Petrochemical Industry Case Study

3.3 Significant Government’s Policies toward The development of petrochemical industry :
Korea’s successful industrial development is often attributed to the selective industrial policy which the Korean government had pursued in the 1960s and 1970s .The government targeted certain industries for promotion mostly heavy industries ,and provided massive support to them .the government played a key role in this development process by selecting the industries the heavy and chemical industry HCIs to be promoted ,providing incentives to them ,protecting them from foreign competition and implementing along with these industries is the petrochemical industry one of the six HCI promotion laws, was repealed as a result of the government ‘s industrial policy change .
Under the petrochemical promotion Act .The government has played a strong role in creating the factors essential to progress .the government had strongly also supported the infant petrochemical industries with financial instruments such as export finance and insurance. Moreover ,the government strategy

1- The contract turn-key projects failed to allow participation by Korean engineers in the engineering design and develop local capability through ‘’learning by doing ‘’
2- The lack of Knowledge of foreign engineering firm designs,local capability ,resulting in projects with specific equipment that could only supplied by foreign suppliers.
3- The major portion of foreign exchange used to pay for project engineering and design services, amounting to ,in some instances, almost 10 percent of total project