This study examined the policies and actual circumstances on management of the cotton spinning and weaving industry during the period of US army military government in Korea (USAMGIK), from 1945 to 1947. Through this, this study found that USAMGIK con...
This study examined the policies and actual circumstances on management of the cotton spinning and weaving industry during the period of US army military government in Korea (USAMGIK), from 1945 to 1947. Through this, this study found that USAMGIK controlled not only the resource for spinning and weaving industry management but also the production and distribution system in direct and indirect way. Furthermore, this study investigated how the industrial structure in Korea which was built during Japanese colonial period changed through this period.
The cotton spinning and weaving industry, which had been developed quantitatively as well as qualitatively during former Japanese colonial period, got big shrink after the liberation. At the first time of its basing, USAMGIK set up 'maintenance of the status quo' as keyword on economic policies, therefore any other specific policies on cotton spinning and weaving industry except management and requisition towards vested mills. At 1946, USAMGIK changed its economic policies. The deepened economic crisis caused by food shortage and inflation, and the policy shift followed after the breakdown of The Joint Soviet-American Commission. In those circumstances, USAMGIK decided to shift the purpose of the initial policies to maintain, to improve the industrial production. However, it is different entire recovery or reconstruction on Korean industry. USAMGIK aimed for improving the product amount of light industry developed during Japanese colonialism. Since it had strong relationship with the economic crisis and large scale of production facilities, the cotton spinning and weaving industry was on the primary sector among the economic policies.
USAMGIK established Textile operating sub section (operating sub section) to improve production and of cotton spinning and weaving industry under the Bureau of textile. Unlike the Bureau of textile setting policies on entire spinning and weaving industry, the operating subsection took charge of the management and operation of its own vested mills. After aligning an organization, USAMGIK set up the policies on cotton spinning and weaving industry. The policies of USAMGIK were featured in two aspects. At the first USAMGIK did not abolish readily shaped industrial structure from the period of Japanese colonialism. Secondly, USAMGIK controlled production process and distribution system of cotton spinning and weaving industry. For the last, USAMGIK concentrated the resource for management on large scale textile mills. In result of this, cotton and weaving industry came to have very unusual, unique structure. First, the industry was dependent on Japan in machineries and techniques and on the other side, raw cotton aid was grown. And also, those large scale mills supported by USAMGIK monopolized the production system.
USAMGIK gradually strengthened the control power on those vested mills under the operating subsection, and then widened the range of control to private mills. This expansion of control caused the conflicts inside of the industry. The private mills and USAMGIK had different opinion on the way to allocate the industry resource, and the Korean owners and USAMGIK were opposing to obtain ownership of the vested mills. To Korean capitalists and managers of the mills, those conflicts carried them to organize The Korean Spinners and Weavers Association. As the operating subsection was abolished based on Custody Order No. 9 at April of 1947, USAMGIK changed the policies on this industry. The office works relate with the vested mills, former charge of the operating subsection, were handed over to Korean (Korean organization) and the working-level tasks-allocation or raw cotton or transference, installation of machineries- were handed over to The Korean Spinners and Weavers Association. The factors affecting to this change were diverse. The first factor is the ‘Koreanization’ since the late of 1946, the process of handing over administrative power from USAMGIK to Koreans. The next factor was the motive of USAMGIK had to calm down the complaints from Korean capitalists and managers. The last factor was the settlement of industrial structure of the cotton spinning and weaving industry comparing 1945, 1946’s. However, USAMGIK did not step backward entirely from the operation and management of this industry. Still USAMGIK could intervene in a decision making process and operated unilaterally the purchase of resource or raw materials, and fixed the price of the products. And this practice has been lasted until the establishment of the government of Republic of Korea.