1 Introduction 1
1 Puzzle for Analysis 1
2 Prevailing Explanations 4
3 Veto Player Theory and Hypothesis 9
4 Methodology 13
4.1 Case Study 13
4.2 Case of Realization of SOEs for Overseas Oil
Development 14
4.3 Comparison of Japan and Korea 15
5 Significance of This Study 19
6 Structure of the Book 20
2 The Establishment of the JPDC in the 1960s 23
1 Japan’s Political Institutions in the 1960s 24
1.1 Institutional Veto Players: The Prime Minster,
Ministries, and the Diet 24
1.2 Partisan Veto Players: The LDP and Opposition Parties 31
1.3 Interest Group Veto Players in the 1960s 35
2 The Debate on Petroleum Industry Law
and a State-Owned Oil Company 38
2.1 Background: Trade Liberalization and the Arabian
Oil Company 39
2.2 Debate on the Petroleum Industry Law
and a State-Owned Oil Company 43
3 New Initiatives for a State-Owned Oil Company 52
3.1 MITI’s Initiative and MOF’s Obstruction 53
3.2 MITI’s Changed Proposal and MOF’s Reluctant
Acceptance 55
3.3 Finalized as a State Financier, Not a State-Owned
Oil Company in the Diet 58
3.4 JPDC’s Activities for Overseas Oil Development 60
4 Summary and Conclusion 62
3 The Establishment of PEDCO in the 1970s 65
1 Korea’s Political Institutions in the 1970s 66
1.1 Institutional Veto Players: The President, the MTI
and the EPB 66
1.2 Partisan Veto Players 75
1.3 Weak Presence of Interest Groups 80
2 The Debate on PEDCO Law 82
2.1 Background: The Oil Shock and the Late-Comer
in the Oil Industry 82
2.2 The Establishment of the Korea Petroleum
Development Corporation 90
3 Summary and Conclusion 102
4 The Attempt to Establish a Japanese State-Owned Oil
Company in the Early Twenty-First Century 105
1 Japan’s Political Institutions in the Early Twenty-First
Century 106
1.1 Institutional Veto Players: The Prime Minister,
the Ministry, and the Diet 106
1.2 Partisan Veto Players: The LDP Councils
and Coalition Partners 115
1.3 Interest Groups: Keidanren, the PAJ, and the JPDA 120
2 Background: Economic Downturn and Japan’s Overseas
Oil Development 123
2.1 Japan’s Financial Crisis and Economic Downturn 123
2.2 Japan’s Overseas Oil Ventures and JNOC’s Performance 124
3 JNOC and the State-Owned Oil Company Debacle 128
3.1 Inception of a Proposal for a State-Owned Oil
Company 128
3.2 First Quarrel on a Proposal Before Finalizing
the Reform Plan 133
3.3 The Compromise Among Veto Players 134
4 A New Debacle on the Reform Before the Legislation 136
4.1 METI’s Draft Bill and the LDP’s Obstruction 136
4.2 Discussion of the Proposal in the Diet 141
4.3 Evading Veto Players Through INPEX 144
5 Summary and Conclusion 146
5 A Business-Friendly President and the Strengthening
of Korea’s State-Owned Oil Company 149
1 Korea’s Political Institutions in the Early Twenty-First
Century 150
1.1 Institutional Veto Players: The President,
the Ministry, and the National Assembly 150
1.2 Partisan Veto Players: The Majority Ruling Party 159
1.3 No Interest Group Veto Players 162
2 Strengthening of the Korea National Oil Corporation
(KNOC) 164
2.1 Background: Oil Price Hike and Korea’s Overseas
Oil Development 164
2.2 Discussion of the Reinvigoration of a State-Owned
Oil Company 168
3 Active in M&A and Increasing Self-Sufficiency Ratio 177
4 One Argument: Level of Economic Development? 179
4.1 Overseas Oil Development Before 2004 179
4.2 The Private Sector’s Capacity and the Asian
Financial Crisis 184
5 Summary and Conclusion 186
6 Conclusion 189
1 Main Findings 190
2 Alternative Explanation 193
3 Theoretical Implications of This Study 195
4 Practical Implications 196
5 Minor but Interesting Findings 198
6 Questions for Further Study 199
7 Epilogue 201
1 Japan: Consistent Energy Security Policy 202
1.1 Policy Direction 202
1.2 Energy Diplomacy 204
1.3 Subsidy and Loan 205
1.4 Strengthened Role of INPEX 206
2 Korea: Shrinking Role of KNOC and KOGAS 208
2.1 Policy Direction 208
2.2 Not Energy Diplomacy but Inspection
and Investigation 208
2.3 Subsidy and Loan 210
2.4 Role of Public Energy Corporation 211
Appendix A: State-Business Arrangement in Overseas Oil
Development 215
Appendix B: Chronology of Postwar Overseas Energy
Investment of Korea and Japan 245
Bibliography 251
Index 283