This thesis analyzes the process and limitations of how the colonial powers overcame the problems occurring in Korea’s private railroad policy in the first half of the 1930s. In particular, this thesis focused on the limitations of the role of the J...
This thesis analyzes the process and limitations of how the colonial powers overcame the problems occurring in Korea’s private railroad policy in the first half of the 1930s. In particular, this thesis focused on the limitations of the role of the Japanese Government General of Korea in constructing social overhead capital to support Korean industrialization policies developed in 1930, and on the process of members of the colonial ruling power compromising with each other for their own interests.
The outbreak of the Great Depression in 1929 aggravated the business performance of Korea’s private railroads. As a consequence, subsidies provided to them ran out. In addition, as the 15-year subsidy period almost came to the end, Korea’s private railroads were faced with financial difficulties in the beginning of the 1930s. To overcome such difficulties, the Government General pursued a private railroad purchasing plan. If it acquires railroads of which the subsidy period nearly came to the end, the total annual subsidies would decrease as much as the fees paid for bonds to buy the railroads subtracted from the subsidies paid to the purchased lines. Deteriorated existing private railroads could then be provided with additional subsidies, or this could also support the further expansion of private railroads.
The Government General promoted the “3-Year Private railroad Purchasing Plan” from December 1931. The main lines it first decided to purchase were those for which the subsidy period ended between 1932 and 1935. The lines that were purchased as part of the “Joseon Railroad 12-Year Plan”, were bought to integrate them into the newly constructed railroads of the Railroad Bureau. On the other hand, the reason for purchasing railroad lines under the “3-Year Plan” was due to the issues with Korea’s private railroad policy.
Meanwhile, the purchasing of private railroads was carried out by issuing government compensation bonds which were benefits in return for the purchase. The Japan Treasury had the authority of issuing government compensation bonds. In other words, the plan to purchase Korea’s private railroads further strengthened the Japanese government’s influence on them. However, the Treasury did not give its approval for the “3-Year Plan”. Although the Government General tried to get approval by reducing the number of lines to be purchased or curtailing purchase prices, the Treasury only gave its approval for Gaecheon Railroad, which had the shortest distance.
The railroad purchase plan failed because the “3-Year Plan” of the Government General was not in accord with the role of the Korean transportation network set by the Treasury. The Government General and the capitalists of the lines that were to be purchased in the “3-Year Plan” felt the pressure of the approaching expiration of the subsidy period. Moreover, those lines needed to be purchased first to expand private railroads for industrial development. However, the Treasury saw the strengthening of connections with China as the role of the Korean transportation network. It focused on investing its Korean industrial bonds in strengthening railroads that ran through the peninsula and lines that headed towards Manchuria. Therefore, the Treasury did not think the lines included in the “3- Year Plan” were important as they had little relation to its plan. Because the Government General did not have an authority to issue bonds, it failed to accomplish the “3- Year Plan”.
Although the Government General failed to purchase private railroads, because the subsidy period had nearly come to an end, the Government General and private railroad capitalists focused on extending the subsidy period by revising the Subsidies Act. Moreover, the Treasury requested to reduce the subsidy ratio of Korea’s private railroads in the name of fairness between Japanese and Korean private railroads. The Government-Geeneral also agreed to this as it needed to secure surplus subsidies for the expansion of private railroads. As a result, the Private railroad Subsidies Act was revised in 1934 as a compromise to fulfill the interests of the Treasury, the Government General and the private railroad capitalists. However, this revision was a stopgap compromise that could not solve issues related to Korean private railroad policy caused by the “3-Year Plan”. Of course, this compromise was implemented within the scope approved by the Treasury that had disapproved purchasing private railroads.
However, the Government General tried to buy private railroads because it could not secure surplus subsidies under the revised Subsidies Act alone. As a consequence, it purchased the South Joseon Railroad in 1935. However, South Joseon Railroad was not included in the “3-Year Plan” and was under the influence of the existing Subsidies Act until 1943. Nevertheless, the Government General succeeded in purchasing the railroad within a year of announcing it as a target for purchase. This was because, unlike the lines included in the “3-Year Plan”, the South Joseon Railroad connected the Gyeongjeon Line, Honam Line and Gyeongbu Line. In other words, the lines owned by South Joseon Railroad accorded with the Treasury’s policy of prioritizing lines down the spine of the Korean peninsula. In addition, the connectivity of the Yeosu-Shimonoseki ferryboat could be strengthened, as the terminus of the South Joseon Railroad was Yeosu Port. And, this was in accord with the Japanese government’s and the Government General’s policy of increasing railroads. Owing to this, unlike the lines included in the “3-Year Plan”, the Government General could obtain approval for purchasing South Joseon Railroad from the Treasury.