• Journal of Fisheries and Marine Sciences Education
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• v.20 no.3
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• pp.442-451
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• 2008

The purpose of this study is to analyze the impacts of the rapid rise in oil prices on fisheries economy. Even though fishery oils are tax exemption items, such increase in oil prices put a great amount of pressure on Korean fishing operations. Because basically the recent oil shock is externally given, Korean fisheries themselves have little capacity to cope with the disruption of economic environments. The research results turned out that Korean fisheries are extremely vulnerable(or fragile) to external shocks. In this regard, government support issues of oil costs are in the center of debate. It is widely recognized that direct/indirect government financial supports or subsidies would result in economic inefficiency in expense of equity. However, there are second best theories which may justify government intervention into the markets. This second best theory is translated into the constitutional law that instructs the government to protect and promote the primary industries including fisheries, agriculture, and midium/small-scale enterprises. It is apparent that the constitutional law would provide the government with a variety of policy instruments such as more active buy-back programs, tax exemptions and technological development to deal with fisheries economic hardship due to the external pressure such as high oil prices and international fishery orders.

• Asia-Pacific Journal of Business
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• v.12 no.3
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• pp.281-294
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• 2021

Purpose - The purpose of this study was verifying the policy effects by field of innovative growth engines, focusing on the discussion of the relationship between government support and corporate R&D activities (substitute/complementary goods), and based on the results, policy recommendations for promoting private R&D were carried out. Design/methodology/approach - Through literature research, academic/theoretical discussions about relationship between government support and corporate R&D activities were synthesized. Next, survey data were collected for companies engaged in the field of innovative growth engines and empirical analysis was conducted on the relationship between government support and R&D activities in 13 major sectors. Findings - First, as a result of analyzing all companies regardless of sector, government R&D subsidies had a positive (+) relationship with R&D activities of companies engaged in innovative growth engines, that is, a complementary relationship. Next, as a result of performing empirical analysis by dividing the 13 fields, it was found that 9 fields were complementary goods in which government support had a positive (+) effect on the R&D activities of companies. On the other hand, in the remaining four fields, the effect of government support on corporate R&D activities was not statistically significant. Research implications or Originality - In order to promote R&D activities of companies in the 9 fields where government support acts as a complementary product, it is necessary to establish policies centered on direct government support. On the other hand, it would be more desirable to seek indirect support rather than direct support in the 4 fields where government support did not have a statistically significant effect on corporate R&D activities.

• International Commerce and Information Review
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• v.6 no.2
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• pp.65-84
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• 2004

Korean Government has provided special support to Korean export industry during past 40 years. However, due to the agreement on UR and appearance of WTO, the Government can't provide most of the subsidies which were allowed before WTO era. Hence, export insurance system became more useful tool since it's one of the few allowed subsidies under WTO. This study tries to find the impacts of export insurance systems on the exports in Korea, the United States, and Japan. Firstly, this study surveyed the export insurance systems of Korea, the United States, and Japan. Then, using a regression analysis it analysed the effects of export insurance systems upon the exports in Korea, the United States, and Japan respectively. The period of data is from 1980 to 1999. The results of the regression analysis for export insurance showed significant and positive effects of both Korean and Japanese but the United States showed insignificant and positive upon the exports.

• East Asian Economic Review
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• v.16 no.2
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• pp.139-154
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• 2012

This paper provides a theoretical setup for an analysis of strategic relationships inherent to activities of an innovative multinational enterprise (MNE) and a local company in a host country. Additionally, we explore the incentives of the host country's government to provide subsidies to attract foreign direct investment (FDI) and to protect outcomes of R&D activities conducted by the MNE. We show that the MNE's commercial interests may collide with local companies' over protection of IPRs. Therefore, the extent of knowledge spillovers from the MNE to the local company and the magnitude of incentives to the MNE perform a crucial function in determining the optimal policy mix of IPR protection and FDI subsidies of the host country's government.

