• Title/Summary/Keyword: development cost policy

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A study on the Success Factors and Strategy of Information Technology Investment Based on Intelligent Economic Simulation Modeling (지능형 시뮬레이션 모형을 기반으로 한 정보기술 투자 성과 요인 및 전략 도출에 관한 연구)

  • Park, Do-Hyung
    • Journal of Intelligence and Information Systems
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    • v.19 no.1
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    • pp.35-55
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    • 2013
  • Information technology is a critical resource necessary for any company hoping to support and realize its strategic goals, which contribute to growth promotion and sustainable development. The selection of information technology and its strategic use are imperative for the enhanced performance of every aspect of company management, leading a wide range of companies to have invested continuously in information technology. Despite researchers, managers, and policy makers' keen interest in how information technology contributes to organizational performance, there is uncertainty and debate about the result of information technology investment. In other words, researchers and managers cannot easily identify the independent factors that can impact the investment performance of information technology. This is mainly owing to the fact that many factors, ranging from the internal components of a company, strategies, and external customers, are interconnected with the investment performance of information technology. Using an agent-based simulation technique, this research extracts factors expected to affect investment performance on information technology, simplifies the analyses of their relationship with economic modeling, and examines the performance dependent on changes in the factors. In terms of economic modeling, I expand the model that highlights the way in which product quality moderates the relationship between information technology investments and economic performance (Thatcher and Pingry, 2004) by considering the cost of information technology investment and the demand creation resulting from product quality enhancement. For quality enhancement and its consequences for demand creation, I apply the concept of information quality and decision-maker quality (Raghunathan, 1999). This concept implies that the investment on information technology improves the quality of information, which, in turn, improves decision quality and performance, thus enhancing the level of product or service quality. Additionally, I consider the effect of word of mouth among consumers, which creates new demand for a product or service through the information diffusion effect. This demand creation is analyzed with an agent-based simulation model that is widely used for network analyses. Results show that the investment on information technology enhances the quality of a company's product or service, which indirectly affects the economic performance of that company, particularly with regard to factors such as consumer surplus, company profit, and company productivity. Specifically, when a company makes its initial investment in information technology, the resultant increase in the quality of a company's product or service immediately has a positive effect on consumer surplus, but the investment cost has a negative effect on company productivity and profit. As time goes by, the enhancement of the quality of that company's product or service creates new consumer demand through the information diffusion effect. Finally, the new demand positively affects the company's profit and productivity. In terms of the investment strategy for information technology, this study's results also reveal that the selection of information technology needs to be based on analysis of service and the network effect of customers, and demonstrate that information technology implementation should fit into the company's business strategy. Specifically, if a company seeks the short-term enhancement of company performance, it needs to have a one-shot strategy (making a large investment at one time). On the other hand, if a company seeks a long-term sustainable profit structure, it needs to have a split strategy (making several small investments at different times). The findings from this study make several contributions to the literature. In terms of methodology, the study integrates both economic modeling and simulation technique in order to overcome the limitations of each methodology. It also indicates the mediating effect of product quality on the relationship between information technology and the performance of a company. Finally, it analyzes the effect of information technology investment strategies and information diffusion among consumers on the investment performance of information technology.

Analyzing Residential Land Use Change and Population Density Considering Climate Change Using Land Use Equilibrium Model in Jeju (토지이용균형모델을 이용한 기후변화에 따른 제주도 지역의 주거용 토지이용변화와 인구 밀도 예측)

