The five big families
It was also during the Japanese occupation that the "five big families"-clans that would dominate commerce and politics in Taiwan for many years-made their fortunes. We will look at them from north to south, starting with the Yen family of Keelung, which made its money in mining. Yen Yun-nien borrowed money from friends and family to lease a small area from the Japanese for mining around Chiufen (which many people considered to be exhausted) and flourished from gold mining. At the same time, the perspicacious Yen foresaw that the expansion of Keelung Harbor would create new opportunities for the coal fuel market. Therefore he went into business with Japanese to actively develop the coalfields in northern Taiwan, where output eventually accounted for two-thirds of all coal produced on the island and the region boomed for half a century.
The second of the five big families was the Lin family of Panchiao. Lin Ping-hou, who generated the family's wealth, started out as an apprentice in a rice shop, and afterwards made his fortune in commerce. He called his company "Lin Pen-yuan" from an ancient Chinese aphorism that translates loosely as "always remembering to be grateful for favors conferred." Later, the family bought large amounts of land and grew even more prosperous from the rents, becoming the wealthiest family in all of northern Taiwan. The Lin clan produced five sons and grandsons, some of whom returned to mainland China. For example, Lin Heng-tao, the late well-known historian of Taiwan, grew up in Fujian Province. Lin Hsiung-wei, the founder of Huanan Bank, was a Lin family offspring who came back to Taiwan from the mainland. At that time Japan was planning to move into Southeast Asia, and encouraged Lin to invest in a bank; Huanan then became one of the economic pillars of Japanese expansion into Southeast Asia. Lin's most widely praised action was his creation of a scholarship fund that sent many young people from Taiwan to Japan to study, including Wu San-lien and Tu Tsung-ming, who would become influential intellectuals.
The third of the five families was the Lin family of Wufeng. Classic immigrant landowners, the Wufeng Lins became one of the richest clans in central Taiwan by developing and renting land in the early Qing Dynasty. The Lin family was also known for their belligerent and courageous nature. At that time most of the large landowning families maintained private military forces. During the Sino-French war (1883-1885), Lin Chao-tung was awarded a title as a result of his military exploits. When Liu Ming-chuan became governor of Taiwan, he sent Lin to "pacify" the Aborigines and to handle the pioneering and development of mountain land. Because of his success in these areas he was awarded a monopoly for camphor, and the family thrived even more. Lin Hsien-tang, a later descendant, was a key figure in society during the Japanese occupation era because of his anti-Japanese orientation and his efforts on behalf of cultural enlightenment in society.
Number four was the Koo family of Lukang. Koo Hsien-jung, the founder of the family fortune, was a classic dealmaker. From his welcoming of the Japanese into Taipei in 1895 to his contributions to the Japanese colonial government and to stabilizing social order, he continually maintained good relations with the colonial regime, in return for which he received monopoly privileges for camphor, edible salt, and opium. In addition, the Koos proved bold and adept at grasping trends, making investments, and diversifying their business interests, so that today, they are the only family of these original five to remain influential in industrial and commercial circles in Taiwan. The Koo's Group, one of the biggest conglomerates in Taiwan, is run by the heirs of Koo Hsien-jung.
The fifth of the five big clans was the Chen family of Kaohsiung. Chen Chung-ho, the founder of the family business, was born into a very poor family. As a young man, he went to work as an accountant in the firm of Chen Fu-chien, one of the main players in the sugar industry in southern Taiwan at that time. Chen Chung-ho was rapidly promoted because of his obvious business talents, and after Chen Fu-chien passed away, Chen Chung-ho went out on his own and became a success. During the Japanese era, he provided important services to the regime and in turn received economic privileges, and in the span of a few short years, the family became one of the wealthiest in southern Taiwan. For a time during the Russo-Japanese War, Chen's business was at risk because a sudden collapse in the price of sugar left him deep in debt, but he was able to come through this crisis and retain his position as a leader in the sugar industry. Chen Tien-mao, a member of the second generation of this family, later served as speaker of the Kaohsiung City Council.
No electricity, no industry. The Sun Moon Lake power generating station, which was built by the Japanese, played a critical role in early industrial development in Taiwan. (courtesy of Teng Hsiang-yang)