The rapid growth that transformed the Korean economy from the sluggish rural pattern of the post-Korean War years to the dynamic semi-industrialized urban pattern of the present creasted several problems: (i) a serious resource shortage due to heavy investment requirements, (ii) widening disparities between rural and urban areas, and (iii) excessive costs of export incentives. However, the government has faced these problems, and 1973 saw a sharp upturn in economic activity. Unprecendented growth in exports, increased tourism revenues, improved savings performance, and a marked revival in fixed investment increased the confidence both in business and government and ambitious long-term planning was undertaken. The oil crisis, however, forced an adjustment of short-term estimates, although no modification of long-term plans seems warranted at present. It does appear that considerably more external assistance than government estimates will be required if goals are to be achieved.