  • YOO, So-Min;LEE, Woo-Kyun;Yamagata, Yoshiki;Lim, Chul-Hee;SONG, Chol-Ho;CHOI, Hyun-Ah
    • Journal of the Korean Association of Geographic Information Studies
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    • v.18 no.4
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    • pp.43-58
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    • 2015
  • The greenhouse gas emission caused by rapid economic growth and population is increasing in Korea. Also, climate change from greenhouse gases emission is accelerated. IPCC(Intergovernmental Panel on Climate Change) report projects an increase of greenhouse gas emissions by 90% from the year 2000 to 2030(SRES, 2000). Within this context, establishing countermeasures on climate adaptation and mitigation is becoming increasingly important to reduce the negative effect of climate change at a global level. Along with global efforts to tackle climate change, Korean government has incorporated 'Low Carbon Green Growth'strategies into its national policy agenda. Local governments have also conducted a number of studies to devise plans for environmentally friendly and sustainable city development. In this paper, the land-use equilibrium model, which reflects economic and geographical characteristics, is used to analyze the change in residential land use and population density. The target area for study is Jeju island in Korea. With an application of land use equilibrium model, it derived three types of scenarios of the land use change: (1) dispersion scenario-reflecting present-day conditions (2) adaptation scenario-applying adaptation measures to climate change and (3) combined scenario-integrating both adaptation and mitigation measures in model to climate change. By applying dispersion to combined scenario, the general trend shows a downward shift in population density. Subsequently, energy consumption and expected cost associated with casualties were calculated on the basis of the findings of respective scenario. The results show a descending trend in energy consumption and expected casualtie. Therefore, understanding for residential land use and population density of each scenario that analyzed land use equilibrium model in the study is expected to devise a environmental city plan for climate change stabilization and climate adaptation and mitigation.

Simulation of Pension Finance and Its Economic Effects (연금재정(年金財政) 시뮬레이션과 경제적(經濟的) 파급효과(波及效果))

  • Min, Jae-sung;Kim, Yong-ha
    • KDI Journal of Economic Policy
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    • v.13 no.1
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    • pp.115-134
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    • 1991
  • The role of pension plans in the macroeconomy has been a subject of much interest for some years. It has come to be recognized that pension plans may alter basic macroeconomic behavior patterns. The net effects on both savings and labor supply are thus matters for speculation. The aim of the present paper is to provide quantitative results which may be helpful in attaching orders of magnitude to some of the possible effects. We are not concerned with the providing empirical evidence relating to actual behavior, but rather with deriving the macroeconomic implications for a alternative possibilities. The pension plan interacts with the economy and the population in a number of ways. Demographic variables may thus affect both the economic burden of a national pension plan and the ability of the economy to sustain the burden. The tax transfer process associated with the pension plan may have implications for national patterns of saving and consumption. The existence of a pension plan may have implications also for the size of the labor force, inasmuch as labor force participation rates may be affected. Changes in technology and the associated changes in average productivity levels bear directly on the size of the national income, and hence on the pension contribution base. The vehicle for the analysis is a hypothetical but broadly realistic simulation model of an economic- demographic system into which is inserted a national pension plan. All income, expenditure, and related aggregates are in real terms. The economy is basically neoclassical; full employment is assumed, output is generated by a Cobb-Douglas production process, and factors receive their marginal products. The model was designed for use in computer simulation experiments. The simulation results suggest a number of general conclusions. These may be summarized as follows; - The introduction of a national pension plan (funded system) tends to increase the rate of economic growth until cost exceeds revenue. - A scheme with full wage indexing is more expensive than one in which pensions are merely price indexed. - The rate of technical progress is not a critical element in determining the economic burden of the pension scheme. - Raising the rate of benefits affects its economic burden, and raising the age of eligibility may decrease the burden substantially. - The level of fertility is an element in determining the long-run burden. A sustained low fertility rate increases the proportion of the aged in total population and increases the burden of the pension plan. High fertility has inverse effects.

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National survey for genetic counseling and demands for professional genetic counselor (유전상담과 전문 유전상담사 수요에 대한 전국적인 조사)

  • Chung, Yoon-Sok;Kim, Sook-Ryung;Choi, Ji-Young;Kim, Hyon-J.
    • Journal of Genetic Medicine
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    • v.4 no.2
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    • pp.167-178
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    • 2007
  • Purpose : The necessity of professional non-MD genetic counselor has been recently emphasized in a medical field. By conducting a national survey on the demands for generic counseling and professional non-MD generic counselor, we can make a long-term master plan to execute the educational program for professional genetic counselors and indeed promote genetic counseling in Korean health care service in a systemic manner. Methods : The survey has been conducted from September 3rd to October 4th of 2007 in a way of e-mail, telephone interview, fax, and direct contacts. It's targets were senior researchers and professors in medical and non-medical institutions, policy makers, research institutions or foundations. The survey questions consist of 16 questionnaires. Results : As a result of survey, 102 of 650 people responded. 80% of respondents indicated that genetic counseling is needed as a health care service and 34% among them considered it as "the most needed". In addition, 77% of the respondents showed that, it is necessary to have a professional non-MD genetic counselor with a master degree or higher in the field of medical genetics and among them 29% thought it as "the most necessary". A 77% of respondents considered that the cost of genetic counseling should be covered by health insurance and among them, 29% answered "strongly agreed". A 56% of respondents chose the answer of "They have a plan to hire the professional non-MD genetic counselor" in their institution, and among them 71% selected "within 5 years" in terms of when to hire. Also, they tend to expect the role of the professional non-MD genetic counselor to be not only "genetic counselor" (60%), but also "researcher" (42%), "educator" (18%) and "clinical laboratory coordinator" (19%). Conclusion : The 102 of 650 people responded to the survey. Based upon the nationwide survey over the needs on genetic counseling in health care service and demands on the professional non-MD genetic counselor, systematic educational program for the genetic counseling, with reimbursement coverage for counseling service by health insurance should be emphasized in development of a master plan.

