• Journal of Korean Society of Industrial and Systems Engineering
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• v.22 no.51
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• pp.199-210
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• 1999

The number of car accident is Recently on the increase in Korea because of the explosive increase of cars, the poor road condition, the lack of safety facility, and others. The insurant with a accident has to decide whether receiving a insurance or not. In this paper, we represent a reasonable decision support material by calculating the approximate insurance fee based on the discount rate and premium additive rate, which is changed by the accident type and the accident expenditure. Practically, there is difference in the standard insurance rate and premium additive rate according to the accident type and the accident expenditure in Korea. The premium additive rate is assessed considering the number of accident, the pattern of accident, and the reason of accident for 3 years. In this paper, we represent a decision making method considering not only the first-time car accident but also the future car accident. For considering the repeated accident, we analyzed the real data accumulated until the year of 1996 from S Insurance Company, and estimated the probability density function between the first and the second-time accident, and executed the goodness of fit test using ARENA and STATISTICA software. Using this conditional PDF, we can calculate the insurance fee next 3 years and compare the insurance fee with the equivalent present value of cash flows. The program performing this analysis is represented, and written in VISUAL BASIC Language. We tried to suggest an accurate guideline for the insurant to decide the insurance coverage rationally, and tried to correct a wrong idea of dependence on the car insurance only by the amount of the accident expenditure. And we expect this study can generally be applied to many different accident types under the uncertain circumstances in our daily life.

• Korean Management Science Review
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• v.32 no.1
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• pp.1-13
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• 2015

We estimate the option value embedded in reverse mortgages using the framework of European put option. The reverse mortgage is a very useful financial product for senior citizens who own homes but do not have a cash income while it is a high risk one from lender's perspective. One of benefits of the reverse mortgages is that the debt limit is restricted to the scope of the disposition price of the collateralized house, which is considered a put option to borrowers. The put option is evaluated using Black-Scholes model and a sensitive analysis is performed on variables such as discount rate, volatility, and time period. We confirm that the option value of reverse mortgages increases rapidly as the borrowers live longer than their life expectancy. The results of this study can be used to promote the reverse mortgage program more effectively in order to solve the problem of income shortage of the elderly homeowners.

• KIEAE Journal
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• v.12 no.1
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• pp.105-112
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• 2012

When a building is planned and designed, the design should be able to minimize the cost during the whole life cycle of the building. This study has begun to analyze LCC about the alternative design which is applicable to renewable energy facility construction. It is reviewed domestic and foreign papers about the trend of LCC technology and it is determined the analytical method to analyze the LCC of renewable energy. Regarding the review of alternatives, it is chosen the three alternatives which are able to designed combing the renewable energy facilities and it is performed the LCC analysis about each alternative. Alternative 1 is Photovoltaic + Solar Thermal + Photovoltaic /Wind Power, Alternative 2 is Geothermal + Photovoltaic, and Alternative 3 is Photovoltaic + Solar Thermal. The LCC analysis is present value method, its analytical period is 40 years and it is applied 3.2% of real discount rate. As a result, it is proved that Alternative 1 and Alternative 3 are not able to collectible the early investment cost during the analytical period and Alternative 2 is analyzed that its pay-back period of early investment cost is about 31 years. As the final outcome of this study on case analysis, it is more advantageous to use the combination of Geothermal and Photovoltaic energy than to use the other combination in LCC aspect.

• International Area Studies Review
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• v.14 no.3
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• pp.454-476
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• 2010

In this paper is two-step trade model introduced. It is assumed that countries have 3 basic factors- capital(K), land (Z)and population(N)-as national factor endowments. As the first step, education 'produces' 'educated labor(EL)' which embodies new knowledge or new technology by using the population and capital as inputs. As the second step, manufacturing goods is produced with EL and uneducated labor(UL), and agriculture goods with land and UL. According to this model, the higher the increase rate of capital in a country is, the lower the usage rate of land is, the lower the increase rate of discount is, the country tends to export the manufacturing goods and import the agriculture goods. Trade widens the discrepancy of increase rate of EL in both countries but reduces the gap of increase rate of relative wage of EL as far as the gap of usage rate is not so big. Trade also affect real income rather than nominal income. This model can be extended to explain the migration from rural areas to urban areas when the manufacturing sector and education organization exist in urban area while the agricultural sector exist in rural area.

• Korean Journal of Construction Engineering and Management
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• v.16 no.4
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• pp.70-79
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• 2015

With the rise of the interest in a renewable system, the importance of the Life Cycle Cost Analysis(LCCA), an economic evaluation tool, has been increasing. However, there is an inevitable gap between a real cost and an estimation from LCCA because of the uncertainty of the external environment in real world. As the input variables in an analysis, such as a real discount rate and an energy cost, ares subject to change as time goes by, strategic decision on the current operating system is made depending on the real cost. Current economic evaluation approaches have treated only the fluctuation of input variables without consideration of the flexibility in operation, which has consequently led to the impairment on the reliability of LCCA. Therefore, new approach needs to be proposed to consider both the uncertainty of input variables and operational flexibility. To address this issue, the application of the Real Option to LCCA is presented in this study. Through a case analysis of LCCA of a solar heating system, the limits and current status of LCCA are identified. As a result, quantitative presentation of strategic decisions has been added in the new approach to implement the traditional approach.

