콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Industry and Technology Manufacturing

Print

The success of Pohang Iron and Steel Co. Ltd.(POSCO) : Perfecting internal and external incentive

Related Document
Frame of Image
  • The success of Pohang Iron and Steel Co. Ltd.(POSCO)
  • Kim, Junki
  • Seoul National University(Graduate School of Public Administration)


link
Title The success of Pohang Iron and Steel Co. Ltd.(POSCO)
Similar Titles
Sub Title

Perfecting internal and external incentive

Material Type Reports
Author(English)

Kim, Junki

Publisher

[Seoul]:Seoul National University(Graduate School of Public Administration)

Date 1997
Journal Title; Vol./Issue Korean Journal of Policy Studies:vol. 12
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Original Format pdf
Subject Industry and Technology < Manufacturing
Holding Seoul National University

Abstract

We examine POSCO's success based on the internal and external managerial incentive structure. By internal incentive, we mean institutional foundation under which the interaction between the principal (the government) and the agents (the managers) takes place. This involves examining the political economy of state intervention and how the state employed credible policies intended to end 'politicized' relationship with state-owned enterprises (SOEs). Extrnal incentive structure relates to various exogenous market forces that discipline managers and owners in terms of corporate performance. Combined, they determine the extent to which SOEs face 'hardened budget constraints' and in the case of POSCO, the state was able to enforce credible policies that hardened the budget constraint.