• Journal of the Korean Society for Railway
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• v.20 no.1
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• pp.120-127
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• 2017

The South Korean rail authority is constructing a nationwide tourism belt by developing new rail tour routes in an effort to combine local tourism resources with rail service and to create value in regional areas. As massive financial resources are required to develop and operate such tourist trains, governing authorities are required to examine the feasibility of this project as a sound business model and to assess the public benefit and profitability of the project. In this study, the economic feasibility of the tourist trains was assessed with the contingent valuation method (CVM). According to an estimation of the willingness to pay of potential tour train passengers, the surveyed subjects were willing to pay fares that were higher than prices currently published at the time of this study, thereby demonstrating that the economic value they invest on tourist trains may be higher than published prices at the time. For instance, they were willing to pay 28.4% and 54.9% more for the O-train and V-train types, respectively, according to the study, suggesting that the quality as perceived by train passengers for tourist train services is relatively high. The study is significant in that it succeeded in quantifying the satisfaction level of tourist train passengers using quantitative data (additional funds people are willing to pay).

• Journal of the Korea Academia-Industrial cooperation Society
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• v.4 no.3
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• pp.289-295
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• 2003

In this paper, the option valuation of venture business was calculated by utilizing growth option model, chosen from real option valuation method. The evaluation of venture business was estimated by adding option value to the terminal value discounted from cashflow method. As the result of the empirical analysis, ROV model applied in the Study is more reliable Han the DCF model concerning the pricing of venture business. Unlike the previous study of Schartz & Moon which only analyzed one venture business, this study estimated and analyzed the rational pricing of venture business with comparative methods using various parameters of sampling 99 domestic venture businesses.

• Proceedings of the Korea Committee for Ocean Resources and Engineering Conference
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• 2001.05a
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• pp.43-48
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• 2001

Price of Used Vessel is Key-point of Ship trading but it is very troublesome part. Because it is different from the Seller and the Buyer's caculated price, It is appropriated by The Sellers and The Buyers' mutual agreement. In case of the Buyers. it is difficult in calculating price of used ship without entrusting the ship broker, beca- use evaluation method of secondhanded vessel has not formulated and the ship broker has experientially computed Remain Value of used vessel. For this work, structure of ship trading market, trading flow, the factor of price composition and Affecting factor of price is reviewed, and it examined relationship with price. On these base, a computer software integrated database system and object-oriented technique is developed. The developed system is expected helpful to evaluation of remain value of the used vessel.

• Journal of Korea Water Resources Association
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• v.50 no.7
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• pp.467-473
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• 2017

Recently as algae phenomenon has been intensified, the need for additional dam flushing has been raised. To establish the more rational policies concerning the dam flushing, it is necessary to evaluate the dam flushing. This paper attempts to examine households' willingness to pay (WTP) for dam flushing by using a contingent valuation (CV). Especially, unlike other CV studies which used maximum likelihood estimation (MLE), this study employed Bayesian approach. This study surveyed a randomly selected sample of 1,000 households nation-widely, and asked respondents questions in person-to-person interviews about how they would be willing to pay for the additional dam flushing. Respondents overall accepted the contingent market and were willing to contribute a significant amount (1,909.4 won), on average, per household per year. The aggregate value amounts to approximately 35.7 billion won per year.

• Journal of Cadastre & Land InformatiX
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• v.45 no.1
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• pp.207-224
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• 2015

The purpose of this study is to review the various valuation techniques of intangible assets. The value of intangible asset by the income approach can be measured as the present value of the economic benefit over the intangible asset's remaining useful life. The typical methods used in intangible asset economic income projections include extrapolation method, life cycle analyses, sensitivity analyses, simulation analyses, judgment method, and tabula rasa method. There are several methods available for estimating capitalization rates and discount rates for intangible asset, in which we have discussed market extraction method, capital asset pricing model, built-up method, discounted cash flow model, and weighted average cost of capital method. As the capitalization methods for intangible asset, relief-from-royalty method, excess earnings capitalization method, profit split method, residual from business enterprise method, postulated loss of income method and so on have been reviewed.

• Journal of the military operations research society of Korea
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• v.33 no.2
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• pp.75-86
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• 2007

This paper presents the overall valuation framework of the Army Tactical Command Information System(ATCIS) with its empirical data which is developed by the ROK Army in 2005 with its own R&D efforts over the past 10 years. The valuation with the appropriate methods is conducted through the full and relentless support of ROK Army HQs, defense agencies, and related firms. And the results include both qualitative and quantitative values of the ATCIS in perspectives of economic, technical, and defense strength effects. As a result, the development of ATCIS is valued over 1.7291 trillion Won which is over 6.55 times benefit and cost ratio comparing with other country's similar system. The worth of this paper includes the actual framework and methods to apply the valuation of other weapon systems and its preliminary research, defense offset valuation, performance evaluation and others.

