• Korean Journal of Agricultural Science
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• v.38 no.1
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• pp.173-181
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• 2011

Korean government has executed some programs to support producers and/or exporters for the promotion of agro-food exportation. Especially, governmental subsidizing program about the distribution cost for agro-food exportation shows positive effects. However, this subsidy should be changed or partly abolished due to the low effectiveness of subsidy. The goal of this paper is to analyze the effectiveness of governmental subsidy and to present the agro-food products with the low effects of subsidizing program. As the results of analysis, the subsidy for several products, including Ginseng drinks, Paprika, and Chrysanthemum, might be considered to be stopped due to low effectiveness.

• Journal of Technology Innovation
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• v.19 no.2
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• pp.53-76
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• 2011

This study analysed empirically the relationship between the CT R&D subsidy program and R&D performance of received company. According to the result, the CT R&D subsidy program is a significant factor to encourage R&D performance. Especially, the CT R&D subsidy program based on validity and reasonable system affects significantly the progress of R&D performance. Otherwise, the reasonable CT R&D subsidy program has a important role to play on company growing from a step of R&D to a step of the commercialisation performance. Thus, government should make an effort on researching data on market demand before implementing policy and communicating with company continually.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.53 no.2
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• pp.97-103
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• 2004

CHP system supplies electricity and heating together with high efficiency. Current utility's CHP system uses electric power by itself and sells thermal energy to KDHC(Korea District Heating Corporation). CHP's operation cost except sales revenue of heating was covered by the sale revenue of electricity. Thus Electric generation cost in district Heating CHP system has close relationship with the level of heating price. However, after the restructuring of electricity industry, the operation cost could not be covered by sales revenue of heating and electricity. This loss was compensated by energy subsidy program in the electric power industry infrastructure fund. This paper suggests reasonable evaluation and improvement methods of the loss calculation of CHP system utilizing the infrastructure fund efficiency In terms of the direction of support by the fund, it provides the methods to prevent inefficient operation through setting up the upper limit of subsidy and to improve the loss calculation. Moreover, it suggest fixed rate support by heating supply level and reducing subsidy gradually for an efficient operation of CHP system.

• 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.

• STI Policy Review
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• v.9 no.1
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• pp.55-76
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• 2018

This study analyzed the effect of the government R&D subsidy program on long-term firm survival. In order to estimate the average treatment effect for the treated group, we used the survival analysis and matching method by constituting a comprehensive dataset of more than 90,000 observations. The analysis results show that the government R&D subsidy has a negative impact on long-term firm survival. In particular, not only the subsidy does not have a statistically significant effect on firm survival in the relatively short-term, the survival probability of the subsidized firms is statistically significantly lower than the non-subsidized firms after six years. These results can be seen as weakening the justification of government R&D support. There may be problems in the subsidy policy itself and the process of selection of subsidy awardees; however, the more fundamental problem is that the subsidy policy is concluded as the one-time event. Admittedly, it would be difficult for the government to precisely manage the subsidized projects over a long term period. However, in the case of a project in which short-term performance is detected, it would be necessary to provide a step-by-step support to strengthen the firm's competitiveness through further support and continuous development of performance. Of course, mid- and long-term evaluations of subsidy support policy should be performed in parallel with such phased support.

• Journal of Korean Society of Rural Planning
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• v.23 no.3
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• pp.13-20
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• 2017

본 연구는 가나의 비료 보조금 정책(Fertilizer subsidy program: FSP)의 농업 생산성에 대한 영향을 분석하였다. 가나의 군(district) 지역 수준의 농업 생산량 및 투입요소에 대한 자료를 사용하여, FSP 도입 이전과 FSP 도입 이후의 농업 생산성을 계측하였다. 지역적으로 상이한 수준의 농업 생산성을 반영하기 위한 지리적가중회귀(GWR)모형을 사용하여 계측의 오류를 줄이고 공간이질성을 고려하였다. 추정 결과를 바탕으로 ArcMap을 이용하여 생산성을 지도로 시각화 한 자료를 살펴보면, FSP 도입 이후 농업 생산성이 전반적으로 개선되었으며 그 중에서도 생산성이 크게 향상된 지역을 특정할 수 있다. 이러한 공간적 변화는 FSP의 지역적 할당의 효율성 증진을 위한 의사결정 자료로 이용 가능하며, 국내 ODA 추진기관에서 농업 지도 및 지원을 위해 유용한 정보로 사용할 수 있다.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.57
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• pp.283-303
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• 2013