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Discussion on the Strategic Priorities and Navy's Coping in the Interwar Period Britain, 1919?1939 (「전간기 영국의 전략 우선순위 논의와 영국해군의 대응, 1919-1939」)

  • Jeon, Yoon-Jae
    • Strategy21
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    • s.32
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    • pp.123-159
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    • 2013
  • The purpose of this research paper is to re-valuate the factors that affected the Royal Navy's rearmament and preparation for war by conducting analysis on the discussion held in the Britain on the strategic priorities and Navy's coping measures adopted during the interwar period. After the end of the WWI, each of the military arms of the Britain faced significant difficulty in securing budget and increasing their military power all throughout the interwar period, and the Navy was not an exception. The WWII that got started on September 1939 was the turning point in which this difficulty led to full-fledged crisis. Immensely many criticisms followed after the war and problems were identified when it comes to the Royal Navy's performance during the war. This type of effort to identify problem led to the attempt to analyze whether Royal Navy's preparation for war and rearmament policy during interwar period were adequate, and to identify the root causes of failure. Existing studies sought to find the root cause of failed rearmament from external factors such as the deterioration of the Britain itself or pressure from the Treasury Department to cut the budget for national defense, or sought to detect problems from the development of wrong strategies by the Navy. However, Royal Navy's failed preparation for the war during interwar period is not the result of one or two separate factors. Instead, it resulted due to the diverse factors and situations that the Britain was facing at the time, and due to intricate and complex interaction of these factors. Meanwhile, this research paper focused on the context characterized by 'strategic selection and setting up of priorities' among the various factors to conduct analysis on the Navy's rearmament by linking it with the discussion held at the time on setting up strategic priorities, and sought to demonstrate that the Navy Department's inadequate counter-measures developed during this process waned Royal Navy's position. After the end of WWI, each of the military arms continued to compete for the limited resources and budget all throughout the interwar period, and this type of competition amidst the situation in which the economic situation of Britain was still unstable, made prioritization when it comes to the allocation of resources and setting up of the priorities when it comes to the military power build-up, inevitable. Amidst this situation, the RAF was able to secure resources first and foremost, encouraged by the conviction of some politicians who were affected by the 'theory of aerial threat' and who believed that curtailing potential attack with the Air Force would be means to secure national security at comparatively lower cost. In response, Navy successfully defended the need for the existence of Navy despite the advancement of the aerial power, by emphasizing that the Britain's livelihood depends on trade and on the maintenance of maritime traffic. Despite this counter-measuring logic, however, Navy's role was still limited to the defense of overseas territory and to the fleet run-off instead of sea traffic route production when it comes to the specific power build-up plan, and did not understand the situation in which financial and economic factors gained greater importance when it comes to the setting up of strategic priorities. As a result, Navy's plan to build its powers was met with continual resistance of the Treasury Department, and lost the opportunity to re-gain the status of 'senior service' that it had enjoyed in the past during the competition for strategic prioritization. Given that the strategic and economic situation that Korea faces today is not very different from that of the Britain during the interwar period, our Navy too should leverage the lessons learned from the Royal Navy to make the effort to secure viable position when it comes to the setting of priorities in case of national defense strategy by presenting the basis on why maritime coping should be prioritized among the numerous other threats, and by developing the measures for securing the powers needed effectively amidst the limited resources.

