But once ISI continues longer then there is a kind of creation of rent for
those inward-looking social and political forces.
But that in turn undercut economic transformation and
international competitiveness.
But in the case of South Korea, the duration was very short,
less than even five to ten years.
Therefore South Korea's pursuit of ISI in 50s and
early 60s did not lead to the formation of
domestic culturalistic coalition that would systematically opposed or
undermined outward-looking economic strategy.
You'll find a time to transition to an export-led growth strategy another
important factor that contributed to economy transformation, okay.
And also, perhaps I would argue that in the market the most
important heroes are entrepreneurs.
South Korea was full of risk-taking entrepreneurs.
Here we have the founder of the Hyundai Group, Chung Ju-yung.
He's really risk taking and entrepreneur who built Hyundai empire.
But he ventured in automobile, ship building in all these area and
then he contributed to transforming South Korean economy.
Another person is what Lee Byung-chul the founder of the Samsung Group
now Samsung Electronics was his own creation.
He was in fact, Lee Byung-chul was really in the inward-looking economic sectors.
He was manufacturing, you know, sugars, textiles,
whatever, which became the source of ransacking.
But since 1970's he transformed inward
looking industrial sectors into the outward looking industrial sectors.
And Samsung get into semiconductors,
consumer electronics and other kind of so called export sectors.
He played a very important role and third person is Kim Woo-jung,
the founder of the Daewoo Group, okay?
Kim Woo-jung was, he was just a senator then
creating a small trading company called the Hansung Seoul.
And the trading company,
the Hansung Trading Company later evolved into Daewoo Group.
The gigantic general trading Corporation with numerous subsidiaries.
Of course, during the 1997 financial and foreign exchange crisis his company