• Korean System Dynamics Review
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• v.5 no.1
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• pp.111-126
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• 2004

Many countries in the North East Asia are competing with each other in order to become a centre of international logistics activities. The competition to become a hub port in Far East region is now fierce. The anticipated investments on improving port facilities and attracting the mega carriers are immense for all the ports in the region and the extent of the effort could cripple the local ports and region's economy given the limited financial resources. It is, however, impossible to avoid the disastrous possibility that the massive investments could be channeled into the port, which will never become a hub port, as no port is ready to currently admit defeat and settle as a small regional port. In an attempt to minimise such disastrous waste of resources, ports need to verify the eligibility of their own. This paper tests a system dynamics model using the Port of Busan to understand and illustrate the principle guideline of investment decision making for ports.

• International Journal of High-Rise Buildings
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• v.4 no.2
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• pp.103-107
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• 2015

China's rapidly growing cities offer a unique opportunity to create highly sustainable communities. Architects and their clients, typically real estate developers, are highly focused on strategies that are effective at reducing energy and water usage at the scale of the individual building or within a master plan of multiple related buildings. However, a closer look at energy consumption reveals that transportation uses more energy worldwide than residential and commercial buildings combined. In light of this, it is appropriate that China is making massive investments in transportation infrastructure like heavy rail rapid transit and grade separated expressways, but the end result of these investments to date has been to enable people to live further from where they work and shop rather than closer - while simultaneously not creating walkable communities. Using positive and negative examples from Asia and the rest of the world, this article will investigate the specific urban design policies such as height limits, setbacks, land use restrictions, parking ratios, and parcel size which might change to enable the creation of truly sustainable communities for China's 21st century.

• Korean Management Science Review
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• v.30 no.1
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• pp.167-181
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• 2013

We investigate the dynamic asset allocation problem under inflation risk when the wealth of an investor is constrained with minimum requirements. To capture the investor's risk preference, the CRRA utility function is considered and he maximizes his expected utility at predetermined date of the refund by participation in the financial market. The financial market is supposed to consist of three kinds of financial instruments which are a risk free asset, a risky asset, and an index bond. The role of an index bond is managing inflation risk represented by price process. The optimal wealth and the optimal asset allocation are derived explicitly by using the method to get the European call option pricing formula. From the numerical results, it is confirmed that the investments on index bond is high when the investor's wealth level is low. However, as his wealth increases, the investments on index bond decreases and he invests on risky asset more. Furthermore, the minimum wealth constraint induces lower investment on risky asset but the effect of the constraints is reduced as the wealth level increases.

• Industrial Engineering and Management Systems
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• v.9 no.2
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• pp.121-130
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• 2010

In today's uncertain economic environment, economic risk is inherent in making large investments on manufacturing facilities. It is, therefore, practically meaningful to divide investment over multiple periods, reducing the risk of investment. Then, the cash-flow over the entire planning horizon would comprise positive inflow and negative outflow. In this case, in general, evaluation by internal rate of return (IRR) is not feasible, because multiple IRRs are involved. This paper deals with a problem of evaluating profitability, as well as risk, of investment alternatives made in multiple times of investment over the entire horizon. Typically, an additional investment is required after the initial one, for expanding manufacturing capacity or other reasons. The paper pays attention to a unit cash-flow over two periods, decomposing the total cash-flow into a series of unit cash-flow patterns. It is easy to evaluate profitability of a unit cash-flow by using IRR. The total cash-flow can be decomposed into the series of two types of unit cash-flows: an investment type one (negative-positive) and the borrowing type one (positive-negative). This paper, therefore, proposes a method in which only the borrowing type unit cash-flow is eliminated in the series by converting total cash-flow using capital interest rate. Then, a unique IRR can be obtained and the profitability is evaluated. Thus, the paper extends the method of IRR so that it may help decision making in complicated cash-flow pattern observed in practice.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.4
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• pp.21-35
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• 2023

