• Journal of Korean Society of Industrial and Systems Engineering
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• v.22 no.49
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• pp.43-57
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• 1999

The recent trend is that risk management has more and more its importance. Neverthless, Korea's risk management is not developed. Even most banks does gap, duration in ALM for risk management, development and operation of VaR stressed at BIS have elementary level. In the case of Fallon and Pritsker, Marshall, gamma model is superior to delta model and Monte Carlo Simulation is improved at its result, as sample number is increased. And, nonparametric model is superior to parametric model. In the case of Korea's stock portfolio, VaR of Monte Carlo Simulation and Full Variance Covariance Model is less than that of Diagonal Model. The reason is that VaR of Full Variance Covariance Model is more precise than that of Diagonal Model. By the way, in the case of interest rate, result of monte carlo simulation is less than that of delta-gamma analysis on 95% confidence level. But, result of 99% is reversed. Therefore, result of which method is not dominated. It means two fact at forecast on volatility of stock and interest rate portfolio. First, in Delta-gamma method and Monte Carlo Simulation, assumption of distribution affects Value at Risk. Second, Value at Risk depends on test method. And, if option price is included, test results will have difference between the two. Therefore, If interest rate futures and option market is open, Korea's findings is supposed to like results of other advanced countries. And, every banks try to develop its internal model.

• Proceedings of the Korean Society for Noise and Vibration Engineering Conference
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• 2005.05a
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• pp.911-916
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• 2005

Noise map is a presentation of existing data or predicted noise situation in terms of noise indicator. However, it has shortcoming for assessing the number of people exposed, or the number of dwellings affected to any relevant limit values of noise level in certain areas. In this study, so called over-ride value noise mapping is proposed to make up for the shortcoming by using over-ride function of object-oriented programming and it is to show the guard of the area where it is satisfied the standard of option, or it is not satisfactory. Over-ride value noisemap data is combined with topography layer, population and house statistics, and GIS space statistical analysis. The over-ride value noise mapping can also he applied to make the road traffic noisemap, the railroad noisemap, the aircraft noisemap, and the industrial site noisemap This can express noise damage information more exactly.

• Transactions of the Korean Society for Noise and Vibration Engineering
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• v.15 no.7 s.100
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• pp.859-864
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• 2005

Noise map is a presentation of existing data or predicted noise situation in terms of noise indicator. However, it has shortcoming for assessing the number of people exposed, or the number of dwellings affected to any relevant limit values of noise level in certain areas. In this study, so called over-ride value noise mapping is Proposed to make up for the shortcoming by using over-ride function of object-oriented programming and it is to show the guard of the area where it is satisfied the standard of option, or it is not satisfactory. Over-ride value noise map data is combined with topography layer, population and house statistics, and GIS space statistical analysis. The over-ride value noise mapping can also be applied to make the road traffic noise map, the railroad noise map, the aircraft noise map, and the industrial site noise map. This can express noise damage information more exactly.

• Proceedings of the Korea Technology Innovation Society Conference
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• 2000.11a
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• pp.297-311
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• 2000

Since 1996 when Kosdaq market was set up, serious doubt has been raised regarding the efficiency of the market. The most important question is whether this market can reflect the real value of the venture company quoted on it. In order to answer this question, this study aimed to evaluate venture companies in Kosdaq market adopting the concept of real option theory. From the results of empirical analysis, we found that in the early 2000, there was serious over-valuation problem. On the contrary, in the recent period of economic recession, under-valuation problem is quite prevalent. We also present our methodology and empirical results confirm the conjecture that option premium outweighs the DCF valor for the newly born and high-technology intensive venture companies. We hope that the empirical results shed some light on the policy prescription to improve the efficiency of Kosdaq market.

• Journal of Technology Innovation
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• v.14 no.3
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• pp.237-261
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• 2006

Under circumstances with increasing uncertainty, strategic flexibility has become an essential point on which my R&D management system should be based. Unfortunately the present R&D management system for government sponsored R&D programs cannot be said to be so flexible to adapt appropriately to various threatens such as technological failure, a severe change in competition environment, and so on. In this paper a new scheme for R&D planning and economic assessment with strategic flexibility is suggested and applied to a real R&D program. In the newly suggested R&D management system, economic valuation based on real option theory is performed for various alternative scenarios which have different strategic scheme for R&D process each and the result of the assessment is fed back to R&D planning to choose more superior strategic scheme. Introducing strategic flexibility into R&D planning and economic assessment, the value of R&D project could be remarkably enhanced.

