Keiretsu
Encyclopedia
A is a set of companies
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...

 with interlocking business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...

 relationships and shareholdings
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....

. It is a type of business group
Business group
A corporate group is a collection of parent and subsidiary corporations that function as a single economic entity through a common source of control. The concept of a group is frequently used in tax law, accounting and company law to attribute the rights and duties of one member of the group to...

. The keiretsu has maintained dominance over the Japanese economy
Economy of Japan
The economy of Japan, a free market economy, is the third largest in the world after the United States and the People's Republic of China, and ahead of Germany at 4th...

 for the greater half of the twentieth century.

The member companies own small portions of the shares in each other's companies, centered on a core bank; this system helps protects company managements from stock market fluctuations and takeover attempts, thus enabling long-term planning in innovative projects. It is a key element of the automotive industry in Japan.

History

The corporate governance of Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

 dates back to the 1600s, much of which was propelled by the formation of the Meiji Restoration
Meiji period
The , also known as the Meiji era, is a Japanese era which extended from September 1868 through July 1912. This period represents the first half of the Empire of Japan.- Meiji Restoration and the emperor :...

 in 1866 by the Japanese government, the same time when the world entered the Industrial Revolution
Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social, economic and cultural conditions of the times...

. These formations were termed zaibatsu
Zaibatsu
is a Japanese term referring to industrial and financial business conglomerates in the Empire of Japan, whose influence and size allowed for control over significant parts of the Japanese economy from the Meiji period until the end of World War II.-Terminology:...

. Prior to the war Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

 remained dominated by four major zaibatsus
Zaibatsu
is a Japanese term referring to industrial and financial business conglomerates in the Empire of Japan, whose influence and size allowed for control over significant parts of the Japanese economy from the Meiji period until the end of World War II.-Terminology:...

:Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...

, Sumitomo, Yasuda
Yasuda
Yasuda zaibatsu was a financial conglomerate owned and managed by the Yasuda family. One of the four major zaibatsu of Imperial Japan, it was founded by the entrepreneur Yasuda Zenjirō. It was wound up at end of World War II.-Origins:...

 and Mitsui
Mitsui
is one of the largest corporate conglomerates in Japan and one of the largest publicly traded companies in the world.-History:Founded by Mitsui Takatoshi , who was the fourth son of a shopkeeper in Matsusaka, in what is now today's Mie prefecture...

. They focused on steel, banking, international trading and various other key sectors in the economy, all of which was controlled by a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...

. Apart from this, they remained in close connection to influential banks that provided funding to their various projects.

The prototypical keiretsu appeared in Japan during the "economic miracle
Japanese post-war economic miracle
The Japanese post-war economic miracle is the name given to the historical phenomenon of Japan's record period of economic growth following World War II, spurred mainly by Japanese economic policy, in particular through the Ministry of International Trade and Industry...

" following World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

. Before Japan's surrender
Surrender of Japan
The surrender of Japan in 1945 brought hostilities of World War II to a close. By the end of July 1945, the Imperial Japanese Navy was incapable of conducting operations and an Allied invasion of Japan was imminent...

, Japanese industry was controlled by large family-controlled
Family business
A family business is a business in which one or more members of one or more families have a significant ownership interest and significant commitments toward the business’ overall well-being....

 vertical monopolies called zaibatsu
Zaibatsu
is a Japanese term referring to industrial and financial business conglomerates in the Empire of Japan, whose influence and size allowed for control over significant parts of the Japanese economy from the Meiji period until the end of World War II.-Terminology:...

. Under this system, large industrial corporations paved the way for banks and trading companies
Trading company
Trading companies are businesses working with different kinds of products which are sold for consumer, business or government purposes. Trading companies buy a specialized range of products, maintain a stock or a shop, and deliver products to customers....

 sit on top of the organizational pyramid controlling all financial operations and distribution of goods.

Collapse of the Zaibatsu

The zaibatsu had been viewed with some ambivalence by the Japanese military, which nationalized
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...

 a significant portion of their production capability during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

. Remaining assets were also highly damaged by the destruction of the war.

Under the American occupation
Supreme Commander of the Allied Powers
Supreme Commander of the Allied Powers was the title held by General Douglas MacArthur during the Occupation of Japan following World War II...

 after the surrender of Japan
Surrender of Japan
The surrender of Japan in 1945 brought hostilities of World War II to a close. By the end of July 1945, the Imperial Japanese Navy was incapable of conducting operations and an Allied invasion of Japan was imminent...

, a partially successful attempt was made to dissolve the zaibatsu. Many of the economic advisors accompanying the SCAP
Supreme Commander of the Allied Powers
Supreme Commander of the Allied Powers was the title held by General Douglas MacArthur during the Occupation of Japan following World War II...

 administration had experience with the New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...

 program under President Franklin Delano Roosevelt, and were highly suspicious of monopolies
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...

 and restrictive business practices, which they felt to be both inefficient, and to be a form of corporativism (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. Their controlling families' assets were seized, holding companies
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...

 eliminated, and interlocking directorships
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

, essential to the old system of inter-company coordination, were outlawed. Matsushita (which later took the name Panasonic), while not a zaibatsu, was originally also targeted for dissolution, but was saved by a petition signed by 15,000 of its unionized
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...

 workers and their families.

However, complete dissolution of the zaibatsu was never achieved, mostly because the United States government rescinded the orders in an effort to re-industrialize Japan as a bulwark against Communism
Communism
Communism is a social, political and economic ideology that aims at the establishment of a classless, moneyless, revolutionary and stateless socialist society structured upon common ownership of the means of production...

 in Asia. 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.

Even until today, banks and trading companies
Trading company
Trading companies are businesses working with different kinds of products which are sold for consumer, business or government purposes. Trading companies buy a specialized range of products, maintain a stock or a shop, and deliver products to customers....

 have been at the top of the pyramid, having access and control over a portion of each company's part of the keiretsu. Shareholders succeeded over the family control of the cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...

