• Korea Journal of Hospital Management
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• v.22 no.2
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• pp.58-69
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• 2017

Recently, with the increase in the number of private health insurance subscribers, interest in overuse of the medical service is increasing. This study analyzed the impacts of private health insurance (PHI) on medical institution selection in outpatient service utilization among persons with arthritis. In order to control patients' health status, we extracted outpatient episodes with the same disease (KCD6, M13) from Korea Health Panel. The unit of analysis was an outpatient visit with arthritis in 2014 (n=23,363). In the light of insurance coverage, we redefined three type of private health insurance (ex, indemnity, fixed benefit, and non-insured) as a test variable and two type of medical institution (ex, hospital and physician visit) as a dependent variable. We conducted a probit regression analysis to identify the impacts of PHI on medical institution selection controlling for heteroscedasticity. The results of this study showed that the insured with indemnity were more likely to choose hospital departments than clinics (marginal effect=0.0475, p=0.000). The impact of participation of fixed benefit PHI was not as clear as that of indemnity type (marginal effect=0.0162, p=0.047). In conclusion, this study confirmed that PHI, particularly indemnity type has a significant impact on the selection of medical institutions. Healthcare policy makers should consider that PHI not only affects the overall quantitative increase in healthcare utilization, but also influences the selection of medical institutions.

• Journal of Digital Convergence
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• v.15 no.1
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• pp.77-84
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• 2017

This study investigates the association between financial reporting strategy and the directors' and officers' liability insurance. Since D&O insurance protects officers and directors against the risks of shareholder litigation, it is possible that, because of moral hazard, managers will be more willing to participate in opportunistic financial reporting such as earnings manipulation when they are covered by a generous D&O insurance policy. This paper examines the association between D&O insurance and financial reporting, specifically whether the purchase of D&O insurance affects earnings manipulation. On the other side, the firms engage earnings management are willing to purchase D&O insurance, this study tests whether earnings manipulation affects D&O purchases using listed firms in Korean stock market from 2006 to 2008. This paper finds that firms with higher discretionary accruals are less likely to purchase D&O insurance implies that managers who are participating in earnings manipulation are not willing to purchase D&O insurance. The relation between discretionary accruals and D&O is significantly negative which indicate D&O insurance purchase does not trigger earnings manipulation rather it alleviates opportunistic reporting behavior.

• The Journal of the Korea Contents Association
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• v.18 no.1
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• pp.268-276
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• 2018

This study examined the effects of indemnity private health insurance on the medical utilization among the Korean adults. The used data were the 2014 survey data of Korea Health Panel, and the number of subjects was 11,436. Authors employed instrumental variable regression model where the instrument variables for controlling for endogeneity of indemnity were the purchasing of private pension and number of family members. The results showed that the number of outpatient visits and the number of hospitalizations for indemnity private health insurance subscribers were higher than non-subscribers. The number of household members and the private pension variables were proved to be appropriate as instrumental variables. This paper recommends the Korean government to monitor and evaluate the effects of indemnity private health insurance on the medical utilization in order to improve the efficiency of health care finance.

• Journal of Preventive Medicine and Public Health
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• v.40 no.4
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• pp.329-335
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• 2007

Objectives : To identify the effects of supplemental private health insurance on health care utilization and expenditure under the mandatory National Health Insurance(NHI) system in Korea. Methods : The data were collected by the National Cancer Center in Korea. Cancer patients who were newly diagnosed with stomach (ICD code, C16), lung(C33-C34), liver (C22), colorectal cancer(C18-C20) or breast(C50) cancer were included as study subjects. Data were gathered using a structured questionnaire from face-to-face interviews, the hospital Order Communication System (OCS) and medical records. Clinical, socio-demographic and private health insurance related factors were also gathered. The differences of health care utilization and expenditure were compared between those who have private health insurance and those who do not using t-test and multivariable regression analysis. Results : Individuals with private health insurance spent larger inpatient costs than those without, but no differences were found in utilization in other service such as hospital admissions, hospital days and physician visits. Conclusions : We found that private health insurance exerts a significant effect on the health care expenditure in inpatient service. These study results can provide a rational basis to plan a national health policy regarding private health insurance. Further studies are needed to investigate the impacts of private health insurance on cancer patients' outcomes and survival rates.