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Development of Optimum Traffic Safety Evaluation Model Using the Back-Propagation Algorithm (역전파 알고리즘을 이용한 최적의 교통안전 평가 모형개발)

  • Kim, Joong-Hyo;Kwon, Sung-Dae;Hong, Jeong-Pyo;Ha, Tae-Jun
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.35 no.3
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    • pp.679-690
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    • 2015
  • The need to remove the cause of traffic accidents by improving the engineering system for a vehicle and the road in order to minimize the accident hazard. This is likely to cause traffic accident continue to take a large and significant social cost and time to improve the reliability and efficiency of this generally poor road, thereby generating a lot of damage to the national traffic accident caused by improper environmental factors. In order to minimize damage from traffic accidents, the cause of accidents must be eliminated through technological improvements of vehicles and road systems. Generally, it is highly probable that traffic accident occurs more often on roads that lack safety measures, and can only be improved with tremendous time and costs. In particular, traffic accidents at intersections are on the rise due to inappropriate environmental factors, and are causing great losses for the nation as a whole. This study aims to present safety countermeasures against the cause of accidents by developing an intersection Traffic safety evaluation model. It will also diagnose vulnerable traffic points through BPA (Back -propagation algorithm) among artificial neural networks recently investigated in the area of artificial intelligence. Furthermore, it aims to pursue a more efficient traffic safety improvement project in terms of operating signalized intersections and establishing traffic safety policies. As a result of conducting this study, the mean square error approximate between the predicted values and actual measured values of traffic accidents derived from the BPA is estimated to be 3.89. It appeared that the BPA appeared to have excellent traffic safety evaluating abilities compared to the multiple regression model. In other words, The BPA can be effectively utilized in diagnosing and practical establishing transportation policy in the safety of actual signalized intersections.

The Effect of the Degree of Competition of the Hospital Market Regions on Clinic's Rate of Antibiotics Prescription (병원시장지역 내 경쟁 정도가 의원급 의료기관의 항생제 처방률에 미치는 영향)

  • Jo, Changik;Lim, Jae-Young;Lee, Soo Yeon
    • KDI Journal of Economic Policy
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    • v.30 no.2
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    • pp.129-155
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    • 2008
  • The rate of antibiotics prescription for an acute airway infection significantly varies depending upon the diagnosis type, specialty, and the location of the hospital along with many other related factors. The objective of this study is to empirically investigate the possible relationship between the antibiotics prescription rates for an acute airway infection and the degree of competition in the hospital market regions of mainly the providers of primary medical care services such as clinics, internal medicines, pediatrics and otorhinolaryngology department. Using the data from Health Insurance Review and Assessment Service (HIRA) regarding the hospitals' antibiotics prescription rates for the acute airway infection and controlling for selected variables of demand and supply sectors, this study tries to figure out that the degree of competition in the hospital market, regardless of what type of competition indexes we employed, has a statistically significant effect on the variations of antibiotics prescription rate of the clinics in local areas. This result implies that as an economic consideration itself, the change in the degree of competition in the hospital market can play a crucial role influencing the treatment behaviors of the medical doctors. More specifically, this study reveals that as the degree of competition increases the antibiotics prescription rate goes up. This result means that if the market becomes more competitive in a specific region so that it might cause a reduction in doctor's income, doctors with rational decision-making process, recognize that the benefit created from inducing patients' seemingly unnecessary demand for medical care (income effect) would be higher than the costs associated with sustaining their targeted income (substitution effect). It is because that the doctors are more likely to prescribe antibiotics which create relatively higher margins than other medical care services in order to sustain their targeted income when the hospital market competition becomes tighter. Even though this study empirically confirms that antibiotics prescription can be affected by the economic incentives, it still raises following issues as limitations of the study: first issue is about the representativeness of the hospital regions segregated for this study, which might be weak in explaining whether these regions are mutually exclusive in reality. Patients actually consider the quality of services, transportation cost, time costs, and any other related factors choosing the doctors or hospitals, and in that sense, this study rules out 'border-crossing' in using the medical care services. Second issue arises in capturing the data of antibiotics prescription rate. Since we use the average rate for each medical institution, we cannot figure out the average rate for each patient so that we are not able to control for the variation of patients' medical conditions. It is because of the unavailability of data regarding each patient's medical condition from HIRA. Thirdly, since this study mainly analyzes the medical institutions providing primary care such as clinics, internal medicines, pediatrics, and otorhinolaryngology department, it is skeptical of whether those institutions can represent the hospital market in respective regions and truly reflect the degree of competition. It needs to extend the study areas and disease types as well as any micro data for future studies.

