earticle

영어

This paper makes an attempt to analyze Japan’s business-government relations by posing a case study of M & A between Nippon Steel Corporation and Sumitomo Metal Industries which was launched in October 1, 2012. Some scholars support the view that Japan’s soft authoritarianism has driven Japan’s economic development, especially indicating that the iron and steel industries have been restructured under the government’s control. However, this perspective ignores changes in the market circumstances, specifically, driven by globalization, that have challenged the state’s capacity, and thus this viewpoint needs to be reconsidered. This paper demonstrates that market forces have provided an impetus for restructuring the iron and steel industry in response to overheated competition with foreign companies in the midst of globalization, and the government has endeavored to give them much support towards the shared common interests, e.g., the escape from long-term recession rather than intervention into company’s policy directions. It is important to note that prior to government support and the Fair Trade Committee(FTC)’s recognition, both Nippon Steel and Sumitomo made a strategic approach to reach a consensus among several market actors, specifically, among rivalries. As a consequence of their extensive efforts, they gained great momentum to obtain the support of the Ministry of Economy, Trade and Industry, and the recognition of the FTC.