By Dennis L. McNamara
South Korean conglomerates, or "chaebol," corresponding to Hyundai and Samsung play a much more vital function in Korean economic system than do similar huge enterprises within the usa' and eastern economies. regardless of the significance of the chaebol to the quick postwar improvement of the Korean financial system, little has been written approximately their origins in the course of the jap career. via case stories of neighborhood possession in significant monetary, advertisement and business ventures, this ebook offers a close photograph of indigenous capitalism in the course of eastern colonization. Drawing on jap executive assets, Korean biographies and diaries, interviews, and usa intelligence fabric, the writer offers a compelling account of key personalities within the Korean company elite and of the non-public dilemmas of balancing nationalism opposed to good fortune below based, colonial stipulations. the writer concludes that established instead of comprador capitalism characterised top Korean enterprise via 1945. styles of focus inside of kinfolk businesses, shut ties with the colonial kingdom, and mutual aid between a Korean internal circle of commercial leaders represent a legacy of the colonial interval vital to the next improvement of Korean conglomerates.
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Additional resources for The Colonial Origins of Korean Enterprise: 1910-1945
Sample text
The administration emphasized protection of private rights in efforts to revise civil law, 15 although rights of private property and economic organization were subject to the scrutiny and control of the state. The Japanese residency-general on the peninsula prior to annexation faulted Korean law as an inadequate basis for private rights. 16 The Koreans had little or no conception of private rights as these were understood elsewhere in the Orient. Thus such maladministration existed for a long time that public officials were accustomed to pay only scant respect to the private rights of the people, and the latter on their side, did not complain against official extortion.
Cooperation among Korean investors in capital formation was also necessary to maintain growth in a capitalintensive large-scale industrial venture, as highlighted in reports of the company's need for increased funding. 48 The ideal of a Korean company owned by a large number of smaller Korean investors seemed implicit in the company's founding ideology. Yet by March of 1925, the number of investors decreased from 194 to 89, while capital investment by the remaining stockholders increased. Here difficulties in gaining the support of the agrarian elite might explain the growing concentration.
The colonial legal framework established a new pattern of relations between major business leaders and the state. Legislation developed within the administration and promulgated by decree gave authority, content, and practical direction to state economic policy, assuring compliance through incentives and constraints. Banking laws, the Corporation Law, and the clarification of property ownership through the Cadastral Survey established a basic format for economic activity already in the early years of colonial rule.