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A Study on Determinants of Korean SMEs' Foreign Direct Investment in Gaeseong Industrial Complex & Vietnam (중소기업의 개성공단 및 베트남 직접투자 결정요인 연구)

  • Cho, Heonsoo
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.16 no.4
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    • pp.167-178
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    • 2021
  • The purpose of this study is to analyze the direct investment decision factors in the Kaesong Industrial Complex and Vietnam, and to contribute to the creation of domestic jobs and the revitalization of the inter-Korean economy. According to the analysis, most of the Kaesong Industrial Complex and Vietnamese investment companies are entering the complex for the purpose of utilizing cheap labor, cheap factory locations, sales/development of local markets, and bypass export production bases in third countries. This can be divided into production-efficient investors using differences in production price such as labor costs and market-oriented investors to sell and expand the local market, which seems to be consistent with global direct investment patterns such as Nike, Apple, and Amazon. However, even if the North Korea-U.S. denuclearization talks ease or lift sanctions, Vietnamese investors' willingness to invest in the North Korea has been most burdened by the possibility of closing special economic zones due to political risks. Last but not least, it is important to note that those willing to invest in North Korea are mostly smaller enterprises in textiles, sewing, footwear and leather industries-those that benefit from low-cost labor. Since their size is small, they need policy support in financing, especially in the early stages of their business. Even after they grow past the early stages, those without collateral would still need state guarantee letters to get financing. Thus, it is worth considering to use the Inter-Korean Cooperation Fund to compensate commercial banks for bad loan loss or for low-interest loans for smaller SMEs. The interviews with SMEs found that red-tape is one of the biggest difficulties they face. Thus, it is recommended that a one-stop service agency should be established to cover all processes and issues related to inter-Korean economic cooperation to eliminate redundancy and expediate government support for SMEs.

Compensation Criteria for Investigation Services and Strengthening Normative Force Plans for Detailed Qualification Criteria for Examination of Archaeological Heritage (매장문화재 조사용역 대가기준과 적격심사 세부기준 제도의 규범력 강화 방안)

  • Choi, Min-jeong
    • Korean Journal of Heritage: History & Science
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    • v.52 no.2
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    • pp.240-253
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    • 2019
  • Archaeological heritages are precious cultural relics and public assets that must be preserved, conserved, and shared with people all over the world. Investigating archaeological heritage is valuable and plays an important role for the public good; our ancestors' cultures can be restored, and it helps with developing a clear understanding of the cultural and social aspects of a historical period as well as teaches about historical factors unreported in the literature. One of the most basic and important conditions necessary for recognizing the value and importance of archaeological heritage investigation, expertise, and quality improvement is to establish detailed criteria for investigation services and the qualification examination of archaeological heritage. Observation of detailed criteria and the qualification examination of archaeological heritage can partially demonstrate society's recognition of strengthening transparency, public property, and the objectivity of the investigation of archaeological heritage. However, the detailed criteria for investigation services and the qualification examination of archaeological heritage currently implemented as administrative rules are neither followed by all institutes in the public and private sectors nor the government. Thus, there are serious problems in terms of the effectiveness and stability of institutions. The detailed criteria for the qualification examination breach the principle of statutory reservation, the principle of statutory regulation, and regulations on the announcement and management of orders and rules. Non-compliance with compensation criteria for investigation services or with detailed criteria for the qualification examination of archaeological heritage will be one of the reasons for the failure of the investigation foundation for archaeological heritage in the future. That is, it will result in the expansion, reproduction, and repetition of a vicious cycle of conflict between developers, who are the decision-makers responsible for selecting an investigating organization for archaeological heritage and determining the cost, and investigating organizations. This includes the impractical shortening of investigation periods and reducing costs by developers, distrust of the values and the importance of investigations of archaeological heritage, a decrease in quality, accidents caused by a lack of safety, a lack of occupational ethics, and non-recruitment of new experts, etc. Therefore, it is necessary to change the structure from a vicious cycle to a virtuous cycle, and promote the enactment of regulations that will ensure effectiveness and stability in the process of attaining the goals of the institution and application of the institution, as well as the continuous advancement of work to fill the gaps with reality.