• Journal of Information Technology and Architecture
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• v.10 no.1
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• pp.137-145
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• 2013

Until recently, Korean government had supported Start-Up Investment Subsidies to the early stage of non-metropolitan manufacturing company for the purpose of promoting start-up and new job creation. As a result, for 4 years, there are total of 1.546 trillion won increase of sales and a total of 3,825 people have been hired including non-regular workers. In this paper, I suggest the performance of Start-Up Investment Subsidy and policy direction for improvement.

• Analyses & Alternatives
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• v.7 no.2
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• pp.111-145
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• 2023

This study examines the impact of political connections of Chinese listed firms on CSR(Corporate Social Responsibilities) activities. Firms recognize the political connections as 'non-market strategy' and actively utilize various benefits obtained through them for management activities. In order to utilize these political connections, there is a need for firms to implicitly perform the government's social policy obligations in return for their benefits. In particular, CSR activities in China are one of the government-led social policies unlike in the West, and the government wants firms to solve social problems through active CSR activities. In this background, this study empirically verifies whether firms with political connections are actively carrying out CSR activities required by the government from 2013 to 2019. As a result, Chinese listed firms with political connections have a positive effect on CSR activities. Especially, those with political connections with central government carry out both government benefits and social policy obligations.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.2
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• pp.1-13
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• 2009

In this paper, we develop theoretical game models to determine the level of government subsidies for banks to provide policy loans to Innovative SMEs(small and medium sized enterprises) through banks, which otherwise would not finance them for the sake of their own profitability. For this, we compare net cash flows of each bank using different strategies against high risk innovative SMEs. A bank can decide whether to provide them loans or not In each period. Following Kim(2003)'s Infinite horizon model on the soft budget constraint, we introduce a situation in which banks compete against each other for higher net long-term payoffs from their loans to innovative SMEs and non-innovative SMEs. From the models, we show that competition among banks in general leads to a tighter decision against innovative SMEs, as a Nash equilibrium. It is not because the government bank is simply loose in providing loans, but because competition among commercial banks for fewer riskier borrowers results in tighter loan decisions against innovative SMEs. Thus, the competitive market for policy loans to innovative SMEs fails to reach the socially optimal level of loans for innovative SMMs. Commercial banks in the competitive market may require additional supports from the government to make up for the differences in their payoffs to support innovative SMEs, possibly much riskier due to moral hazards and poor discounted cash flows. The monopolistic government bank might also request such supports from the government to fund otherwise unqualified SMEs. We calculate an optimal level of governmental support for banks to guarantee funding such high-risk innovative SMEs over periods without deviating from their optimal Nash equilibrium policies.

• 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.

• Proceedings of the KSR Conference
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• 2003.10b
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• pp.46-51
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• 2003

The government's financial subsidy system for the construction project of urban rail transit needs to be revised. In 1998, the central government raised its subsidy rate to 50$\%$ of the total cost of construction. The 'method for differentiating subsidies depending on construction type and transit System' is suggested here, so that a subsidy rate can be raised for the construction of Light Rail Transit, which costs less to construct. Such methods will force local governments to make decisions regarding construction method and project size in a more rational manner.

• Current Industrial and Technological Trends in Aerospace
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• v.6 no.2
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• pp.11-21
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• 2008

This paper focuses on finding the way of aerospace industry promotion in Korea compatible with fair trade system under international rules by considering and analysing the WTO subsidy rules and WTO dispute settlement cases. As for subsidy rules in WTO, the paper deals with two matters such as financial contribution and benefit and further studies provisions on the prohibited subsidies and actionable subsidies. And as for the dispute settlement matters, it reviews the Brazil-Canada case and the US-EC case on civil aircraft export subsidies. While aerospace industry in Korea is not yet internationally competitive still requiring government's continuous supports, it must not be in conflict with subsidy rules under WTO mechanism. This paper makes several suggestions to meet these conditions.