• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.4
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• pp.615-621
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• 2016

This study examines whether there is agency cost in a public R&D subsidy program by applying agency theory. If there is agency cost, the composition ratio of the government subsidy and the firm's own R&D fund would have a significant (-) effect on technological performance. Companies that received a public R&D subsidy in Korea from 2000 to 2009 were selected as a sample. Frequency analysis and multiple regression analysis were used. The independent variables was the ratio of public R&D subsidy cost to the Firm's own R&D cost, and the dependent variables were the number of patent applications and the number of patents registered. The control variables were firm size and R&D cost. The results show that there are agency problems in the government-sponsored R&D system. A future study is needed to examine how much agency problems deteriorate the efficiency of the system.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2014.10a
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• pp.933-936
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• 2014

The government has the duty to prevent abuses of monopoly and promote competition in order to maximize consumer welfare. In order to promote competition we have to address the asymmetry in the information as possible and to ensure consumer choice. The subsidy seems to reduce the burden on the consumer service charges and handset prices but it virtually distort the market through price discrimination. The government caused the principal-agent problem by avoiding their appropriate role to prevent distortion of the mobile telecom market. The money used as subsidy could be transferred to down the price of cell phone and charges and it would be a benefit to consumers. Separate notice of subsidies by Mobile Communications Terminal Distribution Structure Improvement Act is a developed policy but it was too late. It, the market price close to that from perfect competition structure, is plausible, ultimately.

• Journal of Korean Institute of Industrial Engineers
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• v.40 no.3
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• pp.342-357
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• 2014

The present study analyzes the relationship between research and development (R&D) inputs and performance of a national technology innovation R&D program using successive binary Logistic regression models based on a typical R&D logic model. In particular, this study focuses on to answer the following three main questions; (1) "To what extent, do the R&D inputs have an effect on the performance creation?"; (2) "Is an obvious relationship verified between the immediate predecessor and its successor performance?"; and (3) "Is there a difference in the performance creation between R&D government subsidy recipient types and between R&D collaboration types?" Methodologically, binary Logistic regression models are established successively considering the "Success-Failure" binary data characteristic regarding the performance creation. An empirical analysis is presented analyzing the sample n = 2,178 R&D projects completed. This study's major findings are as follows. First, the R&D inputs have a statistically significant relationship only with the short-term, technical output, "Patent Registration." Second, strong dependencies are identified between the immediate predecessor and its successor performance. Third, the success probability of the performance creation is statistically significantly different between the R&D types aforementioned. Specifically, compared with "Large Company", "Small and Medium-Sized Enterprise (SMS)" shows a greater success probability of "Sales" and "New Employment." Meanwhile, "R&D Collaboration" achieves a larger success probability of "Patent Registration" and "Sales."

• Korean Journal of Agricultural Science
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• v.21 no.1
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• pp.67-80
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• 1994

Farm land is considered the most important production factor in farm production. Land is not only one of the most scarce resource but also the size of land holding is the key factor in determining the size of farm income in Korea. To increase farm productivity by accepting bio-chemical and mechnical technology, the qualitative improvement of farm land through land consolidation and on-farm development have been carried out by the Korean government. Land consolidation with water resource development makes possible the high-tech-capital intensive farming, internal expansion of farm land and hightening the rate of land intensity in connection with UR problems. This paper contained the present status of farm land base development, allocation of investment by types of farm land development and the econome-trical analysis on the effects of the investment on rice productivity during the past 27 years since 1965. The rate of irrigated paddy area had been increased from 42% in 1965 to 74% in 1991. Land consolidated area out of the total paddy area had been achieved 44.9% and the improved rate of poor drained paddy area was shown 43.5% in 1991. To carry out the above farm land base development projects, the government had procured financial budgets consisting of the G't subsidy, long term loan, foreign loan, the provincial G't subsidy, WFP counter fund and farmer's burden.

• Journal of Animal Environmental Science
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• v.3 no.1
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• pp.49-56
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• 1997

Most of Korean broiler farms are constructed with vinyl houses. Such types of broiler farms might be cheaper in terms of cost, but poor in terms of environment condition. According to enlargement of broiler farm size, high value production systems or automatic facilities are introduced in this field. However, investment may not always guarantee the profit of the management. Therefore, it is necessary to undertake the investment analysis before decision making for the investment. Under the assumption that 870 Pyoung(≒$3.3㎡) of a broiler farm within 1,740 Pyoung(≒3.3㎡) of land is built with the producing capacity of 50,000 heads of chicken in a time. The total investment is calculated to be 600 million won(1,000 won≒$1.1), and out of them 58.1% is provided by the owner, 31.6% from the government loan, 5.8% from government subsidy, and 5.3% from other agencies or banks. The expected profit of the broiler farm is 64.6 million won(1,000 won≒$1.1) per year. The IRR calculated is 0.0808 which means that the rate to profit of this project would be 8.1%. This also means that for this investment the interest rate of the capital provided should be less than 8.1% per year. Considering that the current opportunity cost of the own capital is 8.5% this project is not so attractive for those who is going to build broiler farms mainly with their own capital. In other words this project would not be profitable, unless the average interest rate of the loans provided for this project is less than 8.1% per year.

