• Title/Summary/Keyword: Government College Loan Program

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Student Academic Performance, Dropout Decisions and Loan Defaults: Evidence from the Government College Loan Program

  • HAN, SUNG MIN
    • KDI Journal of Economic Policy
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    • v.38 no.1
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    • pp.71-91
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    • 2016
  • This paper examines the effect of the government college loan program in Korea on student academic performance, dropout decisions and loan defaults. While fairness in educational opportunities has been guaranteed to some degree through this program, which started in 2009, there has been a great deal of controversy over its effectiveness. Empirical findings suggest that recipients of general student loan (GSL) lower academic performance than those who received income contingent loan (ICL). Moreover, for students attending private universities, a higher number of loans received increased the probability of a dropout decision, and students from middle-income households had a higher probability of being overdue than students from low-income households. These findings indicate that expanding the ICL program within the allowance of the government budget is necessary. Furthermore, providing opportunities for students to find various jobs and introducing a rating system for defaulters are two necessary tasks.

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A Framework to Determine the Loan Rate of the Government Loan Program based on Rationales of the Government Loan Program (정책자금 정당성에 근거한 정책자금의 대출금리 결정 방안)

  • Yoon, Byung-Seop;Yoo, Shi-Yong
    • 한국벤처창업학회:학술대회논문집
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    • 2007.11a
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    • pp.81-109
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    • 2007
  • The loan rate of the government loan program offered by the Small Business Corporation(SBC) can be determined as a sum of three factors such as a reference interest rate, a policy aim spread, and a credit risk spread. However the loan rate has been lower than the loan rate in the banking sector. The profit has continually run in the red figures and hence the stability the fund managed by the SBC has been damaged. Even though a policy aim spread could be emphasized, the stability and profitability of the fund should be prioritized. This means that the loan rate of the SBC should be determined such that the loss might not be occurred. This requires the policy aim spread to change from relatively large negative to near zero.

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Capital Markets for Small- and Medium-sized Enterprises and Startups in Korea

  • BINH, Ki Beom;JHANG, Hogyu;PARK, Daehyeon;RYU, Doojin
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.12
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    • pp.195-210
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    • 2020
  • This study describes the structure of the capital markets for small- and medium-sized enterprises (SMEs) and startup companies in Korea, which is an emerging market that has experienced drastic changes. The overall capital market can be divided into private and public capital markets. In the private capital market, most of the demand for capital comes from non-listed private firms, including startups and SMEs. In the case of SMEs and startups, the KOSDAQ, the Korea New Exchange (KONEX), and primary collateralized bond obligations (P-CBOs) are part of the public capital market. SMEs and startups are generally incapable of raising sufficient capital owing to their low credit ratings, and they largely have limited access to primary markets to issue shares and borrow money. The Korean government has developed a systematic financial aid program to provide funds to these companies. The fund for SMEs has significantly contributed to the development of the venture capital market. Many Korean banks provide substantial lending to SMEs, but this lending is available only because of the Korean government's loan recovery guarantee. Furthermore, SMEs can issue corporate debt in the form of primary collateralized bond obligations through government guarantees, but such debt issuances have placed increasing pressure on public guarantee institutions.

Marketing Situation and Sales promotion Strategies of Boxthron in Chongyang Area (청양 구기자의 유통실태와 판매촉진전략)

  • Kim, Chul-Ho
    • Korean Journal of Agricultural Science
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    • v.24 no.1
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    • pp.85-93
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    • 1997
  • This paper is aimed to study on sales promotion strategies for the increment of farm income by cultivating Boxthron in Chongyang Area. Marketing Survey was done in Chongyang Boxthron market, Kyoung-dong herb market in Seoul. The results are as follows ; Reviewing the Boxthron market prices, the price of direct transaction was the highest one and that of Agricultural Cooperatives was next one, Chongyang market price was lowest one. Therefore, the efforts including exclusive labeling, high class packing strategies of Boxthron with lower pollution would be necessary. The seasonal variation Boxthron prices were lowest in Aug.-Sept., harvesting season, and highest in april-june prices, off-crop season. Farmers have sold 45% of all products in Aug.-Oct. at lowest price and the remaining 15% of that sold in april-june at the highest prices. On account of the above reasons, loan for Boxthron production, government purchasing and storage program of it especially in harvesting season from Aug. to Oct. should be adopted to increase Boxthron producer income. Finally, the strategies for sales promotion, enforcement of government supporting activities including export strategies and the development of new processed products of Boxthron should be propelled considering the products cycle.

