For , example , the distorted relative price system and incentive structure resulting from such interventionist policies has meant that the private sector has been reluctant to economize . After the government utilized them as credit distribution stations for over three decades , Korean banks paid more attention to the volume of deposits than to their overall profitability . In other words , Korean banks considered a corporation in terms of how much it borrowed rather than its profitability. It has been argued that although government intervention in resource allocation enjoyed some success in th 1960s and - 1970s , this is no longer the case because the size and complexity of the Korean economy have already reached point where the informational speriority of the government over the private sector can no longer be guaranteed .