During the first five-year plan, the government undertook various policy reforms, which led to higher economic growth. (i) the 1964 devaluation significantly improved Korea’s external competitiveness and the balance of payments. (ii) the interest rate reform of 1965 contributed to not only the transfer from the unorganized money market, personal consumption or investment in real assets, but also to the active introduction of foreign capital, mobilization of domestic resources and curbing of inflation as a result. (iii) A higher coverage of government expenditures could be met by increased tax revenues as a result of the tax reforms. In particular, the establishment of national tax service in 1966 made a great contribution to increase tax revenue and public saving. (iv) and overall, better price stabilization helped create the conditions for an export boom. The government also recognized the need for policies to promote exports, and a variety of policy incentive measures for export promotion were introduced from the mid-1960s.