A Study on Forest Insurance (산림보험(山林保險)에 관한 연구(硏究))

  • Park, Tai Sik
    • Journal of Korean Society of Forest Science
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    • v.15 no.1
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    • pp.1-38
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    • 1972
  • 1. Objective of the Study The objective of the study was to make fundamental suggestions for drawing a forest insurance system applicable in Korea by investigating forest insurance systems undertaken in foreign countries, analyzing the forest hazards occurred in entire forests of Korea in the past, and hearing the opinions of people engaged in forestry. 2. Methods of the Study First, reference studies on insurance at large as well as on forest insurance were intensively made to draw the characteristics of forest insurance practiced in main forestry countries, Second, the investigations of forest hazards in Korea for the past ten years were made with the help of the Office of Forestry. Third, the questionnaires concerning forest insurance were prepared and delivered at random to 533 personnel who are working at different administrative offices of forestry, forest stations, forest cooperatives, colleges and universities, research institutes, and fire insurance companies. Fourth, fifty three representative forest owners in the area of three forest types (coniferous, hardwood, and mixed forest), a representative region in Kyonggi Province out of fourteen collective forest development programs in Korea, were directly interviewed with the writer. 3. Results of the Study The rate of response to the questionnaire was 74.40% as shown in the table 3, and the results of the questionaire were as follows: (% in the parenthes shows the rates of response; shortages in amount to 100% were due to the facts of excluding the rates of response of minor respondents). 1) Necessity of forest insurance The respondents expressed their opinions that forest insurance must be undertaken to assure forest financing (5.65%); for receiving the reimbursement of replanting costs in case of damages done (35.87%); and to protect silvicultural investments (46.74%). 2) Law of forest insurance Few respondents showed their views in favor of applying the general insurance regulations to forest insurance practice (9.35%), but the majority of respondents were in favor of passing a special forest insurance law in the light of forest characteristics (88.26%). 3) Sorts of institutes to undertake forest insurance A few respondents believed that insurance companies at large could take care of forest insurance (17.42%); forest owner's mutual associations would manage the forest insurance more effectively (23.53%); but the more than half of the respondents were in favor of establishing public or national forest insurance institutes (56.18%). 4) Kinds of risks to be undertaken in forest insurance It would be desirable that the risks to be undertaken in forest insurance be limited: To forest fire hazards only (23.38%); to forest fire hazards plus damages made by weather (14.32%); to forest fire hazards, weather damages, and insect damages (60.68%). 5) Objectives to be insured It was responded that the objectives to be included in forest insurance should be limited: (1) To artificial coniferous forest only (13.47%); (2) to both coniferous and broad-leaved artificial forests (23.74%); (3) but the more than half of the respondents showed their desire that all the forests regardless of species and the methods of establishment should be insured (61.64%). 6) Range of risks in age of trees to be included in forest insurance The opinions of the respondents showed that it might be enough to insure the trees less than ten years of age (15.23%); but it would be more desirous of taking up forest trees under twenty years of age (32.95%); nevertheless, a large number of respondents were in favor of underwriting all the forest trees less than fourty years of age (46.37%). 7) Term of a forest insurance contract Quite a few respondents favored a contract made on one year basis (31.74%), but the more than half of the respondents favored the contract made on five year bases (58.68%). 8) Limitation in a forest insurance contract The respondents indicated that it would be desirable in a forest insurance contract to exclude forests less than five hectars (20.78%), but more than half of the respondents expressed their opinions that forests above a minimum volume or number of trees per unit area should be included in a forest insurance contract regardless of the area of forest lands (63.77%). 9) Methods of contract Some responded that it would be good to let the forest owners choose their forests in making a forest insurance contract (32.13%); others inclined to think that it would be desirable to include all the forests that owners hold whenerver they decide to make a forest insurance contract (33.48%); the rest responded in favor of forcing the owners to buy insurance policy if they own the forests that were established with subsidy or own highly vauable growing stock (31.92%) 10) Rate of premium The responses were divided into three categories: (1) The rate of primium is to be decided according to the regional degree of risks(27.72%); (2) to be decided by taking consideration both regional degree of risks and insurable values(31.59%); (3) and to be decided according to the rate of risks for the entire country and the insurable values (39.55%). 11) Payment of Premium Although a few respondents wished to make a payment of premium at once for a short term forest insurance contract, and an annual payment for a long term contract (13.80%); the majority of the respondents wished to pay the premium annually regardless of the term of contract, by employing a high rate of premium on a short term contract, but a low rate on a long term contract (83.71%). 