韓國企業의 發達 (1910~1945) = A Study of Business Development in Korea(1910~1945)

다국어 초록 (Multilingual Abstract)

The purpose of this paper is to study the business development in Korea under the Japanese rule for thirty six years from 1910 to 1945. This paper puts emphasis on analizing the development of Korean native private enterprises during the period.
For this purpose this paper is to show the native companies were established and developed into the modernized companies under the Japanese imperialistic colonial control, competing with the monopolistic capital of Japan.
This paper refers, firstly, to the appearance of modern native enterprises and enterprisers (business men) in the late period of Yi Dynasty, secondly, to the development of the native enterprises and enterprisers in each period of 1910's, 1920's and after 1930 under the Japanese rule.
In order to study the development of the native enterprises from the point of Korean people based on nationalism, this paper deals with the relations of the native enterprises and education, and of the native companies and movement of nationalism by Korean people.
The following topics are covered in this paper:
1. Preface
2. Korean native enterprise in the late period of Yi Dynasty
3. Korean native enterprise in 1910's
4. Korean native enterprise after 1930
6. Korean native enterprise and education
7. Korean native enterprise and movement of nationalism
8. Conclusion
1. Korean native enterprise in the late period of Yi Dynasty
After Korea opened ports to foreigners in 1876, the privileged enterprises (government permitted companies) called as Commercial Law Company (Sang-Bop Hwesa), Business Firms (Sangsa Hwesa), Business Companies (Sang Hwesa) were established. But these companies were premodern one. After the Kap-o Reform in 1894, modern enterprises (a sort of joint stocking company) were established, which extensively contained Korean native private banks, railroad, steamship, transportation industry, mining industry and trading company etc.
Many of them were established by those of aristocratic class, officialdom, landlord, and the other by those from business circles or populace in the late of Yi Dynasty. In many cases, these enterprisers established their enterprises by jointing with men from the class of officialdom.
Many of modern native companies were bankrupted or liquidated by early period of the Japanese rule i.e. before the establishment of the Residency-General in Korea (Tong Kam Bu) in 1906.
With the Japanese annexation of Korea in 1910, some Korean enterprisers from aristocratic class and officialdom were granted with the peerage as the unification merits by the imperial Japanese government. They were compromised, cooperated and fraternized with the Japanese government. Some of enterprises, which were managed by the men who had been transfered from the bureaucratic ruling class to managing class of the native companies in the late period Yi Dynasty, could be saved from bankruptcy in the time of financial panic (business crisis) in 1905.
They were able to continue their business even in the era of imperial Japanese control
There were also many small business firms, which were managed by merchants or populace, surving without bankruptcy throughout the era of imperial Japanese rule.
In the late period of Yi Dynasty, Korean native private enterprises, in many cases, were established and managed on the basis of nationalism rather than for the purpose to pursue the profits.
This were not trained to the business management and technique. In the business management they give their priority more to nationalism than to commercialism. This was the main reason why many firms failed in this time.
Even in enterprises, which were survived, their technique and capability for management were insufficient. Daehandhonil Bank and Hansung Bank called as leading Korean native private companies were barely managed by support of government loans in the hard times (financial panic in 1905). And these banks were gradually controled by the Japanese with the support given them.
On the other hand the traditional merchants or enterprisers from populace who established and managed samll business, were keen about profits, and easily adapted themselves to the circumstances.
Since the opening of Korean ports were able to gain experience from the management of modern business, and they appeared as modern enterprisers after the Kap-o Reform in 1894, especially after 1990's. They aimed to pursue only profits (maxmum profits) so that they were able to survive even under the Japanese rule.
2. Korean native enterprise in 1910's
After the conclusion of Eulsa Protectorate Treaty in 1905 and establishment of the Residency-General in 1906, the establishment of Koran native enterprises was prevented by Japanese government. This prevention was strengthened by the Chosun Hwesa Ryung or the Measure for Korean Company which was declared on December 29, 1910, by which every company in Korean was to obtain the permission from the authorities concerned for establishement of new company.
In 1907, only two cases were permitted for 44 applications of business establishment by Korean. In 1908, only 8 for 53. In 1909, only1 for 20. In contrast with Korean case, appilcation for establishment of branch office which extended the business from Japan Mainland to colony Korea, was permitted by 85 for 91 applications, and all of 11 branches were permitted from 1910 to 1919.