. This was made possible with relaxing of Japanese laws whereby holding companies could become stockholding companies.

Types of Keiretsu

Cartels
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...

 and groupings of various kinds are common in Japan.

There are two types of keiretsu
  1. Horizontal keiretsu
  2. Vertical keiretsu


These two broad types can be further categorized

Horizontal keiretsu

The primary aspect of a horizontal keiretsu (also known as financial keiretsu) is that it is set up around a Japanese bank. The bank assists these companies with a range of financial services. The leading horizontal Japanese keiretsu, also referred to as the “Big Six” include: Fuyo, Sanwa
Sanwa Group
Sanwa Group was a keiretsu, or business group, based in Osaka from World War II to the early 1990s in Japanese asset price bubble, one of the main keiretsu...

, Sumitomo, Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...

, Mitsui
Mitsui
is one of the largest corporate conglomerates in Japan and one of the largest publicly traded companies in the world.-History:Founded by Mitsui Takatoshi , who was the fourth son of a shopkeeper in Matsusaka, in what is now today's Mie prefecture...

, and Dai-Ichi Kangyo bank groups. Horizontal keiretsu may also have vertical relationships, called branches.

The linkage of these corporate groups through ownership of long-term equity and production activities, leads to emergence of vertical keiretsu.

Vertical keiretsu

Vertical keiretsu (also known as industrial keiretsu) are used to link suppliers, manufacturers, and distributors of one industry. One or more sub-companies are created to benefit the parent company (for example, Toyota or Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...

). Banks have less influence on distribution keiretsu. This vertical model is further divided into levels called tiers. The second tier constitutes major suppliers, followed by smaller manufacturers, who make up the third and fourth tier. The lower the tier, the greater the risk of economic disruption; moreover, due to low position in the keiretsu hierarchy, profit margins are low.

Nature of the Keiretsu

At the epicenter, the "big six" keiretsu is a bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...

 and a trading company
Trading company
Trading companies are businesses working with different kinds of products which are sold for consumer, business or government purposes. Trading companies buy a specialized range of products, maintain a stock or a shop, and deliver products to customers....

. Japanese banks are allowed to have equity in other firms with a quota
Quota
-Commerce:* Import quota, a type of trade restriction* Production quota* Sales quota, a minimum sales goal for a set time span* Tariff-rate quota, a type of trade restriction-Electoral systems:* Droop quota* Election threshold* Hagenbach-Bischoff quota...

 of less than 5% of the total number of shares issued by the company (Anti-Monopoly Law Reform of 1977). Banks play a crucial role in the smooth functioning of this organization. They assess the investment projects and provide loans when required. The trading companies
Trading company
Trading companies are businesses working with different kinds of products which are sold for consumer, business or government purposes. Trading companies buy a specialized range of products, maintain a stock or a shop, and deliver products to customers....

 deal in imports and exports of an assorted range of commodities throughout the world. Each major company has its own "President's Club", enabling interaction of core members to better help decide their strategies.
The Japanese keiretsu took various preventive measures to avoid takeovers from foreign companies. One of them was interlocking or cross-holding of shares. This method was established by Article 280 of Commerce Law. By doing so, each company held a stake in the other's company. This helped reduce the pressure on management to achieve short-term goals at the expense of long-term growth. Besides that, interlocking of shares serves as a tool for monitoring and disciplining the group's firms. The level of group orientation or strength between the member companies is determined by the interlocking shares ratio (the ratio of shares owned by other group firms to total shares issued) and the intra-group loans ratio (the ratio of loans received from financial institutions in the group to total loans received).

Industries such as banking, insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...

, steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...

, trading, manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...

, electric gas and chemicals are all part of the horizontal keiretsu web. The member companies follow the One-Set Policy whereby the groups avoid direct competition between member firms.

The One-Set Policy:
Industry Mitsui Mitsubishi Sumitomo Fuyo Sanwa DKB
Banking Sakura Bank Bank of Tokyo-Mitsubishi Bank Sumitomo Bank Fuji Bank Sanwa Bank Dai-Chi Kangya Bank
Trust Banking Mitsui Trust & Banking Mitsubishi Trust & Banking Sumitomo Trust & Banking Yasuda Trust & Banking Toyo Trust & Banking
Life Insurance Mitsui Mutual Life Meiji Mutual Life Sumitomo Mutual Life Yasuda Mutual Life Fukoku Mutual life, Asahi Mutual life
Marine & Fire Insurance Mitsui Marine & Fire Tokio Marine & Fire Sumitomo Marine & Fire Yasuda Marine & fire Nissan Marine & Fire, Taisei Marine & Fire
Trading Company Mitsui Bussan Mitsubishi Shoji Sumitomo Corporation Marubeni Nissho Iwai Itochu
Steel Japan Steel Works Mitsubishi Steel Manufacturing Sumitomo Metal Industries Nakayama Steel Works, Nisshin Steel Kawasaki Steel, Kobe Steel
Chemicals Mitsui Toatsu Chemicals Mitsubishi Gas Chemicals Sumitomo Chemicals Kureha Chemical Industries Sekisui Chemicals Asahi Chemical Industries


In the 1920s, government officials maintained close relations with the zaibatsu
Zaibatsu
is a Japanese term referring to industrial and financial business conglomerates in the Empire of Japan, whose influence and size allowed for control over significant parts of the Japanese economy from the Meiji period until the end of World War II.-Terminology:...

, and the roots of their influence still hold strong. The keiretsu have great influence on Japanese industrial and economic policy. The preferential buying habits of the keiretsu kept foreign investors and foreign goods out of their markets, which America criticized as "barriers to free trade". This enabled the keiretsu to enjoy monopoly privileges over the Japanese market, thus maintaining high prices for their goods, as they had full dominance over the price and distribution of products and services throughout the supply side. It is believed that due to this practice, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

 in the late 1980s imported far less than what they should have($40 billion less as per a report by the Brookings Institution).