When a trade conflict arises related to an officially supported export credit programme, The World Trade Organization(WTO), decides on whether the programme is a forbidden subsidy stipulated in the Agreement on Subsidies and Countervailing Measures(the ASCM Agreement). Korea was taken to the WTO panel two times for the export credit programme. One is the semiconductor case in 2002 and the other was the shipbuilding disputes in 2004. And, In 2012, the U.S. Commerce Department ruled K-SURE's export insurance for Korean refrigerator manufacturers as a forbidden subsidy even if the case was not taken to the WTO. This paper examines the significance of export credit programmes on the WTO ASCM Agreement and discusses how to operate these programmes so they would not infringe upon the Agreement by analyzing the actual cases of WTO subsidy conflicts that involved Korean enterprises in relation to export credit programmes for the purpose of determining the related issues and impacts. From this research the results were as follows: First, on whether export credit is a prohibited subsidy, the deciding factor was whether a benefit has been conferred to the beneficiary. On the presence of a benefit, the WTO panel used market benchmarks as the main criteria. Thus, official export credit agencies(ECAs) should be careful not to provide export credit support which had been granted to the beneficiary at better than market terms. Second, in the case of export credit, the special status of ECA as a public body receiving government support itself does not constitute a subsidy. However, caution must be taken not to provide export credit that may lead to WTO ASCM subsidy conflicts involving a certain exporter or industry by setting up clear and valid regulations and fair work processes in the operation of export credit programmes. Third, item (j) of Annex I cannot be interpreted reversely as this item is for interpreting the presence of a prohibited subsidy, not the presence of a benefit. Thus, an export credit program that confers a financial contribution, a benefit and specificity, could qualify as a prohibited subsidy. Fourth, ECAs not only have to maintain long-term account balance but also introduce additional measures to meet this long-term balance such as a clear and systematic premium system. Finally, export credit programmes that are not defined in item (j) of Annex I of the ASCM Agreement would not deemed as an prohibited export subsidy as long as the continued support of the programmes are not being forced.

• Environmental and Resource Economics Review
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• v.30 no.3
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• pp.365-393
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• 2021

Using the Choice Experiment Method, this paper identified whether subsidy to the household around landfil in Seoul metropolitan area is being provided corresponding to the scale of the environmental damage. Since 2001, the subsidy program has been operating for nearly 20 years to compensate for various environmental damage (foul odor, noise, air pollution, water pollution, etc.) from landfill site in the metropolitan area, but it is not clear on what ground the subsidy is allocated. This paper estimated the marginal WTP by attribute (odor, noise, air pollution, and water pollution) based on mixed logit model and compared them with current subsidy level per household in each town. As a result of the comparison, it was found that the subsidy for each town was not allocated in proportion to the amount of the marginal WTP for each household in the corresponding town. In addition, this paper constructs a level-by-level scenario for environmental improvement attributes and compares economic benefits and current subsidy levels. As a result, the current subsidy level is insufficient compared to the level at which environmental damage is completely eliminated, but excessive subsidy is allocated compared to partial improvement levels.

• Journal of Labour Economics
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• v.23 no.1
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• pp.47-63
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• 2000

This paper uses the results of an employer survey conducted in May 1999 to investigate the impacts of the layoff-deferring subsidy in the Employment Insurance System on employment at participating firms. Using a sample of the firms that received the subsidy for temporary shutdown allowance only, we estimate that the net employment effect of the program is about 20 percent on average, which is similar to the result based on interviews with employers.

• Proceedings of the KIEE Conference
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• 2003.07a
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• pp.661-663
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• 2003

Electric generation cost in district Heating CHP system has close relationship with the level of heating price. So far, the calculation of CHP generation cost has been based on cost recovery system in which revenue requirement deducted the revenue from heating-sales. The restructuring of electricity industry determines the market-clearing price every hour and made it impossible that the loss due to the above market cost can be attributed to the generation cost. Hence, the loss is compensated by energy subsidy program in public benefit charge. This analysis derives an efficient action plan for future subsidy program.