King of Commerce, Yeonsan-gun ch.10
Money Can Be Multiplied
Yun Hyo-jeong's virtuous actions were reported to the king through the marketplace officials. However, the details were rather sparse and didn’t even include Yun Hyo-jeong's full name. Given the many pressing matters on the king's agenda, he didn't pay much attention to the report.
Fortunately for Yun Hyo-jeong, the marketplace official didn’t know that he had spread the false rumor, “The government will accept rice for the new Ji-pye tax!” If the king had known, he might have erupted in anger, shouting, “Send the Royal Investigators to arrest Yun Hyo-jeong immediately! I will personally interrogate this scholar who spreads such lies!”
The court had much more pressing issues to address than to celebrate Yun Hyo-jeong's small good deed.
When the otherworldly hero Park Kyung-sik introduced the new currency, the reaction among the Joseon people wasn’t one of enlightenment. They didn’t think, "The hero has come to teach us about money!"
Despite their past failures with monetary policy, the people of Joseon were not so naive as to be oblivious to the concept of money, unlike the stereotypical primitive inhabitants of fantasy novels. Pre-modern people were just as intelligent as modern people in many ways.
In fact, their reactions were quite similar to how modern people react to Bitcoin. While some were skeptical and questioned how mere pieces of paper could hold value, others jumped on the bandwagon, exclaiming, “If we buy Ji-pye, it’s like automatically multiplying our rice. It’s as if rice is being copied!” These individuals took long positions on Ji-pye, betting heavily on its success.
These were mostly the merchants who lived for the moment, believing that if Ji-pye failed, they could simply cut their losses or even die trying.
This speculative behavior led to a severe deflationary spiral. The policy of exchanging five seung of rice for one jeon in Gyeonggi Province was intended to drive up local prices and attract goods and money to the region.
But despite the famine in Gyeonggi, rice seemed to appear out of nowhere, quickly exchanged for Ji-pye. The reserves in the central warehouses depleted rapidly.
The primary cause was Park Kyung-sik's underestimation of the amount of Ji-pye needed. Gyeonggi Province, especially Seoul, was the nation's center of consumption and the only legally recognized market.
Without considering these factors, Kyung-sik’s crude calculation of distributing Ji-pye based on Gyeonggi’s administrative size—about 20,000 gyeol (a land measurement unit)—resulted in a shortage relative to the volume of trade.
As a result, everyone competed fiercely to acquire Ji-pye, driving up its value and causing the prices of goods, measured in Ji-pye, to plummet.
The Joseon officials, who had seen the collapse in the value of Jeohwa over centuries, failed to grasp the gravity of the deflationary crisis and mistakenly celebrated the situation.
"The previous Jeohwa policy, intended to enrich the state from King Taejong's reign, ended up burdening the people and causing corruption within the national treasury. But under Your Majesty's reform with Ji-pye, the people are greatly embracing it, valuing Ji-pye and eagerly exchanging all kinds of goods for it. Despite the poor harvest in Gyeonggi, the central warehouses are filling up. King Taejong once said that only a wise king could successfully implement a currency policy, and it seems that time has come."
No, you fools!
Kyung-sik wanted to explain the dire consequences of deflation, but concepts like economic stagnation and total demand were too advanced for the current understanding of a market economy in Joseon. It would be like spoiling the future.
Instead, he simplified his explanation: "If the value of money rises too much, people won’t be able to repay their debts or pay their taxes later." This was a notion the officials could grasp.
They responded with the typical courtly reverence, "Your Majesty's concern for the people is boundless!"
For the first time, Kyung-sik heard the phrase “Your Majesty’s boundless grace” instead of the usual “We heed your command,” which made him feel a bit better.
The first to directly demonstrate the problem of deflation were the various government offices in the capital.
"We have always collected monthly rents from artisans in Jeohwa. Now, these offices are demanding payment in Ji-pye. But with Ji-pye’s value so high, artisans are finding it extremely difficult to acquire, and the rent remains unchanged from the days when it was paid in Jeohwa. They can’t afford to pay. Perhaps we should consider suspending these rent collections."
This report came from Second Minister of Justice, Kim Seung-kyung. As Kyung-sik listened, he sensed something was off.
"...Previously, Jeohwa was measured in sheets, and even dozens of sheets couldn’t buy a single seung of rice. How are they expected to pay the same rent in Ji-pye?"
"Different offices are handling it differently. Some collect one sheet of Jeohwa as equivalent to one mun of Ji-pye, but the more corrupt ones are demanding one sheet of Jeohwa as equal to one jeon of Ji-pye."
Given that one jeon of Ji-pye was equivalent to ten mun, and one jeon of Ji-pye currently held the value of 1.5 mal of rice, the monthly rent, previously 30 to 90 sheets of Jeohwa, converted to one jeon, was exorbitant.
