KDI

Comprehensive Research on Green Growth Strategy

- The recent climate change is a new trend in global economic environment that can pose threats to the sustainable growth of all countries, particularly developing ones. Depending on how Korea copes with them, however, there are chances the nation can make the most of the climate change and international discussions related to it as opportunities to ensure sustainable growth by creating new growth engines, shift to climate-friendly industrial structure and advance related domestic systems.
- Accordingly, improving related policies and systems in keeping with these changes in global economic environment can be an important factor for sustainable growth, and, for Korea to elevate its measures to cope with climate change to a national strategy of green growth, the country needs not only to work out consistent measures to deal with climate change, but to back this up by coordinating and improving a wide variety of related policies as well.
- The comprehensive research, based on the outcome of studies made at home and abroad thus far, has set as its objective the conduct of overall research to help Korea attain green growth as a new national development strategy and better cope with climate change.

Joo-Hoon Kim /
MoonJoong Tcha

Analysis and Forecast of Macroeconomic Trends (yearly task)

- The institute conducts frequent checkups of macroeconomic trends, evaluates policy keynotes based on these, and seeks to provide macroeconomic policy directions to bring about stable growth and economic balance.
- The institute provides policymakers and other economic players with basic data for establishing macroeconomic policies and economic activity plans by helping to enhance their economic forecasting capacity, and contributes to finding policy alternatives by detecting the economy's structural changes or weaknesses in their early stages.

An Empirical Study on Financial Literacy and Behavior

- Through the analysis on the impact of household’s financial literacy on financial decision makings related to the patterns of financial asset accumulation and debt financing, this study suggests the need for designing the finance-related educational programs which are actively discussed these days.
- Securing the basic data for the establishment of effective financial education system would contribute to formulating appropriate consumer protection policies.

Parent Company Discount Puzzle and Holding Companies

- Critics have pointed out opaque corporate governance (particularly ownership structure) and parent company discount as the cause of takeover disputes of listed companies.
- This study aims to identify and analyze the existence and size of parent company discount, its consistency, and its causes.

Impact of Real-Estate Financing Regulations on Wealth Accumulation of Household

- It has been considered that DTI, adopted in March 2006, has contributed not only to stabilizing overall house prices but also extending the mortgage term and enhancing the stability of the housing financial market. However, there have been continued concerns about the possibility that DTI might overly limit the mortgage capability of households, making it for some class more difficult to buy a house.
- The analysis of this study is focused more on quantity impact of DTI and LTV on the asset accumulation and house-buying period than on overall financial system. It also attempts to derive a structure to maximize public welfare through comparison of and analysis on various types of DTI structures.

Sources of Stock Market Volatility - Korean Case

- By analyzing the long- and short-term factors?on the other side of stock market volatility?relating to macroeconomy or finance, this study attempts to identify quantitative risk factors in the financial market during the concerned period.
- This study is an analysis of stock market risks and their economic sources, and is expected to contribute not only to identifying stock market risks in terms of quantity, but also to presenting the implications of financial market stability and its relationship with economic fundamentals. This will also develop a better economic understanding of characteristics and changing status of stock market risks during the period of economic fluctuations or financial crisis.

Young Il Kim

Credit Risks of Domestic Financial Intermediaries and Its Association with Foreign Financial Risks

- This study conducts quantitative measurement of common credit risks in seemingly close relevance to the system risks of domestic financial institutions, examines the association with foreign financial risks, and then explores meaningful differences of the association by the category of financial services.
- By analyzing the transfer effect from foreign financial risks to the system risks of domestic financial institutions, this study is expected to be used as basic data in establishing policies to stabilize the foreign exchange and financial markets.

Min-Kyu Song

A study on Short-term Macroeconomic Forecasting Models

- Focusing on the macro-econometric model which uses the recently developed ‘high frequency data,’ this study outlines the methodologies of various short-term macroeconomic forecasts, and based on this, it formulates a short-term forecasting and explores possible applications.
- With the economic index based on high frequency data, this study will allow more timely decision and therefore enhance the efficiency of establishment and implementation of macroeconomic policies.

