• Korean Journal of Construction Engineering and Management
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• v.8 no.2
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• pp.127-135
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• 2007

Markets for the apartment remodeling projects will be a major portion of the construction industry in near future. However, only partial remodeling works in the apartment were done so far. This situation caused bad impact to expand the remodeling markets and less profits of the remodeling projects. In order to solve this problem, many other researches were done previously to Improve profits of the apartment remodeling projects. However, the results are too theoretical to implement them and Improve profits. In this research, profitability influence factors that are possible to improve effect of the remodeling works are selected and analyzed through several studies. Then, correlation analysis is performed between the improvement level in the remodeling projects and the numerical profitability based on actual cases. The result clearly shows that some improved remodeling items are strongly related to the profit. These results lead us to the strategy to follow for the purpose of increasing profits of the remodeling projects.

• Journal of the Korea Society of Computer and Information
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• v.25 no.2
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• pp.221-229
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• 2020

As the cosmetics beauty industry grows into a key next-generation industry, the establishment of an industrialization center is needed, but failure to verify the adequacy and feasibility of the investment could lead to financial burdens. In this study, the project costs and facilities of an industrial center are reviewed to analyze its economic feasibility based on the cost estimates, revenue estimates, estimated profit or loss calculations, and estimated operating cash flows. The profit estimation criteria were analyzed by applying 90 per cent of expected orders for research projects (24 billion won) and 12 per cent of rental rates for testing equipment (4.5 billion won for construction), and the benefit/cost ratio is higher than 1.02 per cent and the net present value is higher than '0' won, and the internal rate of return is also more than 5.06 per cent for all three analytical methods. Therefore, in order for the construction of a cosmetics beauty industrialization center to be economically feasible, it is necessary to maintain research project orders of more than 90 percent and return on equipment rent of more than 12 percent, and a strategic approach is needed to diversify business profits.

• Korean Journal of Construction Engineering and Management
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• v.17 no.2
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• pp.21-30
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• 2016

The current PF project is entirely relying on construction company's credibility. As such, it has increased a negative and bad recognition in domestic real estate economy. In addition, PF experts has a perception that a project's safety of future cash flow profitability is more important than the construction company's credibility. So many PF experts make an effort in order to set aside safe project structure of PF and analyse systematically the risks of the project. In common feasibility study of the PF Project, financial specialists and real estate specialists are forecasting and evaluating the suitability of the project through reviewing the development profit from the project of sales. However, cash flow analysis and evaluation from the perspective of mid-sized construction companies are still in the primary level. Therefore, this study has analysed the current feasibility study and go/no go decision making procedures. Then the authors have a new cash flow analysis method from the perspective of mid-sized construction companies, by improving the feasibility study and go/no go decision making procedures.

• Journal of the Korean Recycled Construction Resources Institute
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• v.8 no.2
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• pp.227-234
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• 2020

Under consideration of construction waste recycling, candidate secondary products applicable for the civil and construction areas can be reliably employed based on the recycling cost analysis. For the validation purpose, probability-based cost analyses were performed to estimate recycling cost profit considering uncertainties. When recycling construction wastes, the costs at each stage are fully dependent on target products to be adopted. To achieve commercialization of each product, its quality has to be improved with economic efficiency through accurate evaluation of input costs. Based on the probabilistic recycling cost analysis, the cost benefit for target products was estimated with waste classification cost, transportation cost to recycling treatment facilities and production cost. All necessary information on the cost analysis were collected from literature, disclosure, and existing recycling companies. In addition, a cost difference between recycled and non-recycled events was made. As a result, a probability-based recycling cost estimate for candidate secondary products was herein presented.

• Korean Journal of Construction Engineering and Management
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• v.8 no.1 s.35
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• pp.66-77
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• 2007

With the electricity industry structure reformation of the government in April, 2001, Korea Power Electric Corporation was divided in to Korea water power nuclear power and 5 thermal power plant. After, various delivery method is introduced and applied for active profit creation according to the competition between each development companies for the public company privatization. However, the current situation does not satisfy the project participant by selecting the delivery method without reflecting the business goal and project characteristics of power plant construction business. The objective of this study is to research the influencing factors that should be considered to select the delivery method in thermal power construction business and develop a standard of selection of appropriate delivery method through questionnaire and interviews to establish a model to select the delivery method that fits the business goal of the subject of delivery. In the future, if the delivery method selection model suggested in this study is applied, it is expected to select the appropriate delivery method of power plant construction business by effectively reflecting the business goal, characteristics and demand of the delivery subject, and characteristics of the construction business apart from the existing customary practices that decided the delivery method dependent on the subjective and experience based judgement.