12) Institutes in charge of forest insurance business A few respondents showed their desire that forest insurance be taken care of at the government forest administrative offices (18.75%); others at insurance companies (35.76%); but the rest, the largest number of the respondents, favored forest associations in the county. They also wanted to pay a certain rate of premium to the forest associations that issue the insurance (44.22%). 13) Limitation on indemnity for damages done In limitation on indemnity for damages done, the respondents showed a quite different views. Some desired compesation to cover replanting costs when young stands suffered damages and to be paid at the rate of eighty percent to the losses received when matured timber stands suffered damages(29.70%); others desired to receive compensation of the actual total loss valued at present market prices (31.07%); but the rest responded in favor of compensation at the present value figured out by applying a certain rate of prolongation factors to the establishment costs(36.99%). 14) Raising of funds for forest insurance A few respondents hoped to raise the fund for forest insurance by setting aside certain amount of money from the indemnity paid (15.65%); others wished to raise the fund by levying new forest land taxes(33.79%); but the rest expressed their hope to raise the fund by reserving certain amount of money from the surplus money that was saved due to the non-risks (44.81%). 15) Causes of fires The main causes of forest fires 6gured out by the respondents experience turned out to be (1) an accidental fire, (2) cigarettes, (3) shifting cultivation. The reponses were coincided with the forest fire analysis made by the Office of Forestry. 16) Fire prevention The respondents suggested that the most important and practical three kinds of forest fire prevention measures would be (1) providing a fire-break, (2) keeping passers-by out during the drought seasons, (3) enlightenment through mass communication systems. 4. Suggestions The writer wishes to present some suggestions that seemed helpful in drawing up a forest insurance system by reviewing the findings in the questionaire analysis and the results of investigations on forest insurance undertaken in foreign countries. 1) A forest insurance system designed to compensate the loss figured out on the basis of replanting cost when young forest stands suffered damages, and to strengthen credit rating by relieving of risks of damages, must be put in practice as soon as possible with the enactment of a specifically drawn forest insurance law. And the committee of forest insurance should be organized to make a full study of forest insurance system. 2) Two kinds of forest insurance organizations furnishing forest insurance, publicly-owned insurance organizations and privately-owned, are desirable in order to handle forest risks properly. The privately-owned forest insurance organizations should take up forest fire insurance only, and the publicly-owned ought to write insurance for forest fires and insect damages. 3) The privately-owned organizations furnishing forest insurance are desired to take up all the forest stands older than twenty years; whereas, the publicly-owned should sell forest insurance on artificially planted stands younger than twenty years with emphasis on compensating replanting costs of forest stands when they suffer damages. 4) Small forest stands, less than one hectare holding volume or stocked at smaller than standard per unit area are not to be included in a forest insurance writing, and the minimum term of insuring should not be longer than one year in the privately-owned forest insurance organizations although insuring period could be extended more than one year; whereas, consecutive five year term of insurance periods should be set as a mimimum period of insuring forest in the publicly-owned forest insurance organizations. 5) The forest owners should be free in selecting their forests in insuring; whereas, forest owners of the stands that were established with subsidy should be required to insure their forests at publicly-owned forest insurance organizations. 6) Annual insurance premiums for both publicly-owned and privately-owned forest insurance organizations ought to be figured out in proportion to the amount of insurance in accordance with the degree of risks which are grouped into three categories on the basis of the rate of risks throughout the country. 7) Annual premium should be paid at the beginning of forest insurance contract, but reduction must be made if the insuring periods extend longer than a minimum period of forest insurance set by the law. 8) The compensation for damages, the reimbursement, should be figured out on the basis of the ratio between the amount of insurance and insurable value. In the publicly-owned forest insurance system, the standard amount of insurance should be set on the basis of establishment costs in order to prevent over-compensation. 9) Forest insurance business is to be taken care of at the window of insurance com pnies when forest owners buy the privately-owned forest insurance, but the business of writing the publicly-owned forest insurance should be done through the forest cooperatives and certain portions of the premium be reimbursed to the forest cooperatives. 10) Forest insurance funds ought to be reserved by levying a property tax on forest lands. 11) In order to prevent forest damages, the forest owners should be required to report forest hazards immediately to the forest insurance organizations and the latter should bear the responsibility of taking preventive measures.

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