• Journal of the Economic Geographical Society of Korea
• /
• v.14 no.4
• /
• pp.467-485
• /
• 2011

After Korean War, Korea focused on catching up with the world economy by concentrating on some target industries around the Capital Region and southern coastal cities. Thus, the regional disparity between Capital Region and non-Capital Regions increased drastically. At last, when Korea acquired full-fledged autonomy in 1994 in the Civilian government (1993-1998) and experienced the Asian financial crisis in 1997-1998, local governments were awakened to the notion of region-oriented development, especially for regional industrial development. The purposes of this paper are to introduce regional industrial development policies since 1998 and to suggest some recommendations in terms of how to adjust regional development for industrial policies in the future. In the introducing phase (Kim administration, 1998-2003), four provincial governments requested national funding to raise regional industries that are of strategic importance. At the same time, the central government recognized the need to nurture regional industries to overcome structural weaknesses. As a result, the Roh administration (2003-2008) gave a birth to a systematizing phase. As the ultimate regional policy objective, the balanced national development has been set and the Special Acts, Special Accounts, Committee, and National Plan have been established. Regional Industrial Promotion Project has been carried out very actively during this period. It had a good start albeit idealistic to a certain extent. Therefore, the current government has changed policy paradigm from balanced growth to regional competitiveness along with global paradigm shifts. In order to enhance regional competitiveness, regional development policies have been pursued in more efficient way. Leading Industry Nurturing Projects (LINPs) on Economic Region level, existed Regional Industrial Promotion Projects (RIPPs) on Province level, and Region Specific Industry Projects (RSIPs) on Local Area level have been implemented. Now, it is appropriate to review regional development policies including industrial policies since 1998 and to adjust them for the future sustainable regional development. Because LINPs and RIPPs will be terminated in next two years, the 2nd stage projects are on planning to reduce the redundancies in two projects. In addition, business support program would be reformed from subsiding technology development to building ecological business system. Finally some policy implications are provided in this paper, which is useful to establish the new regional industrial policies for both central and local government.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.11 no.3
• /
• pp.1-15
• /
• 2016

This study has analyzed predication capabilities leveraging multi-variate model, logistic regression model, and artificial neural network model based on financial information of medium-small sized companies list in KOSDAQ. 83 delisted companies from 2009 to 2012 and 83 normal companies, i.e. 166 firms in total were sampled for the analysis. Modelling with training data was mobilized for 100 companies inlcuding 50 delisted ones and 50 normal ones at random out of the 166 companies. The rest of samples, 66 companies, were used to verify accuracies of the models. Each model was designed by carrying out T-test with 79 financial ratios for the last 5 years and identifying 9 significant variables. T-test has shown that financial profitability variables were major variables to predict a financial risk at an early stage, and financial stability variables and financial cashflow variables were identified as additional significant variables at a later stage of insolvency. When predication capabilities of the models were compared, for training data, a logistic regression model exhibited the highest accuracy while for test data, the artificial neural networks model provided the most accurate results. There are differences between the previous researches and this study as follows. Firstly, this study considered a time-series aspect in light of the fact that failure proceeds gradually. Secondly, while previous studies constructed a multivariate discriminant model ignoring normality, this study has reviewed the regularity of the independent variables, and performed comparisons with the other models. Policy implications of this study is that the reliability for the disclosure documents is important because the simptoms of firm's fail woule be shown on financial statements according to this paper. Therefore institutional arragements for restraing moral laxity from accounting firms or its workers should be strengthened.

• Journal of Environmental Policy
• /
• v.8 no.2
• /
• pp.25-61
• /
• 2009

These days, environmental policies have changed from being command and control systems toward economic incentive systems, with various incentives having been established by OECD countries. In Korea, many environmental charges have been established in order to diminish activities which damage natural resources. Among them, the Ecosystem Conservation Cooperation Charge and the Replacement Charge for Forest Resources Creation are considered to be representative environmental charges. These charges, along with a few others, were designed to encourage efforts to protect natural resources. The charges include a number of different features, utilize varying methods, and altered ranges of jurisdiction. However, the charges may pose serious inequity problems in terms of their estimated values and their conditions of reduction and exemption. For instance, although the Ecosystem Conservation Cooperation Charge is a primary charge applied to natural resource damage, the charge does not fully secure its original objectives due to its low levy and limited range of provisions. Moreover, the Replacement Charge for Forest Resources Creation has been criticized because of similar reduction and exemption provisions. Therefore, this study analyzes the inequity problems associated with the charges and proposes solutions. First of all, the Ecosystem Conservation Cooperation Charge should be redesigned in such a way that it reflects the substantial value of natural resource damage through either abrogate or increased maximum limits of the charge. With regard to the Replacement Charge for Forest Resources Creation, the cases and ranges of reduction and exemption provisions should be narrowed. Finally, the charges collected should be expended in conformity with their original objectives, and their expenditure should be restricted to either restoration activities or activities directly related to compensation and mitigation of damaged natural resources.

