. Investment incentives should be applied differently depending on the investment objective, investment, corporate investment period. However, Local governments has developed a similar promotion activities through support under the same legal system. This does not result in a substantial investment activities. In this study, we derive the Introduction of differentiated support system for Gangwon Province. In particular, logistics and waste water treatment cost support, upward adjustment of training subsidies were looking for concrete improvements in the investment support system.

• International Journal of Control, Automation, and Systems
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• v.6 no.5
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• pp.627-638
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• 2008

With the shift of the electric power industry from a regulated monopoly structure to a competitive market environment, the focus of the transmission expansion planning has been moving from reliability-driven transmission expansion to market-based transmission expansion. In market-based transmission expansion, however, a growing demand for electricity, an increasing number of transmission bottlenecks, and the falling levels of transmission investment have created the need for an incentive to motivate investors. The expectation of profit serves as a motivational factor for market participants to invest in transmission expansion in a competitive market. To promote investment in transmission expansion, there is an increasing need for a systematic method to examine transmission expansion for investment incentives from multiple perspectives. In this paper, the transmission expansion problem in a competitive market environment is formulated from ISO and investors' perspectives. The proposed method uses parametric analysis to analyze benefits for investors to identify the most profitable location and amount for transmission addition. Numerical results are presented to demonstrate the effectiveness of the proposed method.

• East Asian Economic Review
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• v.16 no.2
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• pp.139-154
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• 2012

This paper provides a theoretical setup for an analysis of strategic relationships inherent to activities of an innovative multinational enterprise (MNE) and a local company in a host country. Additionally, we explore the incentives of the host country's government to provide subsidies to attract foreign direct investment (FDI) and to protect outcomes of R&D activities conducted by the MNE. We show that the MNE's commercial interests may collide with local companies' over protection of IPRs. Therefore, the extent of knowledge spillovers from the MNE to the local company and the magnitude of incentives to the MNE perform a crucial function in determining the optimal policy mix of IPR protection and FDI subsidies of the host country's government.

• Agribusiness and Information Management
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• v.2 no.1
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• pp.77-85
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• 2010

Agricultural corporations have been introduced to increase the productivity of farming via entrepreneurial farm management. There are two main subgroups of agricultural corporations. One is composed of farming association corporations and the other consists of agricultural corporation companies. Major tax incentives for agricultural corporations are as follows: 1. Exemption of corporate income tax. 2. Exemption of capital gains tax for farmland investment. 3. Reduction and exemption of dividend income tax for investors.

• Journal of the Economic Geographical Society of Korea
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• v.17 no.2
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• pp.231-248
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• 2014

The role of the foreign direct investment is very crucial for the regional economic growth nowadays. The inward FDI in Korea has been increased since the Act of foreigner investment promotion in 1998. The municipal and national government have designated the special industrial zones and supported the diverse incentives for the foreign investment companies. The service sector had a large share of inward FDI. However, manufacturing sector overtook the service sector as the largest FDI in 2009. This study focuses on the greenfield manufacturing FDI, which was established from 1999 to 2012 in Korea. In order to find out the impacts of low-priced industrial electricity and loose environmental regulations on choosing Korea, this paper did in-depth interviews with MOTIE, Korea industrial complex, Korea Trade-Investment Promotion Agency, some FDI companies. Investment incentives such as low price of domestic industrial electricity strongly affect why manufacturing FDI companies choose Korea to invest. The Korean government has also acknowledges that low-price policy can internationally compete to attract FDI. There is a possibility that FDI energy-guzzling industrial companies may choose for Korea to use the low-priced electricity, raising the issue of supply-demand of electricity of Korea in the future.

• Journal of Korea Technology Innovation Society
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• v.10 no.1
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• pp.1-21
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• 2007

Among numerous policy influencers' and researchers' advices and policy suggestions, there is little opposition to the proposition that technology is essential to the economic development. The role of technology has never been more emphasized than today in Korea as in any other countries. The effects of the government's innovation policy on corporate R&D activities and more broadly the economic welfare of a whole nation are widely recognized with intuitional and empirical evidence. That is, various R&D incentives reduce the marginal cost of a firm's R&D efforts, inducing as much increase of its R&D investment to result in a better chance to acquire target technology. This paper examines the impact of R&D incentives on the technological outcomes by analyzing individual firms' investment behaviors subject to the government's R&D incentive policies. An econometric model of technological outcomes is estimated on a project level with cross-sectional data. "Probit model" is employed for estimations. Special attention was given to the effectiveness of R&D programs by estimating policy impact by types of investment. The data were collected from 928 different R&D projects completed between 1987 and 1993. With the single equation approach, we were able to find that the structure of investment is a far more significant factor in technological outcomes than the total amount of investment. The analysis also shows that the two types of firms' matching investment, in-kind and cash, do not bear a complementary, but a substitutive relations to each other. It also reconfirms the proposition that R&D incentives increase firm's financial investment. Despite many supportive studies emphasizing the cooperation between innovation performers, it is also found that the larger the number of institutions involved in a project, the less likely it leads to a technological success, And meeting the proposed deadlines without postponing is estimated to be a good barometer to predict the outcome of an R&D project. Also the probabilities of success for major variables are represented for policy implications, after calculating marginal effects.

• International Journal of Quality Innovation
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• v.9 no.2
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• pp.129-147
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• 2008

This research is to investigate the effect of the improvement of investment environments with investment incentive on Korean national economy by looking into the foreign investment support system in Korea. To this end, first research model was set up based on our literary study and case study was conducted on 150 foreign companies that were located in industrial complex for foreign companies, received the tax benefit and government subsidization. And it was found that even though the foreign companies were contributing to the national economy in general such as in the area of production, export, employment, development of technology, there was no significant contributory difference between the investment incentive beneficiary and non-beneficiary foreign companies. Therefore it deemed reasonable to reconsider the way Korean government supports foreign companies in Korea and to reinforce foreign companies' relevance to national policy agenda with additional incentives to foreign companies located in comparatively less developed areas. As a way to promote foreign investment, promotion of investment infra such as improvement of follow-up services, openness to foreign investment, industrial deregulations in capital area, revitalization of free economic zone, efficient system to promote foreign investment and the reinforcement of public relations were considered necessary, especially the upgrading of economic structure and the integrated management of domestic and foreign investors deemed necessary for the optimal distribution of the industries.

• Asia-Pacific Journal of Business
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• v.11 no.1
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• pp.45-60
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• 2020

Recently, ESG bond issuance has been gradually spreading to banks and non-financial private companies in Korea. However, the Korean ESG bond market is still in its infancy in terms of size, diversity and investor base compared to the global ESG bond market. In other words, ESG bonds are rapidly forming in the global market, but are still in the formation stage in the domestic market, and various policy and practical measures such as system, incentives, and infrastructure are needed to activate them. In this paper, we examine the domestic and international status of ESG bonds in relation to responsible investment. In addition, this paper explores specific measures to revitalize the domestic ESG bond market in four aspects: establishing ESG bond standards, procedures and regulations, increasing ESG bond investment demand, increasing ESG bond issuance, building market infrastructure and market efforts. This study is expected to contribute to the development of the domestic ESG bond market and responsible investment.