Zaibatsu (財閥, "financial clique") is a Japanese term referring to industrial and financial business conglomerates in the Empire of Japan, whose influence and size allowed control over significant parts of the Japanese economy from the Meiji period until the end of World War II. They were succeeded by the Keiretsu in the second half of the 20th century.


The term "zaibatsu" was coined in 19th century Japan from the Sino-Japanese roots zai ("wealth", from Middle Chinese dzoi) and batsu ("clique", "group", from Middle Chinese bjot). Although zaibatsu themselves existed from the 19th century, the term was not in common use until after World War I. By definition, the zaibatsu were large family-controlled vertical monopolies consisting of a holding company on top, with a wholly owned banking subsidiary providing finance, and several industrial subsidiaries dominating specific sectors of a market, either solely, or through a number of subsidiary companies.


The zaibatsu were the heart of economic and industrial activity within the Empire of Japan, and held great influence over Japanese national and foreign policies. The Rikken Seiyūkai political party was regarded as an extension of the Mitsui group, which also had very strong connections with the Imperial Japanese Army. Likewise, the Rikken Minseitō was connected to the Mitsubishi group, as was the Imperial Japanese Navy. By the start of World War II, the Big Four zaibatsu (Mitsubishi, Sumitomo, Yasuda and Mitsui) alone had direct control over more than 30% of Japan's mining, chemical, and metals industries and almost 50% control of the machinery and equipment market, a significant part of the foreign commercial merchant fleet and 70% of the commercial stock exchange.

The zaibatsu were viewed with suspicion by both the right and left of the political spectrum in the 1920s and 1930s. Although the world was in the throes of a worldwide economic depression, the zaibatsu were prospering through currency speculation, maintenance of low labour costs and on military procurement. Matters came to a head in the League of Blood Incident of March 1932, with the assassination of the managing director of Mitsui, after which the zaibatsu attempted to improve on their public image through increased charity work.

History and development

Big Four

The "Big Four" zaibatsu (四大財閥, yondai zaibatsu) of, in chronological order of founding, Sumitomo, Mitsui, Mitsubishi, and Yasuda are the most significant zaibatsu groups. Two of them, Sumitomo and Mitsui, have roots in the Edo period while Mitsubishi and Yasuda trace their origins to the Meiji Restoration. Throughout Meiji to Shōwa, the government employed their financial powers and expertise for various endeavors, including tax collection, military procurement and foreign trade.

New zaibatsu

Beyond the Big Four, consensus is lacking as to which companies can be called zaibatsu, and which cannot. After the Russo-Japanese War, a number of so-called "second-tier" zaibatsu also emerged, mostly as the result of business conglomerations and/or the award of lucrative military contracts. Some more famous second-tier zaibatsu included the Okura, Furukawa, and Nakajima groups, among several others.

The early zaibatsu permitted some public shareholding of some subsidiary companies, but never of the top holding company or key subsidiaries.

The monopolistic business practices by the zaibatsu resulted in a closed circle of companies until Japanese industrial expansion on the Asian mainland (Manchukuo) began in the 1930s, which allowed for the rise of a number of new groups (shinko zaibatsu), including Nissan. These new zaibatsu differed from the traditional zaibatsu only in that they were not controlled by specific families, and not in terms of business practices.

Postwar dissolution

The zaibatsu had been viewed with some ambivalence by the Japanese military, which nationalized a significant portion of their production capability during World War II. Remaining assets were also highly damaged by the destruction during the war.

Under the Allied occupation after the surrender of Japan, a partially successful attempt was made to dissolve the zaibatsu. Many of the economic advisors accompanying the SCAP administration had experience with the New Deal and were highly suspicious of monopolies and restrictive business practices, which they felt to be both inefficient, and to be a form of corporatocracy (and thus inherently anti-democratic).

During the occupation of Japan, sixteen zaibatsu were targeted for complete dissolution, and twenty-six more for reorganization after dissolution. Among the zaibatsu that were targeted for dissolution in 1947 were Asano, Furukawa, Nakajima, Nissan, Nomura, and Okura. In addition, Yasuda dissolved itself in 1946. The controlling families' assets were seized, holding companies eliminated, and interlocking directorships, essential to the old system of inter-company coordination, were outlawed. The Matsushita Electric Industrial Company (which later took the name Panasonic), while not a zaibatsu, was originally also targeted for breakup, but was saved by a petition signed by 15,000 of its union workers and their families.[1]

However, complete dissolution of the zaibatsu was never achieved, mostly because the U.S. government rescinded the orders in an effort to reindustrialize Japan as a bulwark against communism in Asia.[2] Zaibatsu as a whole were widely considered to be beneficial to the Japanese economy and government, and the opinions of the Japanese public, of the zaibatsu workers and management, and of the entrenched bureaucracy regarding plans for zaibatsu dissolution ranged from unenthusiastic to disapproving. Additionally, the changing politics of the occupation during the reverse course served as a crippling, if not terminal, roadblock to zaibatsu elimination.