• Journal of Technology Innovation
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• v.13 no.1
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• pp.73-89
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• 2005

As a scientific educational facility, the role of science museum has been enlarged. However there are few study to evaluate the public value of science museum. This paper applies a conjoint analysis to measuring the public value of science museum. At first, this paper chose the attributes of science museum and derived the marginal willingness to pay, As a result, the choice works for selecting a preferred option among three alternatives were within respondents' ability and the derived marginal willingness-to-pay estimates were statistically different from zero. This paper contributes to complementing the existing valuation methods by estimating the attributes of science museum and providing policy-makers with useful methodological framework and quantitative information in the decision-making process related to the policy of cultural facilities.

• Asian Journal of Innovation and Policy
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• v.6 no.2
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• pp.225-244
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• 2017

When evaluating the economic value of technology or business project, we need to consider the period and cost for commercialization. Since the discounted cash flow (DCF) method has limitations in that it can not consider consecutive investment or does not reflect the probabilistic property of commercialization cost, we often take it desirable to apply the concept of real options with key metrics of underlying asset value, commercialization cost, and volatility, while regarding the value of technology and investment as the opportunity value. We at this moment provide more elaborated real options model with the effective region of volatility, which reflects the uncertainty in the option pricing model (OPM).

• Environmental and Resource Economics Review
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• v.14 no.1
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• pp.25-50
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• 2005

This study estimates the willingness-to-pay (WTP) for avoiding the destruction of a first-grade ecological area by means of contingent valuation method. Specifically, we employ the dichotomous choice technique along with the follow-up questionnaires. Our analysis implies the yearly WTP per household for avoiding the destruction of the ecological area of 100,000 pyongs is 8,898 won with the 95% confidence interval of 6,611~11,976 won. We estimate the asset value of that area to be 1,707 billion won with the 95% confidence interval of 1,269 to 2,298 billion won. We also decompose the total value of the area into the value of direct (22%) and indirect (38.8%) use, the option value (19.9%) and the conservation value (21.3%). Although using these data for SEEA (the system of integrated environmental economic accounting) is bound by certain restrictions, one could employ our empirical findings as advisory information for decision making in the process of prior environmental review or for assessing the environmental impact.

• Journal of Environmental Science International
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• v.31 no.8
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• pp.727-733
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• 2022

The contingent valuation method (CVM) is one of the most commonly used and effective methods to evaluate non-use value of resources. Reasonable application of CVM to value the cultural heritage is the key process of evaluation. CVM was used to evaluate the non-use value of cultural heritage of Taishan Mountain combined with questionnaire survey and field research in this study. The results indicated that the importance of the degree of the three components of non-use value was heritage value ranked highest (40.22%) > followed by existence value (38.58%) >then option value (21.20%). In addition, the rate of willingness to pay was 54.52%, the average and median values of per person were 40.17 CNY·a^-1 and 20.00 CNY·a^-1 and the non-use values of Taishan Mountain cultural heritage was 33 million CNY·a^-1. The median value of WTP was consistent with Asian countries but was lower than European and American countries. Factors influencing WTP showed that monthly income and satisfaction with Taishan Mountain were correlated to WTP, and family location and willingness to revist were correlated remarkably with WTP. In addition, monthly income was correlated remarkably with WTP value, however other factors were not. The results showed the importance and necessity of protective development of Taishan Mountain cultural heritage, which would be used as an important reference for decision makers.

• Knowledge Management Research
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• v.17 no.3
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• pp.161-179
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• 2016

The recent patent wars in the information technology (IT) industry demonstrate the strategic importance of IT patents in the industry. In this paper, we adopt the lens of real options to study the value of IT patents for IT firms. Specifically, we examine the relationship between IT patents and firms' market performance. We also consider the moderating effect of the innovation orientation of firms' patent portfolios (exploitative vs. explorative). Based on a large panel dataset consisting of 697 firms in US IT industries, our results suggest that the impact of IT patents on firm value (as measured by Tobin's q) is positive and significant. Further, we find that this impact varies, depending on the innovation orientation of firms' patent portfolios. IT patent portfolios with higher levels of an exploitative orientation are associated with higher firm value, compared to those with a lower exploitative orientation. This study highlights the value of employing real options theory as the underlying mechanism in understanding the impact of patents on firm valuation. Future researchers can adopt the real options lens to identify and empirically examine the role of other factors that may affect the value of patents and other investments exhibiting real option characteristics. While our paper answers some questions about the value of patents in the IT industry, it also raises a number of additional new questions. As such, we hope that it will generate more research on this important topic.