DEVELOPMENT OF INDUSTRIAL RESOURCES IN KOREA
Government-General of Chosen
INDUSTRY in Korea until the present decade, long had remained in a primitive stage, consisting chiefly of agriculture which was confined to cereal products. The Manchurian Incident marked a new era in the modernization of Korean industry. Since that incident, great strides have been made, particularly in iron manufacture. In order to stimulate this trend the Government-General in October, 1936, held a conference to make an exhaustive study of the industrial economy of Korea. This important meeting was attended by industrial experts and economists of Japan, Manchoukuo and Korea. In accordance with the fundamental policy for industrial development formulated at the conference, the Government-General adopted and put into operation various concrete measures. With the unexpected outbreak of the China Affair less than six months later, it became imperative to adapt the new programme to the strengthening of the wartime economic structure binding Japan, Manchoukuo and Korea. As the military operations progressed, both Central and South China came within the sphere of Japan's economic activities, wherefore Korea, from its geographical position, became a natural supply base for the Japanese advance on the Continent. It thus became necessary to extend and improve the measures already in operation. Consequently, in September last year the Korean authorities called another conference for the investigation of measures called for by the emergency, with a view to strengthening the wartime structure in the Peninsula. The conference altered nothing in the fundamental policy, but decided to accelerate the industries most vitally concerned and to promote closer economic relations between Korea and the regions under Japanese occupation in North and Central China.
Korea as Supply Base for the Continent
From a geographical standpoint, Korea is situated ideally to serve as the advance base of operation in the execution of Japan's policy of Continental development. This position of Korea had been recognized during the Manchurian Incident, but came to be appreciated
even more after the outbreak of the China Affair. The experiences gained through the Changkufeng Incident which ran its course in the summer of 1938, and the subsequent border disputes with the Soviet Union, added still greater significance to the new function of the Peninsula. In this sense Korea may be called the "supply base for Japan's advance on the Continent." The phrase is fitting and comprehensive. The geographical position of Korea is important in the following respects:
(1) Bordering on Manchoukuo and adjacent to China, Korea offers an excellent foothold for the development of the Continent.
(2) Touching the Soviet Union at the Eastern tip, with Manchoukuo forming a wedge between, Korea is in the position to act as "advance guard" in Japan's national defence, and serves as a base for the protection of Manchoukuo to which Japan is inseparably bound.
(3) As it extends down from the Asiatic Mainland, Korea has advantages for the prompt transport of troops and supplies in time of war.
(4) As Japan proper is separated from the Continent by the Sea of Japan and the Korean Straits, and in consideration of the present stage of development of submarines and aircraft, Korea may be regarded as a safe and independent supply base.
In short, the above points amply illustrate Korea's highly important rôle in national defence. In a broader sense, the phrase "supply base for advance on the Continent" means an intermediate station for Japan's industrial and economic development of the Continent. In this connection, the human and material resources of Korea are of considerable importance.
Expansion of Productive Power in Korea
Owing to its unique position, as explained in the foregoing, Korea cannot be regarded separately and independently in the expansion of productive power, but as a component factor in the joint industrial programme of Japan and Manchoukuo. It is recognized, moreover, that with its advantageous conditions for industrialization the Peninsula is capable of making substantial contributions to the execution of the programme. Korean industry in the past, as stressed at the beginning of this article, was confined almost exclusively to the production of cereals. Under the stimulus provided by the Manchurian Incident, however, both agriculture and manufacturing industries flourish side by side. With the munitions enterprises in North Korea as the centre, the industrial structure
of the Peninsula is undergoing a remarkable change. With regard to the expansion of productive capacity, Korea has the following advantages for industrialization:
1. Land for Industrial Use
Less densely populated than Japan proper, Korea offers innumerable excellent sites for large manufacturing plants. Although the growing rage for enterprise has brought on "land fever," causing some difficulties in the acquisition of land, there still is plenty available for industry, and it is possible to establish factory areas on a large scale.
2. Motive Power
The supply of coal and electric power is abundant and comparatively inexpensive. The total power output will amount to 700,000 kilowatts, when generating stations now under development are completed. The hydro-electric stations on the Jangjin and Buzen rivers are larger than any in Japan proper, both in respect of equipment and capacity. Not only are they supplying an abundant amount of electricity to industry in general, but they also have made possible the development of the electro-chemical industry. There is now under way a gigantic power-generation project on the Yalu River, which forms the natural boundary between Korea and Manchoukuo. It is expected to be completed before 1942.
3. Labour
Labour is more abundant and consequently cheaper than in Japan proper. Moreover, Korean workers are superior to those in China and Manchoukuo, because they are educated as Japanese subjects.
4. Raw Materials
Korea is rich in important mineral resources, including gold, silver, coal, graphite, molybdenum, tungsten, magnesite, and bauxite.
5. Absence of Social Problems
In Korea there are relatively few social and economic factors which may be regarded as unfavourable to industrial enterprises. It is admitted by all industrialists that the management of their undertakings in Korea is easier in this respect than in Japan proper.
6. Future Prospects of the Subcontract System
In munitions manufacturing enterprises and other heavy and
light industries, the subcontract system has not yet developed. Subcontracting in Korea at present is confined almost exclusively to specialized manual arts. Since Koreans have a natural aptitude for handicraft, and as the women also are skilled workers, the future of the system is promising.
