Now, according to the dominant free-market economic theory, things like the successes of POSCO, LG and Hyundai described above simply
shouldn’t happen. The theory tells us that capitalism works best when people are allowed to take care of their own businesses without any government
interference. Government decisions are bound to be inferior to the decisions made by those who are directly concerned with the matter in question, it is
argued. This is because the government does not possess as much information about the business at hand as the firm directly concerned with it. So, for
example, if a company prefers to enter Industry A over Industry B, it must be because it knows that A would be more profitable than B, given its
competences and market conditions. It would be totally presumptuous of some government official, however clever she may be by some absolute
standard, to tell the company’s managers that they should invest in Industry B, when she simply does not have those managers’ business acumen and
experiences. In other words, they argue, the government cannot pick winners