• The Journal of the Korea Contents Association
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• v.14 no.12
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• pp.973-988
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• 2014

This study investigated one of the contemporary issues in the Korean capital market and two hypotheses of concern were tested on the financial determinants of profitability for the firms belonging to the Korean chaebols during the era of the post-global financial turmoil. The first hypothesis applying conditional quantile regression (CQR) estimation provided the evidence that leverage ratio, fixed asset utilization, and foreign ownership among the nine quantitative explanatory variables, had overall statistical significance relative to the book-valued profitability measure, while additional variables such as a firm's size, fixed and a proxy for the type of exchange market showed their strong impacts on the market-valued profitability indicator. Concerning the formulated 'extended' DuPont system, only two components of EBITDAEBIT and EMULTIPLIER revealed their prominent influence on ROE (Return on Equity) over the two tested periods (the years 2008 and 2012).

• Journal of the Korea Academia-Industrial cooperation Society
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• v.15 no.1
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• pp.86-98
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• 2014

This study examined a long-standing issue with its perverse results in the Korean capital markets, such as any variant financial profiles over time, affecting capital structure for the firms belonging to the chaebols. It may be of interest to identify these components from the perspectives of international investors and domestic policy makers to implement their contingent strategies on the target leverage, since the U.S. financial turmoils in the late 2000s. Regarding the evidence from the three hypothesis tests on the firms in the chaebols, this research found that the control variabels measuring profitability, business risk, and non-debt tax shields, showed their statistically significant relationships with the different types of a debt ratio. While FCFF(free cash flow to the firm) showed its significant influence to discriminate between the firms in the chaebols and their counterparts, not belonging to the chaebols, BDRELY as the ratio of liabilities to total assets, comprising the enhanced 'Dupont' system, only showed its statistically significant effect on leverage in the context of the parametric and nonparametric tests. In line with the results obtained from the present research, one may expect that a firm in the Korean chaebol, may control or restructure its present level of capital structure to revert to its target optimal capital structure towards maximizing the shareholders' wealth.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.20 no.4
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• pp.232-241
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• 2019

This study examines one of the conventional and controversial issues in modern finance. Specifically, this study identifies financial determinants of corporate R&D intensity for firms belonging to Korean Chaebols. Empirical estimation procedures are applied to derive more robust results of each hypothesis test. Static panel data, Tobit regression and stepwise regression models are employed to obtain significant financial factors of R&D expenditures, while logit, probit and complementary log-log regression models are used to detect financial differences between Chaebol firms and their counterparts not classified as Chaebols. Study results found the level of R&D intensity in the prior fiscal year, market-value based leverage ratio and firm size empirically showed their significance to account for corporate R&D intensity in the first hypothesis test, whereas the majority of explanatory variables had important power on a relative basis. Assuming that the current circumstances in the domestic capital market may necessitate gradual changes of Korean Chaebols in terms of their socio-economic function, the results of this study are expected to contribute to identifying financial antecedents that can be beneficial to attain optimal level of corporate R&D expenditures for Chaebol firms on a virtuous cycle.

• KDI Journal of Economic Policy
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• v.33 no.1
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• pp.73-91
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• 2011

This paper demonstrates empirically that individuals who monitor indicators of their current cardiovascular health status by undergoing medical examinations are more likely to invest in their own health than those who do not observe such monitoring protocols. Using data from the 2001 National Health and Nutrition Examination Survey of Korea in a structural econometric model, this paper attempts to control the endogeneity problem inherent to the individual decision as to whether to undergo medical examinations, and provides estimation results showing that increased individual health awareness via medical examinations exerts a statistically significant positive effect on health investments. From the policy perspective, the estimation results of this paper may provide a rationale supporting the health policy of free provision of health examination services to the insured via National Health Insurance.

• Health Policy and Management
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• v.19 no.4
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• pp.98-120
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• 2009

The purpose of this study is to elicit preference for drug listing decision criteria and to estimate the ICER threshold in South Korea using the discrete choice experiment (DCE) method. To collect the data, a DCE survey was administered to a subject sample either educated in the principle concepts of pharmacoeconomics or were decision makers within that field. Subjects chose between alternative drug profiles differing in four attributes: ICER, uncertainty, budget impact and severity of disease. The orthogonal and balanced designs were determined through computer algorithm to take the optimal set of drug profiles. The survey employed 15 hypothetical choice sets. A random effect probit model was used to analyze the relative importance of attributes and the probabilities of a recommendation response. Parameter estimates from the models indicated that three attributes (ICER, Impact, Severity of disease) influenced respondents' choice significantly(p${\pm}$0.001). In addition, each parameter displayed an expected sign. The Lower the ICER, the higher the probability of choosing that alternative. Respondents also preferred low levels of uncertainty and smaller impact on health service budget. They were also more likely to choose drugs for serious diseases rather than mild or moderate ones. Uncertainty however is not statistically significant. The ICER threshold, at which the probability of a recommendation was 0.5, was 29,000,000 KW/QALY in expert group and 46,500,000 KW/QALY in industry group. We also found that those in our sample were willing to accept high ICER to get medication for severe diseases. This study demonstrates that the cost-effectiveness, budget impact and severity of disease are the main reimbursement decision criteria in South Korea, and that DCE can be a useful tool in analyzing the decision making process where a variety of factors are considered and prioritized.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.35 no.4B
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• pp.620-629
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• 2010

The analogue radio broadcasting was proven to be a successful and efficient media of delivering information because of free content and wide availability of cheap receivers. But the competition was more dropped than any other media due to the limited amount of radio spectrum that is available. The risk of doing nothing is to miss the opportunity and to loss existing audiences in the long term, or to be locked into inefficient proprietary systems. That is the reason why it is important to act now. It is time for regulators and market participants to hone their strategies, by clearly establishing factors to adopt the digital radio and to facilitate its diffusion. The purpose of this study is to find adoption factors that affected to potential users of digital radio broadcasting. Former research based on diffusion of innovation theory showed that adoption of innovation is affected by demographic variables, media usage and consumer's attitude of innovation. In this study based on a consumer survey, we examined those factors and characteristics of each steps that suggested in diffusion of innovation theory. The findings of this study have implications to explore the suitable technologies and services of digital radio broadcasting.

