Introduction

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book argues that the degree to which foreign investment policy objectives were able to be achieved can be explained by state capacity. It examines the underlying basis for the Korean state's capacity to effectively manage foreign investment in the 1960s and 1970s. The book sets out the policy measures taken by the state in the 1960s and 1970s. It demonstrates that the interventionist policy stance was effective in terms of delivering outcomes which accorded with policy makers' objectives. The book explains the reduced capacity of the state to achieve desired policy outcomes in relation to foreign investment during the time of the Chun administration. It also argues that the ideological split on this issue was unable to be resolved by the Roh regime because of legitimacy, leadership and structural constraints.