After industrial capital began to b

After industrial capital began to be accumulated in the 1960s the government recycled the corporation – in other words, those that had been selected in the 1960s were selected again to participate in the HCI drive of the 1970s. For example , “the promotion plan for Heavy and Chemical Industries” announced in June 1973 stated that the companies wishing to enter the HCIs must procure 30 % of total investment with their own capital. This was a way of ensuring that only those enterprises that had been selected in the 1960s would be eligible, because they were the only ones able to put up such a large amount of capital. Along with the promotion of HCIs in the 1970s the government adopted an export-oriented policy. For that puspose, it sought economies of scale in export industries, resulting in the establishment of the so-called “General Trading Companies”. These companies were private enterprises specializing in the export of Korean goods, and enjoyed government backing.