The secret of September: The 1949 oil agreements between the United States and South Korea

Abstract

After the Second World War, the US government established a new oil order, forming close ties with three major oil companies—Standard Vacuum, Shell, and California-Texas—referred to as the ‘Three Sisters’ in Korea, which was newly liberated from Japanese colonialism. Even after the South Korean government was established, the US government and the Three Sisters worked to maintain the order. Using the carrot of the Economic Cooperation Administration (ECA) funds, in 1949 the US government pressured the South Korean government into oil agreements that would facilitate the supply of petroleum products to the country. The 1949 oil agreements were completed after three rounds of negotiations. The process of signing the agreements was not limited to the import, storage, and sale of petroleum products in exchange for US aid to South Korea. It also sought to respond to the various interests of Koreans who wanted to create an independent economic structure in the midst of establishing a new government. This article explores the three rounds of negotiations for the 1949 oil agreements whereby the symbiotic relationship between the US government and the Three Sisters was realized in partnership with the interests of the South Korean government. Furthermore, it seeks to broaden the research on the history of Korean oil by promoting an understanding of how US oil policy affected Korea immediately after its liberation from Japanese colonial rule.