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Economics Research

06 c h a p t e r

06

62KRIHS

The study aims to enhance the PPI by identifying problems and issues of privately invested projects in each stage of the projects such as project selec-tion, evaluaselec-tion, negotiation and agreement sign-ing, and then presenting suggestions for alterna-tives. In order to upgrade PPI, it is necessary to refurbish the overall promotion system for it.

It set a goal of consolidation in PPI to take the re-triangular position of the propulsion system.

The study explores current status and problems with the existing PPI, and presents suggestions for improving promotion of PPI. The major goal of the study is to enhance efficiency and creativity.

This study show that each phase such as project selection, evaluation, negotiation and agreement signing the problem point exists in PPI, and then the problem points separate in effectiveness and creativity characteristic item. To solve the problem point, it reflected a question result analysis and it presented a improvement program. This study decided 4 branch foundation direction from improvement program establishment: rationaliza-tion plan of project enforcement condirationaliza-tion, con-solidation of the PPI which leads a competition, propulsion of the measure for the activation of the PPI, the prior decision subject for the maturity of the PPI. Also, each phase it presented with

effi-cient and creativity characteristic reinforcement plan. The alternatives referred to a specialist ques-tion and an overseas instance, and it presented.

Also the array which is simple knew and original-ity re-to compose it presented in order more effec-tive suggestion. It defined meaning of the dim consolidation accurately and it gave a rational result, clearness result and consistency.

The result of this study be wished opportunity with activation of the PPI which develops into the system which matures more. Also, it will con-tribute in state economy: quality of the service against the user it raises, it improves the produc-tivity of investment. Further, it should be con-tributed with the fact that the base which prepares the policy it will be able to take charge of a role even to industrial development relation.

Research Period: 2007. 1. 1~2007. 12. 31

Report Descriptions: KRIHS Research Report 2007-30, 162pp

>> Alternatives for the Consolidation of Private Participation in Infrastructure

민간투자제도의 내실화를 위한 추진단계별 개선방안

Yoon Hajung & Chung Ilho

63KRIHS Infrastructure & Construction Economics Research

As the world based on knowledge emerges, for-mer factor-injecting economic structure is turn-ing into an innovative and creative economic structure. So the objective of this investigation is to derive an outcome-control scheme based on policy process, by using BSC approaching method, in order for structured outcome control of the industrial complex innovation clustered demonstration program to establish.

Through BSC, this investigation has established strategic map, and selected 14 types according to the four points of BSC, as the strategic target and outcome target, and has made the government operate them by deducing specific 30 kinds of performance indicator. Also, by government and related organizations that are associated with each stages constantly managing the outcome target and performance indicator, according to each policy process of industrial complex innova-tion clustered demonstrainnova-tion program, this study made accomplishment of effective outcome con-trol possible.

Moreover, outcome control system of the industrial complex innovation clustered program can be generally divided into three steps. We should be able to control the outcome distinctive-ly, in policy outcome evaluation steps; Step 1 as

planning stage of a business, step 2 as execution stage of a business, and step 3 as management stage, measurement of the outcome and the feed-back stage.

Therefore, this study shows that, for systematic outcome control of the industrial complex inno-vation clustered demonstration program, which is a part of balanced national development policy that is run by the participation government injecting huge sums of money, structured out-come control system of every government sec-tions and related organizasec-tions that are associat-ed with drafting, decision-making, executing and assessing of a policy in the policy process, is required.

Research Period: 2007. 3. 14~2007. 9. 30

Report Descriptions: KRIHS Research Report 2007-11, 109pp

>> Effective Performance Management for the Balanced National Development in viewpoint of BSC

BSC구축을 통한 국가균형발전정책의 효과적인 성과관리 방안 연구

Bae KyungHwa & Kim Sungil

2007 Research Projects

06

64KRIHS

The purpose of the study is to search for new infrastructure investment policies reflecting on changes in the surrounding conditions, and to suggest the implementation strategies. The study is carried out over two stages, and the study for this year is for the first stage. This year’s study is intended to suggest guidelines to investment poli-cies for the future.

Major findings of the stage-one study are as follows; firstly, the estimated changes to affect future demand for infrastructures are stable growth trends in the economy and population, changes in the economic and population struc-ture, and rise in people’s awareness of environ-ment and safety. Secondly, the factors influenc-ing the supply side are emergence of new tech-nologies, changes of the supply structure, and changes in citizen awareness. Innovation in tech-nologies may introduce new infrastructures using the most up-to-date technologies. It may also greatly affect the methods and costs of construc-tion. Also, changes are expected in the supply system as follows: conversion into the so-called Best Value-oriented bidding system, lift of restric-tions on running businesses, rationalization of private participation in infrastructures. And last-ly, it is anticipated that fiscal expenses on

infra-structures will be relatively reduced due to increasing social welfare budget. Although self-regulation on fiscal management is augmented with the reform towards a performance-oriented fiscal system, the responsibility of fiscal expendi-ture is also emphasized.

