뉴스레터

The Chosun Bank ⓒSeoul Museum of History

After liberation in 1945, the Korean Peninsula was confused in all aspects of politics and society. We had to adapt to the strange system of 'liberal democracy' that we had never experienced. It was a very poor situation economically. The Korean government had to prioritize the issue of compensation for property and various damages caused by Japanese colonial rule. The first document written by the Korean government to deal with past history related to Japan is about 『Claim for Japan's Compensation(hereinafter referred to as ‘Claim’)』, which is a total of 523 pages.

Damage accumulated under colonial regime, Claim for compensation erupted after liberation

Claims for compensation began in the Korean financial community in early 1947. The Korean financial community demanded about 612.53 million yen lent to Japanese and Japanese organizations, and about 233.41 million yen, which is the interest of the money borrowed from the Chosun Bank Beijing branch to the Japanese military. And the Claim for compensation for the notes issued by the Manchurian Bank, and the Federal Reserve Bank of China in the North China, is as follows: Japanese yen 19,825,659,638 yen, Shanghai dollar 4,000,000 yen, Gold bullion 249 tons, Silver bullion 89 tons. The inflation rate varies depending on money, goods, and services. But these are more than 100 trillion won at the current price. On November 27, 1947, the National Assembly adopted a petition on ‘Claim for fulfillment of obligations to pay to forced laborers’ and ‘Claim for compensation for the death of a young man’. In February 1949, the Compensation Claims Committee for Japan was established at the planning agency to investigate the data in earnest. The results were published as 'Claim'(part 1 Claim for return of the kind). And in the same year, the sequel to the ‘Claim’(part 2 confirmed claim, part 3 Human and physical damage caused by the Sino-Japanese War and the Pacific War, part 4 Damage caused by the Japanese Government's low-cost exploitation) published it. Except for return of the kind, the compensation demanded against Japan was 49,254,288,000 yen as of 1945.

The amount of gold and silver taken out by Japan via the Chosun Bank

(『Claim for Japan's Compensation』, source: Northeast Asian History Foundation)

Gold Bullion and Silver Bullion Purchased by Chosun Bank

In the 'Claim', the 'return of the kind' part occupies the largest amount. The first items are 'gold bullion' and 'silver bullion', which means gold and silver mined in the ground. Even today, gold is a safe asset. The standard of currency value in gold standard system was gold. The Great Depression of the 1930s, and the expansion of costs caused by Japan's invasion of the continent, jeopardized the Japanese economy. Japan scrape up gold in Joseon to stabilize its currency. The Japanese government and the military urge Koreans to do gold mining. The development of goldmine has touched off a boom. Purchasing gold was one of the main tasks of the Chosun Bank. Most of the gold purchased was sent to Mint Bureau in Osaka. The Bank of Japan issued a note with the gold as collateral. However, the Chosun Bank issued a note using Bank of Japan Bill as collateral. Since Joseon was a Japanese colony, Japan was able to take gold and silver to its country through the Chosun Bank. The Korean government calculated the amount of gold taken out during the period of Japanese colonial rule at 249,633,198.61 grams. And the Korean government claimed to the Japanese government. "We are going to return 563,272,881 yen paid for Gold Bullion and 2,877,015 yen paid for Silver Bullion when Japan takes gold and silver out to Japan. "We are going to return gold bullion's price of 563,272,881 yen and the silver bullion's price of 2,877,015 yen. This money was paid to the Chosun Bank when Japan took gold and silver out to its own country. So Japan should return Gold Bullion and Silver Bullion to Korea."

The Chosun Bank, Cannon Fodder of Japanese Aggressive War

Japan began to invade the continent. And the Chosun Bank Act was revised. The content was to double capital to provide loans to the Japanese puppet government on the continent. The Chosun Bank Governor Shoda Gazue explained the purpose of the amendment. “The Chosun Bank should take some sacrifices in some cases. The reason for revising this law is to keep the secrets thoroughly and act shrewdly under the orders of the government." In addition, the silver coin and silver quotation mined in Chosun were also purchased by the Chosun Bank. The Bank of Korea sent it to the Osaka branch of the Bank of Japan.

The silver was invested in the issuance of currency by Federal Reserve Bank of China in the North China. The bank was founded in February 1938 by a puppet organization called the North China Government Affairs Committee. This was not decided by the Chosun Bank itself, but by the Japanese government. In other words, the Bank of Korea had to follow Japanese orders and was a tool for Japan to enter the continent. This is why the Allied forces closed the Chosun Bank.

The Korea-Japan Talks and Property of the Chosun Bank

According to documents from the Japanese Ministry of the Treasury, after the war, 1,000 pieces of silver ingots from China were sent to the Dalian branch of the Bank of Chosun. After the defeat, the assets of the Dalian branch of the Bank of Chosun were confiscated by the Allied Forces, but after the San Francisco Peace Treaty came into force, the assets of the Bank of Chosun, including silver coins and silver bars, were returned to the Japanese government. In 1952, the remaining assets were about 7 billion yen. Even in terms of international law of 'separation of states', the assets of the Bank of Chosun, which acted as a central bank in colonial Joseon, belong to Korea, and 'now' and 'jieun', which were taken out in exchange for Japanese banknotes and government bonds, are normal transactions. There is no doubt about the fact that it is a colonial exploitation beyond Chosun Bank's assets were also a key issue in the Korea-Japan Claims Agreement. However, Japan rejected South Korea's claim because it was under the jurisdiction of the Ministry of the Treasury, and most of the shareholders of the Bank of Chosun were Japanese. Japan unilaterally established the Japanese Real Estate Bank in April 1957 with the remaining assets of the Bank of Chosun even before the Claims Agreement was signed. This bank played a key role in driving Japan's economic growth in the 1960s.

Return for sacrifice and recovery, not retaliation for punishment

A return in kind is more of a return than compensation. The preface of 『The Book of Requests』 reads, ‘It is already known all over the world that Japan’s colonial rule was marked by violence and exploitation against the will of the Korean people, and that it was inhumane and illegal. However, the basic spirit of the Republic of Korea's claim for compensation against Japan is not the imposition of retaliation for punishment, but a fair right for sacrifice and recovery, and a rational request.