Economic Feasibility of Flame-Retardant Treatment (FRT) in Residential Buildings

This study evaluated the economic feasibility of flame-retardant treatment (FRT) in residential buildings by applying a dual analytical framework that integrates cost–benefit analysis and social net benefit. According to the National Fire Data System, residential facilities accounted for 27% of all fires over the past three years, with a casualty rate approximately 1.8 times higher than the national average. Although the average FRT cost per 84 m² unit was approximately KRW 510,000, the expected damage reduction amounted to approximately KRW 8.4 million, yielding a benefit–cost ratio of 16. Furthermore, reducing residential fire fatality rates to the national average generated an additional social benefit of KRW 65 million per incident. Sensitivity analysis with a 20-year horizon and discount rates of 3∼5% confirmed that the net present value remained consistently positive. These findings demonstrate that FRT provides not only economic but also social benefits, particularly in protecting vulnerable populations.