• Journal of Technology Innovation
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• v.5 no.1
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• pp.181-205
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• 1997

There has been considerable controversy over the impacts of the tax credit on R&D expenditures in many countries. Korea has adopted various kinds of tax credit system to stimulate private firm' R&D expenditures. Korean government, Recently, is trying to reform tax system to reduce tax credit programmes according to Uruguay Round agreement and in line with OECD policy standards. The purpose of this paper is to analyze the effectiveness of current tax credit system on technology innovation in Korea and derive some policy implications over tax reform. In this paper, firstly, I investigate the size of tax reduction effects from each program in theoretical models and simulate the actual rate of individual tax incentive to a unit of R&D expenditure. I find that theoretically the reserve fund for technology development program has given the largest tax reduction effects to private firms irrespective of the R&D incentive system reform. Tax credit on R&D expenditure also has been very effective instrument to firm's tax reduction. Secondly, I try to measure the effectiveness of tax credit through the estimation of effective margianl tax rate between with the system and without the system of credit on R&D expenditure during the tax credit reform periods. I find that the tax credit on R&D has lowered firm's investment cost since the system introduced. I also have strong results that there has been a positive relation between the fluctuation of firm's R&D expenditure and the change of effective marginal tax rate. I suggest that it is better to sustain the system of tax credit on R&D for a while to increase firm's R&D expenditure.

• Journal of Family Resource Management and Policy Review
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• v.24 no.4
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• pp.1-20
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• 2020

This study aims to improve the family friendly certification system by analyzing the actual experience of family friendly certified companies with the certification's incentives and their demand for new incentives. We analyzed 2018 survey data of family friendly certified company incentives and interviewed representatives from 9 family friendly certified companies. First, the use of incentives differs according to the level of corporate classification, number of employees, industry, certification continuation training, and incentive impact. Current family friendly certification incentives indicate that the utilization rate of incentives is high when small and medium sized enterprises (SMEs) with less than 300 employees have newly received family friendly certification. Second, the use of the certification mark significantly differs by industry, certification duration, and incentive impact. Interviews with the companies' family friendly certification managers revealed that the incentives that companies use mainly are the Public Procurement Service bid points and priority immigration service. Large corporations hope for strong incentives, such as the National Tax Service's deferred tax investigation, interest rate cuts for bank loans, and corporate tax cuts. Lastly, the family friendly certification mark is a representative incentive used by 60% of family friendly certified companies. For the qualitative growth and stabilization of the family friendly certification system, the family friendly certification mark should be improved to become a more attractive incentive.

• Journal of Environmental Science International
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• v.13 no.4
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• pp.339-347
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• 2004

This paper asks the question: what choice of environmental policy instruments is efficient to reduce sulfur dioxide from stationary sources\ulcorner: In Korea, command and control has been a common way of controlling $SO_2-emissions.$ When compared to the non-incentive environmental policy instrument such as command and control, economic incentive environmental policy instrument has been the advantage of making polluter himself flexibly deals with in marginal abatement cost to develop environmental technology in the long view. Therefore, the application possibility of the incentive environmental policy instrument was studied in this research to realize the countermeasure for controlling of $SO_2-emissions.$ As a result, enforcement of the countermeasure such as flue gas desulfurizer by command and control would be suitable because power generation is performed by the public or for the public in source of air pollution and thus, economic principle is not applied to the polluter. In the source of industrial pollution, enforcement of fuel tax is found to be suitable for the countermeasure for the use of low sulfur oil in terms of the flexibility of demand for the price in the long tenn. For the permissible air pollution standards applicable to all air pollutant emitting facilities, enforcement of incentive environmental policy such as bubble, off-set, banking policy or tradeable emission penn its would be ideal in long terms according to the regional characteristics and the number and scale of air pollutant emitting facilities.

• New & Renewable Energy
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• v.16 no.4
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• pp.65-75
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• 2020

The value of tangible assets depreciates over their useful life and this depreciation should be adequately reflected in any tax or financial reports. However, the method used to calculate depreciation can impact the financial performance of solar projects due to the time value of money. Korean tax law stipulates only one method for calculating the depreciation of solar photovoltaic facilities: the straight-line method. Conversely, USA's tax law accepts other depreciation methods as solar incentives, including the modified accelerated cost recovery system (MACRS) and Bonus depreciation method. This paper compares different depreciation methods in the financial analysis of a 10 MW solar system to determine their effect on the financial results. When depreciation was calculated utilizing the MACRS and Bonus depreciation method, the internal rate of return (IRR) was 10.9% and 16.4% higher, respectively, than when the Korean straight-line depreciation method was used. Additionally, the increased IRR resulting from the use of the two US methods resulted in a 20.5% and 27.4% higher net present value, respectively. This shows that changing the depreciation calculation method can redistribute the tax amount during the project period, thereby increasing the discounted cash flow of the solar project. In addition to increasing profitability, USA's depreciation methods alleviate the uncertainty of solar projects and provide more flexibility in project financing than the Korean method. These results strongly suggest that Korean tax law could greatly benefit from adopting USA's depreciation methods as an effective incentive scheme.

