King of Commerce, Yeonsan-gun ch.11
Scalpers Part 1
The temporary Ji-pye policy implemented by Park Kyung-sik functioned similarly to a fixed exchange rate system.
And one of the common side effects of such a system is the emergence of illegal money changers.
With the current situation where Ji-pye's value was skyrocketing, an underground market had formed, trading Ji-pye at prices higher than the official exchange rate set by the government. Even the king's uncle was the kingpin of this black market.
Although Kyung-sik was aware of these issues and had plans to transition to something akin to a floating exchange rate system, the initial side effects were severe.
Kyung-sik thought about how he could maximize profits if he were a smuggler in this situation. Based on reports from Asan and the ones regarding Yun Eun-ro, he could see a rough outline of the smuggling operations.
"They’d likely intercept merchants coming to sell rice at the central warehouse, force them to sell their rice cheaply, and then wait for the central warehouse to resume purchasing at higher prices to buy Ji-pye."
This strategy mirrored the tactics used by the merchants in Asan.
But unlike the relatively simple market in Asan, Seoul was a massive consumer city with tens of thousands of inhabitants.
While Asan's market was limited to the price of rice and some grain, Seoul's market was already teeming with various goods interacting in complex ways, causing significant price fluctuations.
"The smugglers are probably using more diverse and complex methods to secure illegal profits."
Especially considering that Joseon's administration of commerce was notoriously weak. By the 14th century, Western Europe was already collecting 20-30% of its tax revenue from trade-related taxes such as tariffs and sales taxes, while in East Asia, including Joseon, the figure was around 3-4% .
With such inadequate commercial regulations, any increase in the issuance of Ji-pye could end up enriching the corrupt and see the Ji-pye buried in unproductive assets like someone hoarding money in their backyard.
As Kyung-sik pondered these thoughts, he remembered the old Joseon folktales he had read in comic books during his childhood, stories about secret royal inspectors and the king going undercover.
Chief Kim Cheo-seon couldn’t fathom what disaster had befallen him in his old age.
The current king seemed a paradox; he worried daily about the people’s hunger and was relentless in dealing with corrupt officials, sometimes quite literally, by beating them. Yet at other times, he appeared utterly mad.
“Why do you look so glum this morning, Chief Kim?”
“Well… Sir, while I appreciate your deep concern for the people, isn’t this a bit...”
“Hah! Listen to you, Chief Kim! If people overhear, they might think I’m the king or something!”
He laughed heartily, but no one around him could muster a genuine laugh, only awkward chuckles.
Park Kyung-sik understood why the jokes of a department manager were funny only to the manager himself. The royal guards and officials accompanying him knew well that the king's sense of humor was terrible.
Today, Park Kyung-sik had assembled a party of about a dozen, including the royal guards and other attendants, to head to the relay station in Suwon, Gyeonggi Province.
One might question why a covert operation required such a large escort, but in Joseon, tigers were common enough to be considered epic monsters. Traveling through the mountains with a large group was standard, so no one found it odd.
Legally, the road through Suwon was the route for transporting tribute rice from Jeolla Province to Seoul.
That is, if everything went "by the law."
However, even King Sejong had lamented that laws in Joseon seldom lasted more than three days, referring to an old saying, "Goryeo's laws last only three days."
From early Joseon, the corrupt practice of bangnap (the misappropriation of public goods) had plagued the tribute system, causing significant harm to the people. Park Kyung-sik had learned about this from his studies in the future and from several reports during his time in Joseon.
These bangnap dealings likely constituted the core of the black market currently teeming with Ji-pye. Now, it was time to infiltrate that black market.
“Once again, let me remind you. While I’m out here, who am I?”
The royal guards responded in unison.
“You are Lee Jwa-su, coming up from Jeonju to deliver tribute.”
“Correct. Do not let your guard down, and do not interfere even if I seem to ignore matters concerning the delivery of tribute.”
The process of how bangnap was conducted was something Kyung-sik had learned both from his modern studies and the reports in Joseon.
In modern terms, it was quite simple: regions that didn’t produce certain goods were assigned to provide them, leading merchants to procure these items from other regions and charge exorbitant prices to the local people, causing them great suffering.
However, the reality of corruption in Joseon was much more intricate.
Initially, a local official, the gyeongjuin, was sent to Seoul to manage the delivery of tribute from his province. If the province was required to supply items not locally produced, the gyeongjuin would purchase these from Seoul’s markets and charge the province’s residents for them, starting the practice of dainap (proxy delivery).
While this system allowed the gyeongjuin to exploit the people, it wasn’t overly problematic because the gyeongjuin was from the same region. Excessive extortion could backfire upon returning home, and these officials often worked without pay, so they needed to earn money to survive.
However, when the required tribute items were difficult to procure even in Seoul, a new level of exploitation began: the involvement of sajuin (private merchants) with backing from powerful figures.
"According to the reports, the local gongri (local officials responsible for tribute delivery) stay at the sajuin’s house without delivering the tribute, right?"