In such a work environment, the probability of an employee to remain working in the same company for his entire working life was very high. Moreover, this framework allowed rapid co-operative development (Sharing vital information, reduction in cost of R&D and higher quality products) of the keiretsu.

In Japan

During the occupation of Japan, under the Supreme Commander of the Allied Powers
Supreme Commander of the Allied Powers
Supreme Commander of the Allied Powers was the title held by General Douglas MacArthur during the Occupation of Japan following World War II...

, General Douglas MacArthur
Douglas MacArthur
General of the Army Douglas MacArthur was an American general and field marshal of the Philippine Army. He was a Chief of Staff of the United States Army during the 1930s and played a prominent role in the Pacific theater during World War II. He received the Medal of Honor for his service in the...

, a partially successful attempt was made to dissolve the zaibatsu
Zaibatsu
is a Japanese term referring to industrial and financial business conglomerates in the Empire of Japan, whose influence and size allowed for control over significant parts of the Japanese economy from the Meiji period until the end of World War II.-Terminology:...

in the late 1940s. Sixteen zaibatsu were targeted for complete dissolution, and twenty-six more for reorganization after dissolution. However, the companies formed from the dismantling of the zaibatsu were later reintegrated. The dispersed corporations were re-interlinked through share purchases to form horizontally-integrated alliances across many industries. Where possible, keiretsu companies would also supply one another, making the alliances vertically integrated as well. In this period, official government policy promoted the creation of robust trade corporations that could withstand heavy pressures from intensified trade competition.

The major keiretsu were each centered around one bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...

, which lent money to the keiretsu member companies and held equity positions in the companies. Each bank had great control over the companies in the keiretsu and acted as a monitoring and emergency bail-out entity. One effect of this structure was to minimize the presence of hostile takeovers in Japan, because no entities could challenge the power of the banks.

Although the divisions between them have blurred in recent years, there have been nine major postwar keiretsu:
Name Bank Major group companies
Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...

Mitsubishi Bank (until 1996)
Bank of Tokyo-Mitsubishi (1996–2005)
Bank of Tokyo-Mitsubishi UFJ (2006– )
Mitsubishi Trust and Banking
Financial: Mitsubishi Corporation
Mitsubishi Corporation
is Japan's largest trading company , a member of the Mitsubishi keiretsu. Mitsubishi Corporation employs over 50,000 people and has seven business segments including finance, banking, energy, machinery, chemicals, food and more....

, Tokio Marine and Fire Insurance, Mitsubishi Estate, Meiji Mutual Fund
Construction: Pacific Consultants International
Food: Kirin Brewery
Electronics: Mitsubishi Electric
Mitsubishi Electric
is a multinational electronics and information technology company headquartered in Tokyo, Japan. It is one of the core companies of the Mitsubishi Group....

, Mitsubishi Precision 
Trading and Commerce: Mitsubishi Shoji 
Cars: Mitsubishi Motors
Mitsubishi Motors
is a multinational automaker headquartered in Minato, Tokyo. In 2009 it was the fifth-largest Japan-based automaker and the 17th-largest in the world measured by production...

, Mitsubishi Heavy Industries
Mitsubishi Heavy Industries
, or MHI, is a Japanese company. It is one of the core companies of Mitsubishi Group.-History:In 1870 Yataro Iwasaki, the founder of Mitsubishi took a lease of Government-owned Nagasaki Shipyard. He named it Nagasaki Shipyard & Machinery Works, and started the shipbuilding business on a full scale...

, Mitsubishi Fuso
Petroleum: Nippon Oil
Nippon Oil
The , or NOC or Shin-Nisseki is a Japanese petroleum company. Its businesses include the exploration, importation, and refining of crude oil; the manufacture and sale of petroleum products, including fuels and lubricants; and other energy-related activities.Its products are sold under the brand...

, Mitsubishi Oil, Mitsubishi Nuclear Fuel
Precision Machinery: Nikon
Nikon
, also known as just Nikon, is a multinational corporation headquartered in Tokyo, Japan, specializing in optics and imaging. Its products include cameras, binoculars, microscopes, measurement instruments, and the steppers used in the photolithography steps of semiconductor fabrication, of which...


Chemicals: Mitsubishi Chemical, Mitsubishi Gas Chemical, Mitsubishi Rayon Co., Ltd., Mitsubishi Materials Corp., Mitsubishi Plastics Industries, Asahi Glass, Nippon Synthetic Chemical Industries (Nippon Gosei)
Paper: Mitsubishi Paper Mills Ltd.
Iron and Steel: Mitsubishi Steel
Shipping: Nippon Yusen
Nippon Yusen
Japan-based or NYK Line, is one of the largest shipping companies in the world. It is a core Mitsubishi company. The company has its headquarters in Chiyoda, Tokyo.-1870-1900:...

Mitsui
Mitsui
is one of the largest corporate conglomerates in Japan and one of the largest publicly traded companies in the world.-History:Founded by Mitsui Takatoshi , who was the fourth son of a shopkeeper in Matsusaka, in what is now today's Mie prefecture...

Mitsui Bank (until 1990)
Sakura Bank (1990–2001)
Sumitomo Mitsui Bank
Sumitomo Mitsui Banking Corporation
is a Japanese bank based in Yurakucho, Chiyoda, Tokyo, Japan. It is a member of the Sumitomo Group and Mitsui Group. As of the year 2009, SMBC was the second largest bank in Japan in terms of assets.-History:...

 (2001– )
Sony Financial,
Sony Bank
Sony Bank
Sony Bank is a Japanese commercial bank established in April 2001. It has no real branches or ATMs; all procedures are done online or by telephone. It is a subsidiary of Sony Financial Holdings and a member of the Sony Group...

