Bank of Chōsen
The Bank of Chōsen was a Japanese colonial bank of issue and commercial bank that operated in Korea and across parts of East Asia from 1909 until its liquidation after the establishment of the Bank of Korea in 1950.
Last updated November 4, 2026
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Overview
The Bank of Chōsen was the principal Japanese-controlled monetary and commercial banking institution in Korea during the period of Japanese rule. It was created in 1909 as the Bank of Korea through the reorganization of Dai-Ichi Bank’s Korean operations. Dai-Ichi Bank had maintained a dominant position in Korea since the late nineteenth century, but Japanese officials debated whether monetary administration should remain with a private bank, be assigned to the Bank of Japan, or be placed in a separate colonial institution. The eventual compromise produced a dedicated bank of issue modeled partly on the Bank of Taiwan and designed to operate under strong Japanese governmental influence. The institution initially carried the name Bank of Korea. Following Japan’s annexation of Korea in 1910, Japanese legislation renamed it the Bank of Chōsen in March 1911. It issued banknotes denominated in Korean yen, acted as a monetary authority, supported government finance, regulated aspects of domestic commerce, and conducted ordinary commercial banking. Its notes were legal tender in Korea and circulated in the Kwantung Leased Territory and the South Manchuria Railway Zone, where the bank became an important instrument of Japanese economic expansion. The bank could hold Bank of Japan notes as well as precious metals in its reserves, distinguishing its operating framework from that of the Bank of Japan. During the 1910s, the Bank of Chōsen expanded beyond Korea into Manchuria, North China, and other areas connected to Japanese imperial administration and military activity. It opened offices in major regional centers including Mukden, Dalian, Changchun, Harbin, Qingdao, Shanghai, and other locations. In 1917 it absorbed the Manchurian operations and note-issuing privilege of the Yokohama Specie Bank, increasing its influence over currency circulation and government finance in the region. The bank also purchased and assayed gold, becoming a major supplier to the Osaka Mint. Its Manchurian operations at times exceeded its Korean business in profitability and scale. The 1923 Great Kantō earthquake destroyed the bank’s Tokyo branch and caused substantial losses. Support from the Japanese Ministry of Finance and the Bank of Japan was followed by a governance reorganization. Legislation enacted in 1924 removed the Governor-General of Chōsen from his previous direct role in the bank’s governance, placed the institution under the Ministry of Finance, and led to the transfer of the head office and senior leadership to Tokyo. Later, the bank divided operational supervision among centers in Tokyo, Keijō, and Dalian. In the 1930s, the Bank of Chōsen adapted to the creation of new Japanese-controlled financial institutions in Manchuria. In 1936, a joint venture with the government of Manchukuo, the Manchurian Industrial Bank, assumed the bank’s Manchurian branches. The Bank of Chōsen then expanded into North China, including through its role in the Chi Tung Bank associated with the East Hebei Autonomous Government. After the outbreak of the Second Sino-Japanese War in 1937, it acted as a financial agent of the Japanese Army and established offices in cities captured by Japanese forces. These activities made it a significant component of Japan’s colonial and wartime financial infrastructure. Japan’s surrender in 1945 and the division of Korea fragmented the bank. Its branches north of the 38th parallel came under Soviet and then North Korean control and provided the institutional basis for the Central Bank of North Korea, later renamed the Central Bank of the Democratic People’s Republic of Korea. In the South, the bank continued to operate under the United States Army Military Government and issued South Korean currency until 1950. South Korean legislation created the Bank of Korea and transferred the former bank’s assets and operations to the new institution, while placing the Bank of Joseon into liquidation. Its Japanese assets were nationalized in 1945 and later contributed to the Japanese Real Estate Bank, which became Nippon Credit Bank and was eventually privatized as Aozora Bank. The former Seoul headquarters, completed in 1912, now houses the Bank of Korea Money Museum.
