The theory of developmental state that seeks to explain the rapid economic growth in East Asia has the merits which can explain developmental mystery that neoclassical economics cannot explain. However, as a result of concentrated on state-centered theory, the theory of developmental state underestimates the interrelation between state and society. In this context embedded autonomy starts with the idea that states vary in the way they organized and tied to society. In some nations, like Zaire, the state is predatory, ruthlessly extracting and providing nothing of value in return. In others, like Korea, it is developmental, promoting industrialization. Based on these theoretical background, this study analyzed the industrialization policy in Rhee Syung Man, Park Chung Hee, and Chun Doo Hwan Government. The findings of this study are as follows.
First, in the 1950s Rhee Syung Man government maintained a state autonomy by means of the comprehensive control of economic resources and the oppressive state apparatus, but it lacked a state capacity. As a result, Rhee Syung Man government was a predatory state that concentrated on an extraction of economic resources in society. On the contrary, Park Chung Hee government institutionalized developmental state by means of the reform of bureaucracy based on a merit system and the developmental policy coalition called 'Korea Inc.' Like the core discussion of embedded autonomy, autonomous state with a high state capacity led the rapid Korean industrialization. Second, the growth of capitalists in Korea depended on state policy. Therefore, capitalists in Korea were 'the political capitalists' from birth. However, like the case of heavy industrialization in the 1970s and economic liberalization in the 1980s, state policy sometimes gave rise to 'boomerang effects' that decrease a state autonomy and activity. Third, in the 1980s, 'the crisis of developmental state' was 'the crisis of success', not 'the crisis of failure'. In other words, according as developmental state had successfully accomplished historical mission, paradoxically its historical necessity slowly decreased, in consequence developmental state has gone away from history.