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The North Korea Pachinko Connection

2005-02-08 | by Jamie | Categories: Deep Thoughts


What is Japan's biggest industry? Car manufacturing? Technology? Nope, not even close. It's pachinko! Japanese people are estimated to spend somewhere in the neighborhood of 30 trillion yen (300 billion dollars) a year on pachinko. If I did my math right, then that works out to about $2000 a year for every man, woman and child in Japan. If you factor in the money spent on cigarettes, alcohol and cartoon porn you begin to realize the degree to which the Japanese economy is dependant upon vices. While this may seem strange, it probably doesn't come as too much of a surprise to anyone who's lived here a while.


Gambling is technically illegal in Japan, but it doesn't seem to matter very much. I don't really understand the role the Yakuza play in managing this lucrative underworld activity. Maybe it's their job to make sure nobody opens any new pachinko parlors without getting permission first. I get the impression that the 'Kooze are the real police of Japan, and as Akiko put in my last video blog, Japanese police are useless. How can you argue otherwise when the country's biggest industry is illegal. I guess the government is in no hurry to crack down on something that would cripple the economy if it were to suddenly go away. The thing I'm confused about is who exactly are all these gangsters working for. Could it in fact be for Korea?


I've been told on several occasions by Japanese people that Japan's pachinko parlors are mostly run by North Koreans. It seemed a little unlikely to me that the Japanese government would allow their biggest industry to be controlled by a communist country they are unfriendly with. I did a little research and found out that what I was told is really not too far from the truth. Apparently one third of all pachinko parlors are owned and operated by North Koreans or Japanese of North Korean descent (not that there's much difference in the eyes of most Japanese people between these two distinctions). Another one third are run by South Koreans. The rest are run by Chinese and Japanese owners. I wonder how many rabidly anti-Korean salarymen realize that the money they are blowing on pachinko is in fact being funneled into the hands of those they despise. You also have to wonder to what extent North Korea is dependant upon Japanese gamblers. Estimates of how much pachinko money winds up in North Korea range between $100 million to $600 million annually, but nobody really knows for sure.


What I'd like to know is why does the Japanese government allow so much of their people's money to be funneled into Korea? Do they feel bad about invading and occupying the place for the first half of the last century? Somehow I doubt that's the only reason.


Good reads:

Pinball Wizards Fuel North Korea
Japan for the Uninvited: Pachinko

Nicholas Cage Pachinko ads Could Cage he be a commie?
Japanorama: Pachinko

Japan-Zone: Pachinko
North Korea Travel Guide

17 comments

Comment from: Luke Elliot [Visitor] · http://gaijinlore.blogspot.com
You beat me to the punch, Jamie! I was just about getting ready to gear up to follow the pachinko trail to the Koreas. It's shocking how much I don't know about pachinko in spite of living in the land of pachinko for so many years. I think, though, that they get around the "gambling" issue by offering "prizes" that are refundable.
2005-02-08 @ 14:35
Comment from: Jamie [Member] · http://www.avoidinglife.com
Yeah, that's how it works but it's still considered illegal. The parlor shifts the illegal act to outside its premises to protect itself from prosecution. It's just the guy who's behind the hole in the wall giving out the yen that is breaking the law, not the parlor itself. Nobody actually enforces this law anyway since I'm sure most cops go play pachinko on their time off.

By the way Luke, you and I need to join forces and start some kind of gaijin investigative news program like 60 Minutes. I wanna be Andy Rooney!
2005-02-08 @ 14:50
Comment from: Hugh [Visitor] · http://www.tamenobu.com
How do you think ol' Kim Jong is paying for his haircuts, green jumpsuits and snazzy sunglasses?

