Political development rapidly progressed as Korea made further strides toward a democratic system, and economic size also rapidly expanded. President Kim campaigned on a platform promising the reform of government control and regulations. Hence, the traditional pattern of government-directed development, was no longer effective in the changing international environment. It was considered that the prime force of efficient economic development ought to be the voluntary participation and active initiatives of the people in the private sector-led economy.
In view of the above, the New Economy Five-Year Plan (1993 1997) was prepared based on a critical evaluation of the performances of the previous government-led plans, and a new system and practices for the construction of the new economy with emphasis on more participation of the people and encouragement of entrepreneurship based on economic reforms was further introduced