Why did South Korea later focus on steel and chemical industries?

South Korea’s transition toward heavy industries, such as steel and chemicals, was a strategic evolution in the country’s broader economic development plan.1

Following the Korean War, the government implemented a series of economic development plans beginning in 1962 to transform the nation from an agrarian society into an industrial power. This strategy relied on export-oriented industrialization, initially focusing on textiles and light manufacturing.21

By the 1970s, the government shifted its focus to heavy industries, including iron, steel, and chemicals, to further diversify and strengthen the national economy. This industrial growth was driven by strong government support and the expansion of chaebols—large, family-owned conglomerates—which were provided with low-interest loans to facilitate large-scale production for export. This systematic targeting of specific sectors allowed South Korea to build a highly developed industrial base, with major steel manufacturing centers eventually concentrating in regions like Pohang and Gwangyang.1324