• Korean Business Review
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• v.12
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• pp.209-237
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• 1999

With the increasing speed of internationalization of corporations under WTO system foreign direct investment is considered as the important means of international cooperation as well as avoiding trade barrier. From this point of view the study on foreign direct investment of Korean corporations is of great importance. Many studies till now, however, are concerned with the macroscopic analysis of foreign direct investment of Korean corporations, not with the establishment of strategy appropriate to the environment of host country and the investment performance. In order to meet the problems mentioned above this thesis aims at accomplishing the following three tasks. (1) synthetic assessment of existing theories of foreign direct investment. (2) systematic adjustment of factors of environment in the foreign direct investment activities. (3) analysis of above factors in the foreign direct investment of Korean textile industry and proper proposal of strategic model for the individual corporation. The results of analysis according to the aim of the study are as follows: (1) To lead foreign direct investment successfully, variable and effective information-presentation should be offered with priority. (2) The investment strategy through regional diversification is required. (3) The localization of decision making has to be attempted assertively. (4) The global network system is needed for more recommendable foreign direct investment. (5) More aggressive and outgoing attitude like developing into the local market and obtaining the high-technology is desperately needed.

• Journal of Technology Innovation
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• v.8 no.1
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• pp.31-48
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• 2000

Nowadays the role of region has been increased, as knowledge, science and technology become important in economic development. This paper argues that a system approach is needed to enhance regional S&T capabilities. Under the this approach, we can identify a concept of regional innovation systems as sub-systems of a national innovation system. This paper investigates Korean regional innovation systems based on R&D budget of regional governments. According to this paper, Korean regional governments' R&D investment is very insufficient. There were no co-relationship between regional governments' fiscal autonomy from the central government and their R&D investment. This paper argues that such a poor investment will restrict the future development of Korean regional innovation systems. Therefore, this paper suggests some strategic options for the development of regional innovation systems as follows. First, regional governments should increase their R&D budget. Second, their R&D efforts should be related with their specific industrial sectors. Third, they should target not only to create new promising industrial sectors but also to enhance technological capabilities of existing sectors. Fourth, their target group should be small and medium-sized enterprises. Finally, regional governments should adopt small and incremental approach to improve their innovation systems.

• Journal of Korea Society of Digital Industry and Information Management
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• v.4 no.4
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• pp.103-111
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• 2008

While the demand for ASP(Application Service Provider) focused on small and medium enterprises who are fully aware of needs of ICT readiness has been increasing, those who consider to adopt ASP are wondering whether their performance would be actually successful if they did. These concerns can be an important standard of judgement, when introducing new information systems, by analyzing ROI(Return on Investment) on the current enterprises. Therefore, to review the feasibility of investing IT and measuring the performance, this study suggests a framework for ROI analysis which estimates IT investment performance, through multi-criteria approach on both financial performance index and non-financial one. We applied methodology on ASP-based IT investment performance evaluation to sample manufacturing companies under 50 employees and deduced the main implications to be considered when introducing the system.

• Structural Engineering and Mechanics
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• v.32 no.1
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• pp.147-165
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• 2009

This study proposes a certain measure or investment strategy for decision making associated with seismic retrofitting. This strategy reduces the risk of a large-scale malfunction such as water supply loss under seismic risks. The authors developed a stochastic value index that will be used in the overall evaluation of social benefit, income gain, life cycle costs and failure compensation associated with existing lifeline systems damaged by an earthquake during the remaining service period. Optimal seismic disaster prevention investment of deteriorated lifeline systems is discussed. Finally, the present study provides a performance-based design method for seismic retrofitting strategies of existing lifelines which are carried out using the target probabilities of value loss and structural failure.

• Proceedings of the KIEE Conference
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• 2005.11b
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• pp.258-260
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• 2005

Recently, it is focused on a methodology to estimate a order of precedence investment in distribution power system under competitive electricity market. This paper suggests methodology to evaluate the order as using a sensitivity of system interruption cost in distribution system regarding a failure rate of distribution components. In this paper, by using one of feeder in RBTS model, the order is assessed to compare valuation about sensitivity of interruption cost with valuation about sensitivity of estimated reliability indices. In conclusion, it is shown that results of precedence investment based on each methods are difference.

