On the other hand, the Korean government intervened directly in the microeconomic resource allocation though discriminatory policies-such as favoring certain sectors and groups of economic agents. The government controlled the financial resource allocation by regulating interest rates and the lending activities of financial institutions. In the earlier stage of development – until the late 1970s – the large business groups and chemical industry sector were favored, but since the 1980s, small and medium-sized firms have been relatively favored.