Hangyu Lee
Jaejoon Lee

Empirical Analysis on the Deviation of Covered Interest Parity in Korea

- This study examines the correlations among the arbitrage incentives of Korea’s foreign exchange market since the second quarter of 2007, credit risks and liquidity risks of trading parties, and the risks of national defaults, and then it analyzes the impact of the recent government intervention?to counter the financial crisis?on the incentives of arbitrage trading and risks factors.
- This study intends to suggest empirical foundation of the foreign exchange market imbalance, and is expected to be used as basic data to achieve the stability of Korea’s foreign exchange market.

Daehee Jeong

Capital Market Financing for Social Enterprises

- Korea’s capital market financing for social enterprises have been made in the form of microcredit which is resourced from the government budget and the social contribution fund by large companies. Since the use of most budgets and funds is pre-arranged and therefore not enough to solve social problems, it is necessary to seek measures to revitalize the investment by the private sector.
- By exploring measures to improve the current microcredit system and to encourage the impact investment, such as impact investment, this study is expected to facilitate social enterprises towards the formation of ‘Inclusive Society’ and then to contribute to creating quality jobs.

Sangdal Shim

Study for Making Reform in Korea: Comparative and Analytical Perspectives on the Economic Reform Experiences since the 1987 Economic Democratization

- It is now necessary to study the cases of economic reform attempts since the democratization of 1987 in systematic and comprehensive manners, to systemize the policy implications of the study results, and to use them as a starting line to build national strategy to realize future economic reforms.
- This study intends to seek policy alternatives to reform the economic structure, a key to harnessing the mid- and long-term growth potential of the Korean economy.

Youngjae Lim

The Effects of Imported Varieties on Plant TFP and Domestic Product Varieties in Korean Manufacturing

- What type of company takes a lead in introducing new products? What is the specific relationship between the introduction of new products and openness? To answer them, this study uses micro data of Korea’s manufacturing industry and derives policy implications on improvement direction of openness or growth policies.
- This study is expected to contribute to establishing the growth policy through enhanced understanding of mechanism to facilitate new products and to provide basic reference for proposing improvement direction of openness policy.

Chin Hee Hahn

Institutions and Policies for Basic Academic Research 2

- Korea’s academic research system has been criticized for failing to properly comply with new demand of the era. To realize new study policies requires not only investment expansion but also newly designed system based on fundamental reviews on research conducting methods and management systems.
- By reviewing the academic research policies and systems required for the transition towards knowledge-based economy, it would be possible to specify the sustainable growth strategy and also to propose the long-term development direction for national agendas, including fostering excellent human resources, integrating researches and education, and formulating the academic-industrial cooperation.

Joonghae Suh

Studies on the Legal Foundation of Economic Growth III: Enhancing Consent on Sentences

- By analyzing the appeal rates in civil cases in Korea, this study aims to identify major factors behind the current appeal rates and to seek measures to enhance the consent on sentences, or reduce the appeal rates.
- This study expects that finding out systemic factors to enhance the consent will help prepared more effective responsive measures, eventually leading to heightening the court’s credibility and the consent level toward the nation’s legitimacy.

Duol Kim

Candidate Selection Processes and Legislative Performance: Structure & Impact

- There has been public consensus on the need for the constitutional amendment, but it is necessary to suggests system improvement measures most appropriate to resolve the raised issues by analyzing the discussed system in rational, logical manners.
- Out of several study projects presented to the discussion, this study intends to review system improvement measures that are designed to normalize legislative functions.

Jaehoon Kim

A Study on Treasury Bond Auction

- This study aims to theoretically and empirically evaluate the changed auction system in terms of treasury bond market stability, proper pricing, bid-to-cover ratio, and auction revenue.
- This study is expected to suggest useful methodologies for the following analysis: on the primary market (issue market) for government and public bonds (foreign exchange equalization bond, local government bond) other than treasury bonds, on the wholesale power market, and on designing the primary market for emissions right when the green house gas emissions scheme is adopted later.

Kyoung-Soo Yoon
Jungwook Kim

A Study on Social Capital Focusing on Social Network Analysis

- Based on the consideration that the social capital, including human network, is an economic resource available for the individual’s use, this study conducts economic analysis of individual’s decision-making activities for accumulating and maintain the capital, and at the same time develops Korean version of indicators to measure the individual social capital, laying the foundation for future empirical analysis.
- By defining the concept of social capital, laying the groundwork for sustainable development of relevant studies, and deriving the interconnections of social capitals between social groups, this study intends to present the implications for social integration. It also attempts to provide new perspective on inequality issues of the Korean society by analyzing the gap of social capitals between different social groups.

