The Government-General discovered large limestone deposits in Korea during its surveys; this information was provided to cement manufacturers in Japan. The Government-General also indicated its needs for cement within Korea, thus encouraging Onoda to invest in Korea. Most important the Government-General laid the ground work for Onoda’s expansion by ordering provincial governors to buy cement from Onoda factories for all government construction projects, during the agricultural expansion phase in the 1920s and regularly set aside nearly 10% of the annual budget intended for agricultural production projects for purchase of this cement. The level cooperation between the Government-General and colonial Korea’s largest Japanese business group, Nihon Chisso, was so intricate that it is difficult to tell where the public efforts ended and private efforts began. For example, the preliminary work for the construction of hydroelectric power plants- such as the necessary surveys, choice of location, soil test – was conducted by the Government-General. Private energies of Nihon Chisso were then tapped but, again, the Government-General played a critical role in capital accumulation by putting at the company’s disposal the service of the government controlled Industrial Bank, and by floating savings bonds. The government further helped move workers from the south to the labor-scarce northern region, where power generators to be located, and subsequently remained deeply in the pricing and distribution of electrical power. What the government got out of all this collaboration was a ready supply of cheap electricity in Korea which, in turn, became the basis of rapid industrialization.
The Government-General discovered large limestone deposits in Korea during its surveys; this information was provided to cement manufacturers in Japan. The Government-General also indicated its needs for cement within Korea, thus encouraging Onoda to invest in Korea. Most important the Government-General laid the ground work for Onoda’s expansion by ordering provincial governors to buy cement from Onoda factories for all government construction projects, during the agricultural expansion phase in the 1920s and regularly set aside nearly 10% of the annual budget intended for agricultural production projects for purchase of this cement. The level cooperation between the Government-General and colonial Korea’s largest Japanese business group, Nihon Chisso, was so intricate that it is difficult to tell where the public efforts ended and private efforts began. For example, the preliminary work for the construction of hydroelectric power plants- such as the necessary surveys, choice of location, soil test – was conducted by the Government-General. Private energies of Nihon Chisso were then tapped but, again, the Government-General played a critical role in capital accumulation by putting at the company’s disposal the service of the government controlled Industrial Bank, and by floating savings bonds. The government further helped move workers from the south to the labor-scarce northern region, where power generators to be located, and subsequently remained deeply in the pricing and distribution of electrical power. What the government got out of all this collaboration was a ready supply of cheap electricity in Korea which, in turn, became the basis of rapid industrialization.
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