The Democratic Party Government which assumed office in the following August, gave top priority to developing the Korean economy. The major economic policies were to support the realization of a market-deter- mined exchange rate, adjust utility rate increases, promote the development of rural areas, and make large sums available for both farming, and small and medium sized businesses.
The Democratic Party Government (The Second Republic) also launched a long-term plan by which economic development would be concentrated in strategic projects. The five- year plan (1961-1965) that was set up by the government of the Second Republic was also abandoned after a railitary coup in May 1961 This plan became the basis of the First Five- Year Economic Development Plan, created in 1962 by the Park government.