Yung Chul Kim

Features and Policy Issues of Korean Distribution Industry

- This study conducts statistical and empirical analysis on the status and features of Korean distribution industry based on the distribution theory.
- By doing this, this study aims to provide basic information for setting the right policy direction and seeks policy improvement measures centering on consumer interests and small-sized merchants.

Jae-Hyung Lee

Policy Direction of North Korea's Economic Reform based upon the Experiences of Economies in Transition

- One of the most significant issues related to the North Korean economy for several coming years is the institutional transition. Experiences from the similar transition of Eastern Europe in late 1980s have produced a number of various concepts, models, and hypothesis to share with other countries regarding the economic and general transition of socialism.
- By systematically providing cases of Eastern Europe as a framework of reference, this study intends to enhance the understanding of North Korean economy’s transition, to derive implications for policies toward North Korea, and to lay a theoretical policy foundation on inter-Korean trade and economic assistance for North Korea.

Il Dong Koh

Implications of Tony Blair's Social Welfare Reform to Korea

- Social welfare reform as well faces challenges of addressing reform narrative, designing reform process, and coordinating interests brought by reform. This study analyzes the challenges, using the case of Tony Blair’s social welfare reform and presents major implications for future welfare reform plans and execution of Korea.

Kyungsoo Choi

Study on the Effectiveness of Wage Subsidies for Promoting Employment and Their Policy Implications

- This study intends to measure the net employment effect of wage subsidies and the size of deadweight loss, to review the adequacy of business components such as subsidy method and level, and to explore the direction for improving wage subsidy through the analysis of effect and business components.

Yong-seong Kim

Tools for Fiscal Management of Long-Term Care Insurance

- It is necessary to prepare tools for fiscal management in order to stabilize the long-term care insurance system which started in 2008.
- After estimating the expense based on the data of application, decision, approval, and use of the elderly long-term care insurance, this study attempts to design instrument to simultaneously pursue the fiscal sustainability and institutional expansion, which serves to provide basis analysis for securing stable fiscal management plan of the elderly long-term care insurance.

Hee Suk Yun

Income Taxation and Labor Supply

- To design and manage the tools of tax policies in proper, effective manners, works to accurately measure the impacts of each policy tool should be conducted beforehand.
- By comparing and analyzing the quantitative economic impacts of income taxation on employment, capital formation, and GDP by the category of policy tool, this study aims to derive policy implications for more effective taxation management.

Hanwook Yoo

Analysis of the Effects of Private Education on Academic Achievement and Labor Market Performance

- Based on the empirical analysis result, this study evaluates the effectiveness of measures to strengthen public education which have been suggested to reduce dependence on private education. Then, it suggests implications on what specific direction should be taken with public education substantiality and also with teacher policy for enhanced quality of public education.
- By suggesting the analysis result regarding the long-term effectiveness of private education in the labor market, this study provides the basis of deciding on economic rationality of investment in private education. Then, it evaluates the private education issues and suggests policy direction from the perspective of efficient allocation of educational resources to harness the growth potential of knowledge-based economy,

Hisam Kim

Analysis of Career Interruption and Human Capital Accumulation

- By analyzing the effect of career interruption in the labor market on the wage, this study explores policy implications to enhance the economic activity participation rate of women.
- This study suggests long-term policy direction for improving women’s employment and proposes recommendations as to policy priority for stabilizing women’s employment.

Jungho Kim

Aging Population and Medical Cost

- The study of the impact of aging population on medical costs requires the consideration of changes in health status, time until death?which exerts significant influence on the medical cost, and the displacement relationship between medical service and long-term care service.
- By examining the changes in the elderly population and their health status and analyzing their use of medical services, this study attempts to analyze the impact of aging population on medical costs and health insurance finance, and then suggests policy direction for the stability of health insurance finance.

