Basic Report

The Local Investment Management Center (LIMAC) of the Korea Research Institute for Local Administration is an institution specialized in feasibility studies of new local projects with a total project cost over 50 billion won under Article 37.2 of the Local Finance Act.
   Local government is actively involved in pushing ahead with industrial complex establishment projects for reasons such as stimulating the local economy, employment growth, and backward regions’ development. The average investing costs of industrial complex establishments projects are a lot higher than many other types of local projects. It also has various parts that need to be reviewed in several different ways: Financial needs, attraction/characterization, operation managements, project size and location. Thus, rigorous evaluation is essential for the projects.
   Even though the projects need rigorous evaluation, the present analyzing process does not provide adequate evidence; it considers economic and financial efficiencies, and a few analyses under the policy. It does not consider the parts that are specific to the types and the sites and industry of each local government. The guidelines for policy analyses at the feasibility study for industrial complex establishment project have not been organized yet and they lack of understanding the distinctiveness of each project.
   Local governments have different conditions for financial, population, terrain, and economic, so it is crucial to establish the guidelines for policy analyses in the feasibility study. In the research, the main factors that can affect the success of project were found by reviewing related laws, details of feasibility study, and previous research studies. The important policy factors were categorized from the investment evaluations for last 3 years, using content analysis. And, the policy analysis from the researched feasibility study of local industrial complex establishment project were reviewed. Finally, we suggested the list of policy factor as categorized two groups: general list and project-specialized list. This is divided into essential items that need to be evaluated in common and project-specialized items that need to be reviewed according to project and local government conditions.
   By suggesting the list of policy analyses in the feasibility study for industrial complex establishment project, it is expected to enhance the consistency of investment evaluation and feasibility study, and to be more reasonable. It helps the researcher to carefully review all items the policy analyse factor in the feasibility study, which can contribute to systematize the process for feasibility study. In addition, it is intended to help and check the policy validity in advance at the planning stage of the general industrial complex development project.