Abstract

The issue of corporate management ability became widely debated in Korean society from the late 1950s and several voices called for its “modernization.” This arose from the need for a vision after “post-war restoration,” in addition to realistic needs such as coping with corporate insolvency and recessions. Technical aid from the U.S. to Korea became the foundation for modernization, for instance, the “Washington University Project” (WUP), which started from the mid-1950s with the goal of nurturing management personnel. Led by the program sponsored by the Korea Productivity Center, opportunities to learn “modern” management methods with the goal of corporate management improvement expanded in Korea. Additionally, social upheaval, including the April Democratic Uprising and the May 16 Military Coup D’état, acted as stimulants to emphasize management improvement as a national task to develop export markets and attract foreign capital. Within this context, companies initiated efforts to obtain and improve certain management skills. Among these efforts was an overhaul of corporate HR management systems to gather skilled personnel. This included recruiting graduates of newly formed business management departments in universities as potential future executive and management, through the help of WUP. Simultaneously, the various attempts to improve modern management abilities began to be utilized as important tools and means of rationalization for the establishment of the status and control of Korean chaebols.

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