| With the end of the Cold War and the extinction of USSR, the confrontation of the East and West camps came to a close, and the domination of the market economy over the world has offered system prerequisites for the coming economic globalization. Meanwhile, the adjustment of global strategies implemented in multinational companies has laid a solid micro-operational foundation for the economic globalization. Peace and development have become a common desire for the whole world. It is under this background that all countries, especially big powers such as U.S.A and Russia, have begun to reduce their military expenses and restructure their original national defense industry and military economy. Therefore, many countries are transferring their military-oriented technology to civil use in order to share the peace profit after the Cold War. The United States took the lead in this transferring campaign. In September 1993, Clinton Administration took this opportunity to put forward a scheme of Information Highway. Then, other countries followed the US example and started their own information highway schemes. As a result, the informationization wave began to roll around the world.Economic globalization and informationization wave have molded the world economy into a brand-new one, not only offering the world a golden opportunity of development, but also making it faced with many severe problems which can not be avoided. The primary operational mechanism of the economic globalization is market economy, which in itself is characteristic of randomness and blindness. Therefore, economic globalization has not only resulted in the great shock to but also brought great risk to the sovereignty and national industry of many countries, especially those of developing countries, and added the additional burden to their state control over economy. The case in point is the financial crisis that happened in Southeast Asia in 1997 and initiated a heated discussion, home and abroad, on the relation between governmental administration and market under the background of economic globalization.At present, economic globalization and informationization wave are weakening the traditional functions of a state. Multinational companies have established a powerful international network and a new economic empire, which is presenting a serious challenge to state function in the traditional sense. A state has to give up part of its sovereignty to some international organizations or regional economic groups, with its administrational power transferred to lower levels. On the other hand, the function of market is being extended and reinforced, and markets around the world have been integrated into an organic unity. However, the failure and instability of market will add more risk and instability to economic operation, while the asymmetry of information will result in the digital gap that imposes more stringent requirements upon the governmental administration to solve the problem of market failure and to avoid market risk. At the same time, the development of new industries such as information technology and industry is closely related to the competitiveness of a state. The problemon the relation between state and market has again become one of the most important theoretical one that needs further studies. Therefore, it seems urgent and critical how to establish a balancing point between state function and market function.Setting the above view as my starting point, and the government's effect on developing information technology and industry as my point of tangency, taking South Korea - a typical country in the field of information technology and industry development - as a case of my positive analysis, I will explore in this dissertation how to establish the reasonable and practical mechanism of the balancing point between governmental administration and market, with the help of such research approaches as theoretical analysis, positive analysis, deductive analysis and comparative analysis, under the guide of the leading principle...
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