• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.6
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• pp.461-467
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• 2020

Industrial consultation is a kind of personal service for companies. The Industry-Academic Cooperation Foundation sets up a consultation contract in which a professor performs the consultation as the person in charge. Recently, there is an issue regarding taxation of the consulting fee paid to the professor; in short, there is no standardized practice for the imposition of income tax. In this study, we examine the characteristics of industrial consultation and present an acceptable taxation rule based on related laws. First, it is not appropriate to regard consulting fees as wage income, considering that there is no employment relationship between the Industry-Academic Cooperation Foundation and the professor. Considering that the base consulting fee amount is the same as the invention compensation, according to accounting practices, and that an employee invention is apt to be derived in the consultation, it is reasonable that the consulting fee should be regarded as wage income similar to employee invention compensation. As treating the consulting fee as wage income could end up reducing industrial consultations, the government should amend the income tax law to include industrial consultation as a type of other income.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2014.06a
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• pp.73-75
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• 2014

Marine transportation facility is public goods for the general public and their safety. The study used the Contingent Valuation Method (CVM), a method to estimate economic value of non-market goods, such as environmental goods. In order to analyze economic effects of marine accidents preventable by the VTS, the study estimated costs caused by marine accident cases. It conducted surveys with people and shipping companies in local areas where VTS is to be established in the future. According to a survey with people in areas where marine transportation control center is to be built (Tongyoung), the yearly benefit from building new VTS is estimated at KRW 11billion. If fees are paid in the form of income tax for five years from 2014, corresponding benefits during the same period will reach KRW 47.3 billion in current value. An analysis on economic validity of VTS establishment in Tongyong showed the B/C ration stood at 3.193, far higher than 1. The Net Present Value (NPV) was KRW 32.5 billion and the Internal Rate of Return (IRR) turned out to be 37.4% which was higher than social discount rates of 53.5%. On balance, the establishment has reasonable economic validity.

• Environmental and Resource Economics Review
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• v.20 no.3
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• pp.595-628
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• 2011

This study investigates the issues and suggests reform measures in applying CV methods to the Korea Development Institute's (KDI's) Preliminary Feasibility Test (PFT) of public projects. Most public projects on culture, science and environment evaluated under the PFT system belong to the category of "nonstandard" projects whose outputs are non-marketed, and CV is currently the main tool used for their benefit estimation. A careful discussion and investigation is recommended for the selection of target population, payment vehicle, and number of payment times. Operating expert reviews, focus group interviews, and pre-tests is highly recommended to reduce the potential bias involved in the CV studies. A single or double bounded dichotomous choice format is the most popular design of questionnaire, but we identify several undissolved issues in designing and implementing the format. Some other forms of inducing WTPs may still deserve our consideration. Various specifications of the WTP function need to be tried and tested based on their stability, in particular. Employing a nonparametric approach is also recommended. Treatments of 0 or negative WTPs and protest bids are shown to be the most serious issues that affect the estimation results significantly. We review diverse measures of handling those issues and summarize their advantages and shortcomings.

• The Journal of the Korea Contents Association
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• v.18 no.5
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• pp.456-463
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• 2018

Increases in disasters and damage caused by the disasters in modern society, have a negative impact on local economy. In particular, a local economic downturn leads to a deterioration in quality of life of local residents and causes mental and material damage. Therefore, in order to achieve stable and sustainable local economic development, it is necessary to strengthen the resilience of the local economy. This study aims to estimate indicators of local economic resilience of Jindo County after the Sewol Ferry disaster, analyze a trend of the economic level after the disaster through time series data and suggest improvement plans of the local crisis management and restoration policy that considers future economic resilience. Results of this study showed that a decrease in the number of tourists and of workers in related industries hit tourism industry, causing a loss to the local economy and that an increase in a drinking rate of and stress awareness rate of local residents was a stress factor due to disaster impacts. These findings provides policy implications that it is necessary to make efforts for improving the depressed local image by utilizing local resources in the area, to build a sustainable long-term economic recovery policy and to provide psychological treatment and the relevant government and local government's support for relieving the stress of local residents due to the disaster impacts.

• KDI Journal of Economic Policy
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• v.12 no.4
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• pp.113-126
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• 1990

With the introduction of the national pension, efficient integration of Korea's four public pension schemes has been discussed. The main point of such discussions is whether to have a progressive scheme or an income-proportional one. Under the assumption of a perfect labor market, it has been proved in the income tax literature that the regressive tax scheme with the 0 % tax rate to the most able person (person earning highest income) is pareto efficient, if there is an incentive problem in the labor supply. In this paper, a life-cycle model with a linear benefit schedule, when there is uncertainty about future earning ability, is studied. It is proved that the second best pension scheme is that having a progressive benefit schedule. This result implies that integration into a progressive pension scheme, like the current national pension, is required not only for efficiency but also for equity.

