The chapter outlines some ‘lessons’ to be learned from the Korean experiences of government-led economic development over the past thirty years by examining the policy patterns, defining their character-is tics, and suggesting the desirable role of the government in a globalizing. Korea's experiences suggest that active and protracted governmental intervention in properly allocating resources might achieve some short-term goals, but only at the expense of some long-lasting adverse side-effects. 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 the 1960s and 1970s,