Bank of Joseon

Bank of Joseon
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Name	Bank of Joseon
Native name	京城銀行 (Keijō Ginkō)
Founded	1910
Defunct	1950
Headquarters	Seoul (Keijō)
Key people	Hirobumi Ito; Terauchi Masatake; Yoshino Sakuzō; Hozumi Nobushige
Products	Currency issuance; commercial banking; fiscal agency
Predecessor	Korean Empire's financial institutions
Successor	Bank of Korea; Commercial banks in South Korea

Bank of Joseon was the central and commercial bank instituted during the Japanese rule of Korea (1910–1945) and continued in a transformed capacity into the immediate Korean War era until national reorganization in 1950. It functioned as a currency-issuing authority, commercial lender, and fiscal intermediary for colonial administration, intersecting with metropolitan Bank of Japan, Ministry of Colonial Affairs, and corporate conglomerates such as Mitsui and Mitsubishi. Its activities influenced financial networks across Manchukuo, Shanghai, and Taiwan under Japanese rule, and shaped postwar monetary policy adopted by the United States Army Military Government in Korea and the Republic of Korea.

History

Established shortly after the Annexation of Korea in 1910, the institution replaced remnants of the Korean Empire's monetary arrangements and absorbed elements of the Daehan Cheguk Bank and private banking houses. During the Taishō and early Shōwa eras it coordinated with Governor-General of Korea offices and drew capital from Japanese zaibatsu including Sumitomo, Nomura Group, and Yasuda zaibatsu. The bank survived the turmoil of World War I, the Great Kantō earthquake (1923) financial disruptions, and expanded amid imperial trade through Port of Busan and Incheon Port. Under the 1930s imperial expansion policies exemplified by Second Sino-Japanese War, it increased operations in Manchuria and collaborated with Central Bank of Manchou structures. After Japan's surrender in World War II the bank operated under occupation frameworks instituted by the Allied occupation of Japan and was affected by decolonization policies from UN deliberations. The institution was reorganized and ultimately succeeded by national entities following the establishment of the Republic of Korea government and the creation of a national monetary authority.

Organization and Management

Governance combined Japanese governmental oversight with commercial directorships drawn from zaibatsu financiers and colonial administrators. Board composition featured executives connected to Bank of Japan, Ministry of Finance, and private houses such as Mitsui Bank and Mitsubishi Bank. Regional branch managers were often seconded from metropolitan banking cadres who had served in Taiwan Sugar Company or Chosen Government Railway financial offices. Administrative practices mirrored those of Yokohama Specie Bank and introduced techniques from Barings Bank-influenced global banking standards. Labor relations intersected with Korean independence movement activism and colonial police oversight by the Keishicho (Police) in Seoul, producing tensions documented in staff disputes and asset transfers during wartime mobilization.

Issuance and Currency Notes

Acting as a note-issuing authority, it produced currency denominated initially to replace the Korean yang and later aligned with the Japanese yen. Banknotes bore inscriptions and designs reflecting imperial iconography similar to contemporaneous notes from Bank of Japan and Central Bank of Manchou. The bank managed redemption policies, foreign exchange operations with institutions such as Hong Kong and Shanghai Banking Corporation and Bank of Taiwan, and administered coinage procurement involving mints like the Osaka Mint. During inflationary pressures in the late 1940s, currency circulation intersected with Allied economic measures, black market exchanges in Seoul Station districts, and price stabilization attempts by the United States Forces Korea and Korean financial authorities leading up to the establishment of the South Korean won.

Role in Colonial and Postwar Economy

The institution financed infrastructure projects including railway expansion tied to Chosen Government Railway, port modernization at Busan, and industrial ventures for textile mills backed by Nippon Steel-linked firms. It served as fiscal agent for tax receipts and war procurement, channeling capital to firms participating in the Greater East Asia Co-Prosperity Sphere. Post-1945, the bank mediated frozen assets, reparations discussions involving Republic of China and Soviet Union authorities, and functioned as an interim credit source during currency reforms overseen by the United States Department of the Treasury advisors and the UNRRA programs. Its credit policies affected land consolidation, rice procurement, and the rise of domestic commercial institutions that later composed the backbone of South Korea's financial sector.

Buildings and Branch Network

Headquartered in the colonial capital of Keijō (Seoul), the main building exemplified Western architecture in East Asia with reinforced concrete design by architects associated with projects in Dairen (Dalian) and Taihoku (Taipei). Branches proliferated across provincial centers including Pyongyang, Wonsan, Daegu, and Gyeongseong districts, as well as strategic branches in Dalian and Harbin to service Manchurian operations. Many branch structures survive as heritage buildings repurposed for museums, municipal offices, or commercial use in locations influenced by postwar urban redevelopment led by Park Chung-hee-era industrialization projects.

Legacy and Succession

After dissolution and restructuring in 1950, successor institutions included the national Bank of Korea and several commercial banks that inherited assets, staff, and branch networks. Debates over colonial-era banking archives, indemnity, and property restitution engaged scholars from Seoul National University, Yonsei University, and international historians specializing in imperial Japan. Architectural conservationists cite surviving bank buildings in lists compiled by the Cultural Heritage Administration (South Korea). The institution's imprint persists in contemporary discussions of Korean financial history, monetary sovereignty, and the continuity between colonial infrastructures and modern Korean banking systems.

Category:Banks of Korea Category:Defunct banks of Asia Category:History of Korea