• KDI Journal of Economic Policy
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• v.13 no.4
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• pp.59-90
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• 1991

The purpose of this paper is to determine whether the rate schedule of the Korean income tax system embodies the theoretically desirable distribution of the tax burden by income classes. The paper follows the approach of Young (1990) who has estimated the utility function and calculated the magnitude of sacrifice, i.e., the tax burden. The main point of the study is to estimate the utility function. The estimation results may differ if different data sets are used. Therefore, this paper employs the effective as well as the nominal tax rate schedule. The findings derived in this paper are 1) that the effective rate schedule is more appropriate in estimating the utility function; 2) that the middle class has born the relatively heavier burden over time; 3) that the current income tax credit scheme curtails the tax burden on the middle class while intensifying the tax burden of the lower and upper income classes; 4) that reducing the amount of deduction moves the distribution of tax burdens by income classes closer to the theoretically desirable model; 5) that the rate schedule of the Korean income tax system, particularly in 1991, did not conform to the desired model as did the tax systems of developed countries such as the United States, Italy, Japan, and Germany.

• Journal of Environmental Policy
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• v.12 no.3
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• pp.123-159
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• 2013

We use a multi-regional dynamic computable general equilibrium model to explain an economic effect of $CO_2$ tax on the national and regional economy of Korea. First, we compare two $CO_2$ taxes: a region-specific $CO_2$ tax and a uniform $CO_2$ tax. In the region-specific tax, the $CO_2$ tax rate in the capital area and the south-eastern region is much greater than those in other regions. GDP loss resulting from the region-specific tax is bigger than that in the uniform tax. Second, we consider three options for tax recycling: consumption tax recycling, labor-income tax recycling, and corporate-income tax recycling. The corporate-income tax recycling has the least GDP-loss effect over the three options. These results support that it is more efficient to use a uniform $CO_2$ tax rate than a region-specific $CO_2$ tax rate and that the corporate-income tax recycling is more desirable in a sense of efficiency than the consumption and labor-income tax recycling options.

• Journal of the Korean Society of Marine Environment & Safety
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• v.23 no.2
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• pp.177-186
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• 2017

This paper attempts to quantitatively assess the public value that has been assigned to this government plan by employing a contingent valuation technique. Data gathering performed that professional research firm administrated a face-to-face national survey of 1,000 randomly-selected households. A one-and-one-half-bound model was adopted to elicit willingness to pay (WTP) responses, and the payment vehicle used was income tax. The WTP model used in this study is based on a utility difference approach and the spike model. The results showed that the public value of conserving green turtles was estimated to be 2,570 Korean Won per household over the next 10 years as of 2016, statistically significant at the 1% level. Expanding the values considered to include the national population gives a public value of 48.7 billion Korean Won. Thus, the public value of rescuing, rehabilitating, and releasing green turtles that have been caught by fishermen, collided with fishing boats, and died in nets through the government program is not small.

• 한국사회정책
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• v.25 no.4
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• pp.71-104
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• 2018

This paper adopts a distributive performance process model of in-work poverty based on labor markets, households, and welfare states and analyzes the 4-11 waves of the Korean Welfare Panel Study during 2008-15. Previous studies on in-work poverty have focused on the definitions and concepts of in-work poverty by analyzing employment and unemployment persistence and repetition dynamics, but rarely paid attention to institutional distributive performance. In this regard, this study preforms a stepwise analysis of labor markets, households, and welfare states as a process of income generation in labor markets, satisfaction of welfare needs and income pooling at households, and deduction of social security contribution and income tax as well as receipt of public transfer income at welfare states. Results of empirical analysis show that in-work poverty had been on increase during 2008-11, followed by a decrease between 2012-15. At labor market stages, full time status had the most prominent impact on in-work poverty process, while status by employment and contract type have generated a huge variation as well. At household stages, household work intensity and number of earners contributed to reduction of in-work poverty, but the relations did not seen to be straightforward. However, welfare state played little role in lifting employees out of in-work poverty. In terms of institutional distributive process, in-work poverty was prevalent in either household-welfare state stage or labor market-household-welfare stage. Non-vulnerable group in terms of in-risk poverty was around 80% of the sample during the period of analysis, the size of which has remained constant.

• Journal of the Economic Geographical Society of Korea
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• v.21 no.4
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• pp.321-334
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• 2018

There are many factors that cause uneven regional developments in the country and one of main factors is outflow of regional income or products. The purpose of this study is to analyze regional production runoff by comparing GRDP and GRNI in basic local governments level. In this study, GRNI of basic local governments are estimated by local income tax data, The results of the study are as follows. Firstly, GRNI is more concentrated than GRDP. The analysis of Moran I showed that the spatial autocor-relation of GRNI is more distinct than that of GRDP. Local Moran I analysis shows that spatial hot spots and cold spots are more apparent in GRNI than GRDP. Secondly, the outflows of GRDP into a small number of regions are apparent. In about 80% of basic local governments, the net outflows of GRDP occur. The large net outflow regions are cities where manufacturing industry has developed and in the 20 lowest net outflow rate regions, 70-80% of GRDP outflows. The large net inflow regions are metropolitan area in Seoul and large local cities. Seocho-gu, Yongsan-gu, and Gangnam-gu in Seoul have a large net inflows and net inflow rates are over 90% of GRDP.