부산대학교 도서관

The specialization and systematization established in the 1970s were the core regulations that protect and foster Korea’s defense industry. However, the abolition of specialization and systematization in 2009, the increasing number of firm contracts, and the negotiation system are accelerating the economic logic in the defense industry. Such situation is threatening the operating profits of defense companies. Thus, this study analyzes the fluctuation of the operating profit according to the fluctuation of cost elements. Its findings are as follows. First, the rate of increase of operating profit is bigger than the rate of increase of sales when sales are bigger than the indirect-ratio-estimated year’s sales. Second, large firms have a bigger operating profit than small firms. Third, the operating profit according to automation is bigger than the operating profit according to the direct labor cost. Fourth, the operating profit decreases when the processing costs paid to the subcontractor increase. Fifth, when the research and development costs increase, they are positively related to the operating profit.