History
The Bank of Chōsen originated in the financial system created after Japan established a protectorate over Korea in 1905. Dai-Ichi Bank had operated extensively in Korea since 1878, issuing notes and providing commercial services. Japanese officials eventually concluded that monetary administration should be transferred to a dedicated institution. In 1909, Japanese legislation created the Bank of Korea and transferred Dai-Ichi Bank’s Korean branches, personnel, note liabilities, reserves, and a new Seoul headquarters building to it. Ichihara Morihiro, who had managed Dai-Ichi’s Korean network, became its first president. Following Korea’s annexation by Japan in 1910, the institution was renamed the Bank of Chōsen in 1911. It functioned both as a bank of issue and as a commercial bank. Its notes circulated in Korea and in Japanese-controlled areas of Manchuria, and its activities included currency issuance, domestic and international trade finance, government lending, and gold purchasing. The bank’s regional ambitions became especially visible during the 1910s, when it established offices throughout Manchuria and in other East Asian commercial centers. In 1917, it absorbed the Manchurian operations and note-issuing privilege of the Yokohama Specie Bank. During the Japanese intervention in Siberia, it also maintained temporary offices near Japanese military positions, while its Vladivostok operation continued until 1931. The bank’s note circulation and geographical reach grew rapidly before the financial downturn of 1920. Its Manchurian business became more profitable than its Korean operations, but financial instability encouraged a retrenchment in lending and note issuance. The 1923 Great Kantō earthquake then destroyed the Tokyo branch and imposed major losses. Japanese financial authorities provided long-term support, and a 1924 legal reform placed the bank under the Ministry of Finance rather than the direct governance of the Governor-General of Chōsen. The head office and senior leadership moved to Tokyo in May 1924, while separate directors oversaw Korean and Manchurian operations. By 1929, the bank maintained one of the largest overseas networks among Japanese banks. Its position changed again after the establishment of the Central Bank of Manchou in 1932. In 1936, its Manchurian branches were transferred to the Manchurian Industrial Bank, a jointly owned institution backed by the Manchukuo government. The Bank of Chōsen subsequently expanded into North China, including through the Chi Tung Bank associated with the East Hebei Autonomous Government. From 1937, it served as a financial agent of the Japanese Army and followed Japanese military expansion into major Chinese cities. The final phase began with Japan’s surrender in 1945. Branches north of the 38th parallel were taken over by Soviet authorities and then integrated into the emerging North Korean banking system. The Pyongyang branch initially operated a temporary monetary office, and the Central Bank of North Korea was created in January 1946 using the northern branch network. It was renamed the Central Bank of the Democratic People’s Republic of Korea in December 1947. In the South, the institution continued under the United States Army Military Government and issued currency during a period of severe monetary disruption. The Bank of Korea was established by South Korean legislation in May 1950, receiving the former bank’s assets and operations. The Bank of Joseon was liquidated to separate the new central bank from potential claims connected with Japanese ownership. Its Japanese assets were nationalized in 1945 and later helped form the Japanese Real Estate Bank, which became Nippon Credit Bank and eventually Aozora Bank. The former Seoul headquarters is now the Bank of Korea Money Museum.
- 1950
Replaced by the Bank of Korea
[1]The new South Korean central bank assumed its former assets and functions, ending the Bank of Joseon’s institutional existence.
- 1945
Network divided after Japan’s surrender
[1]The bank’s northern Korean branches entered the North Korean monetary system while southern and Japanese assets followed separate paths.
- 1936
Manchurian branches transferred
[1]The Manchurian Industrial Bank assumed the bank’s direct Manchurian network.
- 1924
Governance and headquarters reorganized
[1]The Ministry of Finance became the supervising authority and the head office moved to Tokyo.
- 1917
Yokohama Specie Bank operations acquired
[1]The bank assumed important Manchurian branches and note-issuing privileges.
- 1911
Renamed Bank of Chōsen
[1]After annexation, Japanese law changed the bank’s name and formalized its colonial role.
- 1909
Bank of Korea established
[1]A new institution was formed through the reorganization of Dai-Ichi Bank’s Korean network.
- 1878
Dai-Ichi Bank begins major Korean operations
[1]Dai-Ichi Bank established the financial foundation from which the later Bank of Korea and Bank of Chōsen developed.
Products and positioning
A Japanese colonial bank of issue combining central-bank functions with commercial banking and fiscal-agency roles. Its regional network supported currency circulation, trade, government borrowing, Japanese military operations, and the broader financial administration of Japan’s empire in East Asia.
Currency · 1909
Bank of Chōsen banknotes
The bank issued Korean yen notes that served as legal tender in Korea and circulated in Japanese-controlled territories in Manchuria. The notes supported the bank’s monetary role and were exchangeable at par with Bank of Japan notes in the areas where the relevant arrangements applied.
Banking services · 1909
Commercial banking
The institution provided deposits, commercial loans, trade finance, government finance, and related banking services through branches in Korea, Japan, Manchuria, North China, and other overseas locations.
Precious-metals services
Gold purchasing and assaying
The bank purchased gold and operated or inherited assaying facilities in Korea and Manchuria. Its gold supply operations made it an important source of bullion for Japan’s Osaka Mint during the 1910s.