• Korean Journal of Construction Engineering and Management
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• v.18 no.4
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• pp.27-35
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• 2017

Based on Income-approach, this study develops the evaluation model which reflects construction industry's traits. Using Income approach, we derive future income's present value and evaluates the technological value by contribution to future income. As there exist more random variables in construction technology than in standardized manufactured products, we cannot help relying on not only quantitative estimation method but also qualitative evaluation by technology and market experts when we estimates construction technology value. Also, conservative estimation is needed for discount rate and cash-flow estimation, because of high uncertainty in sales and profits in construction industry. In empirical analysis, we applied economic periods of duration and cash-flow based on the standard guideline, and analyzed discount rate and technology factor based on characteristics of construction industry. The discount rate is estimated to 15% because of risk-premium increase by conservative evaluation. Technology factor is estimated to 46.7%, because technological intensity is estimated to 72% by technological superiority. Such implications can be inferred. Firstly, we need to build a database to diversify categories for division of sectors by activity or industrial classification which is now categorized only by two sectors in standard guideline. Secondly, the roles of experts who participate in technology evaluation are important because of volatility of construction technology.

• Journal of Korea Technology Innovation Society
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• v.20 no.3
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• pp.732-753
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• 2017

Recently, when evaluating the technology values in the fields of biotechnology, pharmaceuticals and medicine, we have needed more to estimate those values in consideration of the period and cost for the commercialization to be put into in future. The existing discounted cash flow (DCF) method has limitations in that it can not consider consecutive investment or does not reflect the probabilistic property of commercialized input cost of technology-applied products. However, since the value of technology and investment should be considered as opportunity value and the information of decision-making for resource allocation should be taken into account, it is regarded desirable to apply the concept of real options, and in order to reflect the characteristics of business model for the target technology into the concept of volatility in terms of stock price which we usually apply to in evaluation of a firm's value, we need to consider 'the continuity of stock price (relatively minor change)' and 'positive condition'. Thus, as discussed in a lot of literature, it is necessary to investigate the relationship among volatility, underlying asset values, and cost of commercialization in the Black-Scholes model for estimating the technology value based on real options. This study is expected to provide more elaborated real options model, by mathematically deriving whether the ratio of the present value of the underlying asset to the present value of the commercialization cost, which reflects the uncertainty in the option pricing model (OPM), is divided into the "no action taken" (NAT) area under certain threshold conditions or not, and also presenting the estimation logic for option values according to the observation variables (or input values).

• Korean Journal of Construction Engineering and Management
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• v.15 no.1
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• pp.39-50
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• 2014

After the global financial crisis, domestic construction industry has gone through a rapid recession. This resulted in gradual market shift towards architectural remodeling. Architectural remodeling not only improves residential environment but it has many advantages such as increase of each unit's exclusive area, free space within the horizontal or extension of an annex building, and increase number of household through splitting the household of bigger pyeong, etc. However, in case of the Korean market for apartment remodeling, due to various regulations and problem with business promotion procedures, majority of business is slow despite the figure that remodeling volume is not that small. Also, feasibility study which decides to push ahead public house remodeling business will have a flaw using net present value's law; it has a flaw of not considering properties of each phase of remodeling business and future's uncertainty. Hence, this research will improve the problem of traditional value assessment method of net present value's law. It will also consider one of the real options such as binomial model in order to supplement NPV which is used in current feasibility study. This research was based on real successful cases of public house remodeling and it was possible for feasibility study which was more realistic and valid. This research provided foundation for development of Korean public house remodeling market. There is high anticipation of increasing the validity by improving the problems of current feasibility study and economic efficiency assessment.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.14 no.11
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• pp.5465-5475
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• 2013

In this study, when to invest in real estate abroad, to present a real option in the way of decision-making. Thus, by using the binomial option model of one of the real thing and DCF, we compared the choice of real estate investment in China and South Korea. Research concerns the real estate market of Shanghai and Seoul, Analyzed the data between 2001-2009. Results were calculated NPV investment period (Net Present Value), Seoul appears in 435.44, Shanghai was 398.26. Investment decision by NPV method will select Seoul. However, as a result of calculating the value using the real option, it was found that for Seoul appear in 615.4, Shanghai has been shown to 626.1, and is suitable for investment in Shanghai. Assuming on the basis of this, that it has invested in practice, and compare the results, Seoul is intended for since 2010, real estate prices fell to 2013 currently, damage has occurred, profit's occurred Shanghai. This ensures that when making decisions in real estate investment and to use the real option than the existing DCF is appropriate.