Financial: Mitsui Real Estate, Mitsukoshi
Mitsukoshi
is an international department store chain with headquarters in Tokyo, Japan. Mitsukoshi Ltd. has amalgamated with Isetan Co.,Ltd ,and changed company name to Isetan Mitsukoshi Ltd.- History :...

, Mitsui Mutual Life, Mitsui Marine & Fire 
Food: Nippon Flour Mills
Nippon Flour Mills
is a Japanese company which derives most of its revenue from milling flour and produces flour related products such as noodles. It was established in 1896.Nippon Flour Mills is listed on the Nikkei 225 stock market index. It is part of the Mitsui Group....

, Mitsui Sugar, Suntory
Suntory
is a Japanese brewing and distilling company group. Established in 1899, it is one of the oldest companies in the distribution of alcoholic beverages in Japan. Its business has expanded to other fields, and the company now offers everything from soft drinks to sandwich chains...

 
Chemicals: Fuji Photo Film, Mitsui Toatsu Chemicals, Mitsui Petrochemical Industries, Toagosei Chemical Industries, Denki Kagaku Kogyo, Daicel Chemical Industries, Mitsui Pharmaceuticals, Mitsui Toatsu Fertilizers, Mitsui Toatsu Dyes, Toray
Toray
is a multinational corporation headquartered in Japan that specializes in industrial products centered around technologies in organic synthetic chemistry, polymer chemistry, and biochemistry. Its founding business areas were fibers and textiles, as well as plastics and chemicals...

 
Trading and Commerce: Mitsui Bussan 
Petroleum: General Sekiyu, Kyokuto Petroleum Industries
Electronics: Sony Corporation
Sony
, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....

, Yaussa Corporation, Ibiden Company, Toshiba
Toshiba
is a multinational electronics and electrical equipment corporation headquartered in Tokyo, Japan. It is a diversified manufacturer and marketer of electrical products, spanning information & communications equipment and systems, Internet-based solutions and services, electronic components and...

 
Iron and Steel: Japan Steel Works
Japan Steel Works
is a steel manufacturer founded in Muroran, Hokkaidō, Japan in 1907.-History:Japan Steel Works was set up with investment from British firms Vickers and Armstrong Whitworth. During World War II, they manufactured what was then the world's largest gun barrel to be fitted on the battleship Yamato...


Gaming: Sony Computer Entertainment
Sony Computer Entertainment
Sony Computer Entertainment, Inc. is a major video game company specializing in a variety of areas in the video game industry, and is a wholly owned subsidiary and part of the Consumer Products & Services Group of Sony...


Entertainment: Sony Pictures Entertainment
Sony Pictures Entertainment
Sony Pictures Entertainment, Inc. is the television and film production/distribution unit of Japanese multinational technology and media conglomerate Sony...

, Sony Music Entertainment
Sony Music Entertainment
Sony Music Entertainment ' is the second-largest global recorded music company of the "big four" record companies and is controlled by Sony Corporation of America, the United States subsidiary of Japan's Sony Corporation....


other Sony subsidiaries
Sony Corporation shareholders and subsidiaries
-Shareholders:#Moxley and Company #Japan Trustee Services Bank, Ltd. #The Master Trust Bank of Japan, Ltd. #State Street Bank and Trust Company...

, and Media Nusantara Citra
Media Nusantara Citra
PT Media Nusantara Citra Tbk is a media company in Indonesia founded in 1997. It is a 70% owned by PT Global Mediacom Tbk.- Broadcasting Media :* PT Rajawali Citra Televisi Indonesia , 100 % ownership...

Sumitomo
Sumitomo Group
is one of the largest keiretsu, founded by Masatomo Sumitomo.-History:The Sumitomo group traces its roots to a bookshop in Kyoto founded circa 1615 by a former buddhist priest,...

Sumitomo Bank (until 2001)
Sumitomo Mitsui Bank
Sumitomo Mitsui Banking Corporation
is a Japanese bank based in Yurakucho, Chiyoda, Tokyo, Japan. It is a member of the Sumitomo Group and Mitsui Group. As of the year 2009, SMBC was the second largest bank in Japan in terms of assets.-History:...

 (2001– ), Sumitomo Trust and Banking
Sumitomo Trust and Banking
is a trust bank in Osaka, Japan. It is one of the Sumitomo Group core companies, and is closely tied to Sumitomo Mitsui Financial Group.- External links :*...

Financial: Sumitomo Trust & Banking, Sumitomo Mutual Life 
Food: Asahi Breweries
Asahi Breweries
Asahi Breweries, Ltd. is a leading brewery and soft drink company based in Tokyo, Japan. The company has a 40% share of the Japanese beer market....


Rail: Hanshin Railway, Keihan Railway, Nankai Railway 
Trading and Commerce: Sumitomo Corporation
Sumitomo Corporation
Sumitomo Corporation is one of the largest worldwide trading company , and is a diversified corporation. Sumitomo is headquartered in the Harumi Island Triton Square Office Tower Y in Chūō, Tokyo, Japan...

 
Cars: Mazda
Mazda
is a Japanese automotive manufacturer based in Fuchū, Aki District, Hiroshima Prefecture, Japan.In 2007, Mazda produced almost 1.3 million vehicles for global sales...


Electronics: NEC
NEC
, a Japanese multinational IT company, has its headquarters in Minato, Tokyo, Japan. NEC, part of the Sumitomo Group, provides information technology and network solutions to business enterprises, communications services providers and government....


Iron and Steel: Sumitomo Metals 
Financial: Sumitomo Real Estate 
Chemicals: Sumitomo Chemicals 
Infrastructure: Nippon Koei
Fuyo
Fuyo Group
is a Japanese keiretsu.The group emerged after World War II as a continuation of the Yasuda zaibatsu. It coalesced around Fuji Bank, and group presidents began meeting regularly in 1964...

