・ Promotion of export and import-substitution industries; starting with subsistence agriculture (rice) and labour-intensive, light manufacturing sectors (textiles, flour mills, breweries and bicycles)

・ Technology obtained through foreign licensing and adapted for domestic production

o Vocational high schools―training in craft skills for the growing labour-intensive light industries.

o College admission quota was strictly regulated by the government―based on the analysis of the demand for human resources

・ 2 five year economic plans focused on establishing industries to supply basic industrial materials (establishing an iron and steel company, oil company, fertiliser factory)

・ Establishment of special purpose banks


・ Industrial policy moved towards introducing heavy manufacturing industries (e.g. chemical and ship building)

・ Introduced policies to further improve technological capabilities

o improved quality of technical and vocational training―supply technicians for the heavy and chemical industries

o higher education―the government selectively expanded the enrolment quotas in the fields of engineering, natural sciences, business and commerce, and foreign languages

・ More special purpose banks established


・ Efforts to ensure a market-conducive environment by deregulating various sectors and liberalising trade and financial markets

・ Re-organisation of industries e.g. Hyundai was advised to make automobile manufacturing its core industry, Samsung was told to concentrate on semiconductors, LG was directed to focus on petrochemicals and yield its semiconductor business to Hyundai, the electrical generator business was assigned to Daewoo.

・ Tight monetary and fiscal policies kept inflationary pressures under control

・ Expanded higher education; investing in indigenous research and development―establishing a National Research and Development Programme

o government abolished college entrance examinations and expanded educational opportunities for higher education; renovating school facilities, introducing incentives for teachers


・ Joined the Organisation for Economic Cooperation and Development (OECD)

・ Economic deregulation and democratisation

・ More loans extended to the general public than the chaebols (a large business conglomerate, typically a family-owned one) as was the case before

・ Public investment in social overhead capital for schools, public libraries, and highway construction gradually became more market based

・ Pursued high value-added manufacturing by promoting indigenous high-technology innovation

・ Government initiated diversification and specialisation of higher education institutions to accommodate the diverse needs of society

・ Financial market reforms

・ Modern and accessible information infrastructure

o Harnessing the potential of science and technology; by 2000, 144 major cities and regions were connected by high-speed broadband networks through fibre-optic cables and by June 2004, 66% of the population had access to the internet

・ Expansion of research and development ; created a knowledge-based economy

o R & D expenditure increased from US$9 million in 1969 (73% public) to US$24 billion in 2006 (75% private).

o The number of researchers increased from 5337 in 1969 to 256,598 in 2006; 7% in government, 26% at university and 68% in private sector.

o every university had a university-industry liaison office supported by government funds (promoting joint research)