After Korea was liberated from the Japanese imperialists’ military rule in August 1945, the nationalization of major industries was urgently needed.

Before the country’s liberation, most of its industries were dominated by the Japanese imperialists and comprador capitalists, and the development of its economy was severely hampered. Only when major industries were nationalized was it possible for the country to wipe out the economic foundations of the imperialists and their stooges and the aftermath of the Japanese colonial rule, free the working class from colonial subjugation and exploitation once and for all, and ensure the independent development of the economy and build a prosperous, independent and sovereign state. And it also could enable the people to govern the state in line with their demands and stabilize and improve their living standards as soon as possible.

The great leader Comrade Kim Il Sung defined the objects of nationalization and the principles of confiscation. Accordingly, the possessions of the Japanese imperialists and comprador capitalists fell under the objects of nationalization, and those of the national capitalists were excluded. And the principle of confiscation without compensation was applied to what came under the objects of nationalization. To this end, factory committees were organized at the industrial establishments to execute the expropriation and, at the same time, the economic construction was conducted to rehabilitate the destroyed factories and enterprises to go into production.

Based on this, the Law on Nationalization of Industries, Transport, Communications, Banks and So On worked out by Kim Il Sung was promulgated on August 10, 1946.

First of all, the law points out that the Japanese imperialists subordinated the Korean economy and built many enterprises, power stations, railways and so on at the expense of the Korean people’s sweat and blood and all these things shall become the Korean people’s possessions.

It also stipulates that all enterprises, mines, power stations, railways, communications, banks, trade, cultural establishments, etc., owned by the Japanese state, corporate bodies and individuals or Korean traitors to the nation shall be confiscated without compensation and nationalized, that is, made the property of the Korean people.

A mass rally took place in Pyongyang on August 10 in support of the law.

That day Kim Il Sung made a historic speech Nationalization of Major Industries—the Foundation for Building an Independent, Sovereign State.

After the nationalization campaign, more than 1 000 important industrial establishments accounting for over 90% of the entire industry came under all-people ownership. This meant that the base for colonial exploitation was completely eliminated, the comprador capitalists as a class were liquidated and the working class became the true masters of major industries in the liberated Korea.

Yang Ryon Hui