Fuji Bank
Fuji Bank
The was one of Japan's major banks during the post-World War II era. It combined with Dai-Ichi Kangyo Bank and the Industrial Bank of Japan in 2000 to form Mizuho Financial Group, and changed its name to Mizuho Corporate Bank in 2002 after transferring its retail banking operations to Mizuho...

 (until 2000)
Mizuho Bank
Mizuho Financial Group
, abbreviated as MHFG, or simply called Mizuho is a banking holding company headquartered in the Ōtemachi district of Chiyoda, Tokyo, Japan...

 (2000– )
Yasuda Trust and Banking
Yamaichi Securities
Yamaichi Securities
was a Japanese securities trading firm. The company announced it would cease operations on November 24, 1997 and was declared bankrupt by the Tokyo District Court on June 2, 1999.- History :...

Financial: Yasuda Mutual Life, Yasuda Marine & Fire 
Food: Nisshin Flour Milling, Sapporo Breweries
Sapporo Breweries
is a Japanese brewery founded in 1876. Their world headquarters are in Ebisu, Shibuya, Tokyo. The company purchased the Canadian company Sleeman Breweries in 2006.The company has five breweries in Japan as well as the Sleeman brewery in Canada...


Precision Machinery: Canon
Canon Inc.
is a Japanese multinational corporation that specialises in the manufacture of imaging and optical products, including cameras, camcorders, photocopiers, steppers and computer printers. Its headquarters are located in Ōta, Tokyo, Japan.-Origins:...

, Hitachi
Hitachi, Ltd.
is a Japanese multinational conglomerate headquartered in Marunouchi 1-chome, Chiyoda, Tokyo, Japan. The company is the parent of the Hitachi Group as part of the larger DKB Group companies...

, Ricoh
Ricoh
or Ricoh, is a Japanese company that was established in 1936 on February 6th, as , a company in the RIKEN zaibatsu. Its headquarters is located in Ricoh Building in Chūō, Tokyo....

 
Trading and Commerce: Marubeni
Marubeni
is a Japanese trading company, one of the largest general trading companies in Japan.-Offices:*Head Office - 4-2, Otemachi 1-chome, Chiyoda, Tokyo, Japan*Head Office -20-6, Shiba 5-chome, Minato, Tokyo, Japan...

 
Chemicals: Showa Denko
Showa Denko
is a leading Japanese chemical engineering firm.Formed in 1939 by the merger of Nihon Electrical Industries and Showa Fertilizers, Showa Denko K.K. manufactures chemical products and industrial materials. SDK's products serve a wide array of fields ranging from heavy industry to the electronic...

, NOF Corporation, Kureha Chemical Industries, Nippon Sanso, Hitachi Chemical, Asahi Kasei
Asahi Kasei
is a Japanese company. The main products are chemicals and materials science. The company has around 25,000 employees and had consolidated sales of ¥ 1.7 trillion in 2008. It was founded in May 1931, using the paid in capital of Nobeoka Ammonia Fiber Co., Ltd, a Nobeoka, Miyazaki based producer of...

 
Rail: Tobu Railway
Tobu Railway
is a Japanese commuter railway company in the Greater Tokyo Area as well as an intercity and regional operator in the Kantō region. It operates in Tokyo, Saitama, Chiba, Tochigi, and Gunma Prefectures...

 
Vehicles: Yamaha
Yamaha (manufacturer)
is a multinational corporation and conglomerate based in Japan with a wide range of products and services, predominantly musical instruments, electronics, motorcycles and power sports equipment.-History:...

, Nissan 
Retail: Matsuya
Dai-Ichi Kangyo (DKB) Dai-Ichi Kangyo Bank
Dai-Ichi Kangyo Bank
The , abbreviated as , was one of the largest banks in the world during the latter half of the 20th century. It combined with Fuji Bank and the Industrial Bank of Japan in 2000 to form Mizuho Financial Group....

 (until 2000)
Mizuho Bank
Mizuho Financial Group
, abbreviated as MHFG, or simply called Mizuho is a banking holding company headquartered in the Ōtemachi district of Chiyoda, Tokyo, Japan...

 (2000– )
Kankaku Securities
Orient Group
Orient Group
Orient Group Incorporation is a private-owned conglomerate engaged in finance, trading, construction, port, industry, tourism and property development. It is headquartered in Harbin, Heilongjiang, China. It was listed on the Shanghai Stock Exchange in 1994 and it is the first Heilongjiang-based A...

Financial: Fukoku Mutual Life, Asahi Mutual Life, Nissan Marine & Fire, Taisei Marine & Fire 
Electronics: Fujitsu
Fujitsu
is a Japanese multinational information technology equipment and services company headquartered in Tokyo, Japan. It is the world's third-largest IT services provider measured by revenues....

, Hitachi
Hitachi, Ltd.
is a Japanese multinational conglomerate headquartered in Marunouchi 1-chome, Chiyoda, Tokyo, Japan. The company is the parent of the Hitachi Group as part of the larger DKB Group companies...

, Fuji Electric
Fuji Electric
, operating under the brand name FE, is a Japanese holding company that retains manufacturing companies of pressure transmitters, flowmeters, gas analyzers, controllers, inverters, pumps, generators, ICs, motors, and power equipments.-History:...

, Yaskawa Electric, Nippon Columbia
Cars: Isuzu
Isuzu
, is a Japanese car, commercial vehicle and heavy truck manufacturing company, headquartered in Tokyo. In 2005, Isuzu became the world's largest manufacturer of medium to heavy duty trucks. It has assembly and manufacturing plants in the Japanese city of Fujisawa, as well as in the prefectures...

