W II developing countries did. The ISI policy promoted the growth of three "White Industries", which are sugar, cotton yarn, and wheat flour, at the expense of agriculture and service. Another important consequence of ISI was the growth of rent-seekers trying to perpetuate the ISI regime. Politicians needed money to win votes. Thus an important byproduct of ISI was corruption. Then, they switched its policy to Exports Promotion, which was driven by military coup of 1961 led by Park Chung Hee, the third president of Korea who ruled for another two decades. Since almost of all governors and politicians were from the military force, people was under control of them. Politics were relatively insulated from business, political elites were able to discipline private sector, for example, a reward productive investment and penalize poor performance. However, he accomplished the growth of administrative capacity, as showed by a remarkable rise in the tax revenue. The administrative development was in part of a consequence of takeover of the civilian sector by military, which represented the most efficient part of the Korean society at that time. .
In the early 70s, the U.S. began to withdraw from Vietnam War and sought disengagement from the rest of Asia. This had the effect of reducing Park Chung Hee's confidence in U.S. security assurances. He started to render Korea creating 'heavy and chemical industrialization, which could produce rifles, bullets, tank and so on in 1973. .
Constant market distortion and acceleration inflation led to Park Chung Hee's downfall in 1979 although he accomplished many great works in the economical aspects. External factor was added to internal problem, which included the second oil shock and soaring world interest rates. Bad harvests in 1980 made the situation worse. Park Chung Hee finally ended his rules by Chun Doo Hwan's new government. He was killed by his secretary in early 80s.