The Third National Forest Plan aimed at harmonizing economic functions and public benefits of the forests. The Plan focused on establishing foundation and infrastructure of forest management including forest road construction, forest mechanization, education for foresters and forestry workers, etc. The KFS carried out forestry income enhancement projects and public awareness-raising programmes of the importance of forests and its conservation, and supported overseas plantation projects with the aim of securing stable and long-term timber supplies.
On top of that, it also developed and implemented policies for improving public benefits of the forests, including creation of recreation forests, water resources conservation, wildlife protection, etc. To promote more effective forest management practices, the Forest Law was amended and enhanced, and the Act on Promotion of Forestry and Mountain Village was enacted in 1997.