, Kawasaki Heavy Industries
Kawasaki Heavy Industries
is an international corporation based in Japan. It has headquarters in both Chūō-ku, Kobe and Minato, Tokyo.The company is named after its founder Shōzō Kawasaki and has no connection with the city of Kawasaki, Kanagawa....


Power Generation: Tokyo Electric Power
Petroleum: Showa Shell Sekiyu
Precision Machinery: Asahi Optical
Pentax
Pentax is a brand name used by Hoya Corporation for its medical-related products & services and Pentax Ricoh Imaging Company for cameras, sport optics , etc. Hoya purchased and merged with the Japanese optics company on March 31, 2008. Hoya's Pentax imaging business was sold to Ricoh Company, Ltd...


Trading and Commerce: Seibu
Seibu
Seibu may refer to:*Saitama Seibu Lions*Seibu Department Stores*Seibu Kaihatsu*Seibu Railway*Sogo & Seibu...

, Itochu
ITOCHU
, until 1992 "C. Itoh" in English, is a Japanese general trading concern based in Umeda, Kita-ku, Osaka and Aoyama, Minato, Tokyo. It has a common origin with Marubeni Corporation. Itochu is a Fortune 500 company.-History:...

,
Iron and Steel: Kawasaki Steel, Japan Metals 
Steel: Kobe Steel
Kobe Steel
, operating worldwide under the brand Kobelco, is a major Japanese steel manufacturer headquartered in Chuo-ku, Kobe. Kobe Steel also has a stake in Osaka Titanium Technologies.It was formed on September 1, 1905...

, Kawasaki Steel 
Chemicals: Denki Kagaku Kogyo-Mitsui Group, Nippon Zeon, Asahi Denka Kogyo, Sankyo Co., Lion Corporation, Kyowa Hakko Kogyo, Asahi Chemical Industries
Sanwa
Sanwa Group
Sanwa Group was a keiretsu, or business group, based in Osaka from World War II to the early 1990s in Japanese asset price bubble, one of the main keiretsu...

 ("Midorikai")
Sanwa Bank (until 2002)
UFJ Bank (2002–2006)
Bank of Tokyo-Mitsubishi UFJ (2006– )
Toyo Trust and Banking
Food: Itoham Foods, Suntory
Suntory
is a Japanese brewing and distilling company group. Established in 1899, it is one of the oldest companies in the distribution of alcoholic beverages in Japan. Its business has expanded to other fields, and the company now offers everything from soft drinks to sandwich chains...


Rail: Hankyu Railway
Hankyu Railway
is a Japanese private railway that provides commuter and interurban service to the northern Kansai region and is one of major businesses operated by Hankyu Hanshin Holdings, Inc. The railway's main terminal is at Umeda Station in Osaka...

, Keisei Railway
Steel: Kobe Steel
Kobe Steel
, operating worldwide under the brand Kobelco, is a major Japanese steel manufacturer headquartered in Chuo-ku, Kobe. Kobe Steel also has a stake in Osaka Titanium Technologies.It was formed on September 1, 1905...

, Nakayama Steel Works, Nisshin Steel 
Precision Machinery: Konica Minolta
Konica Minolta
is a Japanese manufacturer of office equipment, medical imaging, graphic imaging, optical devices, and measuring instruments. It is headquartered in the Marunouchi Center Building in Marunouchi, Chiyoda, Tokyo, with a Kansai office in Nishi-ku, Osaka, Osaka Prefecture...

, Hoya Corporation
Hoya Corporation
is a Japanese company leading in manufacturing of optical products including photomasks, photomask blanks and glass magnetic-memory disks, contact lenses and eyeglass lenses using the wavefront technology, Photonics...


Petroleum: Cosmo Oil
Electronics: Hitachi
Hitachi
Hitachi is a multinational corporation specializing in high-technology.Hitachi may also refer to:*Hitachi, Ibaraki, Japan*Hitachi province, former province of Japan*Prince Hitachi and Princess Hitachi, members of the Japanese imperial family...

, Iwatsu Electric
Iwatsu Electric
is a Japanese electronics manufacturer founded 14 August 1938, whose primary focus is on the following three business domains:* Business communication systems,* Test and measurement equipment,* Reprographic systems,-History:...

, Sharp Corporation
Sharp Corporation
is a Japanese multinational corporation that designs and manufactures electronic products. Headquartered in Abeno-ku, Osaka, Japan, Sharp employs more than 55,580 people worldwide as of June 2011. The company was founded in September 1912 and takes its name from one of its founder's first...

, Nitto Denko
Nitto Denko
is a Japanese company which produces tapes, vinyl, LCDs, insulation, and several other products. It was founded in 1918 to produce electrical insulation and it survived World War II, despite the destruction of its central offices.-Products:...

, Kyocera
Kyocera
is a multinational manufacturer based in Kyoto, Japan. It was founded as in 1959 by Kazuo Inamori and renamed in 1982. The company has diversified its founding technology in ceramic materials through internal development as well as strategic mergers and acquisitions...


Trading and Commerce: Takashiama, Orix
ORIX
is a financial services group established 17 April 1964 as Orient Leasing Co., Ltd.. The company's name was changed to ORIX Corporation in 1989...

, Nissho Iwai 
Chemicals: Ube Industries
Ube Industries
is a Japanese chemical company.-Chemicals and plastics:*Caprolactam*Polyamide*Synthetic rubber*Ammonia*Acrylonitrile butadiene styrene*Polyethylene-Speciality chemicals and products:*Liquid electrolyte*Diol*dimethyl carbonate*Polyimide...

, Tokuyama Corp, Hitachi Chemical, Sekisui Chemical, Kansai Paint, Tanabe Seiyaku, Fujisawa Pharmaceutical, Daiso Co., Teijin
Teijin
is a Japanese chemical and pharmaceutical company. It is listed on the Tokyo Stock Exchange with a market capitalisation of USD 3.9 billion. It operates in five main business segments: synthetic fibres; films and plastics; pharmaceuticals and home health care; trading and retail; and IT and new...