“What a bunch of scoundrels! Summon the Royal Investigators. Arrest them all.”
“They should be punished according to the law, but perhaps we could consider resolving this with fines instead.”
“No. I won’t allow it. They need a good beating to set things straight.”
Typically, aristocrats and officials received reduced punishments or fines for their crimes. Even in modern times, wealth can buy leniency, but in the strictly hierarchical society of Joseon, the disparity was even more pronounced.
However, Park Kyung-sik, the modern hero and now king, aimed to establish at least some semblance of fairness under the paddle, if not the law.
The officials learned about equality the hard way through their beatings. The collected Ji-pye was returned to the artisans, and any reform of the artisan tax was postponed.
Of course, a few beatings wouldn’t eradicate corruption overnight. More complaints followed. Having included a few watchful former censors in the Ministry of Justice after dismissing the rest, the king found they were quick to report on other officials’ misconduct, seemingly understanding the king’s strict stance on corruption.
"Yun Eun-ro, recently appointed as the overseer of the royal pharmacy, has no merits related to medicine and is highly corrupt. During King Seongjong's reign, Yun Eun-ro was caught engaging in bribery but was pardoned out of deep regard for royal in-laws. Now, he’s exploiting the new Ji-pye policy by hoarding grain and driving up rice prices through manipulation. He’s profiting from his privileged position to the detriment of the people. I urge Your Majesty to punish him severely according to the law."
Yun Eun-ro, taking advantage of his proximity to the decision-makers, had preemptively hoarded large amounts of rice before the Ji-pye policy was announced. After converting his stockpile to Ji-pye at the central warehouses, he had driven up the prices of goods and was now holding out, waiting for Ji-pye exchanges to resume at even higher rates.
His scheme mirrored the actions of merchants in Asan, but with a significant difference: Yun Eun-ro was the queen dowager’s brother, making him a member of the royal family .
For a modern person like Kyung-sik, this might not seem like a big deal. He had already dealt with Yun Eun-ro’s misconduct regarding artisan rents without realizing Yun Eun-ro was the same person he had punished before.
To Kyung-sik, Yun Eun-ro’s crimes were even more serious.
Yun Eun-ro wasn’t just a policy implementer but someone with direct access to information and the power to manipulate it. His position allowed him to hoard wealth from the Ji-pye policy, essentially making the benefits of the new system flow disproportionately into his pockets.
“What a despicable man. What does the law say?”
“The penalty for hoarding and market manipulation includes 80 lashes and two years of exile, with a lifelong ban on holding public office.”
“Execute the punishment as prescribed.”
But fearing a second beating might kill him, Yun Eun-ro desperately protested his innocence.
The queen dowager also pleaded for her brother, reminding the king of the late king's preference for their family and the recent mourning period.
"In the spirit of the late king's kindness towards his in-laws, I beg Your Majesty to pardon him. We are still within the three-year mourning period for the late king. Please consider his wishes."
Despite the bureaucratic veneer of Joseon’s legal and administrative systems, kinship was still crucial. Power struggles involving royal in-laws and noble families were a recurring theme.
If the royal in-laws and noble families were ousted, the officials often filled the power vacuum, seeking to amass their own influence.
Thus, the politics of Joseon were characterized by a constant tug-of-war, where each side claimed moral high ground, decrying the other’s family ties while excusing their own.
Park Kyung-sik, the modern hero, might not understand the importance of familial bonds in this society, but he was aware of the political repercussions of being labeled as the king who killed his uncle. So, he decided to spare Yun Eun-ro’s life, opting for dismissal instead.
With these constant crises, even the Ministry of Finance had a recommendation.
"The root cause of these problems is the severe shortage of Ji-pye in Gyeonggi Province. We suggest that for the time being, we cease issuing Ji-pye to the provincial warehouses and focus on supplying it to the capital’s markets and offices."
"And how should we address the same issues occurring in the provinces? I’ll think of a solution. You may leave."
The officials from the Ministry of Finance wanted to say, "Honestly, Your Majesty, it’s largely because you’re pushing these policies too quickly." However, they didn’t dare voice their concerns to a king who was willing to punish aristocrats, common officials, and palace servants equally.
They left, hoping the king, who always seemed to have an unconventional solution, would come up with something this time as well.
Park Kyung-sik, observing the situation, recognized that the Ji-pye shortage was partly due to his policy missteps but also due to another factor.
The printing technology was insufficient.
The Ministry of Finance officials often cited the concern that flooding the market with Ji-pye would devalue it, as seen with Jeohwa. However, the real issue was that they simply weren’t printing enough Ji-pye.
Despite their efforts using metal and woodblocks, the number of Ji-pye produced fell short of their needs.
