As the power and wealth of the Korean Yakuza grew in the American Northwest, Oyabun Watada became concerned that they posed a potential threat to the Watada-rengo. Therefore on 2043, he ordered the purging of the Korean members in the Americas. They were killed or banished in what became known as "The Schism", and the Korean survivors went on to form the anti-Yakuza Seoulpa Rings.
Watada used ninjas, shadowrunners, and his own hitters in the purge. Within days 100s were dead in the Pacific Northwest. Most of the Korean leaders were eliminated. At most 15 of the leaders survived along with approximately 100 officers and 200 street-level soldiers. Watada then sent orders to the Yakuza in other cities across North America to do the same. Within a year, the Koreans were purged from the upper ranks of the Yakuza in North America. Some Yakuza clans were more enthusiastic than others. Presently there are gumi, especially in Europe and the American East Coast that still have Korean members which is a source of dispute with other Yakuza clans.