KJCKorea
Journal Central

This study theoretically investigates the bidding incentives and outcomes in competitive bidding for desired quantity and examines the factors affecting the bidding incentives in collusion cases in public procurement auctions. We divide the bidding system into three types based on the method to determine the winning price. Under specific assumptions there is a difference in bidding incentives among the three types but the winning price is similar to the estimated price in all types. In particular, under the general type or the 'lowest price' type used in domestic public procurement auctions the but-for competitive bidding price is close to the estimated price. This result indicates that, under certain assumptions, the difference between the winning price in collusive bidding and the but-for competitive bidding price may be negligible. This suggests that when assessing the anti-competitive effects in collusion cases, it is necessary to consider the characteristics of the bidding process and the industry. We also discuss that even when the assumptions are not met, the method for calculating the estimated price and adjusting the contract price in public procurement auctions may affect the bidding strategies of bidders and potentially lead to higher bidding prices. These results have important implications for the operation of public procurement auctions, the evaluation of anti-competitive effects in collusion cases, and the damage estimation in damage lawsuits.

The purpose of this study is to examine the effects of the so-called 'Min-sik’s Law' that has recently become a big social issue and 'Safety Speed 5030' policy, using Difference-in-differences(DID) analysis. The results of the analysis are as follows. It was proven that the effect of the Min-sik’s Law was not successful because there was no significant effect under the DID analysis. Conversely, it is verified that the implementation of the Safety Speed 5030 policy has achieved considerable results significantly; The number of accidents, deaths, and injuries were all verified to have decreased in 10,851 case, 164 people, 18,830 people, respectively. This result proved a necessity to beware of the limitations of premature regulatory legislation in that the effect of the Safety Speed 5030 was significantly effective, while the effect of the Min-sik’s Law had no outstanding effect. The Min-sik’s Law had been passed and implemented only in three months after a sad death of an elementary school student; Low speed compliance is required in all child protection areas. In contrast, the Safety Speed 5030 had been designed over a long period of time and introduced after an adequate pilot operation; Speed limits are applied according to the characteristics of the road. In terms of procedural rationality, the Min-sik’s Law has limitations, and the Safety Speed 5030 policy is one of examples that procedural rationality leads to practical rationality. It implies that a systematic impact analysis is essential prior to the introduction of regulations. In particular, in the case of legislative legislation, unlike government legislation, legislative impact analysis is not enforced, but the results of this study indicate that it is necessary to make legislative impact analysis be compulsory if it can significantly affect the lives of the people.

In the new industry sector, risk management costs can impede innovation and diminish national competitiveness. Additionally, this study highlights how regulations founded on excessive precautionary principles can obstruct innovation activities. Consequently, it proposes a method to develop a risk-based, flexible regulatory system by applying a 'cautious vigilance' approach through a case study of used electric vehicle batteries. The analysis yields the following results: Firstly, comprehensive risk assessment and data-driven regulation are identified as crucial components of regulatory design. It is essential to tailor regulatory intensity and methodology based on the collected data to foster innovation and enhance safety. Secondly, a regulatory design based on scientific evidence and centered on risk should be implemented. Thirdly, from the standpoint of gradual regulatory innovation, risk management strategies need to be adaptively adjusted at each stage through continuous management and evaluation. This study suggests a flexible approach that differentiates regulatory intensity based on risk levels to overcome existing limitations. This approach is expected to refine the current overly uniform regulations, thereby enhancing the efficient use of government resources and the effectiveness of regulations.