In Korea, however, 556 in 676 were permitted, namely 120 cases were rested unpermitted. Application by Korean was almost unpermitted. On the contrary, application by Japanese was permitted with ease. Companies established by Korean were strictly controlled after the declaration of Chosun Hwesa Ryung or the Measure for Korean Company.
3. Korean native enterprise in 1920's
After Chosun Hwesa Ryung or the Measure for Korean Company, which was removed on April 1, 1920, the number of Korean native companies rapidly increased, 66% of the native companies in Seoul (37 firms), which had nominal capital more over one hundred thousand Won, was established from 1920 to 1928.
After Samil Independence Movement in 1919, 45 companies(80%), in total, were established. In the same period, the number of Korean native factories throughout Korea was increased by 2.9 times i.e. from 943 to 2,751. And capital sum also was increased by 2.7 times, from 9,146 thousand Won to 25,320 thousand Won. Korean native capital was mainly invested in banks (financial agencies), commerce and industry parts.(In 1923, 23.4% for banks, 20.6% for commerce, 8.8% for industry part).
In 1920's enterprises were established by the native businessmen from landlords (landholders) and populace. AS the result of Land Investigation Project by Japanese government finished in 1918. Large landowner class appeared. And they could accumulate large funds as the rice and cereals export to Japan increased. The landowner's capital served establishment of modern companies. Namely it was invested in establishment of various business centering around banking business.
Businessmen from populace class were chiefly those from commerce and agriculture parts. Most of them were engaged as shop clerk or errand boy in their childhood because of poverty. Gaining the expericnce there, some of them became enterprisers. One of the examples is the native private managers of sock factories in Pyongyang under Japanese rule.
In 1920's, these native companies could be established because of maturity of the internal and external circutmsances, which were necessary for the establishment of companies. Firstly, obstacles to the establishment of Korean native companies are removed in the aspect of system by the removal of the Measure for Korean Company.
Secondly, as the result of finishing of Land Investigation Project by Japanese government, it was possible for landowners to supply the capital for establishment of companies. Thirdly, as the opportunity for education extended, businessmen with technique and ability in management of coporations came forth in great numbers. Fourthly, after Samil Independence Movement possibility to seek goods market centering around cotton fabrics rose. With these good chances for establishment of companies, businessmen from landlord came forth in great numbers.
After the abolishment of Measure for Korean Company and the Samil Independence Movement, enthusiasm for establishment of Korean native enterprise was so high in small businessmen from populace that it gave them a stimulus for establishment of companies.
The growth speed of Korean native industry, however, fell behind Japanese industries because of oppression for development of Korean native industries by the imperial Japanese ruler.
4. Korean native enterprise after 1930
Japanese monopolistic capital (especially capital of Zaibatsu or giant family trust) advanced positively into Korea in 1930's, especially after 1936. Until the removal of the Meaure for Korean Company in 1920, 10 Japanese Zaibatsu companies advanced into Korea.
From the removal of the Measure to the Manchurian Confrict in 1931, 13 companies advanced into Korea. From the Confrict to March, 1935, 19 companies advanced into Korean. Since 1936, 32 Japanese Zaibatsu companies were established in Korea. The heavy industry in Korea was developed mostly in this period, espcially after the Manchurian Confrict.
Japanese monopolistic capital such as Mitsui Zaibatsu, Mitsubishi Zaibatsu, Toyotakushoku co., Nissan Co., Nichimen Co., etc. played leading role on it. Alomst all of big factories in Korea were Japanese Zaibatsu companies (Japanese monopolistic capital). The only big factory owned and managed by Korean was the Chosun Aircraft Co., by Park Heungsik.
In addition to the Japanese Zaibatsu capital, many Japanese who advanced into Korea in the late periof of Yi Dynasty or in the earlier period of Japanese colonial rule, played active role on Korean industry and accumulated their rich properties. Most of them, however, advanced into Korea with empty hands and naked fists. In earlier time they started their business in the part of commercial capital and later they became industrial capitalist. And their capital for founding of business was supplied by financial agencies such as Korean Industrial Bank, Korean Central Bank etc.
In this period the representative businessmen of Korean native companies, so-called 'Chosun plutocrat'(Chosun Zaibatsu), were Min Daesik, Kim Yeonsu, and Park Heungsik.
Min Daesik was descended from nobles class, Kim Yeonsu from big landlord, and Park Heungsik from farmer(populace). They were big Korean native Zaibatsu(plutocrat) under Japanese rule, despite of their different classes. But the capital of the Chosun plutocrat was very weak compared with Japanese monopolistic capital. It shows clearly that rate of Korean native capital in leading industry in Korea was only 6 per cent.
