alization has enabled KT to promote the domestic telecommunications industry by making maximum use of its procurement power. For example, KT has been installing facilities at the rate of 1 million telephone lines annually since 1980, producing a current total of about 17 million lines. This investment has enabled KT to provide a stable market for local industries, and to help them upgrade their product quality by implementing such measures as demand forecasting system and quality assurance system. All in all, the implementation of its industrial policy reflects Korea's determination to achieve a suitable mix of high-quality labor-intensive traditional industries and skills-intensive heavy and chemical industries. Such a mix is regarded as allowing Korea to prosper in the 1990's among the developed or industrialized countries that are moving into high-tech industry and information-intensive activities.The Telephone Bond Law was enacted in December 1961 in order to raise the capital required for expanding and improving telecommunications facilities (MOC 143). This law was replaced by the Provisional Law for Developing Public Telecommunications Facilities in December 1979, which in turn was repealed in January 1988 when the demand for basic telecommunications facilities was deemed satisfies. Changing policies and infrastructures go hand in hand with a set of regulatory reforms in the field of telecommunications. The concept of deregulation or liberalization is based on the view that, in a free market, exchange between individuals will lead to an efficient or optimal allocation of resources.E. Arnold and K. Guy state "government intervention - whether through regulations, policies or R & D (research and development) investments - seems to be a rule rather than the exception in the processes of liberalization, privatizations and deregulation." Thus, they state that the participation of the government is necessary to liberalize the te...