, Unitika Fukusure
Cars: Hitachi Zosen Corporation, Daihatsu
Retail: Takashimaya
Takashimaya
is a large Japanese department store chain.Founded in 1829 in Kyoto by Iida Shinkichi as a retailer of used clothing and cotton cloth, the store now has outlets throughout Japan and also in Taipei, Paris and Singapore....


Cinema: Toho
Toho
is a Japanese film, theater production, and distribution company. It is headquartered in Yūrakuchō, Chiyoda, Tokyo, and is one of the core companies of the Hankyu Hanshin Toho Group...


Shin-Maywa
Tokai
Tokai
Tōkai in Japanese may refer to:* Tōkai region, a subregion of Chūbu* Tōkai, Ibaraki, a village, also nown as "Tokaimura" * Tōkai, Aichi, a city* Tōkai University, a private university in Tokyo...


(Toyota Group
Toyota Group
The is a conglomerate company that work together and mostly share the Toyota brand. The primary companies in the group are Toyota Industries Corporation and Toyota Motor Corporation...

)
Tokai Bank
Chuo Trust
Food: Kagome
Kagome
Kagome may refer to:* Kagome Kagome, a popular children's game in Japan* Kagome Higurashi, the female protagonist in the manga and anime series InuYasha* Kagome Co., Ltd., a food and beverage company in Japan...


Cars: Suzuki Motor, Toyota
Steel: Daido Steel
Precision Machinery: Ricoh
Ricoh
or Ricoh, is a Japanese company that was established in 1936 on February 6th, as , a company in the RIKEN zaibatsu. Its headquarters is located in Ricoh Building in Chūō, Tokyo....


Petroleum: Idemitsu Kosan
Idemitsu Kosan
is a Japanese petroleum company. It owns and operates oil platforms, refineries and produces and sells petroleum, oils and petrochemical products products....


Electronics: Ushio Industries
Trading and Commerce: Matsuzakaya
Matsuzakaya
is a major Japanese department store chain operated by Daimaru Matsuzakaya Department Stores, a subsidiary of J. Front Retailing. When the chain was an independent company, , it had its headquarters in Naka-ku, Nagoya.- History :...

IBJ
Industrial Bank of Japan
The , based in Tokyo, Japan, was one of the largest banks in the world during the latter half of the 20th century.It combined with Dai-Ichi Kangyo Bank and Fuji Bank in 2002 to form Mizuho Financial Group.- History :...


Industrial Bank of Japan
Industrial Bank of Japan
The , based in Tokyo, Japan, was one of the largest banks in the world during the latter half of the 20th century.It combined with Dai-Ichi Kangyo Bank and Fuji Bank in 2002 to form Mizuho Financial Group.- History :...

, New Japan Securities
Wako Securities
IBJ Securities
Cars: Fuji Heavy Industries
Fuji Heavy Industries
, or FHI, is a Japanese transportation conglomerate most known for being the manufacturer of Subaru automobiles. It traces its roots to the Nakajima Aircraft Company, a leading supplier of airplanes to the Japanese government during World War II...


Precision Machinery: Ikegai, Riken
RIKEN
is a large natural sciences research institute in Japan. Founded in 1917, it now has approximately 3000 scientists on seven campuses across Japan, the main one in Wako, just outside Tokyo...


Chemicals: Nippon Soda, Chisso Corporation, Nissan Chemical, Tosoh Corporation, Hodogaya Chemical, Plas-Tech, Taihei Chemical, Japan Organo, Kuraray
Kuraray
is a Japanese manufacturer of chemicals, fibers and other materials founded in Kurashiki, Okayama, but based in Otemachi, Chiyoda, Tokyo and Umeda, Kita-ku, Osaka . , Kuraray was the sole worldwide producer of Vectran liquid crystal polymer fibre....



Toyota is considered the biggest of the vertically-integrated
Vertical integration
In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or service, and the products combine to...

 keiretsu groups. The banks at the top are not as large as normally required, so it is actually considered to be more horizontally integrated than other keirutsu.

The Japanese recession in the 1990s
Lost Decade (Japan)
The is the time after the Japanese asset price bubble's collapse within the Japanese economy, which occurred gradually rather than catastrophically...

 had profound effects on the keiretsu. Many of the largest banks were hit hard by bad loan portfolios and forced to merge or go out of business. This had the effect of blurring the lines between the individual keiretsu: Sumitomo Bank and Mitsui Bank, for instance, became Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
is a Japanese bank based in Yurakucho, Chiyoda, Tokyo, Japan. It is a member of the Sumitomo Group and Mitsui Group. As of the year 2009, SMBC was the second largest bank in Japan in terms of assets.-History:...

 in 2001, while Sanwa Bank (the banker for the Hankyu-Toho Group) became part of Bank of Tokyo-Mitsubishi UFJ.

Generally, these causes gave rise to a strong notion in the business community that the old keiretsu system was not an effective business model, and led to an overall loosening of keiretsu alliances. While the keiretsu still exist, they are not as centralized or integrated as they were before the 1990s. This, in turn, has led to a growing corporate acquisition industry in Japan, as companies are no longer able to be easily "bailed out" by their banks, as well as rising derivative litigation
Derivative suit
A shareholder derivative suit is a lawsuit brought by a shareholder on behalf of a corporation against a third party. Often, the third party is an insider of the corporation, such as an executive officer or director. Shareholder derivative suits are unique because under traditional corporate law,...

 by more independent shareholders.

