Five-Year Economic Development Plans

State-led development plans that built up light industry and exports in the 1960s and heavy and chemical industries in the 1970s.

The first five-year plan began in 1962. The first and second plans (1962–1971) pursued export-led growth through labour-intensive light industries such as textiles and wigs, financed by foreign capital and boosted by Vietnam War procurement. The Gyeongbu Expressway opened in 1970.

The third and fourth plans (1972–1981) developed heavy and chemical industries — steel, shipbuilding, machinery, electronics and petrochemicals. The Pohang steelworks was completed in 1973, and exports reached US$10 billion in 1977. A Middle East construction boom carried the economy through the first oil shock, but the second oil shock of 1979 and over-investment in heavy industry brought negative growth in 1980.

Rapid growth also brought collusion between business and government, low wages and long working hours, and a widening gap between city and countryside.