This paper analyzes the privatization of Taiwan Industrial and Mining Company under the land reform policy, with a special focus on its option to sell individual factories and how this approach impacted the accumulation of private capital, in particular that of the landowners. With an eye on the continuity of Taiwan economy from the colonial era to the postwar period, it is noticeable that some of the emerging industries established during the wartime were incorporated into the Taiwan Industrial and Mining Company after war. However, these production sectors became stagnant in the postwar years due to the company's limited funds and resources. It wasn't until its privatization through selling individual factories that they grew again and eventually became some of the most developed business groups in Taiwan. For this particular way of privatization enabled the private capital to obtain factories with lower cost of initial equipment investment. During the early stage of privatization, the shareholders who possessed most stocks of the Taiwan Industrial and Mining Company got the franchise of the factories, but most of them did not belong to the landowners' class. In the early 1960s, after the privatization and selling of individual factories were done, the Taiwan Industrial and mining Company underwent operating losses and its stock price hit an all-time low. At this point, the remaining shareholders of the company, most of them landowners and general investors, could no longer profit from the stocks. Therefore, the official version that land reform successfully channeled the landowners' capital into industrial and commercial sectors is challenged.