Problem: **Mechanisms of State-Led Development:** - **Industrial Policy:** Both countries used targeted industrial policies to support specific sectors, such as electronics and automobiles in Japan, and shipbuilding and semiconductors in South Korea. Japan: Focused on heavy industries such as steel, shipbuilding, and later, high-tech industries like electronics and automobiles. MITI played a crucial role in selecting and nurturing these industries. South Korea: The government identified strategic sectors, such as textiles, shipbuilding, and electronics, and provided them with support to compete internationally.