If so, there should be a concentration of warehouses and the sajuin’s houses near the relay stations and the Han River docks, places where goods converge but beyond the reach of the gyeongjuin.
"Why, uh, sir?"
Kim Cheo-seon awkwardly interrupted.
“What is it?”
“For such covert operations, is it necessary for you to be personally involved? Couldn’t this be done by your subordinates?”
"Hah! You've known our family for so long, yet you still don’t understand your master’s heart!"
Considering the current king looked like Yeonsan-gun but had a different soul inside, it was understandable that Kim Cheo-seon didn’t quite grasp his master’s intentions.
“But what do you mean by that, sir? May I ask?”
“Even if I told you, you wouldn’t understand~”
If he simply said he wanted to enjoy the life of Joseon and wander around, they’d probably try to stop him, frothing at the mouth.
Mal-dong, a servant of Yun Eun-ro, who handled the logistics of the bangnap, was in charge of practical affairs under Yun Eun-ro's supervision.
Like any lackey working for a powerful corrupt figure, Mal-dong had the distinct aura of a lower-class scoundrel. He, like many servants, didn’t even have a family name.
Mal-dong should have been thankful that he lived in the real world and not in a fantasy setting.
In a fantasy world, he would have likely uttered lines like, “Heh heh! I run this place! Hand over everything if you want to live!” only to be cut down by the protagonist within the first chapter.
But fortunately, this was not a barbaric world where bandits lurked at every turn. Joseon was a civilized nation where one had to go to government offices to find real bandits. Essentially, all the officials could be seen as bandits in disguise.
Unable to become a full-fledged bandit due to the constraints of his world, Mal-dong had to resort to skills to survive in this civilized society.
"I am Lee Jwa-su from Jeonju, here to deliver this year's tribute. My father is ill, and I had to take over urgently. I’m not well-versed in the process. Could you please guide me?"
Mal-dong’s survival skill in Joseon, "Assessing Combat Strength," was activated. To survive as a lower-class person, the first step was to gauge the status of the person you were dealing with.
If the other person was weaker, they could be treated poorly, but if they were someone of higher status, one had to tread carefully to avoid repercussions.
Mal-dong scanned the self-proclaimed official from head to toe.
“Is this your first time coming from Jeonju to Seoul?”
“Yes, I am not familiar with Seoul.”
“You speak the Seoul dialect quite well for someone from the countryside.”
“People say Seoul folks will rob you blind if you show any provincial mannerisms, so I practiced hard.”
“You’re remarkably clean for someone who traveled all the way from Jeonju.”
“Even in mourning, I can’t let my mourning clothes get dirty.”
“Your hat is quite large for an official from the countryside. Even in Seoul, such hats are rare.”
“Is there a law against local officials wearing large hats? My father, who visited Seoul before, got it and I cherish it.”
Chief Kim Cheo-seon and the royal guards wanted to whisper, “Your Majesty, I think they’ve already caught on…”
But they didn’t dare to voice it, unsure how the king might react.
“Let’s not ask unnecessary questions. I brought some money for the journey, so I can pay for the guidance.”
Receiving the bribe, Mal-dong deactivated his "Assessing Combat Strength" skill. Yeah, maybe some local officials could speak well and dress like gentlemen.
“Ahem. You’ve come to the right place. I just happen to know a place where officials like yourself can stay. Follow me.”
Then, as if something bothered him, Lee Jwa-su asked, “I heard we should stay at the official residence in Seoul when delivering tribute?”
Mal-dong, still savoring the bribe he received, explained more kindly than usual.
“What’s the point of going to the official residence? My master works directly with the court on handling tribute. Follow me.”
Indeed, as Mal-dong had suggested, they soon arrived at Yong-san port. Alongside Mapo and Seogang, it was one of the largest logistics hubs in Joseon.
Kyung-sik observed the hundreds of private vessels crowded in the large port as they arrived.
“I’ve underestimated the commercial level of early Joseon…”
Despite the government’s attempts to regulate it, the underground market run by the sajuin had grown into a bustling harbor town.
The state facilities at Yong-san port, like the Military Supply Warehouse and the Seongjeong Storehouse, were minimal compared to the vast influx of goods passing through.
Due to the enormous volume of trade far exceeding the port’s capacity, the harbor was cluttered with boats, making it clear that the infrastructure couldn’t keep up with the flow of goods.
The state’s infrastructure for promoting commerce, like constructing harbors and roads, was one of the most crucial elements for economic growth. The neglected state of the port, operating as a black market, revealed the low priority placed on commerce in Joseon.
Kyung-sik pondered how he could reform this port into an official government-controlled harbor.
"I’ll need to establish customs, create harbor management laws, deploy more officials, build walls... there's a lot to do."
However, these were just fleeting thoughts. His primary focus was to gather intelligence during this undercover mission.
Upon arriving in the port village, Kyung-sik quietly instructed the remaining royal guards and officers.
