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A Study on Analysis Method of Investment Appraisal for Public Events in Seoul

Choi, Young-Eun·Kim, Byung-Su·Yeon, Je-seung·Youn, Young-Hak

In recent times, there has been a notable increase in the proportion of public events within the investment appraisal conducted by the Seoul Metropolitan Government. However, the research on methodologies for evaluating these public projects is still insufficient. The purpose of this study was to comprehensively investigate and research the existing management systems and evaluation indicators, and to propose evaluation criteria and methodologies that can be employed in the investment evaluation of public events. To achieve this objective, we initially reclassified the types of public events. based on the existing investment evaluation guidelines. Building on this classification, we conducted evaluations of project feasibility, cost adequacy, demand, and local consumption growth effects. The feasibility evaluation of project plans involved researching and selecting indicators from both the Seoul Metropolitan Government and the central government. We categorized these indicators into common evaluation criteria and type-specific criteria. Common criteria were categorized based on the necessity of public events, specificity of pre-preparation, and specificity of on-site operational plans. Given the three-year evaluation cycle and the annual post-event evaluation, we provided recommendations for improvements to ongoing projects.

For type-specific criteria, we provided evaluation items based on the distinctive features of different project types. In the cost adequacy evaluation, we incorporated findings from investment evaluation cases and international event feasibility study criteria. We divided the evaluation process into rough and detailed evaluations, allowing for flexibility based on real-world operational situations. The rough evaluation presented cost items per project type, quantity, and unit price standards to expedite evaluations when time is limited. The detailed evaluation included legal requirements, quantity benchmarks, and unit price standards to facilitate more specific cost analyses. Moreover, we used this methodology to present examples of cost evaluation cases for past public events, thereby increasing the practical applicability and utility.