• Journal of Labour Economics
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• v.27 no.2
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• pp.1-27
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• 2004

The share of self-employment shows a downward trend until 1990 and then an upward trend since then. The upward trend is mainly due to more employers and more male self-employed, which implies that self-employment plays a significant role as an alternative form of employment. This paper examines whether self-employment can be a bridge between no work and wage work in the processes entering into or exiting labor market, and if so, what determines the choice of self-employment as a bridge, using the data from the Korea Labor and Income Panel Survey(Wave 1 to Wave 5). Empirical analysis employing the probit model shows that the older, female, the less educated, and persons with bad health are more likely to choose self-employment as a bridge in the exit process and that they are less likely to choose it as a bridge in the entry process. Business cycle has a statistically significant negative effect on its role of bridge employment in the exit process but not in the entry process. The result implies that, in the ageing society, labor market policy should consider self-employment as a better alternative than wage work for the aged.

• Health Policy and Management
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• v.28 no.4
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• pp.339-351
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• 2018

Background: The purpose of this study is to estimate empirically whether there is a difference in medical use among income groups, and if so, how much. This study applies econometric model to the most recent year of Korean Medical Panel, 2015. The model consists of outpatient service and inpatient service models. Methods: The probit model is applied to the model which indicate whether or not the medical care has been used. Two step estimation method using maximum likelihood estimation is applied to the models of outpatient visits, hospital days, and outpatient and inpatient out-of-pocket cost models, with disconnected selection problems. Results: The results show that there was the inequality favorable to the low income group in medical care use. However, after controlling basic medical needs, there were no inequities among income groups in the outpatient visit model and the model of probability of inpatient service use. However, there were inequities favorable to the upper income groups in the models of probability of outpatient service use and outpatient out-of-pocket cost and the models of the number of length of stay and inpatient out-of-pocket cost. In particular, it shows clearly how the difference in outpatient service and inpatient service utilizations by income groups when basic medical needs are controlled. Conclusion: This means that the income contributes significantly to the degree of inequality in outpatient and inpatient care services. Therefore, the existence of medical care use difference under the same medical needs among income groups is a problem in terms of equity of medical care use, so great efforts should be made to establish policies to improve equity among income groups.

• Journal of the Korean Society of Safety
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• v.35 no.6
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• pp.25-31
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• 2020

Boiling Liquid Expanding Vapor Explosion(BLEVE) can cause not only economic damage to the plant but also serious casualties. LPG accidents account for 89.6 percent of all accidents caused by gas leaks in Korea over the past nine years, while casualties from accidents also account for 73 percent of all accidents, according to statistics from the Korea Gas Safety Corporation. In addition, a potential explosion and a fire accident from one LPG storage tank may affect the nearby storage tanks, causing secondary and tertiary damage (domino effect). The safety distance standards for LPG used by LPG workplaces, charging stations, and homes in Korea have become stricter following the explosion of LPG charging stations in Bucheon. The safety distance regulation is divided into regulations based on the distance damage and the risk including frequency. This study suggests two approaches to optimizing the safety distance based on the just consequence and risk including frequencies. Using the Phast 7.2 Risk Assessment software by DNV GL, the explosion overpressure and heat radiation were derived according to the distance caused by BLEVE in the worst-case scenario, and accident and damage probability were derived by considering the probit function and domino effect. In addition, the safety distance between LPG tanks or LPG charging stations was derived to minimize damage effects by utilizing these measures.

• Korean Journal of Organic Agriculture
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• v.30 no.2
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• pp.207-230
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• 2022

A survey on the understanding of environment-friendly certification system was conducted for certified operators. The survey included the necessity of certification system, difficulties in producing certified products, and general evaluation of the current certification system. Certified operators were generally satisfied with the certification system in terms of the certification standards, the public subsidy programs, and the farm management costs. Individuals with parallel production farms were relatively less satisfied than the group with full-time organic farmers. Analysis using the ranking probit model indicated that the longer the certification experience, the more highly aware the need for the certification system was. Our results indicated that policy strategies are needed to enlarge the marketability of environment-friendly agricultural products since economic factors of organic products were the most important factor for maintaining and expanding certification in overseas as well as in Korea. It seems to be necessary to implement economic triggers for certified operators to continue their certification programs by promoting the transition period certification for individual farms in parallel with conventional agriculture. Analysis of the variables correlated with the expansion of environment-friendly agriculture by the logit model implied that certified operators with the younger age and higher annual incomes were more likely to expand environment-friendly agriculture. Therefore, it might also be important to provide financial support and incentives for new entry farmers to participate in environment-friendly agriculture and establish a system to share the know-how of successful certified organic farmers.