The Kyodo-kai was formed immediately after the World War II as a bakuto organization named the Takahashi-gumi (高橋組) in Onomichi, Hiroshima by Tokujiro Takahashi. Kokichi Morita, then the highest-ranked senior member of the Takahashi-gumi, formed the Kyodo-kai in January 1969 following the Takahashi-gumi's disbanding. Kokichi Morita's younger brother Kazuo Morita succeeded as president in November 1989.[4] The Kyodo-kai was registered as a designated yakuza group under the Organized Crime Countermeasures Law in 1993.[5]
The founder Tokujiro Takahashi was also a politician. He was elected to Onomichi City Council in April 1951 and allegedly later became Onomichi's most influential figure. He was eventually elected to Hiroshima Prefectural Council in December 1955, and had been a member of the council until December 1967 when he was arrested for illegal baseball-gambling.[3]