Co-Ethnic Relationships and Tendencies of Korean  Entrepreneurs in Japan :

A Case Study of Ikuno Area, Osaka

JO Hyunmi Kyungpook National University , KOREA

The Purpose of the Study

The purpose of this study is to explore the changes in characteristics of Korean migrants’ businesses by generation

The Focus of the Study

The role of the ethnic networks including ethnic financial institutions, on their businesses

-1-

Host Society

Occupational Structure

Social ClassStructure

Views and Policies Toward Social Minority Group

Influential Factors of Ethnic Networks

-2-

Indicators for Understanding Ethnic Relationships

Business method

Transaction between ethnic community members

Business partners

Main customers

Methods to employ

The level of dependency on ethnic banking institutions

-3-

Methods of seeking employment (1980)

Methods Male Female Total

Advertisement 10.1% 13.5% 11.1%

Through friends oracquaintances

37.1 48.6 40.5

Through parents or relatives

20.2 8.1 16.7

School recommendation

6.7 10.8 7.9

Ethnic organizations 7.9 13.5 9.5

Association of public employment

2.2 - 1.6

Others 6.7 - 4.8

No response 9.0 5.4 7.9

Total 100.0 100.0 100.0

Source ; zainichi doho rodo mondai kenkyukai(It means a study group of laborIssues of Korean residents in Japan) survey of the office) -4-

Number of employees

30 and less

100 or more

All industries 40.0% 42.2%

Korean residents

57.7% 19.0%

The scale of business (1980)

Source ; zainichi doho rodo mondai kenkyukai(Which means a study group on labor Issues of Korean residents in Japan) survey of the office. Valid responses ; 126

-5-

Relations Male Female Total

Relatives 20.2% 2.7% 15.1%

Acquaintances

10.1% 8.1% 9.5%

Not related 64.0% 86.5% 70.6%

No response 5.6% 2.7% 4.8%

Total 100.0% 100.0%100.0

%

Relations with business owners(1980)①

-6-

Relations with business owners②

Nationality of the business owners

The real number (%)

Korean residents in Japan 43(24.7)

Korean residents in Japan (partly)

1(0.6)

Koreans in Korea 4(2.3)

Japanese 118(67.8)

Other foreign residents 1(0.6)

Unknown 4(2.3)

No response 3(1.7)

Total 174(100.0)

Source ; KIM Myung Soo, 1993

-7-

Generation (Migrating to Japan )

Starting own

Business

Informal NetworksFormal networ

ks

The Other

s Total Inherited

from Parents

Relatives , Acquaintances

Before world war Ⅱ(1Ger.)

8(53.3)

0(0.0)

6(40.0)

0(0.0)

1(6.7)

15(100.0

)

(2Ger.)61

(32.3)32

(16.9)47

(24.9)21

(11.1)28

(14.8)

189(100.0

)

(3Ger.) 17

(9.8)27

(15.6)65

(37.6)44

(25.4)20

(11.6)

173(100.0

)

After world war Ⅱ

(1Ger.)

7(28.0)

4(16.0)

10(40.0)

1(4.0)

3(12.0)

25(100.0

)

Total 93

(23.1)63

(15.7)128

(31.8)66

(16.4)52

(12.9)

402(100.0

)

Job searching networks of Korean residents in Japan by generation (1998)

Source ; Lee Heesuk, 2003

-8-

Industries and Foreign Population in Ikuno Ward

Industries ; A typical concentration of minor companies - mainly private enterprises in retailing and

manufacturing especially metal and rubber industries

Foreign Population (2005)Population : 138,550

The highest rate of foreign population In Japan (1/4 residents are foreign nationals)

-9-

A category of industry

A number of

enterprises

A category of industry

A number of

enterprises

Construction 493 Electricity & Gas & Water Supply 1

Manufacturing 4245 Services 2257

Wholesale trade etc.*

5376 Labors 6

Finance & insurance

101 The others 1

Property 519    

Transport & Communication

Services138 Total 13137

Characteristics of industries in Ikuno(1999)

* Wholesale trade and retail trade/cafes and restaurants

Source ; The enterprise department of Ikuno Ward. 1999.7

-10-

A Category of Industry male female total

Cafes & Restaurants 9 5 14

Finance & Insurance 2 0 2

Recreational Services 2 1 3

Wholesale Trade and Retail Trade

5 5 10

Construction 13 1 14

Transport & Communication Services

2 0 2

Manufacturing 13 3 16

Property 4 0 4

Secondhand Goods Trading & Sales

2 0 2

Waste Disposer 3 0 3

Hairdressers 0 2 2

Total 55 17 72

Distribution of the Answers by Their Occupation and the Distinction of Sex

-11-

A Category and a Form of Businesses (2005)

