Findings concerning the results of Korea's industrial incentive policies are summarized in relation to export-led industrial development. By the mid-1960s, Korea was following an outward-looking policy that provided incentives to exports and to import substitution. However, the policy has not been one of purely neutral free trade. Exporters have benefitted from unrestricted access to imported inputs and have paid neither tariffs nor indirect taxes on inputs. Incentive policies have discriminated in favor of agriculture and within manufacturing. Incentive policies have contributed to the rapid expansion of exports, with annual increases averaging nearly 30 percent between 1960 and 1975. Increased factor utilization and allocative efficiency have resulted from export growth. As a result of being labor intensive, industrial development has yielded rapid employment growth. In turn, the distribution of income is relatively equitable. The high level of foreign assistance has contributed to the export-led, labor intensive industrialization. The most important lessons from Korea's experience appear to be that exports respond to incentives while efficiency in the resource allocation can be assured by operating closer to a free trade regime. 27 references.