• The Journal of Fisheries Business Administration
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• v.51 no.1
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• pp.53-66
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• 2020

The Ministry of Maritime Affairs and Fisheries is supporting the "Environmentally Friendly Fisheries Promotion and Private Assistance Project" to increase production of eco-friendly, high-value-added foods. Private-backed operators selected for the project will have an economic opportunity to build, expand or refurbish eco-friendly fishing grounds. To facilitate this, the scope of project support was expanded after 2015 and an opportunity was prepared for private subsidy projects to grow to a new level in terms of quality and quantity by switching to a public offering project. However, starting in 2017, demand from the private sector will plunge and selected projects will be delayed or the project implementation rate will be lowered. It was a time for subsidy-related laws and systems to be reinforced but private subsidy projects do not temporarily shrink simply due to the increased administrative burden on private subsidy operators on subsidy management. It plans to review the correlation between laws and systems related to the construction of fish farms and suggest ways to enhance the efficiency of implementation so that economic advantages, the biggest advantage of the private subsidy project, can be recovered within the current legal system.

• The Journal of Fisheries Business Administration
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• v.50 no.4
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• pp.45-57
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• 2019

Effective implementation of private subsidy projects requires comprehensive expertise in the aquaculture and construction sectors to be provided to private subsidy operators, local government officials and others involved in budget execution and settlement. Due to the strengthening of laws and systems related to the execution of state subsidies since 2015, the efficient implementation of private-sector grant projects has been difficult for delays in projects, cancellations, and conflicts with local governments from lack of prior awareness and understanding of related regulations. It is expected that the government will be able to activate the project by analyzing the current status and problems of each phase of project implementation for improving quality internalization of the project effects, as well as quantitative growth of the private sector subsidy project for environmentally friendly aquaculture development projects.

• Journal of Korea Technology Innovation Society
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• v.10 no.4
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• pp.706-726
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• 2007

This study attempts to empirically investigate the effects of government R&D subsidies on private firm's R&D investment in Korean industry. The R&D subsidy effect is defined as the average percentage change in firm's R&D expenditures between what was actually observed among firms that received a subsidy and what these firms would have spent had the subsidy not been received. To measure the effect we use Difference-in-Differences (DID) model which sign as to whether the relationship between government subsidies and private R&D investments is on stimulating or displacing private R&D expenditures. The differences between this study and previous studies are that we tries to measure the effect of Government R&D across various sited firm groups such as large, small & medium, and venture firms and we add one lag of the subsidy indicator in order to capture the effect of the subsidies on private R&D during 2 consecutive period. Empirically, a firm with government R&D subsidy increases its own R&D investment by 13.9%. Also on average, 1% of government R&D subsidy leads to 0.031% of private R&D increase. The main results of this study are as follows : First, Government R&D subsidies stimulate private firm's R&D expenditures. Second, 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.

• KDI Journal of Economic Policy
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• v.29 no.3
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• pp.29-73
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• 2007

This paper evaluates the effects of the Basic Subsidy Program provided to families with infants cared for in private day care centers. There has been a discrepancy in the price and quality level between public and private day care centers. Public day care centers which receive government support in their labor costs are able to maintain relatively higher quality at lower price than their private counterparts, while the majority of children are cared for at private day care centers. To reduce the gap of the price and quality of care between public and private day care centers by improving the quality and decreasing the price of private day care centers, the Basic Subsidy Program was introduced in 2006 to the private day care centers. The subsidies mainly aim to improve the quality and the accessibility of child care, and encourage mothers' labor supply. For this purpose, the provision of the Basic Subsidy Program imposed prerequisites to the care providers including minimum wage and four major insurances for teachers, and child-staff ratio. I examine whether the subsidies improve the quality of care, help mothers balancing work and family, and increase satisfaction with child care from mothers' perspective. Since the outcome variables that measure the quality of care are difficult to obtain, I instead use the input variables for quality production. Child-staff ratio, teachers' welfare, and care environment are considered. The relationship between these variables and the introduction of subsidies is examined. The 2004 National Survey of Child Care and Education and the 2004 National Survey of Day Care Centers are used for the base data set. To reflect the outcomes after the Basic Subsidy Program, equivalent data sets for households and care providers are constructed by the KDI Data Analysis Unit. Using these nationally representative data sets, information regarding child care is collected. The findings show that the subsidies contribute to the quality of care improving the input variables of quality production. The welfare of teachers is improved, and the child-staff ratio significantly decreases. As a result, the usage of private day care centers greatly increases even though the price level rarely changes. However, mothers' satisfaction with child care are rarely affected by the subsidies. Although the subsidies with no eligibility criteria enlarge the recipients, the actual effects to increase maternal labor supply or to improve satisfaction is limited. Given this findings, I suggest some modifications of subsidies to raise the effectiveness of the subsidy program.

