ABSTRACT
This chapter presents a clearer picture of the Korean economy in the 1990s and discusses in further detail the directions of industrial and trade policies. It explores the reforms toward advancing industrial restructuring; establishment of a new private-public relationship; and trade policy options consistent with Korea's growth path in the coming decade. The issue of industrial restructuring is closely related to the most important task of the Korean economy, namely, the enhancement of Korea's national competitiveness. High-technology industries in Korea developed through participation in the process of international production specialization wherein foreign firms specialize in design and engineering while domestic firms take care of final production. The application of information technology in Korean industries has not been extensive compared to advanced industrialized countries. Most economic regulations in Korea were introduced by the government in order to implement certain industrial policy goals rather than to prevent potential market failures and inefficiencies.
