• The Korean Journal of Financial Management
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• 제25권4호
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• pp.145-182
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• 2008

As the life expectancy increases resulting in the aged society, the post-retirement life became one of the most important concerns of people. The long-term investment vehicles such as retirement savings and pension plans have been introduced to meet such demand of society. This paper examines the impact of asset allocation strategies on the long-term investment performance. Because of the unusually long investment horizon and the compounding effect, a suboptimal asset mix in a retirement plan can be a very costly and irreversible mistake. Instead of relying on anecdotal evidence to evaluate the merits of different allocation strategies, this paper performs various tests including stochastic dominance tests using both actual data and Monte Carlo simulated data that best fit the historical experience. The results indicate 1) the long-term investments perform better than the short-term investments, 2) the optimal asset allocation strategy for the long-term investments should be highly equity dominated.

• Journal of Multimedia Information System
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• 제8권1호
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• pp.69-74
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• 2021

This paper accumulates the product structure data such as bond obligation ratio and investment ratio for variable insurance using crawling from the insurance company's API, also accumulates variable insurance income and project expenses for variable insurance using crawling from the API of life insurance association. From these accumulated data, the correlation coefficient between fund product and customer preference is calculated with an investment algorithm, and variable insurance funds by customer investment preference and product structure are recommended according to market conditions. From the simulation results, it is shown that the proposed variable insurance management system properly recommends and manages variable insurance according to customer preferences.

• KIEAE Journal
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• 제16권6호
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• pp.5-12
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• 2016

Purpose: Quasi-steady state simulations have played a pivoting role to expand the user group of simulation to design engineers and architects in Korea. Initially they are introduced in the market as a building energy performance rating tool. In domestic practice, however, quasi-steady state simulations seem to be regarded as a de facto simulation only available for energy retrofit. Selection of ECMs and economic feasibility analysis are being decided through these tools, which implies that running these tools has become a norm step of the Investment-grade Audit. Method: This study aims at identifying issues and problems with the current practice via test cases, analyzing the reasons and opportunities, and then eventually suggesting proper uses of quasi-steady state and dynamic simulations. Result: The functionality of quasi-steady state simulations is more optimized to the rating. If they are to used for energy retrofits, their off-the-shelf functions also need to be expanded for customization and detailed reports. Yet their roles may be limited only to the go/no go decision; because their algorithms are still weak at precisely estimating energy and load savings that are required for making investment decisions compared to detailed simulations.

• Journal of the Korean Operations Research and Management Science Society
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• 제29권2호
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• pp.19-43
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• 2004

This study was motivated by a practical need for estimating the macroeconomic effect of government IT Promotion investment, specifically for micro and small firms. Small firms have been in a disadvantageous position to adopt and utilize new IT compared with medium or large-sized firms. Small firms don't have enough resource to acquire IT in general, therefore private IT companies don't have much incentive to develop IT services and products for small firms. Lack of feasible IT solutions for small firms again restricted active IT adoption of small firms. Government recognized the vicious cycle, therefore decided to promote private IT companies to develop IT services and products for small firms's. Our main concern was to identify a relevant government supporting Policy, especially in the amount and the period. To do this, we first constructed a system dynamics simulation model to Investigate important factors and causal relationships among them. Simulation results showed 2.19% of GDP contribution and 0.16% of employment contribution in max from small firms' IT adoption. Also we could find that investing proper amount for a short period would be for better than maintaining Investing small amount for a long period.

• Journal of the Korea Society for Simulation
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• 제29권4호
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• pp.95-109
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• 2020

In this paper, an optimal manufacturing system design problem in an automotive body assembly lines is introduced when various costs such as equipment investment costs are considered. Meta-model methodology based on simulation results has been used for estimating the performances of the system such as production rate and work-in-process levels. The objective function is minimizing total cost which satisfies the target production rate. The investment costs such as robots, buffers, transportation equipment, and the inventory holding cost of work-in-process have been included in the objective function. Harmony search method has been used for optimization.