Given the changes in the surrounding environ-ment for infrastructure investenviron-ment, the future directions to investment policies can be suggested as follows. Firstly, it is necessary to convert the existing quantity-oriented investment into a quality-oriented one that is directed towards per-formance and value. Secondly, the shortsighted investment which has backed up the rapid eco-nomic growth to date should be transformed into a leading investment to create new growth engines from the perspective of a long-range national development. Lastly, investment should be made more efficiently to achieve goals at lower costs, and the existing supply-centered investment must be changed and instead, new investment demand should be actively met.

Research Period : 2007. 1. 1~2007. 12. 31

Report Descriptions: KRIHS Research Report 2007-43, 118pp

>> Reestablishing Investment Policies for Social Overhead Capital in the Period of Transition(I)

전환기의 사회간접자본(SOC) 투자정책 재정립 방안(I)

Yoo Jaeyoon, Ahn Hongki & Kim Minchul

65KRIHS Infrastructure & Construction Economics Research2007 Research Projects

The purpose of this study was to investigate the polarization in the construction industry. The analysis of this polarization was carried out through various approach such as market and industry, production system, construction busi-ness cycle. Diverse improvement scheme to settle the polarization was rendered as well.

The analysis and review figured out that the polarization in the construction industry occurs due to the structural factors of the market and industry, the systemic factors of production and institution, and business cyclic factors. From these inductive research of above factors, this study suggested following solutions; elimination of obstruction factors to mutual collaboration, activation of ordering system for partnering, installation of small-medium subcontractors pro-tection system and monitoring system, upbring-ing and supportupbring-ing programs for small-medium construction companies.

First, to eliminate obstruction factors to mutual collaboration, the registration system needs to be consolidated and its restoration needs to be mon-itored as well. That means the government needs to maintain the proper amount of registered con-struction companies so that can reduce the gap between companies of received order.

Second, to activate ordering system for part-nering and collaboration, the institutional system must be prepared to activate partnering contracts, joint-venture contracts which enables more par-ticipation of the small and specialty contractors.

Third, To install the protection system for small-medium subcontractors and establish the monitoring system, reinforcement of protection systems for the small and medium subcontractors and the monitoring system to prevent the dump-ing are required. To upbrdump-ing and support the small-medium construction companies, activation of joint-venture contract between large general contractors and small subcontractors is a crucial solution. A Construction industry promotion fund for upbringing the small contractors is a good solution as well.

Research Period: 2007. 1. 1~2007. 12. 31

Report Descriptions: KRIHS Research Report 2007-17, 127pp

>> A Study on Collaboration Measure to Overcome the Construction Industry Polarization

건설산업 선진화를 위한 상생협력 방안

Kim Jaeyoung & Kwon Hyeockjin

06

66KRIHS

This study is to review the possible factors that effect quantitatively or qualitatively to the con-struction surety bond market and find the suit-able solutions for the changes of the market scale and structure.

From the usage behavior analysis of construc-tion companies, the future structural change of the surety bond market has been projected as fol-lows;

First, there is a big difference in selecting the surety bodies in between the general contractors and subcontractors. The general contractors will tend to select the insurance companies rather than the existing surety bond bodies. Because the insurance companies have more competitive power than the existing surety bond bodies.

Second, if the construction companies recog-nize the importance and understanding of the surety conditions and systems, they more like to select the existing surety bond bodies for their assurance bonds.

This study presented the countermeasures dividing into short-term and long-term of this environmental change as well. In the short view, To secure the competitiveness, the surety under-taking ability through strengthening the compa-ny evaluation ability should be improved. Legal

and regulatory arrangement is prerequisite for the plural surety institution system. It is appropriate to maintain the current market structure until the overall environment is improved. In the long view, the existing surety bond bodies, the mutual aid association should be raised as the specialized surety bond companies. The environment of con-struction industry is changing towards the open industry and open market. So the surety business itself has to be reformed following the changes as well. Lastly, stepwise market opening is empha-sized for the desirable growth of construction industry. Current construction surety bond mar-ket is not prepared for the plural surety institu-tion system, neither are the legal and regulatory arrangement. Therefore, it is better to maintain current surety system not until environmental preparation completed. Even then the environ-mental preparation completed, the market open-ing should be ascend stepwise.

Research Period: 2006. 11. 1~2007. 10. 31

Report Descriptions: KRIHS Research Report 2007-3, 102pp

>> A Study on the Construction Surety Bond Market

중장기 건설보증시장 전망과 대응방안

Kim Jaeyoung & Kwon Hyeockjin

07 c h a p t e r