ZaibatsuA Little History…4 Large Zaibatsu The Mitsui Group The Mitsui Exchange Shop The Sumitomo Group Economic Domination Formation of Industrial Groups Industrial Groups expand their Keiretsu (series or subsidiary) Reorganization of financial markets.Mitsui Group Mitsubishi Group Sumitomo Group Modern-day Influence Modern-day Influence cont’dTHANK YOU!ZaibatsuZaibatsuKyoko Fujita Kyoko Fujita Geoff Danker Geoff Danker EEP 142 EEP 142A Little History…A Little History…zzThe term zaibatsu was used in the 19The term zaibatsu was used in the 19ththcentury to refer to large familycentury to refer to large family--controlled controlled banking and industrial combines in Japan. banking and industrial combines in Japan. zzCurrently, it is not used natively by Currently, it is not used natively by Japanese speakers for anything other than Japanese speakers for anything other than historical discussions in reference to Edohistorical discussions in reference to Edo--and Meijiand Meiji--era zaibatsu. era zaibatsu.4 Large Zaibatsu 4 Large Zaibatsu zzThe control of various large corporations The control of various large corporations by single capitalist families through by single capitalist families through stockholding companies is known as stockholding companies is known as Zaibatsu. Zaibatsu. zzBefore WWII, the big four wereBefore WWII, the big four were……zzMitsuiMitsuizzMitsubishi Mitsubishi zzSumitomo Sumitomo zzYasuda YasudaThe Mitsui Group The Mitsui Group zzInitially founded in the Edo period in 1673, Initially founded in the Edo period in 1673, when when TakatoshiTakatoshiMitsui opened a fabric and Mitsui opened a fabric and drapery store in drapery store in NihonbashiNihonbashi, Tokyo. , Tokyo. zzThe store called Echigoya grew, prospered, The store called Echigoya grew, prospered, and developed in to what is now probably and developed in to what is now probably JapanJapan’’s most prestigious store, the s most prestigious store, the Mitsukoshi Department store.Mitsukoshi Department store.The Mitsui Exchange Shop The Mitsui Exchange Shop zzAnother success run from by the Mitsui Another success run from by the Mitsui family. Received the gold and silver family. Received the gold and silver business warranties from the Edo business warranties from the Edo ShogunateShogunateand became Mitsui Bank. and became Mitsui Bank. zzIn 1990, the bank merged with Taiyo In 1990, the bank merged with Taiyo Kobe Bank and then, in 2002, combined Kobe Bank and then, in 2002, combined with Sumitomo Bank, creating one of the with Sumitomo Bank, creating one of the three largest financial groups in Japan, the three largest financial groups in Japan, the Mitsui Sumitomo Financial Group.Mitsui Sumitomo Financial Group.The Sumitomo Group The Sumitomo Group zzLong history commencing in 1691 when Long history commencing in 1691 when Osaka copper trader Izumiya opened a Osaka copper trader Izumiya opened a copper mine in Bessi in Iyo, now Ehime copper mine in Bessi in Iyo, now Ehime Prefecture in Shikoku IslandPrefecture in Shikoku IslandzzExpanded its business into copper refining, Expanded its business into copper refining, processing, and vending and finally processing, and vending and finally transformed itself into a Zaibatsu before transformed itself into a Zaibatsu before the start of the World War II.the start of the World War II.Economic Domination Economic Domination zzThe Zaibatsu grew to dominate the The Zaibatsu grew to dominate the Japanese economy and as they were Japanese economy and as they were incriminated in Japanincriminated in Japan’’s war effort, the s war effort, the GHQ (General Head Quarters) of the Allied GHQ (General Head Quarters) of the Allied Powers in Japan dissolved them during the Powers in Japan dissolved them during the occupation of Japan in 1945, declaring occupation of Japan in 1945, declaring that the Zaibatsu were a hotbed of that the Zaibatsu were a hotbed of militarism. militarism.Formation of Industrial Groups Formation of Industrial Groups zzIndustrial groups with no connection to Industrial groups with no connection to former Zaibatsu were also formed around former Zaibatsu were also formed around banks. These groups included those that banks. These groups included those that surrounded the former Daiichi Kangyo surrounded the former Daiichi Kangyo Bank, Sanwa Bank, and Fuji Bank. Bank, Sanwa Bank, and Fuji Bank. Companies within these groups also Companies within these groups also tended to cooperate on the business front tended to cooperate on the business front and have been an important factor in and have been an important factor in JapanJapan’’s rapid economic development since s rapid economic development since the war. the war.Industrial Groups expand their Industrial Groups expand their Keiretsu (series or subsidiary) Keiretsu (series or subsidiary) zzBy acquiring shares in, or dispatching By acquiring shares in, or dispatching directors, to companies.directors, to companies.zzCross shareholdings and the Keiretsu Cross shareholdings and the Keiretsu structure of companies trading within their structure of companies trading within their group have been cited by the United group have been cited by the United States as one of the signs of the closed States as one of the signs of the closed state of Japanstate of Japan’’s markets to foreign s markets to foreign businesses.businesses.Reorganization of financial markets.Reorganization of financial markets.zzDaiichi Kangyo Bank, Fuji Bank, and the Daiichi Kangyo Bank, Fuji Bank, and the Industrial Bank of Japan merged and became Industrial Bank of Japan merged and became the Mizuho financial group. the Mizuho financial group. zzSakura Bank, which was formerly Mitsui Bank, Sakura Bank, which was formerly Mitsui Bank, and Sumitomo Bank, also merged, and and Sumitomo Bank, also merged, and subsequently the Mitsubishi Tokyo Financial subsequently the Mitsubishi Tokyo Financial Group merged with UFJ Holdings, which was Group merged with UFJ Holdings, which was formerly Sanwa Bank and Tokai Bank, thereby formerly Sanwa Bank and Tokai Bank, thereby creating a new realignment of Japancreating a new realignment of Japan’’s industrial s industrial groups and Keiretsu.groups and Keiretsu.Mitsui Group Mitsui Group zz--ToyotaToyotazz--ToshibaToshibazz--Fuji Film HDFuji Film HDzz--Sapporo BeerSapporo Beerzz--SuntorySuntoryzz--Mitsukoshi Mitsukoshi zz--Mitsui & Co., Ltd.Mitsui & Co.,