A number of political scientists have been involved in the systematic investigation of the relationship of inter-party competition and policy outcomes. Some analysts who pioneered the study of American state politics presented that the inter-party competition is significantly related to other variations in the nature of policy outcomes. Later, however, some political scientists have disputed these generalizations. They showed that a state`s level of welfare expenditures is only weakly- in a statistical sense - related to its inter-party competition and very strongly related to its level of socio-economic factors(wealth and resources). There is a third group of political scientists representing a more positive results. The characteristics of this group is that they conduct their research by using different measures of outputs and different analytical techniques from those of the previous two groups. This group has concluded that high levels of competition are significantly related to high levels of social weIfare expenditures. In any case, there are many political scientists who continue to think that the level of inter-pary competition has a major impact on policy outcomes. This paper examines the relationship between political competition and policy outcomes by analyzing the 1985 Korean National Assembly election data. In Korea, however, there are some difficulties in defining and measuring competitivenese in party systems. In 1985, the Assembly election was conducted under so called sermi-proportional formula, in which two Assembly men were elected in each district. and more than 4 parties participated in the election. Thus, it is almost impossible to calculate the par? competition by employing the American index. Accordingly. I used the vote percentage the ruling Democratic Justice party won as independent variable. Government expenditures we coneptualized as policy outcomes. To investigate the relationship between vote percentage and public expenditure, the analysis proceeds in two stages. In the first stage of this analysis, I empty the Pearson`s correlation coefficient design. In the second stage, 1 employ a two-way analysis of variance design, in which community type is introduced as a factor. The empirical findings document the fact that the vote percentage the ruling party won is telated to the increase of public expenditures. This might be interpreted as implying that the ruling Democratic Justice Party used local expenditures for increasing their supporters. However, this approach leaves. Some questions unanswered, since I did not sort out the independent effects of he vote percentage the ruling party won.