Heavy and Chemical Industrialization (HCI) Policy as a Mega-policy

Abstract

The objective of this paper is to show how the Heavy and Chemical Industrialization (HCI) policy during the period of 1972-79 in Korea constituted a Mega-policy. The Mega-policies are intersectoral, require the creation of new institutions, generate new expectation, and engender new paradigms. This paper traces its development, explores how the policy emerged, and how the policy affected numerous sectors of the Korean economy. The influence of this policy on the later development of Korean economy had been substantial. The combination of government support and huge investments by the chaeboll is a result of this policy. Despite the success of Korean economy in the 1980s, the legacy of the HCI Mega-policy persists and casts doubt on future prospects for Korean economic development.