While it is common to highlight the negative aspect of cartels, it has also been argued that cartels have positive aspects that can be illustrated with concrete examples. With regard to economic growth, the issue of cartels thus remains extremely controversial issues. This article analyses the impact of the emergence of a cartel from the early stages of development of the Korean automotive industry. The Korean government encouraged this cartel in order to improve the efficiency and the competitiveness of the industry and it actively intervened, in particular during economic downturns. As a result, the Korean automotive industry stabilized and enhanced its competitiveness sufficiently for Korea to become one of the top five automobile-producing countries in the world.