"Industrial Policy and Industrialization in South Korea: 1961-1982-Lessons on Industrial Policies for Other Developing Countries"

Abstract

This study reviews in depth Korea's industrial development policies and their impacts on the pattern of industrialization during the first two decades since the beginning of the First Five-Year Development Plan in l962. It examines how industrial policies have evolved, specifically focusing on how Korea's industrial policy frameworks have changed in response to changes in economic conditions in the world as well as in the domestic economy. In the analysis, the concept of industrial policy is delineated in terms of its objectives and choice of policy instruments as well as the mechanisms for policy formulation and implementation.
It is found that Korea's industrial development has overwhelmingly been guided by industrial policy which was well-articulatd in design and efficiently executed. In particular, evidence indicates that the overall macroeconomic policies affecting the pattern of industrial development have been effectively and consistently orchestrated with sector-targeted development policies. The study then concludes with a summary of the main findings and an evaluation of the various factors contributing to Korea's success.

Resumen

Este estudio analiza en profundidad la política de desarrollo industrial en Korea y sus impactos sobre los modelos de industrialización durante las dos primeras décadas a partir del Plan Quinquenal de Desarrollo comenzado en l962. Examina la evolución de la politica industrial, especialmente lo relacionado con su cambio en respuesta a los cambios de las condiciones de las economias mundial y nacional. En este trabajo el concepto de política industrial está delineado en términos de sus objetivos y escogencia de mecanismos políticos de formulación e implementación.
Se deduce que el desarrollo industrial de Korea ha sido totalmente guiado por la política industrial la cual fué bien articulada en su elaboración y eficientemente ejecutada. En particular la evidencia indica que toda la politica macroeconomica que afecta el modelo de desarrollo industrial, ha sido efectiva y consistentemente estructurada con politicas de desarrollo sectorial. El estudio concluye con un resumen de los principales resultados y una evaluación de los diferentes factores que contribuyeron al éxito de Korea.