Category / Form Office Use

and Residence

Office Use Only

Total

Cafes & Restaurants 3 11 14

Finance & Insurance 1 1 2

Recreational Services 0 3 3

Wholesale Trade and Retail Trade 3 7 10

Construction 8 6 14

Transport & Communication

Services1 1 2

Manufacturing 6 9 15

Property 0 4 4

Secondhand Goods Trading & Sales 1 1 2

Waste Disposer 3 0 3

Hairdressers 1 1 2

Total 27 44 71-12-

0~5년 5~10년 11~15년 16~20년 21~25년 26~30년 30 년 이상

현재직종 종사기간

0

5

10

15

20빈도

현재직종 종사기간The Duration of Current Occupation

Frequency (%)

0-5 6-10 11-15 16-20 21-25 26-30 30- years

-13-

0

20

40

60

80

100

120

A B C D E F G H I

<reference>

Methods of Korean entrepreneurs in Kanagawa Prefecture to collect capital

source; 神奈川県内在住外国人実態調査委員会 (1990)

A ; Own capital, B ; Ethnic banks, C ; General banks, D ; General credit associations

E ; Public loan, F ; Relatives and acquaintance, G ; A salaried worker’s loan,

H ; Mutual financial support among a Korean community in Japan

* The number of answers ; 233

-14-

0

1

2

3

4

5

6

7

8

9

A B C D E F G H I J K

본인자금조선계금융기관일반은행일반신용조합공적융자친척․지인샐러리맨금융기타

A Category of the Businesses by the methods of collecting a capital

Ethnic banksOwn capital

General banksGer.credit ass.

Public loanRelatives

Salaried works loanThe others

A ; Cafes & Restaurants, B ; Finance & Insurance, C;Recreational services,D ; Wholesale trade and Retail trade, E ; Construction, F ; Transport & Ccommunication services, G ; Manufacturing, H ; Property, I ; Secondhand goods trading & sales, J ; Waste disposer, K ; Hairdressers

-15-

Attending or not attending of the entrepreneurs’ meetings for the same industry

Attending or

not attending

Category ofbusiness

Yes No

Korean

Japanese + Korea

n

Japanese

Total

Korean

Japanese+ Korea

n

Japanese

Total

Cafes & restaurants

6 0 1 7 7 1 1 9

Finance & insurance

2 0 0 2 0 1 0 1

Recreational services

1 1 0 2 1 0 0 1

Wholesale trade and retail trade 1 1 0 2 4 0 1 5

Construction 4 5 4 13 3 0 0 3

Ttransport & communication

services0 0 0 0 2 0 0 2

Manufacturing 6 0 3 9 6 0 0 6

Property 1 0 0 1 3 0 0 3

Secondhand goods trading & sales 0 1 0 1 1 0 0 1

Waste Disposer 1 2 0 3 0 0 0 0

Hairdressers 0 0 1 1 1 0 0 1

Total 22 10 9 41 28 2 2 32

Methods to employ

  Nationality Method

Japanese

PreferJapanes

e

Korean

PreferKorean

Newcome

r

Others

Total

Through relatives or

acquaintances4 2 9 10 1 1 27

Through ethnic organizations 0 0 2 0 0 0 2

Open recruitment 2 2 2 3 0 0 9

Recommendation & open recruitment

0 1 3 3 0 1 8

The others 2 2 8 5 0 0 17

Total 8 7 24 21 1 2 63

-17-

Methods to employ and criteria of employment

     Criteria

Methods

Friendly

Attitudes

Hard-Worki

ng

Commonway of Living

Common way of Thinking

Mutualism

in Korea

nCommuni

ty

High ability

of work

Others

Total

Japanese 5 1 0 1 0 0 0 7

Prefer Japanese

5 1 0 0 0 1 0 7

Korean 0 2 5 0 7 0 0 14

Prefer Korean

0 1 6 3 5 0 2 17

Newcomer Korean

0 0 0 0 0 0 1 1

The others 0 0 0 0 0 0 1 1

Total 10 5 11 4 12 1 4 47

-18-

Ethnic networksstrong

week

week strong

Sales of foods(Korean customers)

Cafes & RestaurantsSales of foods(Japanese customers)

Construction Welfare related workOther services

Manufacturing

Networks of sameCategory of Industry

-19-

Changes in time

Changes of economicstructure

Changes of social structure

Relationships withJapanese

Relationships with Korean

Globalization

China’s open marketpolicy

Existence of lowSalary workers