Expectations surrounding generative AI technology and its profound ramifications are sweeping across various industrial domains. Given the anticipated pivotal role of the startup ecosystem in the utilization and advancement of generative AI technology, it is imperative to cultivate a deeper comprehension of the present state and distinctive attributes characterizing venture capital (VC) investments within this domain. The current investigation delves into South Korea's landscape of VC investment deals and prognosticates the projected VC investments by juxtaposing these against the United States, the frontrunner in the generative AI industry and its associated ecosystem. For analytical purposes, a compilation of 286 investment deals originating from 117 U.S. generative AI startups spanning the period from 2008 to 2023, as well as 144 investment deals from 42 South Korean generative AI startups covering the years 2011 to 2023, was amassed to construct new datasets. The outcomes of this endeavor reveal an upward trajectory in the count of VC investment deals within both the U.S. and South Korea during recent years. Predominantly, these deals have been concentrated within the early-stage investment realm. Noteworthy disparities between the two nations have also come to light. Specifically, in the U.S., in contrast to South Korea, the quantum of recent VC deals has escalated, marking an augmentation ranging from 285% to 488% in the corresponding developmental stage. While the interval between disparate investment stages demonstrated a slight elongation in South Korea relative to the U.S., this discrepancy did not achieve statistical significance. Furthermore, the proportion of VC investments channeled into generative AI enterprises, relative to the aggregate number of deals, exhibited a higher quotient in South Korea compared to the U.S. Upon a comprehensive sectoral breakdown of generative AI, it was discerned that within the U.S., 59.2% of total deals were concentrated in the text and model sectors, whereas in South Korea, 61.9% of deals centered around the video, image, and chat sectors. Through forecasting, the anticipated VC investments in South Korea from 2023 to 2029 were derived via four distinct models, culminating in an estimated average requirement of 3.4 trillion Korean won (ranging from at least 2.408 trillion won to a maximum of 5.919 trillion won). This research bears pragmatic significance as it methodically dissects VC investments within the generative AI domain across both the U.S. and South Korea, culminating in the presentation of an estimated VC investment projection for the latter. Furthermore, its academic significance lies in laying the groundwork for prospective scholarly inquiries by dissecting the current landscape of generative AI VC investments, a sphere that has hitherto remained void of rigorous academic investigation supported by empirical data. Additionally, the study introduces two innovative methodologies for the prediction of VC investment sums. Upon broader integration, application, and refinement of these methodologies within diverse academic explorations, they stand poised to enhance the prognosticative capacity pertaining to VC investment costs.

• The Southeast Asian review
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• v.21 no.2
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• pp.77-123
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• 2011

Recently, Southeast Asian people, its food, natural sceneries and so on have been increasingly exposed to Korean people through mass media and multi-cultural events. At the same time, Koreans can frequently encounter Southeast Asians in their everyday lives. Thus, specific images and discourses of Southeast Asia has been established in our society, which creates a new social trend called 'Southeast Asia phenomena'. In short, 'Southeast Asia phenomena' means a totality of Korean people's experience of Southeast Asian and their perception on the region. On the one hand, 'Southeast Asia phenomena' is a result of inflow of Southeast Asians and their culture into Korea. On the other hand, it is also a consequence of Korean people's understanding of Southeast Asia from their trip to Southeast Asia or from their interactions with Southeast Asian people. This article aims to analyze the origin and diffusion of 'Southeast Asian Phenomena' in Korea in the context of Southeast Asia focusing on 4 topics, that is, migrant workers, overseas investments, retirement migration, study-abroad categorized as human movement. This article is also about a country-by-country comparative analysis both at the macro level and the micro level. At the macro level, overseas investments and trade, human exchanges, positive perception to Koreans which considered to be the structural causes become a strong mechanism playing a important bridge role between Korea and Southeast Asia. So these create the high probability of the emergence of 'Southeast Asian Phenomena' At the micro level which is more direct causes of 'Southeast Asian Phenomena', the economic cause is the most important common cause for 4 Southeast Asian Phenomena. Additionally, Korean wave is also remarkable common cause creating 'Southeast Asian Phenomena' even it is not the origin in the context of Southeast Asia. The diffusion of 'Southeast Asian Phenomena' is different by the topics and the elements contributing to create the favorable situation for the diffusion are not only overseas investments and trade, human exchanges at the macro level but also policy elements at the micro level. The relative differences of the causes of 'Southeast Asian Phenomena' in the country-by-country analysis are found. Regarding overseas investments in Vietnam and Cambodia, the economic degree of freedom in Cambodia is higher than in Vietnam. Even Korean Wave has had the longer history in Vietnam, but the favorable perspectives on Korean Wave are stronger in Cambodia. For migrant workers from Vietnam and Indonesia, the economic causes in Vietnam are more significant than in Indonesia. The impact of Korean Wave is stronger in Vietnam than in Indonesia. In case of study-abroad, the social-cultural elements and policy elements are more diverse in Malaysia than in Korea. For the Korean retirees who immigrate to the Philippines and Malaysia, the economic causes in the Philippines is more significant in Malaysia.