• Journal of Korea Technology Innovation Society
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• v.21 no.4
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• pp.1345-1365
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• 2018

Following principal-agent relationship between government and funding agency effects on efficiency and management of project, this paper suppose that project management cost rate variable on outsourcing and administration of institution, applies multiple regression analysis and logit analysis by using factors that procurement status of institutional operating expenses and each subordinates scale (Budget, subject number) and method (Top-down/Bottom-up), not a total amount, for examining factors following project efficiency analysis and way of commission. The major variables which effect on efficiency of institution are management cost scale (0.36), institutional operating expenses ratio (-0.47), way of outsourcing, the factors that affect way of outsourcing are portion of project management cost (-38.5) and institutional operating expenses rate (-11.7). This means both legal and financial stability are necessary and it is avoidable moral hazard and adverse selection on principal-agent problem.

• Journal of the Korea Society of Computer and Information
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• v.29 no.3
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• pp.191-198
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• 2024

Korea is an import and export-oriented economy that relies on shipping transportation, and sea ports play an important role in national economic growth. To secure and maintain the competitiveness of these ports, hardware and software investments are required, but policy support can also be expected to have an effect. This study identified the irrationality of the system by exploratory analysis of the port facility fee discount system for Ulsan Port, an energy hub port, and suggested improvement measures to resolve it.This study analyzed the volume of Ulsan Port and the reduction of port facility usage fees for about 10 years and identified irrational factors that despite a special port for liquid cargo, a considerable reduction for container cargo is concentrated, and even because it was a passing ship, 100% reduction for entrance and clearance fees were provided to them, which could cause serious moral hazard.. As a way to improve the port facility charge discount system at Ulsan Port, this study proposed strengthening support for eco-friendly activities to support containers, adjusting the reduction rate for passing ships, or improving the reduction and exemption application process.

• KDI Journal of Economic Policy
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• v.14 no.3
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• pp.97-124
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• 1992

The recent sharp increase in wages has driven many Korean manufacturing firms to move into technology-intensive fields. The task of industrial restructuring is, however, rather difficult for small and medium-sized enterprises (hereafter, "SMEs") which suffer from limited R&D resources. If the R&D activities of SMEs are left unattended, industrial restructuring process may be retarded. Hence, the government-sponsored programs can be justified when used to promote the technological level of SMEs. Because of the limited internal R&D resources of SMEs, in particular human resources, the government-sponsored programs that depend on financial subsidies to stimulate the R&D activities of SMEs may not be recommended. Rather, a more desirable policy is programs to subsidize outside sourcing of SMEs. Basic principles of the program are; (i) that the government should establish R&D laboratories which are specialized in joint researches with SMEs in each industry; (ii) research projects of the laboratories should be funded by SMEs; the government's support covers only fixed costs such as construction costs in order to avoid moral hazard problem. (iii) technology adviser programs sponsored by the government should be improved; geographical distribution is to be expanded and the activities are to be monitored by local governments. Also foreign networks need be strengthened.

• Journal of Korea Technology Innovation Society
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• v.13 no.3
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• pp.538-557
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• 2010

Korean Government has supplied small-medium enterprises with various technology financing programs such as R&D grant." loans, equities, guarantees since 1980's. The purpose of this study is to render policy suggestions for policy makers by analysing problems with regard to regulations. The suggestions of this study are such as the following. First, the current three months of the fund formation period should be extended within six months for general partners to have enough time to raise funds in the current tough capital market situation. Second, the government's non priority loss devotion system should keep going to prevent general partner's moral hazard. Third, in order to fulfill the policy purpose that is to create globally well-known companies, the government investment ratio should scale up from the current 20% to 30% of the total fund size in that the stable capital supply for core technology commercialization, industrialization and globalization of companies is achieved. Finally, general partners of the New Growth Engine Fund should showoff their investment abilities to the potential investors such as institutional investors by accumulating all track records and know-hows that prove their specialities and implementing action plans to achieve the best result of their investment. This study provides general considerations of the selection procedure, the government investment ratio, the government priority loss devotion system and so on when formating the public funds.

