By Sung-Hee Jwa
Sung-Hee Jwa bargains analyses of quite a lot of earlier and present reform efforts in Korea. The coverage classes are designed to appreciate Korea's transformation from the government-led improvement version to a industry approach. Jwa argues that Korea's fiscal destiny relies solely upon the profitable integration of market-oriented platforms.
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Additional resources for A New Paradigm For Korea's Economic Development: From Government Control to Market Economy (Studies in the Korean Economy)
2 shows the share of policy loans compared to total domestic credit during the period 1975–1985. The earmarked loans were for the agricultural sector, small and medium firms, residence construction, and so on. The foreign trade loans were used to finance exports in general. Hence, loans that were not earmarked were the most likely source of investment funds for the heavy and chemical industries. More than half of total investment funds were under government control and more than two-thirds of them were allocated to HCI firms and exporters.
During this period, these three industries absorbed 60 per cent of total investment in the manufacturing industry and 77 per cent of foreign loans. 5 They included iron and steel, nonferrous metals, shipbuilding, general machinery, chemicals and electronics. Once again, tax and financial resources, as well as trade policy, were used to support these industries. The government only permitted existing large corporations to enter the targeted industries, and as a result they enjoyed the benefits emanating from the government’s support of these industries.
5 They included iron and steel, nonferrous metals, shipbuilding, general machinery, chemicals and electronics. Once again, tax and financial resources, as well as trade policy, were used to support these industries. The government only permitted existing large corporations to enter the targeted industries, and as a result they enjoyed the benefits emanating from the government’s support of these industries. The government allowed foreign loans for firms in the targeted industries on a preferential basis.