1960s were mainly procured through foreign loans under government guarantees and were allocated by the government. The government worried that the emergrnce of many non-viable firms could lower the nation’s credit status in international financial markets, which would impede economic growth, greatly dependent on foreign loans. As a result, the government,despite criticism that it was itself partly responsible for failures in resource allocation,activety intervened in the corporate restructuring procrss. Between 1969 and 1971,112 incompetent firms were either liqudated by other firms. The gorvernment’s corporate restructuring strategy was to transfer ownership without liquidation. However,problems of high financial costs and capital structure vulnerability persisted in all firms. The tight monetary policy recommended by the IMF in the early 1970s and sharp currency devaluations aggravated those financial problems. Thus,the government took comprehensive measures and applied them uniformly to the remaining firms in order to alleviate their financial difficulties. Those measures included transforming short-term debts into long-term debts,lowering interest rates,and tax exemptions.