Modern-day influence

Today, the influence of the zaibatsu can still be seen in the form of 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). However, some argue that the "old mechanisms of financial and administrative control" that zaibatsu once enjoyed have been destroyed. Despite the absence of an actual sweeping change to the existence of large industrial conglomerates in Japan, the zaibatsu's previous vertically integrated chain of command, ending with a single family, has now widely been displaced by the horizontal relationships of association and coordination characteristic of keiretsu (系列). Keiretsu, meaning "series" or "subsidiary", could be interpreted as being suggestive of this difference.

List of zaibatsu

The term zaibatsu has been used often in books, comics, games, and films, referring to large and usually sinister Japanese corporations, who are often involved in shady dealings and/or have connections to the yakuza. Examples include the Mishima Zaibatsu, which is prominently featured in the Tekken series, the "Zaibatsu" criminal group in Grand Theft Auto 2, and various writings of pioneer cyberpunk author William Gibson. In other cases zaibatsu are used simply to provide the background for a character from an influential family, such as in the case of the F4 in Boys Before Flowers who are the sons and heirs of the four (fictional) biggest corporations in Japan.

  • In the Tom Clancy book Debt of Honor, a group of zaibatsu seize control of Japan and invade the US-held Mariana Islands.
  • The video game Grand Theft Auto 2 features a gang called the Zaibatsu that the player can take jobs from. It is the largest gang in the game, and the eventual final enemy.
  • Karin Kanzuki, a character from the Street Fighter series, is the heiress to the Kanzuki Zaibatsu.
  • The Itoshiki family from Sayonara Zetsubō Sensei owns a zaibatsu to accentuate their heavy economic and political background.
  • In the Tekken series, the Mishima Zaibatsu is the major organization behind the tournaments.
  • In the manga Tokyo Ghoul, Shuu Tsukiyama is the heir to the Tsukiyama Group, a powerful international business conglomerate that originated as a Zaibatsu.
  • In the tabletop role-playing game Shadowrun, several of the Big Ten mega-corporations are formed from the old Zaibatsu and still carry on their managerial styles in the Japanese Imperial State in the sixth world, prominent examples being Renraku and Mitsuhama Computer Technologies.
  • In the board game Nippon, players control Zaibatsu and try to grow their influence and power as they oversee the era of rapid industrialization of Japan.
  • In the manga and anime Urusei Yatsura, the character Shutaro Mendou is the heir to the Mendou zaibatsu, the wealthiest and most powerful zaibatsu with its own private army and even private air force. His rival Tobimaro Mizunokoji is the heir to the Mizunokoji zaibatsu, the second wealthiest and second most powerful zaibatsu which also has its own private military. Their sisters Ryoko Mendou and Asuka Mizunokoji are also important characters, with Ryoko Mendou commanding large numbers of kuroko and setting up elaborate, very expensive and destructive schemes, and Asuka Mizunokoji being terrified of all men except for her brother and also having such extreme superhuman strength due to an entire lifetime of military training that it makes the superhuman strength of Shinobu Miyake seem normal by comparison.
  • In the manga and anime Killing Bites, the plot revolves around 4 zaibatsu and the bloody to-the-death tournaments members of them participate in against other zaibastsu teams. Recently, through gene splicing or similar technology, all of the fighters have been turned into creatures called Therianthropes – people with abilities to make partial, and in some cases complete, transformations into animals, and take on many characteristics of these animals.
  • In Ouran highschool host club, the Ootori's manage a zaibatsu

See also



  1. Morck & Nakamura, p. 33
  2. In his 1967 memoirs, Kennan wrote that aside from the Marshall Plan, setting the "reverse course" in Japan was "the most significant contribution I was ever able to make in government." George F. Kennan, Memoirs, 1925-50 (Boston, 1967), 393.
  3. While chaebol is often viewed as the Korean cognate to zaibatsu, both the Korean and the Japanese words are composed of loans from Chinese, and thus are not cognates in the true sense of the word.


  • Alletzhauser, Albert J. The House of Nomura. New York: Harper Perennial, 1991. ISBN 0-06-097397-8.
  • Allinson, Gary D. Japan's Postwar History. Ithaca, New York: Cornell University Press, 1997. ISBN 0-8014-3312-6.
  • Aoki, Masahiko & Hyung-Ki Kim. Corporate Governance in Transitional Economies: Insider Control and the Role of Banks. Retrieved online 28 June 2004. Print edition: Washington, D.C.: World Bank Office of the Publisher, 1995. ISBN 0-8213-2990-1.
  • Morck, Randall and Masao Nakamura. A Frog in a Well Knows Nothing of the Ocean: A History of Corporate Ownership in Japan.
  • Schenkein, Joshua (2014). Japan, the Great Power: Industrialization Through the Lens of Zaibatsu Firm Charateristics. ASIN B00NRHRMW2.
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