• Journal of Intelligence and Information Systems
• /
• v.21 no.3
• /
• pp.79-99
• /
• 2015

The prediction of bankruptcy has been extensively studied in the accounting and finance field. It can have an important impact on lending decisions and the profitability of financial institutions in terms of risk management. Many researchers have focused on constructing a more robust bankruptcy prediction model. Early studies primarily used statistical techniques such as multiple discriminant analysis (MDA) and logit analysis for bankruptcy prediction. However, many studies have demonstrated that artificial intelligence (AI) approaches, such as artificial neural networks (ANN), decision trees, case-based reasoning (CBR), and support vector machine (SVM), have been outperforming statistical techniques since 1990s for business classification problems because statistical methods have some rigid assumptions in their application. In previous studies on corporate bankruptcy, many researchers have focused on developing a bankruptcy prediction model using financial ratios. However, there are few studies that suggest the specific types of bankruptcy. Previous bankruptcy prediction models have generally been interested in predicting whether or not firms will become bankrupt. Most of the studies on bankruptcy types have focused on reviewing the previous literature or performing a case study. Thus, this study develops a model using data mining techniques for predicting the specific types of bankruptcy as well as the occurrence of bankruptcy in Korean small- and medium-sized construction firms in terms of profitability, stability, and activity index. Thus, firms will be able to prevent it from occurring in advance. We propose a hybrid approach using two artificial neural networks (ANNs) for the prediction of bankruptcy types. The first is a back-propagation neural network (BPN) model using supervised learning for bankruptcy prediction and the second is a self-organizing map (SOM) model using unsupervised learning to classify bankruptcy data into several types. Based on the constructed model, we predict the bankruptcy of companies by applying the BPN model to a validation set that was not utilized in the development of the model. This allows for identifying the specific types of bankruptcy by using bankruptcy data predicted by the BPN model. We calculated the average of selected input variables through statistical test for each cluster to interpret characteristics of the derived clusters in the SOM model. Each cluster represents bankruptcy type classified through data of bankruptcy firms, and input variables indicate financial ratios in interpreting the meaning of each cluster. The experimental result shows that each of five bankruptcy types has different characteristics according to financial ratios. Type 1 (severe bankruptcy) has inferior financial statements except for EBITDA (earnings before interest, taxes, depreciation, and amortization) to sales based on the clustering results. Type 2 (lack of stability) has a low quick ratio, low stockholder's equity to total assets, and high total borrowings to total assets. Type 3 (lack of activity) has a slightly low total asset turnover and fixed asset turnover. Type 4 (lack of profitability) has low retained earnings to total assets and EBITDA to sales which represent the indices of profitability. Type 5 (recoverable bankruptcy) includes firms that have a relatively good financial condition as compared to other bankruptcy types even though they are bankrupt. Based on the findings, researchers and practitioners engaged in the credit evaluation field can obtain more useful information about the types of corporate bankruptcy. In this paper, we utilized the financial ratios of firms to classify bankruptcy types. It is important to select the input variables that correctly predict bankruptcy and meaningfully classify the type of bankruptcy. In a further study, we will include non-financial factors such as size, industry, and age of the firms. Thus, we can obtain realistic clustering results for bankruptcy types by combining qualitative factors and reflecting the domain knowledge of experts.

• Journal of Legislation Research
• /
• no.53
• /
• pp.455-489
• /
• 2017

The new system on the Corporate Social Responsibility(CSR) in the Indian Companies Act became overnight sensation to the worldwide. However there has been very few studies which are analyzing a purpose of it under the context of Indian societies. This paper examines the circumstance whether the CSR activities is functioning well or not. And verifying problems regarding it and suggesting supportive measures are a target of this paper. Though Indian government already established CSR legislation, they did not stipulate the penalty clause. And that became why corporations were poorly perform on CSR activities in first year of enforcement. Furthermore, There is a proclivity that corporations lack an understanding for which activities could be recognized into the CSR. And they excused that they had no time for themselves to adjust an abruptly changing business landscape. With all, unlike rosy expectations, corporations only showed little interests to the area where the investment or attentions from the media are expected. Fortunately, incumbent legislative is fully aware of it and exploit their best resources to various social fields. Despite the doubts that they originally did not have any intention to introduce the penalty clause, they are handling problems in ways that corporations can be invited in public programs. They also need to request the service sectors to take a leading role of it, which could provide the financial, or telecommunication service to the people in rural province. Thus, the fact that there was a substantial rise in terms of the amount of CSR expenses in 2015 provides a supporting evidence to the endeavors of the government. In doing so, we could finally achieve a better understanding of two-fold goals shown in this paper; maturing settlement of this legislation and development of Indian society.