• Journal of the Korea Institute of Information and Communication Engineering
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• v.21 no.12
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• pp.2387-2393
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• 2017

The Moon government, launched in May 2017, regards telecommunication service as part of people's welfare and is trying to save telecommunication costs. However, the direction of policy presented is assessed as symptomatic approach. This is largely attributable to the a partial improvement approach from the framework of the present mobile telecommunication industry. However if we restart from an essential point of view, the result is likely to be much better. The nation's mobile communication costs are not adequate because the government's role was not sufficient. There is a problem with the mobile phone supply chain, the subsidy payment mechanism, and the billing system. Addressing these complex issues requires the establishment of an independent system of handset distribution from telecommunication companies, ban on discriminative subsidies payment, and adoption of volume rate system. Telecommunications Business Act that defines the service charges to normalize the market might be somewhat useful, but the normal application of the Fair Trade Act is more important.

• Journal of Climate Change Research
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• v.7 no.4
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• pp.391-396
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• 2016

This study was intended to analyze the average abatement cost (AAC) of forest carbon offset projects to suggest a basic credit price for government purchase of forest carbon credits. For this purpose, an a/reforestation project and a forest management project were designed with 30 years of project period. It is assumed to plant pine trees (Pinus densiflora) for the a/reforestation project, while it is assumed to replace rigida pine trees(Pinus rigida) with oak trees (Quercus acutissima) for the forest management project. For each project, the forest carbon stock was calculated and the revenue and the cost were analyzed with standardized management activities. Korea Forest Service has supported private forest owners the cost of management activities and the consulting fee for designing carbon offset project. Therefore, the AAC were analyzed for two cases : the one with subsidy for consulting fee (case 1) and the other with subsidy for both consulting fee and management costs (case 2). In addition, the sensitiveness of AAC was analyzed according to the 4 credit prices : ￦5,000, ￦10,000, ￦15,000 and ￦20,000. The result showed that the AAC analyzed for the case 1 was so high that net revenue would not be expected from all project types with any credit price. However the AAC analyzed for the case 2 was relatively lower than the AAC of case 1. Net revenue was expected from a/reforestation project with credit price over ￦10,000, while from forest management project with credit price over ￦15,000. Based on the AAC analyzed in this study, ￦15,000 was suggested as the basic price for government purchase of forest carbon credit.

• 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.

• Journal of the Korean Regional Science Association
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• v.14 no.1
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• pp.47-64
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• 1998

This paper attempts to forecast regional economic changes and to analyze government polices for interregional balanced economic growth in case of Korea Reunification. It begins with be reunified at the year 2010. The model is largely neoclassical. Since the future of North Korea is unclear, two possible scenarios are presented. The paper projects economic growth of regions, specifically forecasting growth of regions, specifically forecasting GRDP, the number of migrants and the quantity of moving capital. The results obtained show that spatially unbalanced economic growth will take place in the reunified Korea through factor movement. Two polices including public capital provision policy and income subsidy policy are thus suggested and analyed.

• Asia pacific journal of information systems
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• v.33 no.2
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• pp.444-467
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• 2023

Micro, small, and medium-sized enterprises (MSMEs) have been acknowledged to play a key role in promoting innovation and economic development. In Peru, 99.5% of formal firms are MSMEs, thus promoting innovation in these firms could have a significant impact on the Peruvian economy. In spite of Innovate Peru's efforts, Peru is still one of the countries that invests the least in innovation, with MSMEs offering low value added. Innovate Peru has launched programs (technological missions) to improve MSMEs' innovation through technology-transfer-oriented subsidies, which may strengthen companies' absorptive capacity (AC) and thus their capabilities to identify and integrate internal and external knowledge. This study assesses the impact of these programs on MSMEs. Data were collected from 85 MSMEs that participated in Innovate Peru's technological missions between 2014 and 2016. Findings show that all the dimensions of AC have a positive impact on innovation; however, the impact of economic subsidy was found to be non-significant. Theoretical and practical implications are discussed.