Korea’s success in eradicating poverty and developing its economy through industrialization provides a valuable lesson to many developing countries. One of the best illustrations of how this process unfolded can be found in heavy and chemical industries (HCI), an area that marked a major turning point in the economic structure’s gradual move forward from light industry to ICT and other advanced technology. Given that similar policies in other developing countries ended as often in failure as in success, however, an international comparison is needed if the factors are to be properly understood.
  This study compares Korea’s HCI process and policies with those of four other countries that attempted an HCI push over the similiar period: Taiwan, the Philippines, Brazil, and Algeria. These countries were chosen not only because they offered the most representative examples of HCI drives for their respective continents, but also because of the stark contrasts in their methods, policies, and performance. By comparing different countries approaches to HCI development, it may be possible to uncover new perspectives in assessing the approach of any single country.
  This kind of country-by-country comparison is especially crucial because the process is still ongoing. First, by reexamining and objectively reevaluating Korea’s HCI push, it may be possible to identify numerous implications for present and future industrial policy planning, as well as a design process that is based on past experience and reflection. Second, the need and demand for industrial collaboration with developing countries has risen sharply as Korea has gone from being an aid recipient nation to an aid donor. In order for Korea to accurately share its industrial development process and policies with emerging nations, the right methods and patterns for the requesting nation must be sought through an examination of past successes in HCI development and the responsible factors. Third, a comparison of the five countries may provide invaluable basic data and lessons for any developing countries that are implementing or considering their own HCI drive in the present or future.
  Because this study is based on the research of top experts in the five countries who have personally witnessed their respective nation’s individual HCI drives, it is certain to provide a basic store of information that is both vivid and reliable. The authors wish to express their deepest gratitude to Dr. Cha Moon-joong of the Korea Development Institute; Ministry of Trade, Industry and Energy department director Kim Young-hwan; and Drs. Jang Seokin and Nam Jang-keun of KIET, who were all unfailingly generous with their advice and support during the writing process.
  It is my sincere hope that this report will prove to be beneficial to those in government, industry, and academics, as well as those with an interest in the industrial policy of Korea and developing countries and the sharing of Korea’s industrial development experience. I should also note that the content of the report represents the opinions of the authors who took part in the research, and should not be taken as the official position of the institute.

December 2013
DoHoon Kim
President, KIET