• Journal of the Korea institute for structural maintenance and inspection
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• v.17 no.4
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• pp.101-111
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• 2013

In this study, DEA (Data Envelopment Analysis) was carried out on the four bridges, which have the same extension (L=1,615m), in order to select the most superior, economical method of construction using the LCC concept of each bridge structure in the case of the Ulsan-Pohang double track railway which is scheduled to be constructed. DEA models were analyzed with the CCR model, which was designed for the evaluation of relative efficiency of each model. The initial construction costs, maintenance costs, indirect costs (user costs + indirect loss of social costs), and life cycle costs were used as input variables, and average duration was applied as the output variable. LCC was applied to calculate the input variables, and to get the costs of LCC, 100 years of period and 4.83% of real discount rate were applied, and the costs are classified into initial construction, maintenance, user, and indirect loss of social cost. The analysis results showed that the Method 2 and 3 were evaluated as the most efficient, and the other alternatives were evaluated as the following order; Method 1, the default, and Method 4.

• Korean Journal of Construction Engineering and Management
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• v.16 no.5
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• pp.31-41
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• 2015

The telecommunication industry has been considered as a national fundamental infrastructure. However, due to the rapid evolution of technology and the change of industry market conditions, the telecommunication infrastructure needs no more huge space for facility and it leads its use to the mixed-use development based on private investment. This study intends to examine the financial feasibility of the development project for the optimal alternative use of telecommunication facility purpose site as a case study based on two types: contributed acceptance and multi-level designation. The NPA and IRR has been analyzed by the simulation of stochastic variables including rent price and its variation rate, vacancy rate, construction cost, capitalization rate and discount rate. The research finding indicates that the two types of development are satisfied with the financial feasibility and it is noteworthy that the rent price turns out to be the most critical factor for the project. Accordingly, it is expected that these research finding can be applied for providing the solid cases of financial feasibility analysis for the development project in limited use of telecommunication facility purpose site.

• Environmental and Resource Economics Review
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• v.15 no.4
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• pp.673-692
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• 2006

In order to test for the dynamic optimality condition for the use of nonrenewable resource, it is necessary to estimate the shadow value of the resource in situ. In the previous literatures, a time series for in situ price has been derived either as the difference between marginal revenue and marginal cost or by differentiating with respect to the quantity of ore extracted the restricted cost function in which the quantity of ore is quasi-fixed. However, not only inconsistent estimates are likely to be generated due to the nonmalleability of capital, but the estimate of marginal revenue will be affected by market power. Since firms will likely fail to minimize the cost of the reproducible inputs subject to market prices under realistic circumstances where imperfect factor markets, strikes, or government regulations are present, the shadow in situ values obtained by estimating the restricted cost function can be biased. This paper provides a valid methodology for checking the dynamic optimality condition for a nonrenewable resource by using the input distance function. Our methodology has some advantages over previous ones: only data on quantities of inputs and outputs are required; nor is the maintained hypothesis of cost minimization required; adoption of linear programming enables us to circumvent autocorrelated errors problem caused by use of time series or panel data. The dynamic optimality condition for domestic coal mining does not hold for constant discount rates ranging from 2 to 20 percent over the period 1970~1993. The dynamic optimality condition also does not hold for variable rates ranging from fourth to four times the real interest rate.

• Journal of Intelligence and Information Systems
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• v.23 no.1
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• pp.23-46
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• 2017

Although there have been cases of evaluating the value of specific companies or projects which have centralized on developed countries in North America and Europe from the early 2000s, the system and methodology for estimating the economic value of individual technologies or patents has been activated on and on. Of course, there exist several online systems that qualitatively evaluate the technology's grade or the patent rating of the technology to be evaluated, as in 'KTRS' of the KIBO and 'SMART 3.1' of the Korea Invention Promotion Association. However, a web-based technology valuation system, referred to as 'STAR-Value system' that calculates the quantitative values of the subject technology for various purposes such as business feasibility analysis, investment attraction, tax/litigation, etc., has been officially opened and recently spreading. In this study, we introduce the type of methodology and evaluation model, reference information supporting these theories, and how database associated are utilized, focusing various modules and frameworks embedded in STAR-Value system. In particular, there are six valuation methods, including the discounted cash flow method (DCF), which is a representative one based on the income approach that anticipates future economic income to be valued at present, and the relief-from-royalty method, which calculates the present value of royalties' where we consider the contribution of the subject technology towards the business value created as the royalty rate. We look at how models and related support information (technology life, corporate (business) financial information, discount rate, industrial technology factors, etc.) can be used and linked in a intelligent manner. Based on the classification of information such as International Patent Classification (IPC) or Korea Standard Industry Classification (KSIC) for technology to be evaluated, the STAR-Value system automatically returns meta data such as technology cycle time (TCT), sales growth rate and profitability data of similar company or industry sector, weighted average cost of capital (WACC), indices of industrial technology factors, etc., and apply adjustment factors to them, so that the result of technology value calculation has high reliability and objectivity. Furthermore, if the information on the potential market size of the target technology and the market share of the commercialization subject refers to data-driven information, or if the estimated value range of similar technologies by industry sector is provided from the evaluation cases which are already completed and accumulated in database, the STAR-Value is anticipated that it will enable to present highly accurate value range in real time by intelligently linking various support modules. Including the explanation of the various valuation models and relevant primary variables as presented in this paper, the STAR-Value system intends to utilize more systematically and in a data-driven way by supporting the optimal model selection guideline module, intelligent technology value range reasoning module, and similar company selection based market share prediction module, etc. In addition, the research on the development and intelligence of the web-based STAR-Value system is significant in that it widely spread the web-based system that can be used in the validation and application to practices of the theoretical feasibility of the technology valuation field, and it is expected that it could be utilized in various fields of technology commercialization.