Korean native companies in this period are summerized as follows;
By the end of December 1920, the number of Korean native private companies was 99, and its paid up capital was 19,203,000Won. And in 1938 the number of the native companies increased to 2,278, and its paid up capital to 122,660,000 Won. The paid up capital in 1938 consisted of industry (24.74%), commerce (19.07%), real estate (15.44%) and agriculture (10.88%). In industry part, the light industries such as brewage, texile industry, rice polishing business etc., were developed.
During this period, the native enterprises still did not emerge from small business. For example, in 1938, in the chemical industries which occupied the great importance in capital of the native enterprises, 37 companies had paid up capital equal to the sum of 3 million Won. So the paid up capital of each company was only 79,800 Won.
Korean native enterprises had been developed ceaselessly in the disadvantageous condition under Japanese rule. Big native companies by Chosun plutocrat (Chosun Zaibatsu) such as Min Daesik-group, Kim Yeonsu-grup and Park Heugnsik-group came into existence. But almost all of Korean native companies were small
In the last decade under Japanese rule, Korean native enterprisers were classified into three groups. The first group was enterprisers, who kept the spirit of nationalism, compromising with Japanese colonialists. Second group was those who did not compromise with them
And third group was anti-national enterprisers, who positively compromised and cooperated with Japanese colonialists. Almost all of Korean native entererprisers belonged to the first and second groups, and the majority of them managed small business. They were diligent, even if they compromised with Japanese colonial government for their livelihood. But the spirit of nationalism was kept deeply in their heart. Korean native enterprisers, who did not compromise with Japanes colonialist, were small businessmen. Meanwhile, large scale enterprises, especially Chosun plutocrat compromised with Japanese colonialist with eagerness.
5. Korean native enterprise and education
Many Korean native companies, were established in the period from the opening of the ports in Korea in 1876 to the establishment of the Residency-General in 1906, went bankrupt. After this period Korean native companies did not go bankrupt so easily though the companies were still in the category of the small-scale business. They acquired knowledge by experience about calculation and management technique, which were indispensible for capitalistic management of enterprise. The cultivation of the spirit of enterprisers owed mainly to the education.
In Korea, enthusiasm for education was greatly elevated by the late period of Yi Dynasty, especially after 1905. In the latter half of 1910's, enthusiasm for education become strong with the spread of elementary and secondary educational institutions. Just after the Samil Independence Movement in 1919, enthusiasm for education as well as for establishment of enterprise was elevated eve higher.
The number of private schools managed by Korean, decreased fro 1,467 (students: 57,532) in 1911 to 822 (students: 43, 643) in 1917. On the contrary, the number of government and public schools increased from 146 in 1910 to 527 in 1917. For the colonial education by the Japanese imperialist, government and public schools had been increased, but private schools decreased. However, the enthusiasm of Korean people for education was high in spite of decrease of private schools.
Seodang, a traditional educational institution, played an important role on Korean people's education. The number of Seodang increased from 16,540 in 1911 to 23,369 in 1918. And the number of its students amounted to 260,975 in 1918 by increase of 20,000∼30,000 every year.
Many students, who finished the full course in Seodang, advanced into public or private elementary schools. In April 1920, the number of Korean students of public elementary school amounted to 29,564. 78.2% of them was the students from Seodang. In 1920, the number of students of every kind of private schools amounted to 14,630, and 42.2%(6,173) of them was the students from Seodang. This shows that more than the half of the graduates of Seodang advanced into modernistic education institution.
Many graduates from the every kind of schools and Seodang launched into the business world. Just after the Samil Independence Movement, the number of every kind of private schools for Korean amounted to 742 in May, 1919 and that of students were 38,204.
The number of the graduates was 3,515. The graduates advanced into many parts, household matters (the occupation managed by parents): 2, 315 (65.9%), advancing to higher grade schools: 751(21%), government and public offices-banks-companies: 124(3.6%), those who study abroad (Japan): 6 (0.2%) and the rest: 309(8.8%). We see that most of the students engaged in household matters. And the most of their parents were engaged in business of commerce and industry. So many students engaged in household matters could advance into business (commerce) and industry worlds.
Parents, whose sons entered the schools for Korean people, belonged to the class of common people (populace). Parents of male students of every kind schools for Korean people in April, 1920, consisted of common people (53-58%), aristocrat (0.1%), and Yangban (upper class: 2∼46%). Many men from common people advanced into the world of business and industry after their graduation.