Brand decisions
1950
Transfer South Korean functions to the Bank of KoreaStrategyBackground
The newly independent South Korean state required a central bank separate from the colonial-era institution and potential claims by Japanese stakeholders.
Action taken
Legislation established the Bank of Korea, transferred the former bank’s assets and operations, and placed the Bank of Joseon into liquidation.
Aftermath
The Bank of Chōsen ceased to exist as the monetary authority of South Korea.
1937
Support Japanese wartime expansion in ChinaStrategyBackground
The Second Sino-Japanese War created demand for financial institutions serving Japanese military and occupation administration.
Action taken
The bank became a financial agent of the Japanese Army and opened offices in cities captured by Japanese forces.
Aftermath
Its activities became closely linked to wartime finance and imperial administration in North China.
1936
Transfer Manchurian branches to the Manchurian Industrial BankM&ABackground
The creation of the Central Bank of Manchou changed the institutional environment for Japanese-controlled banking in Manchuria.
Action taken
The Bank of Chōsen formed a jointly owned, government-guaranteed Manchurian Industrial Bank, which took over its Manchurian branches.
Aftermath
The bank reduced its direct presence in Manchuria and redirected expansion toward North China.
1924
Centralize supervision under Japan’s Ministry of FinanceStrategyBackground
The 1923 Great Kantō earthquake caused severe losses and exposed the need for financial support and institutional restructuring.
Action taken
Legislation removed the Governor-General of Chōsen’s previous governance role, transferred supervision to the Ministry of Finance, and moved senior leadership to Tokyo.
Aftermath
The bank adopted a more centralized structure with separate operational oversight for Korea, Manchuria, and other territories.
1917
Take over Yokohama Specie Bank’s Manchurian operationsM&ABackground
The bank’s notes already circulated widely in Manchuria, and Japanese authorities sought a stronger integrated financial network.
Action taken
The Bank of Chōsen assumed the Yokohama Specie Bank’s branches and note-issuing privilege in Manchuria.
Aftermath
Its influence over currency circulation and Japanese government finance in the region increased, although Yokohama Specie Bank retained commercial activity.
1911
Adopt colonial bank-of-issue roleStrategyBackground
The annexation of Korea required the institution to operate as part of Japan’s new colonial monetary and administrative structure.
Action taken
The Bank of Korea was renamed the Bank of Chōsen and continued issuing currency while providing commercial and fiscal services.
Aftermath
The bank became a central financial instrument of Japanese rule and imperial economic expansion.
Recent events
- 1950
Bank of Korea replaces Bank of Joseon in South Korea[1]
Other
South Korean legislation created the Bank of Korea, transferred the predecessor’s assets and operations, and placed the Bank of Joseon into liquidation.
- 1945
Korean and Japanese operations separated after surrender[1]
Other
The end of Japanese rule divided the bank’s network between Soviet- and North Korean-controlled branches in the north, continued operations in the south, and nationalized assets in Japan.
- 1937
Bank becomes financial agent of Japanese Army[1]
Other
After the Second Sino-Japanese War began, the bank financed Japanese military administration and opened offices in captured Chinese cities.
- 1936
Manchurian Industrial Bank takes over regional branches[1]
M&A
A joint venture backed by the Manchukuo government took over the Bank of Chōsen’s Manchurian branches, allowing the bank to redirect expansion toward North China.
- 1924
Head office and senior leadership move to Tokyo[1]
Leadership change
A governance reform placed the bank under the Japanese Ministry of Finance and was followed by relocation of its head office and senior leadership to Tokyo.
- 1923
Great Kantō earthquake damages Tokyo branch[1]
Other
Fire destroyed the bank’s Tokyo branch and caused heavy losses, prompting support from Japanese financial authorities.
- 1917
Manchurian operations of Yokohama Specie Bank transferred[1]
M&A
The Bank of Chōsen assumed the Yokohama Specie Bank’s Manchurian branches and note-issuing privilege, while the latter continued some commercial activity.
- 1913
Bank expands its Manchurian network[2]
Other
The bank opened offices in major Manchurian commercial centers, beginning a period of rapid cross-border expansion.
- 1911
Bank of Korea renamed Bank of Chōsen after annexation[2]
Other
Japanese legislation changed the institution’s name after the annexation of Korea and confirmed its role as the colonial bank of issue.
- 1909
Bank of Korea established as predecessor institution is reorganized[2]
Other
The Bank of Korea was formed through the transfer and restructuring of Dai-Ichi Bank’s Korean operations, including branches, staff, note liabilities, reserves, and a Seoul headquarters building under construction.
Sources2 sources
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