• Journal of Korea Trade
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• v.24 no.3
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• pp.55-72
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• 2020

Purpose - In this paper, we provide recommendations for Korea's long-term direction and strategic measures to attract inward foreign direct investment (FDI) in response to Japan's export regulations. In doing so, we analyze the current situation and characteristics of trade between Korea and Japan, focusing on the parts and materials industry, which is particularly affected by Japan's trade regulations. Design/methodology - Based on the analysis of five successful inward FDI cases (e.g. Toray, IGK, Delkor, GlobalWafers, DuPont) and statistic trend review in the parts and materials industry, we consider various factors pertaining to successful inward FDI in Korea and propose valuable investment attraction strategies. Findings - For a successful investment attraction strategy, we studied some statistical trends in the internal and external environments of the parts and materials industry and successful investment attraction cases in Korea. We have found that in order to increase the probability of success in attracting investment, we need a mid-to long-term strategy considering multiple factors such as "Production-oriented, Demand-linked, Global Value Chain (VGC) linked, and Policy-linked investment attraction." Originality/value - We suggest several specific measures and important strategic implications for the Korean government and firm's managers to attract inward FDI successfully.

• STI Policy Review
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• v.2 no.3
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• pp.35-44
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• 2011

Korea has rapidly increased R&D investment over the last few decades and the intensity of R&D investment is among the highest in the world; however, there are serious concerns about R&D performance and R&D efficiency. This study is to improve the economic assessment methodology regarding a feasibility study for national R&D programs that are thought to be one of the most prominent ways to enhance R&D efficiency. In order to improve the methodology of economic assessment, a few of important factors such as technical or market uncertainty, spillover effect, and R&D contribution ratio should be covered in the model. The focus of this article is technological and market uncertainty that has a close relation with strategic flexibility and utilization potential to increase the value of R&D programs. To improve the current linear and definitive R&D process, a new framework with strategic flexibility is suggested, in which the result of economic assessment that considers technological and market uncertainty is reflected in planning. That kind of feedback process is expected to enhance the value of the program/project as well as R&D efficiency.

• East Asian Economic Review
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• v.18 no.2
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• pp.143-161
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• 2014

This paper examines the effects of global liquidity expansion on advanced and emerging economies by using panel VAR methodology. The results show that global liquidity expansion tends to boost economy by increasing GDP growth and stock prices. However, we find that the effects are asymmetric. The effects of global liquidity on GDP and stock prices are greater and more persistent in emerging economies than in liquidity recipient advanced economies. Moreover, global liquidity appreciates emerging economies' exchange rates more persistently than those of advanced economies. Lastly, while global liquidity expansion increases foreign portfolio investment inflows to Asian countries and liquidity recipient advanced economies, there is no evidence for Latin American countries.

• KDI Journal of Economic Policy
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• v.40 no.4
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• pp.47-63
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• 2018

Government R&D grants for SMEs have risen to three trillion Korean won a year, placing Korea second among OECD nations. Indeed, analysis results have revealed that government support has not only expanded corporate R&D investment and the registration of intellectual property rights but has also increased investment in tangible and human assets and marketing. However, value added, sales and operating profit have lacked improvement owing to an ineffective recipient selection system that relies solely on qualitative assessments by technology experts. Nevertheless, if a predictive model is properly applied to the system, the causal effect on value added could increase by more than two fold. Accordingly, it is important to focus on economic performance rather than technical achievements to develop such a model.

• International Commerce and Information Review
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• v.12 no.1
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• pp.403-428
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• 2010

This research is about global investment for managing the important position, what Korea is doing in World's main market. Considering there are some differences between developed countries' model and developing countries' model in doing direct overseas investment, they target to get political agreement and develop the new invest plan and strategy by understanding changes of Korean manufacturing companies in direct overseas investment between 2001 and 2008 and analyzing the change of yearly investment motivation. The result from this result let us know that company should develop their own idea for their competitive advantage by doing direct overseas investment. And, the overseas investment, which was already done in other countries, 1. Review its realities and tendency in terms of investing countries, industries, and its scale and then Set up an actual model, based on strategic combination of investing location select and determination of Korean manufacturing companies. 2. Analyze how the situational factors have influenced and what factors would be considered for direct overseas investment. From the analyzing result, even though it is fairly true that raising wage and getting resources, and developing alternating industries for export had influenced at the beginning, overseas investing companies' policy will be influenced by the results from studying marketing-pursuit type, local producing and manufacturing by using low-wage people for local sale, and situation for changing investing tendency as service industry.