Many persons from Yangban participated in the establishment of entererise. They were large landholders. It was enterprisers from populace of landholder that gave life to the establishment of Korean native enterprises after the Samil Independence Movement. And the enterprisers from landholder contained enterprisers from Yangban.
After the Samil Independence Movement the racial education for Korean people was stressed. Thus, they taught Korean history, Korean language, as well as technique and management in the institutions for racial education. Taking a grave view of technique, business and industry educations were for the cultivation of Korean people's capability which was able to confront with Japanese capital. Like this, the racial education for Korean people had strong character based on nationalism.
The education for the poor Korean people was put in force by enlightening education institution called 'Nodongyahak'(Labor hight class: Night lecture for labor). From 1920 to the earlier period of 1930's, several hundred labor night classes were opened in all over the country for the purpose of the racial education, for the poor laborers and sons of farmers. The tuition was free. The teachers were young voluntary intellectuals, who served without pay. They taught officially Korean language and arithmetic, unofficially Korean history and music. Many native enterprisers engaged as shop clerks or errand boys in their childhood by poverty. Labor Night Class might offer them the opportunity to study about Korean language and other subject. Many laborers, who advanced into the labor front under the Japanese rule, was educated at the labor night class.
Education for Korea people was put in force by the religious institution like church. For example, many of managers of Pyongyang sock factories, which were managed only by Korean businessmen and capital, were christians. This tells us that the religious institution gave the important effect on the racial education for Korean people at that time.
Increase of Korean native enterprisers under the Japanese rule owed greatly to the spread of education by public, private, Seodang and religious educational institutions. (the racial education for Korean people was hardly continued in decade, especially after Manchurian Confrict by the prevention of Japanese government.)
6. Korean native enterprise and movement of nationalism
Modern Korean native enterprises, after the Kap-o Reform, were established with the purpose of resistence, boycott, and competition with Japanese capital.
After conclusion of Eulsa Protectorate Treaty in 1905, the suppression on the Korean native enterprise was openly strengthened, and with the declaration of the Measure for Korean Company in 1910, the suppression on the establishment of Korean native company was more strengthened. By the Samil Independence Movement in 1919, the spirit of nationalism in Korean native enterprises came. The number of the enterprises was increased radically by the removal of the Measurement for Korean company.
After the Samil Independence Movement, nationalism movement of Korean people like resistence and boycott against the Japanese capital appeared in the form of 'Store-closing movement, Market-closing movement, Non buying Japanese goods, Boycott of Japanese merchant, and Korean native products promotion movement'. This was nationwide movement. And many Korean native companies were established by the influence of the movement.
Store-closing and Market-closing movements were brought by Korean merchants, none-buying of Japanese goods, boycott of Japanese merchant and Korean native products promotion movement by Korean citizens were both rooted on the same basis of the movement of nationalism.
This movement was connected organically with the establishment of Korean native companies. Heightening of enthusiasm for the establishment of Korean native companies after the Samil Independence Movement, owed to the spirit of nationalism.
From the abolition of the Measure for Korean Company in 1920 to the Liberation from Japanese rule in 1945, many Korean native companies were established. Korean native enterpriser during that period may be devided into three types; First type was enterprisers based on strong spirit of nationalism (for example, Kim Seongsu, the founder of Kyongseong Textile Co.,), though they were compromising with Japanese ruler. Second type was those, who did not compromise with Japanese colonialist, thought the number was not so small. In many cases, big companies were the second type i.e. anti-nationalistic enterprisers. Almost all of Korean enterprisers were that of first or third types. Most of Korean native companies were small, and its managers were small businessmen. In many cases, they were compromising with Japanese ruler in order to manage the business and support their survival. But they were diligent and honest. And the spirit of nationalism was kept deeply in their heart. Thus, we see that development of Korean native companies was closely connected with the movement of nationalism.
Korean native companies developed ceaselessly under Japanese rule during thirty six years. It was by the potential force of Korean.

목차 (Table of Contents)

• Ⅰ. 序 言
• Ⅱ. 韓末의 民族企業
• Ⅲ. 1910年代의 民族企業
• Ⅳ. 1920年代의 民族企業
• Ⅴ. 1930年 이후의 民族企業
• Ⅵ. 民族企業과 敎育
• Ⅶ. 民族企業과 民族主義運動
• Ⅷ. 結 語