• Korean Journal of Construction Engineering and Management
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• v.17 no.3
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• pp.61-70
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• 2016

Construction enterprises have performed various projects such as buildings, infrastructure and plant projects in the international market. Among these, the plant project's amount of orders accounted for about 68.9% of all. However, because of the enterprises won a contract with a low-budget for plant project in the last 10 years, the profit has dropped dramatically. And it is forecasted that there are extreme competition for bid award of plant projects because of the current falling oil prices and raising interest rates. In this circumstance, the comprehending of enterprises strength and weakness must be a priority to get a sustainable competitive advantage. Therefore this research suggests the enterprises's capability assessment framework and it is in order to diagnose the korean construction enterprises capabilities. The framework is based on the VRIO model that is on the basis of resource based theory. First, the capability assessment indices and their importance and priority that based on the life-cycle of plant project is deducted by literature review and survey. Second, the 5 point likert score applied VRIO survey is conducted to diagnose the enterprises and quantified the survey result using the fuzzy theory. Lastly, the competitvie implication and capability assessment are deducted.

• Korean Journal of Construction Engineering and Management
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• v.9 no.4
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• pp.173-181
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• 2008

Last decade, Korea's export scale has resulted in remarkably increasing tendency, and the Korean construction firms(KCFs)' activities on the global markets also have been revitalized. Therefore, this paper analyze a correlation between changes in the oversee market conditions and firms' competitiveness focused on plant business. The aim of this paper is to analyze the internal competency change of the KCFs on the global markets in the past 5 years and to find gap of internal competencies between KCFs and outstanding foreign firms. From a survey analysis this paper found that the external impacts on the global markets(changes of exchange rates, raw materials prices, supply-demand conditions, etc.) have highly influenced the sales amount of the KCFs. But the impacts to change the operating profit have been analyzed as not important. So it is necessary to reinforce the KCF's internal competencies rater than expecting an improvement of the external conditions. Also, the KCFs should strengthen the design engineering as a core competency.

• Korean Journal of Construction Engineering and Management
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• v.23 no.1
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• pp.83-88
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• 2022

Companies make decisions with risks such as choosing an investment plan in order to pursue profits. This study explained the decision making of the management of construction companies in South Korea using the tendency to avoid losses in the Prospect Theory. To this end, 20-year financial data of 2,881 companies engaged in real estate development, which have to bear the greatest risk among the construction industry, were collected. The collected companies were roughly classified based on the reference point, and the causal relationship between average return on equity and risk preference by group was empirically analyzed through regression analysis. As a result, it was confirmed that if the average return on equity of a company decreases for the group above the reference point, it tends to select an investment plan with low uncertainty in order not to lose additional money. In addition, it was confirmed that if the average return on equity of a company decreases for the group below the reference point, it tends to select an investment plan with high uncertainty to move to the profit area. This result is exactly consistent with the loss aversion tendency of the Prospect Theory.

• Korean Journal of Construction Engineering and Management
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• v.15 no.5
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• pp.127-137
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• 2014

Project Financing (PF) development project is the type which influences national economy and building industry largely because it is exerted by using borrowed money from many kinds of investors and huge amount of financial raising. Many domestic PF projects are focused mainly on the profit maximization lacking in a sufficient feasibility study. Nowadays many projects are suspending due to the global finance debacle and stagnation of real estate industry. Therefore, in this paper, risk factors of PF project are deducted and Key Success Factors (KSFs) are derived through Factor-Analysis and qualified using Fuzzy-AHP method. And through the evaluation of the derived success factors in real projects, a strong correlationship has been identified between the score of each PF success factor and the level of success and/or expected rate of return (ROR). So, the result of this paper can help decision makers of the PF projects make a better decision and give a meaningful guidance in achieving successful PF projects.

• Korean Journal of Construction Engineering and Management
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• v.18 no.2
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• pp.91-98
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• 2017

Due to climate change, countries around the world are actively investing in renewable energy, reducing fossil fuel use. 23.7% of world electricity is supplied by renewable energy. As the technology continues to develop, it is in a level to compete in terms of power generation cost, and investment conditions are improving. However, investment in renewable energy projects is not easy. This study analyzed trends of domestic and international researches on economics assessment applying real options analysis to investment decisions of hydro, solar, and wind power projects, which account for a large portion of renewable energy. This study provides (1) the difference between the traditional economic method and the real options analysis, (2) the application process, and (3) the uncertainty elements and option type of the renewable energy project presented by many studies. The real options analysis is suitable for the detailed investment strategy by considering the uncertainties of the renewable energy project and applying the option to improve the profit or to avoid the risk.