ABSTRACT
This chapter explores the factors underlying the state's capacity for the effective formulation and implementation of foreign investment policy during the era of the Korean developmental state. The Korean context bureaucratic capacity arose out of the structural features of the state itself in which the executive branch was dominant. The executive branch which the Park regime inherited therefore not only reflected the structural characteristics of the Japanese colonial state but also had a legacy of Japanese developmental strategy. The Park regime's major structural reforms were introduces during the period of the Supreme Council for National Reconstruction. The role of ideology, leadership and the need for legitimacy played a significant role in the Park regime's ability to maintain power and effectively implement policy change. Executive dominance has describes as one of the core features of the Korean developmental state. The Park era there were a number of formal and informal mechanisms which existed to maintain the cohesiveness of the development coalition.
