Obergruppenführer Smith
Banned
Some more:
Once it came to rule Korea, Japan was primarily interested in developing it as a supplier of agricultural goods and raw materials to Japan, although in the early years it apparently toyed with the idea of making Korea’s agricultural subsistence economy into a somewhat more diversified modern economy with some industrial development. Before 1910, however, the Japanese government more or less left the Korean economy alone, partly to avoid conflict with business interests in Japan and partly because it was believed that Koreans, especially the yangban, lacked entrepreneurial leadership. The laws regulating incorporation were not altered by the Japanese except to make them more explicit and orderly on the Western model, so that potential businessmen would have a better understanding of their rights and responsibilities.
Under the so-called Industrial Development Policy (Siksan Gwangeob), all new incorporations required government approval. Even after incorporation, the government continued to monitor the management of companies. Apparently, the purpose of the policy was to suppress Korea’s development of modern industries. The consequences of the policy were obvious. In spite of the fact that the law specified the rights and responsibilities of incorporators, the continuing supervision tended to limit the establishment of new businesses. As a Japanese Residency General report explained, ‘‘After the authorities concerned commenced to reform or readjust the chronic state that existed in the realm of corporations, the Koreans, understanding better the true nature of this system, ceased to apply to the government irresponsibly for approval of the establishment of business corporations.’’
As noted in chapter 3, foreign trade and foreign investment in the transitional period opened natives’ eyes but did not have the powerful demonstration effect on the Korean people needed to spur them to undertake the requisite investment to bring about robust economic growth during the same period. Unfortunately, the foreign imports and investment were not keys to unlock the door of economic opportunity, nor did they stimulate the country’s economic activity. What, then, motivated Koreans to expand their investment horizon, though not as vigorously as the Japanese, beyond that of the transitional period under Japanese rule? How did this change come about? These enticing questions are explored here.
A number of factors contributed to the expansion of Korean investment under Japanese rule: relative political and social stability, the security of personal income and wealth (unlike during the traditional and transitional periods), the booming Japanese and Japanese colonial economy, the forceful catalytic and linkage effects of foreign (and chiefly Japanese) investment, and the external economies of Japanese investment. Examined in the next section are catalytic and linkage effects, together with external economies—the principal mediums through which foreign investment affected Korean investment. Also examined are what are referred to as oppression effects.
Once it came to rule Korea, Japan was primarily interested in developing it as a supplier of agricultural goods and raw materials to Japan, although in the early years it apparently toyed with the idea of making Korea’s agricultural subsistence economy into a somewhat more diversified modern economy with some industrial development. Before 1910, however, the Japanese government more or less left the Korean economy alone, partly to avoid conflict with business interests in Japan and partly because it was believed that Koreans, especially the yangban, lacked entrepreneurial leadership. The laws regulating incorporation were not altered by the Japanese except to make them more explicit and orderly on the Western model, so that potential businessmen would have a better understanding of their rights and responsibilities.
Under the so-called Industrial Development Policy (Siksan Gwangeob), all new incorporations required government approval. Even after incorporation, the government continued to monitor the management of companies. Apparently, the purpose of the policy was to suppress Korea’s development of modern industries. The consequences of the policy were obvious. In spite of the fact that the law specified the rights and responsibilities of incorporators, the continuing supervision tended to limit the establishment of new businesses. As a Japanese Residency General report explained, ‘‘After the authorities concerned commenced to reform or readjust the chronic state that existed in the realm of corporations, the Koreans, understanding better the true nature of this system, ceased to apply to the government irresponsibly for approval of the establishment of business corporations.’’
As noted in chapter 3, foreign trade and foreign investment in the transitional period opened natives’ eyes but did not have the powerful demonstration effect on the Korean people needed to spur them to undertake the requisite investment to bring about robust economic growth during the same period. Unfortunately, the foreign imports and investment were not keys to unlock the door of economic opportunity, nor did they stimulate the country’s economic activity. What, then, motivated Koreans to expand their investment horizon, though not as vigorously as the Japanese, beyond that of the transitional period under Japanese rule? How did this change come about? These enticing questions are explored here.
A number of factors contributed to the expansion of Korean investment under Japanese rule: relative political and social stability, the security of personal income and wealth (unlike during the traditional and transitional periods), the booming Japanese and Japanese colonial economy, the forceful catalytic and linkage effects of foreign (and chiefly Japanese) investment, and the external economies of Japanese investment. Examined in the next section are catalytic and linkage effects, together with external economies—the principal mediums through which foreign investment affected Korean investment. Also examined are what are referred to as oppression effects.