Outside Japan

The keiretsu model has not appeared outside Japan, but many non-Japanese businesses are described as keiretsu, such as the Virgin Group
Virgin Group
Virgin Group Limited is a British branded venture capital conglomerate organisation founded by business tycoon Richard Branson. The core business areas are travel, entertainment and lifestyle. Virgin Group's date of incorporation is listed as 1989 by Companies House, who class it as a holding...

 (UK) and Tata Group
Tata Group
Tata Group is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. Tata Group is one of the largest companies in India by market capitalization and revenue. It has interests in communications and information technology, engineering, materials, services, energy,...

 (India). Airline alliance
Airline alliance
An airline alliance is an agreement between two or more airlines to cooperate on a substantial level. The three largest passenger alliances are the Star Alliance, SkyTeam and Oneworld. Alliances also form between cargo airlines, such as that of WOW Alliance, SkyTeam Cargo and ANA/UPS Alliance...

s such as Oneworld
Oneworld
Oneworld , branded as oneworld, is one of the world's three largest global airline alliances with its central management team, oneworld Management Company, based in New York City, New York, USA. Oneworld was founded in 1999 by American Airlines, British Airways, Canadian Airlines, Cathay Pacific...

 and the Star Alliance
Star Alliance
Star Alliance is the world's first and largest airline alliance, headquartered in Frankfurt am Main, Germany . The alliance was founded in 1997 by five of the world's leading airlines: Air Canada, Lufthansa, Scandinavian Airlines, Thai Airways International and United Airlines...

 have also been described as keiretsu. Generally, these groups exhibit more top-down management, centralized control or (in the case of airline alliances) looser equity ownership connections than do "true" keiretsu. Banks cited as being central to keiretsu-like systems include Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...

 and the early years of JP Morgan and Mellon Financial
Mellon Financial
Mellon Financial Corporation, was one of the world's largest money management firms. Based in Pittsburgh, Pennsylvania, it was in the business of institutional and high-net-worth-individual asset management, including the Dreyfus family of mutual funds; business banking; and shareholder and...

/Mellon family
Mellon family
The Mellon family is a wealthy and influential family originally of Pittsburgh, Pennsylvania, United States, and its vicinity. In addition to Mellon Bank they were principally known for their control over Gulf Oil, Alcoa, Pittsburgh Tribune-Review and Koppers, as well as their major influence on...

 in the United States. One economic group, the Colombian Grupo Empresarial Antioqueño
Grupo Empresarial Antioqueño
The Grupo Empresarial Antioqueño also known as Sindicato Antioqueño, is a Colombian conglomerate composed by around 125 companies, most of them based in Antioquia Department....

, is often described as such.

A form of keiretsu can also be found in the cross-shareholdings of the largest U.S. media companies—see Columbia Journalism Review
Columbia Journalism Review
The Columbia Journalism Review is an American magazine for professional journalists published bimonthly by the Columbia University Graduate School of Journalism since 1961....

's "Who Owns What" website or They Rule. South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

n conglomerates, called chaebol
Chaebol
Chaebol refers to a South Korean form of business conglomerate. They are global multinationals owning numerous international enterprises. The term is often used in a context similar to that of the English word "conglomerate"...

, are often compared to keiretsu, but the chaebol conglomerations are much more similar to a Western conglomerate like General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...

 than pre-World War II zaibatsu
Zaibatsu
is a Japanese term referring to industrial and financial business conglomerates in the Empire of Japan, whose influence and size allowed for control over significant parts of the Japanese economy from the Meiji period until the end of World War II.-Terminology:...

.

There is an investor organization called Keiretsu Forum in America, which describes itself as the largest network of angel investors in the world.

See also

  • Corporate law
    Corporate law
    Corporate law is the study of how shareholders, directors, employees, creditors, and other stakeholders such as consumers, the community and the environment interact with one another. Corporate law is a part of a broader companies law...

  • Economy of Japan
    Economy of Japan
    The economy of Japan, a free market economy, is the third largest in the world after the United States and the People's Republic of China, and ahead of Germany at 4th...

  • Horizontal integration
    Horizontal integration
    In microeconomics and strategic management, the term horizontal integration describes a type of ownership and control. It is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets...

  • Monopoly
    Monopoly
    A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...

  • UK company law
  • Vertical integration
    Vertical integration
    In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or service, and the products combine to...

  • Zaibatsu
    Zaibatsu
    is a Japanese term referring to industrial and financial business conglomerates in the Empire of Japan, whose influence and size allowed for control over significant parts of the Japanese economy from the Meiji period until the end of World War II.-Terminology:...


Additional Reading

  • Masahiko Aoki and Hugh Patrick, The Japanese Main Bank System (1994)
  • Ronald Gilson and Mark J. Roe
    Mark J. Roe
    Mark J. Roe is the David Berg Professor of Law at Harvard Law School, appointed in 2001.Professor Roe is the author of Strong Managers, Weak Owners and Political Determinants of Corporate Governance , in which he shows underlying connections between business structures and national political...

    , 'Understanding the Japanese Keiretsu' (1993) 102 Yale Law Journal 871
  • Yoshiro Miwa and Mark Ramseyer, 'The Fable of the Keiretsu' (2002) 11 J. Econ. & Mgmt. Strategy 169
  • Kenichi Miyashita & David Russell, "Keiretsu: inside the hidden Japanese conglomerates" (McGraw-Hill 1995)
  • Bremner, Brian. (1999, March 15). Fall of a Keiretsu. Business Week, issue 3620, 86-92. Retrieved October 27, 2007, from Academic Search Premier database
  • 'Whingeing: Japanese-American Trade'. The Economist 18 May 1991
  • http://www.law.harvard.edu/faculty/ramseyer/jemskeiretsu.pdf
  • http://www.econ.kyoto-u.ac.jp/~ida/3Kenkyuu/4ouyoumicro/2006ouyoumicro/060727flath.pdf
  • http://research.ecstu.com/km/efile/alliances/vertical_heiretsu.pdf
The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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