1. 1ZAIBATSU Prepared by: John Carlo Castillo-Cabalit AB History Student johncarlo_cabalit@yahoo.com

2. A little history the term2zaibatsu The term zaibatsu was used in the 19th centuryto refer to large family century familycontrolled banking and industrial combines inJapan. Currently, it is not used natively by Japanesespeakers for anything other than historicaldiscussions in reference to Edo and Meiji erazaibatsu. 3. HISTORY AND3DEVELOPMENT The domination ofvariouslargecorporations by singlecapitalist familiesthrough stockholdingMitsuicompanies is known asZaibatsu. Before WWII, Mitsubishithe big four were: S itomum oYasuda 4. Four Large Zaibatsu4 Mitsui Initially founded in the Edo period in 1673, when TakatoshiMitsui opened a fabric and Mitsui drapery store inNihonbashi, Tokyo. The store called Echigoya grew,prospered, and developed in to what is now probably Japansmost prestigious store, the Mitsukoshi Department store. M itsui Exchange Shop Another success runs from by the Mitsui family. Received the gold and silver business warranties from the Edo Shogunate and became Mitsui Bank. In 1990, the bank merged with Taiyo Kobe Bank andthen, in 2002, combined with Sumitomo Bank, creatingone of the three largest financial groups in Japan, theMitsui Sumitomo Financial Group. 5. Four Large Zaibatsu5 S itom um o Long history commencing in 1691 when Osaka copper trader Izumiyaopened a copper mine in Bessi in Iyo, now Ehime Prefecture inShikoku Island. Expanded its business into copper refining,processing, and vending and finally transformed itself into a Zaibatsubefore the start of the World War II. Yasuda The Yasuda effort on banking was narrowed by the merger of elevenYasuda controlled banks into the Yasuda Bank in 1913. The post-merger bank was by far the largest of all the zaibatsu banks. Yasudaconsolidated his empire in banking and finance, specializing inbacking small and medium-sized traders and industrialists. In 1880, Yasuda founded the Yasuda Mutual Life Insurance Company.In 1893, the Yasuda zaibatsu absorbed the Tokyo Fire InsuranceCompany, later renamed the Yasuda Fire and Marine InsuranceCompany. 6. Economic Domination6 The Zaibatsu grew to govern the Japaneseeconomy and as they were incriminated inJapan in criminated Japans war effort, theGHQ (General Head Quarters) of the AlliedPowers in Japan dissolved them during theoccupation of Japan in 1945, declaring that theZaibatsu were a hotbed of militarism. 7. Formation of Industrial Groups7 Industrial groups with no connection to formerZaibatsu were also formed around banks. Thesegroups included those that surrounded the formerDaiichi Kangyo Bank, Sanwa Bank, and Fuji Bank. Companies within these groups also tended tocooperate on the business front and have been animportant factor in Japans gasping economicdevelopment since the war. 8. Industrial Groups expands their8 Keiretsu (Series or Subsidiary) By acquiring shares in, or dispatchingdirectors,to companies.Crossshareholdings and the Keiretsu structure ofcompanies trading within their group havebeen cited by the United States as one ofthe signs of the closed state of Japansmarkets to foreign businesses. 9. Recognition of financial markets9 Daiichi Kangyo Bank, Fuji Bank, and theIndustrial Bank of Japan merged andbecame the Mizuho financial group. Sakura Bank, which was formerly MitsuiBank, and Sumitomo Bank, also cometogether, and subsequently the MitsubishiTokyo Financial Group merged with UFJHoldings, which was formerly Sanwa Bankand Tokai Bank, thereby creating a newrealignment Japans industrial groups and 10. List of Zaibatsu10 Mitsui Group Toyota Toshiba Fuji Film HD Sapporo Beer Suntory Mitsukoshi Mitsui and Co., Ltd. Mitsui Fudosan Company, Limited 11. List of Zaibatsu11 Mitsubishi Group Nippon Yusen Kabushiki Kaisha Kirin Brewery Company, Limited Mitsubishi Company The Bank of Tokyo-Mitsubishi UFJ, Ltd Nikon Corporation Mitsubishi Motors Corporation Mitsubishi Chemical Corporation 12. List of Zaibatsu12 Sumitomo Group Sumitomo Corporation Sumitomo Chemical Company, Limited Asahi Breweries, Ltd ITOCHU Corporation Sumitomo Mitsui Banking Corporation Sumitomo Life Insurance Company The Japan Research Institute, Limited Sumitomo Realty & Development Co., Ltd 13. Popular Culture13 The termzaibatsuhas been used often in books, comics, video games and films, referring to large, (usually) threatening Japanese corporations, who are often involved in dubious dealings and/or have connections to theyakuza. Examples include the "Mishima Zaibatsu" which is mentioned throughout theTekkenseries, the "Zaibatsu" criminal group inGrand Theft Auto 2, and various writings of pioneercyberpunkauthorWilliam Gibson. In other caseszaibatsuare used simply to provide the background for a character from an influential family, such as in the case of the F4 inBoys before Flowerswho are the sons andheirsof the four (fictional) 14. Modern Day Influence14 Today, the influence of the zaibatsu can still be seen in the financial groups, institutions, and larger companies whose origins reach back to the original zaibatsu, often sharing the same original family names (for example, Sumitomo Mitsui Banking Corporation). Kazuo Kawai,Japans American Interlude(University of Chicago Press). However, some argue that the old mechanisms of financial and administrative control that zaibatsu once enjoyed have been destroyed. Though large industrial conglomerates continue to exist in Japan, the vertically-integrated chain of command of the zaibatsu, culminating in control by a single family, has now widely been displaced by the horizontal relationships of association and coordination characteristic of keiretsumeaning series or subsidiary. 15. 15 Thank you!!!Have a great PALAKASAN2012 and good luck with 2ndexam!