This was because the metal type used in Joseon’s printing process involved pressing ink onto paper with a pad, similar to a rubbing technique.
History books often glorify Korea’s metal type as comparable to Gutenberg’s press, but in reality, the technology didn’t significantly increase printing capacity. They could only manage 30 to 40 sheets a day at best.
Gutenberg, who had invented the printing press, was on a completely different level. Kyung-sik had noted this disparity in his thesis, which ironically led to him being transported to Joseon.
Using this primitive printing method to produce Ji-pye was inherently slow, but it was the most advanced technology available in Joseon.
The ink was easy to obtain. Ink for printing presses uses a drying oil, a substance that hardens when exposed to air. Ancient techniques for treating wood surfaces had used such oils for centuries, and in Joseon, this was readily available in the form of perilla oil, which could be mixed with soot to make printing ink.
The real challenge was finding a machine that could apply uniform pressure to the printing plate. Gutenberg had modified a wine press, but Joseon had no wine presses. And even if they attempted to build one, the necessary screws were absent from Joseon’s technology.
Kyung-sik’s search for a suitable alternative led him to the Food Bureau, where he saw oil being squeezed out by simple presses. Ready to abandon hope, he finally spotted a promising device: a noodle press.
Within a week, Kyung-sik had developed a makeshift printing press. Although he knew how to create more sophisticated movable type using lead, time constraints made this an impractical option for now.
Recognizing the limitations of the current system, he reorganized the print shop into a more efficient assembly line. One worker would only handle the plate, another would position the paper, and a third would ink the plate. This allowed them to print Ji-pye at an astonishing rate of 10 sheets per minute.
Initially, the print workers were delighted by the increased efficiency.
However, after days of repetitive tasks, they were mentally exhausted, muttering "Place the paper in the center...press..." with weary, hollow expressions.
Though Kyung-sik was aware that such dehumanizing work practices were criticized in modern times for stripping workers of their humanity, he had no better alternative in the current situation.
When Kyung-sik revealed the printing press, the Six Ministries were awestruck, praising the king with fervor.
Joseon’s technology may have been perceived as inferior, and artisans were often looked down upon. Yet, the Joseon people were quick to embrace new technologies that promised practical benefits, especially those related to education, such as printing.
The Ministry of Rites, in particular, was ecstatic, since it oversaw education.
"Since the reigns of Kings Taejong and Sejong, efforts have been made to promote learning and distribute books widely. However, the printing speed has never sufficed to supply books to all the provinces, causing even King Seongjong great concern. But with Your Majesty's ingenious printing press, there will be no one who cannot learn. Our literary culture will flourish, and this is truly a blessing for our nation for generations to come."
They eagerly proposed to the king that they should start printing and distributing books to all the county schools, exclaiming, "This will be like copying books!"
The Ministry of Finance, however, voiced its concerns.
"While the Ministry of Rites' proposal is commendable, there are only two printing presses currently available. Even if we rush to make more, it won’t be enough. Your Majesty’s priority with the printing press is to produce and distribute Ji-pye to stabilize prices. We can print books after that."
Faced with these conflicting proposals, the king pondered deeply. The ministers felt a wave of anxiety. Whenever the king fell into deep thought during discussions, he would often return days later with a slew of new policies that overwhelmed the court.
“Hmm... I understand. For now, the Ministry of Finance will calculate and produce Ji-pye, but do not distribute it to the provincial offices yet. I have something to review.”
Review? The ministers, gripped by a sense of impending doom, dispersed in uncertainty.
Footnotes:
*1: The historical record indicates that in the 15th year of King Taejong's reign, discussions about whether to maintain both Jeohwa and coinage ended with the decision to drop coinage due to concerns that Jeohwa would become worthless. This demonstrates the long-standing distrust in Jeohwa as a stable currency. In the novel, the officials' praise reflects a deliberate use of this historical context, albeit somewhat out of its original context.
*2: In this translation, King Park Kyung-sik uses a more formal tone with the highest-ranking officials, while employing a slightly less formal tone with lower-ranking officials.
*3: Yun Eun-ro (dates unknown) was a notorious figure during the reigns of King Seongjong and King Yeonsan, involved in numerous crimes including bribery and exploitation of his official position. Despite his lack of notable achievements, his close family ties to the royal family often shielded him from severe punishment, a reflection of the intricate and often corrupt familial dynamics within the Joseon court.
*4: Historically, it may seem that Jeohwa would be easier to counterfeit than coins, but records from the 15th and 16th centuries indicate that Jeohwa was perceived as harder to counterfeit due to the precision required for its production. The novel draws on this historical perspective, interpreting the claims that Jeohwa was harder to fake in the context of the limitations of contemporary forgery capabilities.
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