This study aims to examine the operating status of the allotment gardens with log house in rural area and the validity of its business with using the benefit-cost analysis. In 2007, Rural Development Administration launched the pilot project of allotm...
This study aims to examine the operating status of the allotment gardens with log house in rural area and the validity of its business with using the benefit-cost analysis. In 2007, Rural Development Administration launched the pilot project of allotment gardens with log house at Sunchang County, JeonBok province. Internal information of Sunchang County was used for the analysis. The interviews were also performed with the project managers. The results of the cost-benefit analysis show that allotment gardens with log house was an inefficient business with relatively weak cost-benefit structure and could produce negative net benefit. Given an assumed discount rate of 6.5%, net present value (NPV) is estimate at -262 million won, while benefit-cost ratio (BCR) and internal rate of return (IRR) are at 0.70 and 2.7%, respectively. We concluded that it has feasibility to settle down the allotment garden with log house to look at government’s balanced regional growth policy.