I. Industrialization and Managerial Development in 1960s 1. Nature of Industrialization and Business Environment Industrialization achieved through 1960s in Korea brought about the problems of the managerial development to cope with it. The large equipment investment made the size of business bigger and was a major factor to cause technical innovation and the change in industrial labor force. These in turn has made the modernization of management a indispensible element to further industrialization. Rapid economic development according to the First and Second Five-Year Economic Development Plans in 1960s followed the process of growth of size rather than the improvement of quality. As mainly a size expansion, it was not without mixed blessing. Because of low capital accumulation and poor technical standing on the part of private business, the economic develop-ment was spurred by governmental support and leadership. This caused the private enterprise to be substantially dependent upon government without exerting efforts to increase internal productivity and self-financing. This dependence compelled businessmen to take excessive consideration of factors outside of management in carrying out business operations. Another shortcoming is that medium-sized enterprises were not given a fair consideration, which comprise a heavy portion of total number of enterprises, employment, and domestic production. Investments were focused on private larger enterprises, industrial complex, and social overhead capital. As a result, medium-sized enterprise have got no opportunity to facilitate rationalization of management and technical innovation. The third shortcoming is an unbalanced financial structure. Foreign loan was a major source of capital required to meet the large equipment investment. Lacking owner`s capitals, the enterprises relied too much on banking. As a final shortcoming, the traditional way of thinking has been the greatest obstacle to the introduction of modern management concepts. Semifeudalistic heritage and Confucian value system have been prevailing so dominantly that: management concepts developed in western countries could not grow as might be expected. Managetment practices in Korea have many aspects of family-centered traits based on nepotism. 2. Stages of Managerial Development in Korea Modern management techniques were introduced to Korea from late 1950s. The age of management is less than 20 years. With this fact in mind, it can be well understood that Korea is still .on an offspring stage for the development of the theoretical framework of management and management techniques. We can formulate four stages of historical sequence of the management development in Korea. Firstly. Traditional Management Stage is referred to before 1950 and a number of destitute firms are still experiencing this stage. Secondly, Introduction Stage of Mordern Management Techniques followed through 1950s due to the economic assistance by U.S. and management training in the army and adoption of management in the college curriculum. Development Stage of Management Techniques, as the third stage, is meeting rapid industrialization and increasing export. This stage covers 1960s and 1970s. For this period, modernization of management techniques equipped with technical innovation is definitely needed to secure international viability and to promote industrialization. As a final stage, 1980s is likely to be a Stage of Self-sufficient Management Techniques. In spite of the existing premodernized factors, it is clear that -we have come a long way to the management development. However, a short historyof management constitutes an another aspect otherthan industrialization to review the characteristics of management in Korea. II. Characteristics of Management in Korea If the main characteristics of industrialization and the stage of development in modern managewment techniques are taken into consideration, the following generalizations