Well I don't know much about pachinko, although my grandfather once owned one in Hirosaki. I don't think he was involved with yakuza or north korean trading though, but you never know! Maybe I'll save the rest of the story on a slow blogging day.
2005-02-08 @ 14:56
Comment from: Jamie [Member] · http://www.avoidinglife.com
Figures Hugh JE... your Grandfather's from Korea isn't he? I should have figured you were part of the 'Kooze all along. I bet you and Kat's boyfriend can hold entire conversations with just secret hand gestures.
2005-02-08 @ 15:03
Comment from: Luke Elliot [Visitor] · http://gaijinlore.blogspot.com
Yeah, we should do it, Jamie. If you're Andy Rooney, though, then I want to be Rex Murphy! I know he's not exactly 60 Minutes Man . . . but he could be . . . .
2005-02-08 @ 16:09
Comment from: Jamie [Member] · http://www.avoidinglife.com
I don't know Luke. I think that might just make our show a little too grumpy if I'm Andy Rooney and you're Rex Murphy. He's practically the Canadian equivalent of Bill O'Reilly.
2005-02-08 @ 17:02
Comment from: Francois [Visitor]
If you want to see a unique event, watch the soccer game tonight, Japan-North Korea. Its the first time in a long time those two play against each other!

kick off at 7.
2005-02-09 @ 14:07
Comment from: Jamie [Member] · http://www.avoidinglife.com
rioting at 7:01
2005-02-09 @ 14:47
Comment from: Francois [Visitor]
hahaha
2005-02-09 @ 15:59
Comment from: Luke Elliot [Visitor] · http://gaijinlore.blogspot.com
Thanks, Francois and Jamie. I would have missed the game if it hadn't been mentioned here!
2005-02-09 @ 19:52
Comment from: Francois [Visitor]
japan was lucky to win. There was no foul on the first goal... and the N-korean goalie was really bad on the second goal...
2005-02-10 @ 16:40
Comment from: dan [Visitor]
i actually asked my supervisor to explain the pachinko thing and he said that since in general you cannot "win big" at pachinko i.e. it's not a high stakes game, it actually IS legal and/or tolerated to a certain extent.
in my neighborhood the largest building is a HUGE warehouse dedicated entirely to pachinko. it's kind of inaka so there is no "back alley" or separate place to go trade in your prizes for cash. what i assume is that the exchange happens on the premesis of the building itself.
while some element of illegality and connection to the yakuza surely exists, i would guess that the authorities intentionnally turn a blind eye, especially if it's really the country's largest industry. marijuana is the largest cash crop in the US, above corn, wheat, soy, whatever. there's a reason for that.
2005-02-19 @ 12:46
Comment from: Meg [Visitor]
I googled "costco korea blog" (trying to see if there are any items available that would make it worth going) and your site came up. Under the link it the description mentionned the North Korea & pachinko connection, which I'm interested in. The search engine on your site is great! I'm teaching in South Korea and see that you're in JET so I'll take a look outside of this post too.

So "What I'd like to know is why does the Japanese government allow so much of their people's money to be funneled into Korea?" Probably because the Japanese govt. knows that it makes Japan safe from a North Korean attack. Why would North Korea want to risk losing however much yen they get by bombing Japan? Same kind of theory goes for the yakuza. I didn't know that gambling was illegal so now it makes even more sense to me (though I don't know much about the yakuza so might be completely off). Anyway, if the government keeps certain activities technically illegal but let the yakuza get away with them (especially ones like gambling that benefits Japan financially) then, as a sort of pachinko operating cost, the yakuza could be made willing to keep drugs out of Japan. If either idea is at all right then Japan just knows how to control the bad guys for its own benefit.
2005-02-19 @ 13:11
Comment from: hamoki [Member] Email
I'm not sure how gambling benefits Japan financially. Even though it's the biggest industy, all the money is being transfered between Japanese people or being sent to Korea. At least the electronics and auto industries export their goods all over the world. It's not like Pachinko is a big tourist draw either. Most tourists don't even know what it is or how to play.
2005-02-21 @ 09:49
Comment from: Jack [Visitor]
The Pachinko issue is auctually the ethnic isuue of Korean residents
in Japan, one of the darkest side of Post-war Japan.
Many politician including opposition party receives political contri
bution and bribes from Pachinko Industry, aso it is difficult to solve
this problem by themselves.
2005-02-28 @ 19:26
Comment from: FlyByMe [Visitor] · http://www.pachinkos.co.uk
http://www.pachinkos.co.uk
I have heard the pachinko industry is worth twice the Japanese car industry and 10 times the Defense budget! Crazy money.
2006-02-14 @ 06:08
Comment from: Jamie [Member] · http://www.avoidinglife.com
Sounds about right to me. If the Japanese were to stop blowing all their money on pachinko they could probably take over the world.
2006-02-16 @ 11:43

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