Abstract:

South Korea has developed rapidly after the Korean War and is a member of both G-20 and OECD now. Import substitution policy was followed after the war and export oriented development strategy was implemented after the 1960s. Development incentives were supplied mainly to the big family enterprises (chaebols) that were loyal to government policies and strategies. It is obvious that developing industries in the 70’s was heavy industry and chemical industry, automotive and electronics in the 80’s and information technologies during 90’s. South Korea has followed different strategies to overcome 1997 Asian Finacial Crisis and turn it to an opportunity for innovative policies. Big Korean family holdings (Chaebols) that was difficult to control, became a burden to national economy and diversified in many areas were restructured. Small and medium-sized enterprises (SMEs), especially the entrepreneurial venture businesses, that were aiming to conduct technological research and development, were activily supported by government. In spite of experiencing both Korean War and Asian Financial Crisis, Korea changed them to an opportunity for economic development

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