This work was completed by the author as one of the long-term projects of the Korea Development Institute. Whether to adopt export promotion or import substitution as a development strategy has always been a controversial topic. In the present study Such makes a comprehensive review of the theoretical and empirical concepts and problems of import substitution and analyses the issue for the Korean economy from the 1870’s to the 1970’s. His main focus is on recent performance during the post-war period. He analyses import substitution as an important element in growth and makes international comparisons.