ABSTRACT
Japan's decision to give priority to the development of its steel industry has been responsible for rapid industrial change. The state underwrote the supply of steel, an intermediate output used by virtually all manufacturing sectors. State-orchestrated industrialization has long been a strategic policy. During the Meiji era (1868-1912) transportation and communication infrastrucrure were given national priority along with the development of the iron industry. To develop the steel industry the Japanese sought best-practice standards and enthusiastically embraced foreign technologies. Much later, Korea carefully emulated the Japanese practice of selectively licensing foreign technologies and ensuring their rapid adoption. By centering its economic development program around heavy industry the Korean government also gave priority to the development of the steel industry.
