The report reviews the progress of the Fourth Five-Year Plan and some emerging issues. It concludes that the economy has surpassed the Plans/ambitions targets, that it is reasonable to expect Korea to join the ranks of the developed countries by 1991, and that measures to restructure resource allocation, effect institutional reforms, and mobilize additional resources from abroad to ensure the projected growth rate. In the new stage of development that Korea is entering, it will be facing new challenges. It appears that unbalanced growth and inadequate financial intermediation rather lie at the root of inflation. In addition to disciplined monetary and fiscal policies, measures that would contribute effectively to controlling inflation are: (i) restructuring growth, (ii) import liberalization, (iii) improved financial intermediation and domestic savings, and (iv) control of price fluctuations. Emphasis should be put on redirection of resource allocation rather than slower growth. In connection with quality of life the report considers only the issues related to rapid urbanization and environmental problems associated with rapid industrialization.