KJCKorea
Journal Central

This study examines the relevance of the price fluctuation adjustment method applied in the Total Project Cost Management Guidelines, because it is important for the normal implementation of public construction projects. The Total Project Cost Management Guidelines specify that, during the total project cost negotiation stage, the fluctuation in total project cost due to price increases should be adjusted by applying the price index with the lower growth rate between the Construction Cost Index, which published monthly by the Korea Institute of Civil Engineering and Building Technology, and the Construction Investment GDP Deflator, which is published by the Bank of Korea.The empirical results of this study are as follows. First, it was found that the construction cost based on the unit price adjustment shows a statistically significant difference from the cost estimated using the lower index, suggesting that applying the lower growth rate of the two indices in the guidelines may not accurately reflect actual price changes. Second, during periods of inflation, the difference in growth rates between the two indices tends to widen, which indicates the possibility of impairing the accuracy of project cost estimation depending on the timing of price fluctuations. Third, the longer the price adjustment period, the more likely the effects of price increases will persist even after prices stabilize. Therefore, it is needed to establish measures to fundamentally reduce the price adjustment period.

This study explores how combinations of perceived government support and perceptions of economic and social regulation influence innovation activity by using fuzzy-set Qualitative Comparative Analysis. The results identify multiple pathways leading to higher innovation activity. Innovation activity can occur even without financial support when positive regulatory perceptions combine with strong recognition of non-financial support. Positive perceptions of economic regulation and the importance of financial support appear as necessary conditions, while the configuration of high perceived financial support and favorable perceptions of social regulation shows strong sufficiency, indicating a high likelihood of innovation activity when present. Overall, the findings show that SMEs’ innovation is influenced not by individual policy instruments but by complementary interactions between government support and regulatory perceptions, providing implications for effective policy mixes.

Both Korea and Japan actively utilize special regulatory zones. Korea primarily employs a decentralized strategy, excluding the Seoul metropolitan area for balanced regional development. In contrast, Japan adopts a centralized strategy that includes its metropolitan areas to drive national growth around key hubs. In terms of operation, Korea often uses a bottom-up approach led by local governments, whereas Japan's top-down approach, directly led by the Prime Minister, has enabled powerful regulatory reforms to tackle so-called "bedrock regulations." Additionally, while Korea's regulatory design has been limited by a "menu-based" system that only permits pre-defined regulations, Japan has allowed for flexible additions to regulations and introduced regulatory sandboxes, enabling innovative experiments. Based on these findings, Korea's special regulatory zone system should be improved by reconsidering the exclusion of the Seoul metropolitan area, establishing a strong, presidential-level regulatory reform framework, and pursuing flexible and comprehensive regulatory reform. Ultimately, special regulatory zones should serve as a crucial tool for enhancing national competitiveness alongside regional revitalization, requiring a comprehensive approach that combines regulatory relief with financial support.