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