The favourable conditions outlined above have helped forward the development of heavy industries such as shipbuilding, cement manufacture and metal refining and light chemical industries such as coal liquefaction, extraction of fats and oils, and the production of sulphate of ammonia.
Brief Survey of the Industrial Development Plans
The advance of the manufacturing industry is essential to the thorough development and prosperity of Korea, both at present and in the future. Considering on the other hand the importance of agriculture and fishing in relation to Japan's food supply, and of livestock breeding for military purposes, it is obvious that this phase of the Peninsula's development must not be neglected. Viewed in this light, the dual policy of promoting both agricultural and manufacturing industries in Korea is of far-reaching significance. A rough survey of the plans for the development of Korean industry is given below.
1. Mineral Resources
(a) Gold
As part of its important national policy, the Japanese Government in 1937 adopted a measure to increase the production of gold, so as to effect adjustment in the international balance of trade. To assist in the execution of this policy, the Korean authorities drafted a plan aimed at quadrupling the output of gold ore in four years. Whereas the total production for 1936 was 20 tons, valued at 69,000,000 yen, the programme anticipates a total output of 75 tons, representing 290,000,000 yen in 1942. As success of the plan is an important factor in the achievement of Japan's ultimate objective in the current emergency, the authorities and the people are co-operating closely to carry it through satisfactorily.
(b) Iron and Coal
With the growth of the manufacturing industry, the demand for coal and iron will increase rapidly, as a natural consequence. Heretofore, iron ore mined in Korea has been shipped to Japan
proper in the raw state. In the future, however, the iron industry in the Peninsula will be made a thorough and systematic enterprise, combining all processes from mining to manufacturing. Plans now are being worked out to develop the Musan and Iwon mines along this line. As for coal, in view of the existing relation of supply and demand between Japan proper and Manchoukuo, there is a project afoot for making Korea self-supporting in this respect.
(c) Petroleum Substitutes
For the purpose of rationalizing the demand for petroleum, measures are being taken to develop the manufacture of synthetic petroleum and absolute alcohol.
2. Munitions Industry
(a) Alminum [sic] and Magnesium
Korea abounds in resources needed for the production of light metals. The authorities therefore are planning the establishment of manufacturing facilities to ensure self-sufficiency in this important metal. A plan also is under consideration for increased production of magnesium, to meet the rapidly growing demand both in Japan and abroad.
(b) Explosives
The demand for dynamite is showing a marked increase, owing to the rise of various enterprises, particularly mining, while the greater part of the requirements at present are supplied from Japan proper. So the Government-General is planning to increase the production of explosives in Korea.
(c) Motor-cars, Aeroplanes, Goods Wagons, and Steamers
These industries are not yet well developed. From its position, both economic and military, however, Korea is inevitably in need of these industries to supply its own demands. Under the current emergency, there will be considerable difficulties in developing such industries, but they must be overcome by all means. At present the Japan Vehicle Company is operating a factory at Jinsen, while the Korean Heavy Industry Company recently has been established to undertake shipbuilding.
3. Agricultural Products
(a) Rice
The importance of rice to Korea may be seen from the fact that
every year between 8,000,000 and 10,000,000 koku (1 koku = 4.9629 bushels) of rice is exported to Japan proper. Especially since the outbreak of hostilities in China, the Peninsula has grown in importance as a base for the supply of rice to the troops operating on the Continent. The Japanese Government, with a view to repleting the supply of staple food in the present emergency, launched a drive for the increase of rice production to the amount of 4,000,000 koku during the 1939-40 fiscal year. Keeping pace with this programme, the Korean authorities decided on the appropriation of 1,200,000 yen in the current fiscal year to expand rice production. The aim of the programme is to increase the crop by 1,200,000 koku by rationalizing the method of cultivation.
(b) Agricultural Products as Materials for Industry
The chief agricultural products, the increased production of which is now being encouraged by the authorities, are fibre materials such as cotton and flax, sweet potatoes, wheat and hops. With regard to cotton, the Government-General worked out in 1933 a 10-year plan to extend the area under cultivation to 250,000 cho (1 cho = 99.2 acres) and increase the yield of seed cotton to 250,000,000 kin (1 kin = 0.6 kilograms). The subsequent changes in the international situation and other circumstances have made it necessary to augment the domestic supply, and the plan has been revised again and again, until the area sought by the programme has been set up to 350,000 cho and the production to 490,000,000 kin. As for sweet potatoes, a five-year plan beginning with the current fiscal year has been adopted with the object of enlarging the crop area to 73,000 cho. With the future growth of production, they will become important materials for making alcohol, starch and spirits, aside from their primary food value.
4. Livestock
Korea has vast expanses of land suited for pasture and the people are experienced stock-raisers. Cattle, horses and pigs have grown in number in recent years, and in view of the important relation of Korea to Japan Proper and Manchoukuo, stock-raising has bright prospects for the future. The authorities are endeavouring to push development of the industry by improving livestock administration and encouraging research and scientific study of stock-breeding.
5. Fishing Industry
Fish, next to rice, forms the most important part of the Japanese diet, while marine products also are important in the manufacturing
industry. Being a Peninsula with comparatively a long coastline, Korea is blessed with a great variety of fish in its adjacent waters. Sardine fishing in northern Korea is unrivalled by any other except the pelagic fishing in the northern seas. It is deemed of urgent necessity to develop these marine resources, wherefore the Government-General is enforcing various protective and promotional measures for that purpose.