Abstract
This paper clarifies what kind of effect SME financial policy brought for the growth of SMEs in a period of the economic growth from 1960s through 1970s of Korea. That is to clarify a role of the government to carry out for economic development of Korea. The Korean SMEs of the mid-1970s considerably grew up, because the SME financial policy was developed positively. The position of SMEs rose in the number of companies, the number of employees, a production, a value added. Moreover, SMEs greatly contributed to increase in exports. However, SMEs had various structural weakness. For example, SMEs in the processing and assembly industry was a low value-added processing trade enterprise. The technical standards of the SMEs were very low. The financing structure of the SMEs was weak. Therefore, SMEs simply grew up quantitatively. The SME financial policy from the 1960s through the 1970s did not lead to self-sustaining development of SMEs. In other words, the intervention of the Korean government for the growth of the SMEs in this period was inefficient.