• Korean small business review
• /
• v.42 no.2
• /
• pp.69-92
• /
• 2020

This study is aimed at the growth and development of family businesses that greatly contribute to Korea's economic development, but the specific research purpose is to firstly examine the research trends and current status of Korean family businesses and compare them with those of developed countries such as the United States. Second, I would like to look at the future research for revitalizing Korean family business research. In addition, we intend to contribute to increasing the interest in this field and the number of researchers involved. The research target of this paper is 212 papers published in professional academic journals for 13 years from 2006 to 2018 when family businesses began to be fully researched in Korea, 112 master's and doctoral dissertations (graduate schools), and 324 totals. As a result of empirical analysis, the number of published papers is increasing more than the initial ones, but it has been on the decline recently. In addition, 57.5% of the journals are papers that do not have specific definitions or simply list the claims of several scholars by analyzing content. Thesis was 33.9%. As for the type of research, qualitative research, which is a conceptual research, is a small number, and empirical research occupies most of the research topics. Research topics and academic dissertations also have a large proportion of management, management strategy, succession, financial accounting, and business performance. In other words, it can be said that the research on family business in Korea corresponds to the early childhood of the United States. First of all, in the future, we need to put more effort into increasing the qualitative research, starting with the definition of a family business, which is an essential problem, in addition to the theory building of family business. Second, as an analysis level of research, we should make family an important level of analysis for existing individuals, groups, and organizations. Third, the research subject and research area should be expanded. It is desperately necessary to study large companies including chaebols, mainly from small and medium-sized companies, which are the existing research areas of family business. In addition, it is considered that it is necessary to appropriately introduce various theories suitable for the interdisciplinary study, which is the characteristic of the family business, for example, theories of family science, psychology, and sociology. Fourth, it should build the research infrastructure.

• Journal of Navigation and Port Research
• /
• v.46 no.4
• /
• pp.375-384
• /
• 2022

The shipping industry is cyclically impacted by complex variables such as various economic indicators, social events, and supply and demand. The purpose of this study was to analyze the operating profit of 13 Korean liner companies over 30 years, including the financial crisis of the late 1990s, the global financial crisis of the late 2000s, and the COVID-19 global pandemic. This study was conducted to also identify factors that impacted the profit ratio of Korea's liner shipping companies according to economic conditions. It was divided into ocean-going and short-sea shipping, reflecting the characteristics of liner shipping companies, and was analyzed by hierarchical multiple regression analysis. The time series data are based on the Korean International Financial Reporting Standards (K-IFRS) and comprise seaborne trade volume, fleet evolution, and macroeconomic indicators. The outliers representing the economic downturn due to social events were separately analyzed. As a result of the analysis, the China Container Freight Index (CCFI) positively impacted ocean-going as well as short-sea liner shipping companies. However, the Korean container shipping volume only impacted ocean-going liners positively. Additionally, world and Korea's GDP, world seaborne trade volume, and fuel price are factored in the operating profit of short sea liner shipping. Also, the GDP growth rate of China, exchange rate, and interest rate did not significantly impact both groups. Notably, the operating profitability of Korea's liner shipping shows an exceptionally high rate during the recessions of 1998 and 2020. It is paradoxical, and not correlated with the classical economic indicators. Unlike other studies, this paper focused on the operating profit before financial expenses, considering the complexity as well as difficulty in forecasting the shipping cycle, and rendered conclusions using relatively long-term empirical analysis, including three economic shocks.

• Korean Journal of Construction Engineering and Management
• /
• v.25 no.2
• /
• pp.23-35
• /
• 2024

This study analyzed the correlation between each of the 12 influencing factors in FAR 16.04 and the decision-making process for construction contract types, using data from a total of 2,406 DoD Construction Acquisitions spanning from 2008 to 2022. The study considered 12 independent variables, grouped into 4 Characteristics with 3 factors each. Meanwhile, all other contract types were categorized into two types: Firm-Fixed-Price (FFP) and Cost-Reimbursement Contract (CRC), which served as the dependent variables. The findings revealed that FFP contracts significantly dominated in terms of acquisition volume. In line with prevailing beliefs, logistic data analysis and Analytical Hierarchy Process (AHP) analysis of Relative Weights from Experts' Survey demonstrated that independent variables like Uncertainty of the Scope of Work and Complexity found out to be increasing the likelihood of selecting CRC. The number of contractors in the market does indeed influence the possibilities of contract decision-making between CRC and FFP. Meanwhile, the p-values of the top 3 influencing factors on CRC from the AHP analysis-namely, Appropriateness of CAS, Project Urgency, and Cost Analysis-exceeded 0.05 in the binominal regression results, rendering it inconclusive whether they significantly influenced the construction contract type decision, particularly with respect to payment methods. This outcome partly results from the fact that a majority of respondents possessed specific experiences related to the USFK relocation project. Furthermore, influencing factors in construction projects behave differently than common beliefs suggest. As a result, it is imperative to consider the 12 influencing factors categorized into 4 Characteristics areas before establishing acquisition strategies for targeted construction projects.