This study examined the effect of the factors selected on the selling price ratio of the factory items which financial companies applied for auction by their foreclosure on the items. To achieve the goal, multiple regression analysis was carried out to analyze data.
The spatial range of research is Busan Metropolitan City, Ulsan Metropolitan City, and Gyeongsangnam-do Province. These 3 regions belong to the Southeastern Maritime Industrial Region. These regions have been developed as heavy industry and chemical industrial complexes surrounding the port cities along the Southeastern coast, which have the advantage of convenience in import of raw materials and export of products. Representative industries in the regions include shipbuilding and motorcar industries in Ulsan, machine industry in Changwon, and shipbuilding industry in Geoje. The scope of time for research is 5 years from July 2009 to June 2014 immediately after the Global Financial Crisis. Data collected and consulted for research are the cases of finalized sales based on the numbers of auction cases applied by banks for voluntary auction by foreclosure among factory items that banks held as a security for loan from July 2009 to June 2014.
The results of analysis show that increase of one unit in appraised value (In) is accompanied by decrease in selling price ratio. Appraised value is generally high in large-scale factories that have large size of land. From the standpoint of bidders, small-scale factories are convenient for raising funds compared to large-scale factories and more frequently traded in the market. So, higher appraised value of factory (In) had a negative (-) effect on the selling price ratio of factories. In the item whether or not the date was changed (dummy variable), change of date had a positive (+) effect. This seems to have derived from the fact that concerning application for change of date for auction cases, the court only approves the application of the creditor who applies for auction. Change of date is practised as a measure to reduce the disadvantage of the party concerned with the auction, and in practice, only the creditor can exercise it. The number of bidders had a positive (+) effect, and the number of miscarriages had a negative (-) effect. Because the number of bidders means that demand is greater than supply of the factory concerned, it is interpreted as a factor raising the selling price ratio. Previous studies also analyzed that the number of bidders had a positive (+) effect on the sale value rates. Because increase in the number of miscarriages means that there is no bidder for the lowest sale price proposed at the first date for sale, it is interpreted that it has a negative (-) effect on the selling price ratio .
Higher percentage of value of machinery had a negative (-) effect on the selling price ratio. Factories with high appraised value for machinery have low possibility of use due to excessive idle equipment and deterioration. And machines with no versatile application may have no value in use, so run the risk of being sold at the price of scrap iron. Purchasers in the auction market tend to not apply separate prices for machinery, which is interpreted as having a negative (-) effect. Whether or not the category of industry belongs to heavy industry (dummy variable) had a positive (+) effect on the selling price ratio. The spatial range for this study is Busan, Ulsan, and Gyeongnam area, which represents the Southeastern Maritime Industrial Region, which is a heavy industry complex. In consideration of the related industries, the locations of subcontractors, relations with the markets for sale and purchase, accessibility to harbors, roads, and railways, and the question of securing labor force in the population composition, it is interpreted that the factor that a factory had once run heavy industry had a positive (+) effect on the selling price ratio.