KOREAN ECONOMY GRUP 3.1

By the early 1970s, what was a concern regarding Korea's exports?

• They were mostly luxury products

• They were mainly labor-intensive, low-wage light industry products
  

• They were primarily in the heavy and chemical industries

What did the Korean government focus on after the Yushin Reform in 1973 to boost industrial development?

• Agriculture and textiles
  

• Light industry and consumer goods
  

• Heavy and chemical industries

What were the main industries targeted by the Korean government's plan during the development of heavy and chemical industries?

• Agriculture, textiles, and finance
  

• Steel, machinery, shipbuilding, electronics, nonferrous metals, and chemicals
  

• Information technology, healthcare, and tourism

What benefit did companies in Korea’s heavy and chemical industries receive to support their development?

• Tax rates 30%–35% lower and customs duty exemptions on imported components and raw materials
  

• Free access to international markets
  

• Subsidies for employee training programs

What financial policy did the Korean government implement to support companies during the deposit-loan margin reversal phenomenon in the 1960s?

• Interest rates for loans were set lower than those of deposits, with the deficit covered by government finances
  

• Complete deregulation of the banking sector
  

• Free government grants for all companies

During the deposit-loan margin reversal phenomenon in the 1960s, the Korean government used taxpayer money to cover the deficit caused by setting loan interest rates lower than deposit rates.

• TRUE

• FALSE

POSCO, founded in 1968 by the South Korean government, played a key role in South Korea’s rapid industrialization by establishing one of the largest steel manufacturing companies in the world.

• TRUE

• FALSE

Korea had an abundance of natural resources like iron ore and coking coal, which helped in the development of its steel industry during the early days of POSCO.

• TRUE

• FALSE

The Korean government introduced the Act on Automobile Industry Protection in 1962, which banned foreign cars and promoted local manufacturing.

• TRUE

• FALSE

By 1979, Hyundai dominated the Korean automotive market with over 63% share, and it had begun exporting cars to 42 countries by 1978.

• TRUE

• FALSE