Business associations are known as voluntarily organized interest groups that seek to maximize members' interest through pulling collective resources of the industry they seek to represent. In examining 188 business associations under the 'jurisdiction' of the Ministry of Commerce, Industry and Energy in Korea, it was found that although they were organized to represent the interest of the industry in question, they were often functioning as quasi-nongovernmental organizations in terms of their facilitation in the policy implementation process. It was found that the Ministry had played active roles in creating new business associations in newly emerging industries by selectively sponsoring lucrative contracts to them while industrial policies targeted towards 'declining industries' were implemented through those business associations that kept good working relationship with the Ministry. Although there exist various different types of business associations in terms of their legal establishment, those groups that were delegated to carry out the Ministry's industrial policies and other subsidy programs were 'Quangotized' in terms of their relationship with the State Many leading associations have effectively become extra-bureaucratic groups, a sign of state corporatism revisiting in Korea. This has created not only the legitimacy question concerning associations' representation of members' interest but also accountability problems in the delivery of important public policies.