• Asia pacific journal of information systems
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• v.21 no.4
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• pp.27-43
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• 2011

This article explores economic models that show the optimal level of information security investment in the presence of interdependent security risks, Using particular functional forms, the analysis shows that the relationship between the levels of security vulnerability and the levels of optimal security investments is affected by externalities caused by agents' correlated security risks. This article further illustrates that, compared to security investments in the situation of independent security risks, in order to maximize the expected benefits from security investments, an agent should invest a larger fraction of the expected loss from a security breach in the case of negative externalities, while an agent should spend a smaller fraction of the expected loss in the case of negative externalities.

• KDI Journal of Economic Policy
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• v.34 no.2
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• pp.173-204
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• 2012

This study examines the equilibrium investment on the pollution abatement when firms are facing Cournot competition in the output market while the pollution permit market is perfectly competitive. Unlike standard perfect competition scenario, the abatement investment delivers an indirect effect in which it reduces other firms' equilibrium output. Consequently, compared with the socially optimal level, overinvestment arises. I also overview the potential inefficiencies that imperfect market structure induces under the emission trading scheme, presenting policy implications.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.22 no.51
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• pp.151-161
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• 1999

For many decades, Deterministic DCF approach has been widely used to evaluate investment opportunities. Under new manufacturing conditions involving uncertainty and risk, the DCF approach is not appropriate. In DCF, Risk is incorporated in two ways: certainty equivalent method, risk adjusted discount rate. This paper proposes a determination method of the Risk Adjusted Discount Rate for economically decision making advanced manufacturing technologies. Conventional DCF techniques typically use discount rate which do not consider the difference in risk of differential investment options and periods. Due to their relative efficiency, advanced manufacturing technologies have different degree of risk. The risk differential of investments is included using $\beta$ coefficient of capital asset pricing model. The comparison between existing and proposed method investigated. The DCF model using proposed risk adjusted discount rate enable more reasonable evaluation of advanced manufacturing technologies.

• The Journal of Industrial Distribution & Business
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• v.6 no.4
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• pp.27-37
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• 2015

Purpose - This study first explores the possible dynamic relationship between ownership structure and firm performance using a panel of 4,900 Chinese-listed small- and medium-sized enterprises (SMEs) from 1999 to 2012. Research design, data, and methodology - We address this issue through a dynamic panel model using a method of moments (GMM) technique and dynamic simultaneous equations to alleviate the potential endogenous problem: unobserved heterogeneity, simultaneity, and dynamic endogeneity. Results - Under the framework of dynamic endogeneity, firm performance has a significantly positive influence on ownership, but not vice versa. Ownership and performance can be explained by their owned lagged values, respectively. Moreover, intertemporal endogeneity exists among ownership, investment, and performance through the application of system dynamic equations, which implies that the relationship among ownership structure, investment, and firm performance is dynamic by nature. Conclusions - This study also significantly contributes to a better understanding of dynamic corporate governance by providing further empirical evidence from the largest capital market in the Asian region.

• International conference on construction engineering and project management
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• 2011.02a
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• pp.330-334
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• 2011

Build-operate-transfer (BOT) projects are privatized infrastructure undertakings that face long-term investment risks and uncertainties. To ensure these projects can be completed on time and operated according to performance specifications, governments usually require BOT concessionaires to furnish performance bonds as a security. However, in order to attract investment, governments often provide abandonment rights for concessionaires to deal with investment risks and uncertainties. In the context of real options, these abandonment rights will increase project value, but the furnish of performance bonds will reduce this value. Currently in the BOT context, there is no real option model that can handle explicitly the impact of performance bonds on project value. In this paper, a real option valuation model is derived to deal with this important issue. The Taiwan high-speed rail project is used as a case study to show the applicability of the proposed model.