Industrial activity expanded markedly in Korea during the last half of the 1960s. For 1970, industrial output equaled that of agriculture and forestry, and industry employed 1.4 million of the economically active population of 10 million. The principal subsectors are textiles and garments, engineering, and chemicals. The Third Plan shifts emphasis to heavy and capital goods industries. The main problems anticipated are: (i) a major undertaking covering a number of new large projects and expansion of existing plants, (ii) additional foreign capital for investment requirements, (iii) possible inflationary projects, and (iv) complex production and marketing problems. The paper draws a number of conclusions and makes specific recommendations. Those relevant to the major industries include: (i) discourage the new electric arc furnaces and expand Pohang Steel Company, (ii) investigate the extent and use of capacities in the mechanical engineering industries, (iii) investigate sharing of certain common processing stages in the heavy machinery complex, (iv) increase the scale of the petrochemical complex, and (v) consolidate small synthetics plants into large plants.