• Journal of Korea Technology Innovation Society
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• v.6 no.3
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• pp.279-297
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• 2003

The purpose of this paper is to analyze the determinants of company R＆D investment with zero observations by using the data of R＆D Scoreboard published by Ministry of Science and Technology(2002). Conventional parametric approach to dealing with zero investments is not robust to heteroscedastic and/or non-normal error structure. Thus, this study applies symmetrically trimmed least squares(STLS) estimation as a semi-parametric approach to dealing with zero R&D investments. The result of specification test indicates the semi-parametric approach outperforms the parametric approach significantly. Moreover, the results of the study provide various implications as summarized below. The R&D investment of IT company is larger than that of non-IT company. The R&D investment has a positive relation to foreigners' investment ratio. The higher degree of financial self-reliance is, the larger the R&D investment is. Firm size variables such as sales amount and the number of workers are positively related to R&D investment. The sales elasticity of R&D investment is larger than one. However, the workers elasticity of R&D investment is smaller than one.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.7
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• pp.489-495
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• 2020

Income inequality is a problem that is not only faced by developing countries such as Indonesia, but also developed countries. The difference lies in the proportion of an inequality that occurs and the solution to the level of difficulty experienced. Thus, this study aims to empirically analyze the unequal distribution of population income in Java island, Indonesia, by including the human development index, open unemployment rate, foreign investment, and the degree of fiscal decentralization. The research model used in this study was multiple linear regression to analyze the panel data with a fixed-effect model approach. The results of the study showed that human development index, open unemployment rate, and the degree of fiscal decentralization had a positive and significant effect on income inequality in Java island. Meanwhile, foreign investment had a negative and insignificant effect on income inequality in Java. It is because the value of the investment is more invested in the capital-intensive sector. The government is expected to be more selective in accepting foreign investments that enter the country, especially in Java, and it should be labor-intensive investments. In addition, the government has to equalize locations for foreign investment without reducing good cooperation with these foreign investors.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.49-59
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• 2021

This study empirically analyzes the effect of firm overinvestment propensity on the value relevance of capital investment. In order to verify this point, this study attempts to analyze the value relevance of overinvestment firms' capital investments. The analysis was performed according to the model of Biddle et al. (2009) and McNichols and Stubben (2008) on overinvestment propensity for analysis, and the results are as follows. First, in terms of overinvestment, corporate capital investment shows negative value relevance, so the excessive investments above reasonable levels have reduced firm's value. In contrast, the value relevance for capital investment showed a positive value for firms whose managerial propensity changed, that is, from under-investment in the previous year, it shifted to overinvestment in the current year. Second, as a result of analyzing the value relevance of the investment increase according to the investment propensity, the overinvestment firms showed negative values and the underinvested firms showed positive values; thus, the value relevance of the increase in investment was opposite to the investment propensity of the firm. These findings confirm that the stock market differentially evaluates investment efficiency according to investment propensity, continuity, and investment alterations, and reflects it appropriately in the firm's value.

• International Journal of Computer Science & Network Security
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• v.21 no.11
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• pp.223-229
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• 2021

The presented research is devoted to determining the role of the mechanism of attracting investment resources in innovative development in the conditions of transformation using the process approach. It is proved that the process approach is dominant for this study because investments are considered as a process of investing in innovative development in the enterprise in the context of digitalization, and its application allows to take into account the impact on the mechanism of attracting investment resources. related to the mechanism of attracting investment resources of the enterprise. It is substantiated that the mechanism of attracting investment resources for innovative development in the context of digitalization is a specific way of organizing, mobilizing and using investment resources for innovative development of the enterprise in the context of digitalization under the influence of economic development laws, government regulation. The effectiveness of attracting investment resources in innovative development is ensured by the mechanism that exists in the enterprise. The mechanism of attraction of investment resources in innovative development in the conditions of digitalization gives the chance to define an optimum ratio between sources and volume of attraction of investments in innovation sphere.