• Journal of the Korea Institute of Building Construction
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• 제1권2호
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• pp.154-164
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• 2001

This research is aiming to specify the requirement of the investment such as intial cost, running cost earning rate to make effective investment considering the purpose of remodeling and economical value of store building enough to meet the initial purpose of remodeling. The review of earning for economical evaluation was performed by the on-site auditing on the structure and function of the building and applying the assessment simulation program, which is to find the possible business model to identify the requirement of building owner through case study. After the research, the following results are obtained. First, it is important that many aspects should be carefully analysis and the best method should be selected as characteristics of remodeling can be defer each other in their implementations. Second, though the remodeling of exist building to promote the functions has been applied, no suitable assessment tool has bee developed for deciding the level of remodeling in the view of economical efficiency so far. Third, the economical benefit was evaluated by analysing annual earning rate which is applied by investment items and recovery period for the investment. More specific date base should be established to apply the suggested economic acessments in business enough ti forecast the future circumstances. More researches should be promoted on the area continuously as well as the integrated economic evaluation of remodeling on existing building.

• Proceedings of the Korean Institute of Building Construction Conference
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• 한국건축시공학회 2002년도 학술.기술논문발표회
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• pp.103-109
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• 2002

This research is aiming to specify the requirement of the investment such as initial cost, running cost earning rate to make effective investment considering the purpose of remodeling and economical value of store building enough to meet the initial purpose of remodeling. The review of earning rate for economical evaluation was performed by the on-site auditing on the structure and function of the building and applying the assessment simulation program, which is to find the possible business model to identify the requirement of building owner through case study. After the research, the following results are obtained. First, it is important that many aspects should be carefully analysis and the best method should be selected as characteristics of remodeling can be defer each other in their implementations. Second, though the remodeling of exist buildings to promote the functions has been applied. no suitable assessment tool has bee developed for deciding the level of remodeling in the view of economical efficiency so far. Third, the economical benefit was evaluated by analysing annual earning rate which is applied by investment items and recovery period for the investment. More specific data bate should be established to apply the suggested economic accession in business enough to forecast the future circumstances. More researches should be promoted on this area continuously as well as the integrated economic evaluation of remodeling on existing building.

• The Transactions of The Korean Institute of Electrical Engineers
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• 제56권10호
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• pp.1731-1737
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• 2007

The Korea electricity wholesale market is operated under the cost-based-pool system and the government regulation to the new generation capacities in order to insure the resource adequacy. The goal of government's regulation is the electricity market stability by attracting proper generation investment while keeping the reliability of system. Generation companies must mandatory observe that government plan by now. But if the restructuring is to be complete, generation companies should not bear any obligation to invest unless their profitability is guaranteed. Namely the investors' behavior will be affected by the market prices. In this paper, the system dynamics model for Korea wholesale electricity market to examine whether competitive market can help to stabilize is developed and analyzes the investors behavior. The simulation results show that market controlled by government will be operated stable without resulting in price spike but there is no lower price because of maintaining the reasonable reserve margin. However, if the competition is introduced and the new investment is determined by the investor's decision without government intervention, the benefits from lower wholesale price are expected. Nevertheless, the volatility in the wholesale market increases, which increases the investment risks.

• Environmental and Resource Economics Review
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• 제14권3호
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• pp.753-773
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• 2005

This paper is a study of the investment dynamics focusing on crude oil supply by OPEC and non-OPEC. Oil supply capacity is first determined by a leader, OPEC, and by an aggregate that represents non-OPEC producers. OPEC wants to increase a gain from oil price increase while keeping its market share relative to non-OPEC's share. An investment rule model is developed for OPEC crude oil supply capacity in response to non-OPEC's decision. In presence of oil price uncertainty, oil price threshold is derived above which it is optimal for OPEC to expand oil supply capacity since otherwise the increased supply of non-OPEC results in weakening of OPEC market share in the world oil market. In addition, a lower threshold price is derived below which OPEC triggers a capacity reduction to regain its otherwise forgone profits. A simulation is provided for calculating the capacity expansion and reduction thresholds.

• IE interfaces
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• 제24권1호
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• pp.24-39
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• 2011

In this paper, we study the methodology for the measurement and integration of market risk and credit risk using Copula. We apply the methodology of Rosenberg, and Schuermann(2006) to the assets of pension system. Firstly we estimate dynamics of risk factors and their effects on investment returns, then use the estimated result to simulate future movement of risk factors and distribution of investment returns. Finally we measure integrated risk using integrated return distribution by Copula and simulated future investment return distributions. We found the integrated risk changing with the correlation of risks and investment weights of risks and confirmed the diversification effect of risks. This result is consistent when we use normal Copula and normal marginals, t-Copula and t(3) marginals, and normal Copula and non-parametric marginals. And in the case of non-parametric maginals, larger integrated risk is calculated. It means that use of non-parametric marginals is more conservative.