“From now on, move in groups of two or three. Scout the warehouses and identify which officials or servants from each department are managing them. There will be special rewards for uncovering any influential backers.
Also, observe what goods are stored, their transaction prices, and how Ji-pye is traded. Pay close attention to the people conducting transactions here.”
“Yes, sir.”
The royal guards quietly dispersed, leaving only four to continue escorting Kyung-sik.
Kyung-sik then entered the lodging Mal-dong had shown him. As an illegal inn, its conditions were far from satisfactory.
With insufficient rooms, people crowded together like chickens in a coop, whether they were officials delivering tribute or merchants with other business.
Five men suddenly entering such a space was not well-received.
“Ahem! Excuse me for a moment.”
Despite the uncomfortable stares, the four guards accompanying him exuded a deadly aura, prompting everyone to make room despite their reluctance.
Kyung-sik, posing as Lee Jwa-su, approached the most well-dressed person in the room, trying to make conversation.
“Are you here to deliver tribute as well?”
“Yes, that’s correct.”
“It’s fortunate to meet you. I’m Lee Jwa-su from Jeonju, taking over for my ill father. I’m not well-versed in the procedures. Could you assist me? I would compensate you for your help.”
The man, claiming to be from Naju, introduced himself as Jin Byeol-gam.
“But for a man from Jeonju, you speak remarkably like a Seoulite…”
“I practiced diligently to avoid being taken advantage of by Seoul folks.”
The royal guards, sweating nervously, watched the brazen king.
“Enough about my dialect. I’ve heard we should stay at the official residence to meet with the gyeongjuin, but the person in charge here said to stay at their place because they work with the court. What’s going on?”
Jin Byeol-gam carefully explained the current practices of tribute delivery.
In essence, it was as Mal-dong had said. The sajuin handling the bangnap were often clerks or servants from various government departments.
"So, that Mal-dong must be a servant from some department! I wonder which one backs him... I’ve only heard about Yun Eun-ro’s involvement in bangnap."
These sajuin inspected the tributes brought by local officials and often rejected them. They would then buy the rejected items cheaply, submit them as tribute themselves, and charge the localities exorbitant prices for it.
"But as an official, you should be aware of such practices. Surely, you’ve seen them reject goods and send receipts back to your town?"
Jin Byeol-gam questioned, sensing something off.
The royal guards, anxious, considered their options.
"What now? Should we just cut him down?"
“Don’t say such nonsense! They wouldn’t imagine the king is standing right here!”
"Well, I’m relatively new to this. Our town’s tribute is fine silk, so the sajuin don’t dare reject it, and our local officials have always handled the deliveries directly."
"Really? It’s rare for local officials to avoid the meddling of the sajuin."
Jin Byeol-gam continued his explanation. When tribute was delayed, the gyeongjuin bore the responsibility. Previously, the gyeongjuin would profit from handling the tribute, but now, the power had shifted to the sajuin, who were usually clerks or servants from government departments.
Consequently, being a gyeongjuin was now a dreaded task, and these officials often faced severe punishments or even death for failing to meet their responsibilities.
“Hmm, if they dare to reject what I’ve brought, they must be quite bold. This silk is of such quality that it would be worthy even for the king himself.”
"Does Jeonju produce such fine silk... Oh my!"
Jin Byeol-gam gasped as Lee Jwa-su displayed the silk. It was indeed fit for a king.
And why wouldn’t it be?
It came directly from the royal storeroom.
The sight of such exquisite silk immediately attracted the attention of others in the room – likely merchants given their rough appearances.
Footnotes:
*1: In the previous chapters, it was mentioned that Park Kyung-sik’s policy would set the price of rice in Ji-pye for the first year by royal decree and adjust to market prices thereafter. This system was akin to a floating exchange rate, as described in the text.
*2: This is a simplified explanation. During the 14th century, European tax systems varied greatly by country. In France, for example, different regions had distinct tax preferences, including commodity taxes, head taxes, and income taxes. England’s tax system prominently featured commodity and customs duties. In East Asia, particularly Japan and Korea, the concept of customs duties was virtually unknown until they encountered the West in the modern era.
*3: Mal-dong (末同), whose name translates to “manure” in Korean, was a real historical figure. In the Annals of the Joseon Dynasty, he was one of Yun Eun-ro’s servants blamed for the bangnap scandal during King Seongjong’s reign. Despite the clear evidence of Yun Eun-ro’s involvement, King Seongjong deflected the blame onto Mal-dong and other servants. While Mal-dong likely faced exile or death during King Seongjong’s time, he is reimagined here for narrative purposes.
*4: The illicit trade led by the sajuin eventually formed the basis for the emergence of government-sanctioned merchants during the Joseon Dynasty. By the late 16th century, the sajuin had established a near-monopoly on certain tributes and passed these privileges down to their descendants. The Dae-dong Law, which later reformed the tribute system, formalized the sajuin's role, acknowledging their dominance and integrating them into the official economy.
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