How did export-oriented industrialization transform South Korea’s economy?

Beginning in the 1960s, South Korea underwent a dramatic transformation from an underdeveloped, agrarian society into a major global industrial and technological power, a period of rapid development famously known as the miracle on the Han River.12

This shift was driven by a government-led strategy of export-oriented industrialization, which prioritized specific sectors—starting with textiles and light manufacturing, then moving to heavy industries like steel and chemicals, and eventually high-technology fields such as electronics and automobiles. To implement this, the government invested heavily in infrastructure and education, fostering a highly skilled labor force.312

Central to this strategy was the support provided to large, family-controlled conglomerates known as chaebols, such as Samsung and Hyundai. While this cooperation fueled rapid economic growth, it also led to the concentration of capital and power within these giants, often at the expense of smaller enterprises. Despite challenges such as corruption and the 1997 financial crisis, this industrial model successfully integrated South Korea into the global economy.1342