Wankyo Chung

North Korea’s Demographic Structure and Trend: Analysis of 2008 Population Census

- Accurately analyzing the demographic trends of North Korea is one of the most fundamental tasks to correctly understand the entire North Korean society. Using North Korean census for 2008 as basic data, this study reorganizes the demographic trends of North Korea between 1945 and 2008 in a systematic manner.
- It is believed that the fundamental analysis of North Korea’s demographic status will contribute to South Korean policy toward North Korea, provide the foundation to analyze the reality and changes of the North Korean economy, and help establish the basic framework of South Korea’s plan to prepare for future integration between the two Koreas.

Suk Lee

A Study on Fiscal Rule and Political Rent Seeking

- Prior to discussing specific measures under the assumption of adopting fiscal rules, it is necessary to contemplate beforehand whether Korea needs fiscal rules based on the theoretical and empirical verification of the possibility of political rent seeking.
- This study proves the feasible foundation of introducing fiscal rules to Korea through the theoretical and empirical verification of political rent seeking and by doing this, the study suggests policy measures to secure fiscal soundness.

Seong Tae Kim

A Study on the Risk of Forecasted Demand in Railway Feasibility

- This study intends to enhance the rational decision making for the investment in railroads and to induce rational investment in transportation facilities through active management and responses of the risk degree in the process for investment decision making.
- As a follow-up study to the preceding policy study of risk estimation of road traffic volume, this study analyzes the risk of forecasted demand for railway by comparing the estimation and actual use. Through this analysis, this study explores measures to consider uncertainty in the feasibility study of railroads.

Kangsoo Kim

Public Finance Expenditure and Local Economy: Quantitative Analytic Methodology

- In the process of evaluating the feasibility of public finance projects for investment and non-investment and of reviewing the project priority, the size of regional economic impacts by expenditures of the concerned project is one of highly significant factors to consider.
- This study intends to go beyond the limitations of the exiting MRIO model and then reviews quantitative analytic methodologies for regional economic impacts of R&D and various non-investment public finance projects.

Sanghoon Ahn

A Study on the Estimation of the Economic Effect of Public R&D Expenditures

- By estimating economic achievements of public R&D investment through various methodologies, this study intends to define estimation techniques distinctive according to R&D stages and the nature of studies and then provides relevant data.
- This study aims to explore measures to estimate the economic effect of public R&D investment, and based on this, to derive parameters to be used in the pre-feasibility study of R&D projects in the future.

Ki-Wan Kim

Studies on Public Expropriation

- There often has been social conflicts related to public land expropriation, and the way of expropriation has been pointed out as the cause of these problems.
- This study uses the framework of economics to analyze possible problems triggered during public land expropriation. Then, it suggests solutions based on the analysis results, trying to contribute to social integration and effective implementation of public projects.

Hojun Lee

Foreign Direct Investment and Regional Industrial Location Policy

- Active regional economy through attracting foreign investment requires detailed analysis on the spatial distribution and locational behaviors of foreign direct investment as well as the analysis on its economic effect.
- This study conducts comprehensive analysis of locational behaviors of foreign direct investment by the category of industry, investment size, and type. The subjects that this study uses for the quantitative analysis are as follows: locational behaviors, their background factors?such as the linkage effect brought by the existing location of other foreign and domestic companies?and regional industrial location policies?such as SOC stocks and educational facilities for foreigners, the economic size of the concerned region, proximity of the region to seaports and airports, and the existence of planned industrial complex which provides various incentives.

Hyungtai Kim

Structural Problems of Korea’s Foreign Exchange Market during the 2008 Global Financial Crisis: Diagnoses and Policy Suggestions

- This study accurately diagnoses the structural problems of foreign exchange (KRW/USD) market which triggered a sudden plunge in the won’s value and then explores necessary measures to improve the foreign exchange market system so as to prevent another plunge through similar channels.
- Using the sample from the period from the second half of 2008 and the first quarter of 2009, this study attempts a simple statistic analysis to know how different the diminishing exchange rate (or volatility) of each currency turns out to be according to the size (against current account and capital transaction) of the foreign exchange market (including the spot, futures) and also to the degree of globalization of the concerned country’s currency.

Woochan Kim

KDI-EWC Joint Research (yearly task)

- KDI and U.S.-based Asian economics research organization the East-West Center conduct joint research on key issues in the Korean economy. The joint program listens to opinions of both scholars at home and abroad and world's renowned experts and promotes the capacity-building of KDI through exchanging study results.

To be decided