This chapter redefines the Korean model of catch-up development, based on an evaluation of the existing theories. The “Korean miracle” happened not owing to any favorable initial conditions but rather in spite of several disadvantageous conditions. Moreover, overcoming these obstacles required government initiatives, including various forms of industrial policy. We also noted that inclusive institutions did not precede economic growth. Rather, capability building for economic growth proceeded under political authoritarianism, and the resulting economic growth at a later stage brought about political democracy. The two pillars of the Korean miracle were short-CTT sector specialization led by domestically owned and export-oriented conglomerates, in strategically navigating global–local interfaces. Longer-term evolution of Korea’s economic development has involved detours in two senses. First, it has been a detour from dominance by big businesses to decentralization alongside the emergence of SMEs. Second, it is a transition from short- to long-CTT sectors. In this sense, the Korean experience is an exemplary case of an innovation–development detour, namely a detour from short- to long-CTT specialization led initially by export-oriented, indigenous conglomerates, followed later by SMEs.