• Health Policy and Management
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• v.23 no.1
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• pp.3-18
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• 2013

This paper investigates the possibility of expanding pay-for-performance (P4P) program as a provider payment system, in terms of financial, economical, and political sustainability. In order to expand the sustainable P4P, P4P should have usefulness in terms of economic value as well as efficiency in the financial aspects of health care. More importantly, the P4P would be politically sustainable only when both providers and consumers can accept. Korea's healthcare system seems to have logical ground for the P4P program financially and economically. However, how well the P4P can work remains to be proven in its implementation. After 43 tertiary hospitals applied the P4P program for acute myocardial infarction (AMI) and C-section in 2007, the number of hospitals adopting the P4P program for AMI and C-section has increased to 316 in 2011, and an incentive for hospitals applying the P4P has risen to 2% from 1% of health insurance benefits. This shows that the P4P program introduced by Health Insurance Review and Assessment Service is quite successful. In addition, people are aware of the need for improved P4P program and policy alternatives have been already made. Therefore, it is very important to come up with politically supportable strategies that can make providers and consumers accept the P4P program while maintaining the governance of the existing health insurance policy. To this end, there are some tasks to be considered. First, the expansion of the P4P program should be placed on the agenda of the Health Insurance Policy Review Committee, the highest decision-making body, and a separate agency for P4P planning should be established. Second, for more efficient P4P program, the processes of review and assessment, currently carried out separately, should be integrated into a single process. Third, infrastructure to measure the quality of medical services should be sharply expanded. Fourth, the current paradigm for the assessment should be changed. Lastly, a P4P program for consumers should be considered. Given that the consumers in Korea can use medical services freely, the National Health Insurance Corporation could initiate the P4P program for consumers as a means of controlling excessive use of medical services and adjusting consumer's moral hazard.

• The Journal of Fisheries Business Administration
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• v.18 no.1
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• pp.37-57
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• 1987

This article discussed the characteristics of several Pareto-optimal incentive contracts between owner and labor, more specifically, four situations: reporting output jointly observable by labor ana owner; reporting both output and effort; incorporating other endogenous elements (like capital) that affect the production process and Pareto-optimal fee schedules; and ascertaining the effects of private pre-decision information private- decision information, and per-contact informational asymmetries. Also presented were several extensions of the basic contractual model, and the different components of agency costs associated with labor-owner contractual relations. In a single-period model, the agency problem exists because the uncertainty prevents the owner from using the cash flow to determine unambiguously the labor's action. Holmstrom(1979) suggests that "when the same situation repeats itself over time, the effects of uncertainty tend to be reduced and dystunctional behavior is more accurately revealed, thus alleviating the problem of moral hazard. " Under these conditions, if the labor selects the first-best level of effect in each period, the cash flow will be independent and identically distributed over time. As the number of periods increases, the variance of the labows average output, if he selects the first-best level of effort in each period, gets smaller. Note that for this diversification effect to occur, it is necessary that the owner evaluate the labor's effort over the entire history of his employment, rather than evaluate each period's performance separately. Radner(1980) and Rubinstein and Yaari(1980) consider the extreme case in which there are an infinite number of observations. They show that the owner can eventually detect and systematic shirking on the part of the labor by comparing the labor's average output with what would be expected if the labor had been selecting the first-best level of effort in each period. In a dynamic model with incentive problems we have demonstrated that the labor's second-period compensation will depend on his first-period performance. This allows the owner to diversify away some of the uncertainty surrounding the labor's actions. In addition, this allows the owner to smooth the labor's income over time by spreading the risk of the first-period outcome over both periods. At least some unexplored avenves in this area invite future accounting research: situations where owner has different incompatible objectives and negotiates a contract with labor; circumstances in which owner deals with multiple objectives and negotiates contracts with several labors simultaneously; the value of costly accounting information systems and communication in establishing, Pareto-optimal incentive contracts, and the value and effects of inside information, Thorough theoretical or empirical research on each of these topics not only would increase our knowledge about the role and significance of accounting information but could also provide explanations of the inherent differences among various organizations and in their economic behavior. behavior.