The new world's water industry paradigm is now changing from the national owned or the monopoly deregulation to the liberalization and the privatization and pursuing the free competition system. According to this changing water industry environment, there is global trend of the water company such as K-water's role and proportion is growing fast. From the world trend of opening and privatization of the world water market, the water market has been expending steadily. Especially, the East Asian region, which is accounts the large weight of the water market, is expected to be fierce with the competition.
This study was performed to identifying key issues and status of foreign water industry, investing the policies for nurturing the water industry, and analyzing the K-water audit firm decision-making process for helping the expansion of overseas business. From the result of the assessment of the foreign business investment decision-making process, it points out the K-water's limitations of the current investment screening system, lack of secure strategic project execution and risk management. And to solve these problems by setting an investment screening criteria item by comparing the various evaluation items of the future direction for future decision-making criteria is presented. In particular, Analytic Hierarchy Process Decision AHP has been widely applied in the field provides an estimation method for the problem hierarchy. And the customized the importance by comparing the employee survey results was utilized to invest the key points to make decisions for the foreign business investment.
A summary of the main can be summarized as follows:
First, from the assessment of the foreign business investment decision-making process by analyzing the limitations of current screening system for investment analysis, the providing the detailed investment evaluation indicators was significant. Accordingly, evaluation criteria were selected using the government budget guidelines and KDI Assessment Guidelines and the detailed indicators were prepared including the items discussed in the decision making process of he CEO and major policy executives.
Second, for the selection of the weights of evaluation criteria, an expert survey including international business transaction staffs was performed using AHP method. Based on the results, the detailed indicators were chosen for the weights.
Third, AHP technique designed by investment management strategy meeting screening criteria or an investment committee that a negative decision on overseas business cases for new investment. It appears to play a major role in K-water's financial condition and risk management.
For this study, there are limitations on research because the criteria was selected mainly based on existing research and the government based budget guidelines. Also, the experts are not covered the all of employees and wide range of researchers and investment professionals.
Inspite of these limitations, the recomended future challenges are as follows:
First, the risk management system and establish a management system to establish the criteria which is pointed when analyzing the foreign investment review process should be prepared for ensure a variety of decision support.
Second, this study focuss on the public enterprises, K-water. the research of the water sector and private companies, including related forms of a variety of industries with a strategic plan for the company's overseas expansion should be sought separately.