• Korean Journal of Child Studies
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• v.37 no.2
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• pp.27-42
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• 2016

Objective: The purpose of this study was to examine the changes of childcare expenses and private education expenses caused by target expanding the childcare subsidy policy and its relationship to household income. Methods: The study analyzed data of the Korean Welfare Panel Study from 2009, before the universal childcare policy was enforced, to 2013, when the universal childcare policy was enforced. Results and Conclusion: The results of analysis were as follows. First, while childcare expenses, private education expenses, and their ratios to household income showed a tendency of gradual decline, the graphs of childcare and private education expenses were symmetric. Second, there were differences in childcare and private education expenses among income classes. Third, in 2009, before the universal childcare policy was enforced, household income affected childcare and private expenses. Lastly, in 2013, after the universal childcare policy was implemented, household income had a greater effect on private education expenses, while the effect of household income on childcare expenses became insignificant.

• Clean Technology
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• v.17 no.2
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• pp.181-188
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• 2011

In this study, the complementary or crowding-out effects of public R&D subsidy on private R&D investment in the cleaner production were analysed between the effects and the major determinants (company size, R&D investment intensity, ratio of government investment, R&D manpower intensity). Among 207 firms' projects, the number of the complementary effect was 95 (45.9%) while that of crowding-out effect was 38 (18.4%). Resulting from logistic regression, the higher the R&D investment of sponsored companies is, the more complementary effect they show, responding to public R&D subsidy, and increase own R&D investment. The other determinants, however, showed no significant effects on firms' R&D investment. To heighten the effect of public cleaner production R&D, it is need to increase the priority of R&D investment intensity among the determinants. And to increase the performance of governmental R&D investment, further studies for the individual public R&D programs are necessary.

• Journal of Technology Innovation
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• v.5 no.1
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• pp.206-222
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• 1997

The conventional analysis with which justifies government intervention of the private sector's innovation activities is the market failure approach. According to such analysis, fund allocation through autonomous market mechanisms is not optimal in technology financing because of the disparity between the desirable level of investment for society as a whole and that for private firms. To optimize the fund allocation, public policies such as subsidy, preferencial loan and venture capital investment programs are designed for technology development projects performed by private firms. They, however, have not been effective in increasing private investment for such projects. In most cases, it was found that little considerations given to the relationship between uncertainty embodied in technology development projects and each types of financing. With respect to optimizing fund allocation, technology development projects should be financed by different means according to their probability of success and the expected value of technology. Employing various theoretical models on financing decision-making we verify here that technology development projects to be supported by commercial banks or venture capital institutions is limited contingent upon levels of uncertainty adn expected value. Under the assumption that financial institutions are risk averse, loan or investment can be available only if the probability of success of the project is higher than the probability premium and the current market rate of interest. Therefore, the projects that have lower probability of success and/or small expected return are excluded from commercial loan or investment programs. However, the remaining projects, whose probability of success is low but with high expected return, may be applied under government subsidy programs. To achieve optimality of fund allocation and to activate technology financing, we conclude that there should be a systematic division of role among financial institutions including government commercial banks, and venture capital institutions.

• KDI Journal of Economic Policy
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• v.38 no.3
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• pp.1-15
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• 2016

Improving the quality of school education is one of the key policy concerns in Korea. This paper examines whether providing schools with adequate autonomy and incentives can meet the policy goals by looking at a recent policy reform in Korea. In 2009, the Korean government granted autonomy to certain private high schools on the condition that no financial subsidies would be provided to the schools. Because the autonomous private high schools cannot receive a subsidy, they have a strong incentive to meet parental demands because schools failing to meet these demands will lose students and will have to close. Applying the value-added model to longitudinal data at the student level, I find that students entering these autonomous schools show faster growth in their academic achievement than their peers in traditional non-autonomous schools. These results suggest that providing schools with autonomy and incentives can be a useful policy tool for improving school education.

• 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 Korean Society of Industrial and Systems Engineering
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• v.28 no.2
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• pp.81-93
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• 2005

The main purpose of this paper Is to develop the Management Resource Analysis System for KOTRA which is based on Activity Based Costing(ABC). Because the products and services of KOTRA are exclusive and include a government subsidy, we need develop a different system from the private firm's ABC system. The Management Resource Analysis System that we propose is embodied using JAVA and JSP within an UNIX environment and developed as a Web-enabling base. It is expected for aiding a manager's decision-making such as resource inquiry, standard resource analysis, estimating the ratio of a government subsidy, case based reasoning, what-if analysis. The results of this paper suggest what points are to be considered when we apply ABC for Government Investment Corporation.