The changes of the Korean financial system since the opening of Korean ports until its Annexation to Japan were not the products of the spontaneous development of Korean capitalism, but the process made by Japan.
Up until 1905 Japan had not attained ...
The changes of the Korean financial system since the opening of Korean ports until its Annexation to Japan were not the products of the spontaneous development of Korean capitalism, but the process made by Japan.
Up until 1905 Japan had not attained the monopolistic rule of the Korean economy, and the establishment of the modern financial organization mobilizing national capitals was attempted ; and by the intervention of Russia and Japan, various reforms were made. This period is marked by the establishment of the Dainichi Bank, and we call it the First Stage in Korean financial history.
The Second Stage (1905-1907) is when Japan, the winner of the Russia-Japan War, with the achievement of the monopolistic rule of Korean economy, put spurs to the set-up of the colonial financial system through financial advice. That is to say, the Dainichi Bank was raised to the central bank, and was made to take charge of the monetary arrangement project. Also the three Korean banks, namely Cheonil, Hanseong and Hanil, were subjugated to it. For the effective control of local finances, special financial organizations like the Agriculture-Industry Bankand the Local Financial Association were established.
The colonial financial system since 1907 was completed by the foundation of the colonial central bank, the Korea Bank, and we call this period the Third Stage.