• IE interfaces
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• v.23 no.4
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• pp.300-310
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• 2010

This paper is about an optimal investment portfolio strategy. Financial data of stocks, bonds, and savings from January 2. 2001 through October 30. 2009 were utilized in order to suggest the optimal portfolio strategies. Fundamental analysis and technical analysis were used in stocks-related strategy, whereas passive investment strategy and active investment strategy were used in bond-related strategy. The score is assigned to each stock index according to the suggested strategies and set trading rules are based on the scores. The simulation has been executed about each 29,400-portfolios and we figured out with the simulation result that 26.75% of 7,864 portfolios are more profitable than average stock market profit (22.6%, Annualized). The outcome of this research is summarized in two parts. First, it's the rebalancing strategy of portfolio. The result shows that value-oriented investment(long-term investment) strategy yields much higher than short-term investment strategies of stocks or active investment of bonds. Second, it's about the rebalancing cycle forming the portfolios. The result shows that the rate of return for the portfolio is the best when rebalancing cycle is 12 or 18 months.

• Korean Journal of Child Studies
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• v.31 no.1
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• pp.197-217
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• 2010

This study investigated the performance of the child care policies implemented by the former government and analyzes some changes in child care policies by the new government in Korea. The criteria for evaluating child care policies of both governments were based on suggestions gleaned from OECD policy review papers on Early Childhood Education and Care (ECEC) in 2004 and 2006. As suggested by the OECD, the input of financial investment in public sectors, universal approaches to child care, measures of quality programs, efforts for improving the work environment of child care workers and selecting effective ways of providing financial support for child care were applied in order to evaluate the child care policies in Korea. A number of policy documents and literature published by both governments from 2003-2009 were reviewed in order to evaluate and compare the former child care policies with the more recent ones. The child care policies enacted by the former Korean government were characterized as the remarkable increases in financial investment to establish a child care infrastructure for quality programs and services, and efforts to enact universal approaches to child care, policy making based on scientific data on child care. These advances were tempered by the observation that despite all these improvements, both investment and expansion in the public child care sector were far below sufficient levels. In contrast, some changes in the child care policies by the new government were criticized in terms of weakening public child care, reinforcing private child care and it's conservative financial support system.

• STI Policy Review
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• v.3 no.1
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• pp.46-62
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• 2012

This study investigates the effects of the two most important indicators of a nation's state of scientific infrastructure: R&D investment and the number of R&D researchers engaged in high-tech product export competitiveness for a panel of 11 countries/economies from East Asia from 1994 to 2010. A GMM panel estimation method was employed to account for the dynamic effect of trade and to control for un-observed country specific effects that may arise due to an inter-country differences and intra-country dynamics. Accordingly, the empirical results reveal that (once controlled for the influence of per capita income) physical capital and infrastructure, a 1% increase in a country's expenditure on the ratio of R&D to GDP may increase high-tech product export performance by approximately $397 million per year. Other factors constant, a 1% increase in the number of R&D researchers is expected to increase the ability to export high-tech products by approximately $67 million. The East Asian development experience demonstrates how latecomers can follow systematic industrialization and join the handful of economies that have come a long way toward closing the knowledge gap with the global technological leaders. However, this does not mean that the policy approaches and overall commitments pursued by each East Asian economy in relation to R&D investment and acquisition of an adequate pool of researchers, and their ultimate achievements in high-tech product export competitiveness were uniform. As a result, there is still a significant variation among countries/economies in terms of performance. This study recommended a number of potential tools and policy instruments that may assist policy makers to foster R&D as an engine to enhance the high-tech product export competitiveness.

• Journal of Technology Innovation
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• v.15 no.2
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• pp.1-24
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• 2007

In this study, we estimated a CES production function for the Korean economy. We have found in the empirical results that the elasticity of the factor substitution is less than one and that the Korean economy exhibits labor-saving technological progress. In addition, we obtained the regression coefficient of R&D investment on technological change, i.e., the elasticity of R&D investment with respect to the technological change was 0.26% point. It implies that if R&D stock increases by 1%, labor efficiency increases 0.26% point through technological progress which is Hicksian non-neutral. It confirms that innovation-based growth strategy by increasing R&D investment would be effective on the one hand. Some policy consideration on the other might be needed for an increase in employment which is offset by technological progress.

• East Asian Economic Review
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• v.23 no.2
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• pp.111-147
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• 2019

Singapore's inward and outward investments with industrialized countries in both manufacturing and service sectors were skill seeking while outward investments to developing countries were labor seeking. Applying the Knowledge-Capital model, it was found that services Foreign Direct Investment is sensitive to skill differences. A ten-percent decline in skill differences with industrialized countries resulted in a 4.25 percent rise in inbound manufacturing and 1.48 percent rise in inbound services investments. Meanwhile, a ten-percent increase in skill differences with developing countries resulted in a 30 percent rise in outbound manufacturing and 0.38 percent rise in services investments. Furthermore, when services are distinguished by skill-intensity, the impact of relative skill endowments on inbound Foreign Direct Investment in skill-intensive services is significantly different from the impact on other services. However, when services are disaggregated by "proximity" needs, we do not find any significant difference in the impact of relative skill endowments on Foreign Direct Investment.