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A Study on the Effects of the Policy Funding Program Provided to the Small and Medium Sized Enterprises in Gangwon-Do (강원도 중소기업 정책자금지원제도의 성과분석)

  • Shim, Sangpil;Jang, Woon Wook
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.14 no.4
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    • pp.179-190
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    • 2019
  • To alleviate financing difficulties of small and medium sized enterprises (SMEs), the government and municipal governments are providing a variety of SME policy funding programs. This study introduced the policy funding program of Gangwon-do and quantitatively analyzed the financial performance of companies supported by the Gangwon-do SME policy fund in the year 2014. Specifically, we compared the financial ratios for three years, from 2013 to 2015, between funded firms and non-funded firms. In addition, we applied a regression analysis to see if the policy funding program contributed to profitability (the operating profit growth and return on equity), stability (the interest coverage ratio and debt-to-equity ratio), and growth (the asset growth and sales growth) of the funded firms. The empirical results show that the firms that received the policy funds did not show any improvement compared to non-funded firms in terms of profitability, stability, and growth. This suggests that Gangwon-do should improve the policy funding program, that currently provides only an interest amount of 2-4% of the corporate loan principal, without any strategic selection criteria for the target funded firms, and without any follow-up management system, after support.

Problems in Management of Rural Special Production Area and Improvement of Political Countermeasures (In the Case of Chungnam Province) (농어촌(農漁村) 특산단지운영상(特産團地運營上)의 문제점(問題點) 및 정책적(政策的) 개선방향(改善方向)(충청남도(忠淸南道)를 중심(中心)으로))

  • Lim, Jae Hwan
    • Korean Journal of Agricultural Science
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    • v.20 no.1
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    • pp.88-101
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    • 1993
  • This study is aimed at evaluating the present management status of the rural special production area development projects and identifying managerial problems to propose new direction of the political countermeasures for the projects. In the con text of implementing the five year's economic developent plans for the past three decades, agricultural production and farm-household income have also been grown rapidly. However the income gap between rural and urbarn laborer, as an internal problem, has widened during the decades and the UR problems concerning free trade of agricultural products, as an external problems, are now agonizing the small-holder farm economy in Korea. The internal and external farm problems could be solved through improvement of agricultural structure and provision of off-farm jobs for farm household income increase. As a part of the off-farm income sources, the rural special production area development projects have propelled by the government throughout the country. The main problems to be solved for the successful implementation of the projects are as follows : 1. Present loan amount by the financial fund was estimated at 6-7% of the total installation costs required. To expand and implement the project successfully, enough financial credit support with favorable terms and conditions have to be considered by the government. 2. The operation patterns of the special production area development project should be recommended from the view point of cooperative and private operation to maximize farm household incomes including profits, marketing charges and dividens. 3. Improvement of the marketing channel of the products and marketing information through TV program and other mass communication should be implemented strongly to promote marketsales by the financial supports of the government. 4. In connection with the off-farm income increase, the population migrating to urban area in outside Chungnam province equivalent to 10-12 thousand persons with age of 20-49 years should be taken into account politically to be employed in the projects in the province. 5. Surplus farm labors should be created by means of improvement of agricultural structure including large farm management with farm mechanization and job opportunities have also to be provided in connection with the rural special production area development projects. The two imminent subjects are the prerequisites to increase off-farm incomes for the farmers living in Chungnam province. 6. Required credit supports for investment and operation costs of the projects should be taken actions by the government.

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