• Korean Institute of Interior Design Journal
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• v.25 no.1
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• pp.93-100
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• 2016

Long-life housing means a housing which structural members (Support) such as columns and floor are maintained for a long period of time and the housing can be used for approximately 100 years by replacing components (Infill) such as walls and furniture. The government established "Certification standards of long-life housing construction" on December 24, 2014, requiring the long-life housing certification for construction of apartment houses for over 1,000 households. However, it is necessary to prepare an incentive measure which could be granted to construction related personnel and housing owners due to the effectiveness of such system and recognition that the initial construction cost of long-life housing is high. The purpose of this study is as follows. First, the reasons and necessity of long-life housing cost increase for each construction company, housing owner, infill component manufacturer and designer which are long-life housing related personnel are determined. The direction of incentive grant for supplying long-life housing based on the determined items is established. The result of this study is as follows. First, a special treatment which is higher than the alleviation of construction standards according to the previous ordinance is necessary for construction companies to secure the business feasibility. Also, incentives such as the provision of service space and wide balcony are necessary to improve the preference level of parceling out. Second, financial incentives such as financial support for housing purchase, reduction and exemption of tax (acquisition tax and registration tax), and support of maintenance cost are required for house owners. Third, it is essential to increase opportunities to participate in the market for infill component manufacturers by applying additional points for PQ. Fourth, it is needed to provide compensation for additional human resource and time at the time of designing to designers by preparing the long-life housing design cost standards.

• Korean Journal of Construction Engineering and Management
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• v.12 no.2
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• pp.41-52
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• 2011

Seoul, although having a housing stock as huge as that of world metropolitan cities, have implemented growth-oriented policies by constructing new housing units rather than using or rehabilitating existing ones. There were, therefore, few political efforts to preserve and rehabilitate multiple dwellings. Today, substantial time has passed since multiple dwellings in Seoul and the first-stage new cities such as Bundang and Ilsan were constructed. What is required to maintain the quality of the existing housing and use it with safety is loan, subsidy and tax incentive programs which are able to promote the maintenance of existing multiple dwellings. The objective of this study is to compare and analyze the maintenance systems of financial assistance(the loan, subsidy and tax incentive programs)of the world's largest cities with various housing types, I e New York and Tokyo, and then to propose to Seoul a framework for the maintenance systems.

• The Journal of the Korea Contents Association
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• v.17 no.8
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• pp.382-395
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• 2017

This study tries to analyze whether the Earned Income Tax Credit (EITC), which was modified in 2011, has the effect of work incentive. In this sense, by establishing the 8th Wave of Korea Welfare Panel Study (2013) and the 9th Wave (2014), Furthermore, in order to overcome the methodological limit, the results of two-party analysis method will be compared by firstly carrying out multiple regression analysis and then performing propensity score matching analysis. The 535 households out of 6,025 were selected. The following are the results of multiple digression analysis and propensity score matching analysis. First, there was no statistically meaningful relationship with regard to the perception of the EITC. Second, there was a statistically meaningful result in the reduction of working hours with regard to whether a household received labor incentive or not. The study found that the revised EITC is not providing incentives which stimulates the will to work.

• Journal of Digital Convergence
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• v.13 no.11
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• pp.133-139
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• 2015

This study is aimed at suggesting the establishment strategy of human resource development through the tax support system under the "Tax incentive limitation law" provided for job creation and employment retention, by which the improvement measurements for utility maximization. The study results are briefly summarized as follows: At first, It's necessary to permit overlapping deduction of the tax favor for encouragement of job creation and employment retention, i.e. tax exemption and tax credit, and to exclude a company from the object for the alternative minimum tax application for maximization of the effect on employment inducement. Secondly, It's necessary to establish tax exemption and a tax credit on the surplus of the minimum wage standard. At last, It's also necessary to abolish, or expand the sunset period of tax support on a large scale to enhance the predictability of human resources management. These discussion are made through the convergence both employment policies and tax laws.

• Journal of Technology Innovation
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• v.11 no.2
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• pp.123-149
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• 2003

The paper examines the effects of tax incentives on corporate R&D expenditures. We regress tax incentives and financial variables on the increase or the level of corporate R&D expenditures. Tax incentive variables are the magnitude of R&D tax credit and the level of reserve for R&D, while financial variables are the amount or increase of R&D expenditures in prior years, profitability, cash flows and Tobin Q. Sample firms are selected among the listed companies which reported R&D expenditures in the financial statements from 1995 to 2000. The results indicate that increase and level of R&D expenditures is positively influenced by the magnitude of R&D tax credit and the level of reserve for R&D. The amount of R&D expenditures has positive relationship with prior one-year R&D expenditures, while the increase of R&D expenditures has negative relationship with prior year increase and recent three year's average of R&D expenditures. The evidence is consistent to the hypothesis and results of other studies, which suggest that tax incentives for R&D encourage the corporate R&D expenditures.

• Journal of Korea Technology Innovation Society
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• v.21 no.2
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• pp.663-683
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• 2018

This study aims to analyze the effectiveness of R&D tax credit for SMEs. We surveyed to collect the information on firm's financial statements and R&D tax credit during 2014-2016, and implemented fixed effect model, random effect model and panel negative binomial model. The results show that the effect of R&D tax credit is 5.3 times larger in terms of R&D expenditure and 4.3 times bigger in terms of number of researchers than that of R&D subsidy. In addition, the effect of tax credit on non-metropolitan area companies is higher than that in the metropolitan area. Based on these results, we suggests three ways to improve the R&D tax incentive system for SMEs; To convert unused R&D tax credit of the start-ups to tax points, to exempt the minimum tax rate on R&D expenditure in equipment, and to unify the operation of various R&D tax credit institution.