New Direction of Industrial Policy in Korea

Abstract

South Korea had achieved remarkable growth during the last decades, and is quoted as an example of successful industrial policy. This paper intends to review the history of industrial policy in Korean and issues on industrial targeting. Since Korean economy enters more mature stage, new paradigm of industrial policy is required to keep up with the changing environments. Particularly in 2000s, South Korean economy has transformed into knowledge economy and developed an innovation-intensive industrial structure. As a bench mark case, Israel case is presented. The knowledge revolution, together with increased globalization, presented significant opportunities for promoting economic and social development in Korea.