In the 1980s problems caused by the

In the 1980s problems caused by the previous decade’s industrial policies started to become evident. Overinvestment in HCIs and the expansionary monetary policy that caused high inflation led the government to refrain from active industrial promotion policies. Industrial policy was redrawn to support technology-intensive industries. The underlying motive for this shift was to correct the structural imbalance that started to appear in the manufacturing sector in the last 1970s. Massive inflows of funds into HCIs were cut off,leaving many of these industries with severe overcapacity. Moreover, the government actively intervened in industrial and corporate restructuring.