The Development of a Control Policy over the Coal Industry and the Management of the Coal Mining Industry in Wartime Colonial Korea
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This study analyzes the coal production expansion policy developed by the Government-General of Joseon (Chosēn) during the wartime period and the impact which this policy had on the management of coal mining companies. On two separate occasions, a coal production expansion plan was put in place to foster the development of large-scale coalfields. However, because of a lack of materials and labor, coal production failed to meet the established targets. Furthermore, as colonial Korea mainly boasted anthracite coal, authorities were forced to import bituminous (black) coal from abroad. In order to ease this imbalance between the supply and demand for coal, strict controls were implemented by the Joseon Coal Association. However, the Government-General of Joseon introduced widespread subsidy measures to help coal mining companies that found themselves faced with worsening operational conditions amidst a growing discrepancy between the price of inputs and outputs (scissor phenomenon). Nevertheless, faced with an inevitable decrease in production, the Government-General of Joseon, having reached the conclusion that it had become impossible to increase coal production based on the promotion of existing wholesalers, established the Joseon Coal Corporation as an implement through which to install a pool pricing system, and as a mechanism to supplement increases in the cost of purchasing coal. Thereafter, the Munitions Companies Law was applied to the major coal mining companies. As such, although coal trading, which had heretofore been based on market mechanisms, became based on a state-controlled planned distribution system, this course of action was implemented as a means to supplement the pursuit of profits within the coal mining field.
Abstract
This study analyzes the coal production expansion policy developed by the Government-General of Joseon (Chosēn) during the wartime period and the impact which this policy had on the management of coal mining companies. On two separate occasions, a coal production expansion plan was put in place to foster the development of large-scale coalfields. However, because of a lack of materials and labor, coal production failed to meet the established targets. Furthermore, as colonial Korea mainly boasted anthracite coal, authorities were forced to import bituminous (black) coal from abroad. In order to ease this imbalance between the supply and demand for coal, strict controls were implemented by the Joseon Coal Association. However, the Government-General of Joseon introduced widespread subsidy measures to help coal mining companies that found themselves faced with worsening operational conditions amidst a growing discrepancy between the price of inputs and outputs (scissor phenomenon). Nevertheless, faced with an inevitable decrease in production, the Government-General of Joseon, having reached the conclusion that it had become impossible to increase coal production based on the promotion of existing wholesalers, established the Joseon Coal Corporation as an implement through which to install a pool pricing system, and as a mechanism to supplement increases in the cost of purchasing coal. Thereafter, the Munitions Companies Law was applied to the major coal mining companies. As such, although coal trading, which had heretofore been based on market mechanisms, became based on a state-controlled planned distribution system, this course of action was implemented as a means to supplement the pursuit of profits within the coal mining field.
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