King of Commerce, Yeonsan-gun Ch.45
Aisin Gioro
Before highlighting the troublemakers in the northern part of Joseon, let's address a common misconception that most South Koreans might have.
When Park Kyung-sik speaks of colonization, it's not the kind popularized by Western powers in the 19th century, where they would say,
"Ha ha ha! Hurry up and supply raw materials and buy our finished products, you inferior colonial subjects!"
Joseon currently lacks the power to do something like that.
Such a view of imperialism and colonization is known as dependency theory. This theory, which was popular in academic circles about 20 years before Kyung-sik was born, faced criticism during his studies. It became clear that trade didn't actually work that way.
It turns out that the colonies during the era of imperialism were too poor to buy finished products and couldn't adequately supply raw materials due to their underdeveloped economies.
The places that supplied food and raw materials and bought finished products from industrializing Britain weren't the newly acquired colonies of the 19th century but the United States, which was an independent country (though it had been a colony).
The colonies during the age of imperialism were more about the national pride of painting the map in their country's colors than economic necessity.
Although Kyung-sik preferred early modern Europe, he had a solid grounding in socio-economic history, familiar with both dependency theory and its criticisms.
Kyung-sik's idea of colonization is closer to Germany's eastward expansion or Britain's colonization of North America.
Due to Kyung-sik's reforms, Joseon's cities were increasingly becoming centers of commerce and industry, absorbing the excessively small landholdings of impoverished farmers. For the market economy to function and spread properly, further urbanization and industrialization were necessary.
However, Joseon already had an excess rural population of about 3 million. Even if the government led industrialization in Seoul, employing 20,000 people a year, it would take 150 years to employ all 3 million.
So why not move to new lands designed from the beginning for an urban economy?
Germany's eastward expansion worked similarly. Based on advanced German urban law, they freed serfs by sending them to sparsely populated eastern lands.
The Germans who settled there expanded along waterways, forming market networks and developing the east, establishing cities that became supply bases for eastern grains to the west.
Kyung-sik's vision of colonization aims to expand the scale of a society operating under the market economy he intends to create. Capitalism thrives on larger markets.
But in East Asia, there was a uniquely intense isolationism, especially from China, the largest potential market, making colonies an attractive option.
Economics is about mutual prosperity through rational transactions, not one-sided exploitation.
The opening treaty with Japan is also not about "getting revenge on the Japanese who troubled Joseon!" It's about generously imparting capitalism and market economy principles to civilize them, akin to Britain in India. Let's brush aside criticisms that this is still imperialism.
However, Kyung-sik's thoughts contrasted sharply with how the northern border was managed.
North of the Tumen River, the magistrate Yun Pil-sang was deeply troubled again.
As often emphasized, a premodern economy heavily based on agriculture moves to the rhythm of the seasons.
Even non-agricultural products have seasonality, much like how winter clothes don’t sell in summer in modern times.
The primary goods of the Border Management Office were seasonal products: fur and ginseng.
Fur was most popular in winter, and the best quality came from late fall and winter hunting.
Similarly, ginseng had an optimal harvest period in October. Without ginseng cultivation, only wild ginseng was available.
Thus, after winter, sales plummeted.
The theoretical maintenance cost of the 3,000 armored soldiers stationed at the four outposts north of the Tumen River was 3.6 million Jeon annually.
Kyung-sik's perception of money was skewed by looking at state finances before acclimating to Joseon's monetary values, and his Three Kingdoms-influenced view of warfare considered armies in terms of tens of thousands. This made him underestimate the significant burden of maintaining 3,000 armored cavalry, costing 20% of Joseon's annual revenue.
By traditional East Asian military standards, these soldiers, each with several retainers, equated to a deployment of around 10,000 troops.
Moreover, these retainers, armed with weapons produced by the Ministry of Military Affairs, could be considered a substantial military force by East Asian norms.
This overwhelming force enabled them to subdue or expel the Jurchens north of the Tumen River within months.
However, the Border Management Office was expected to sustain this large force through its own revenue, an absurd demand. While capturing the fortress of Hwanghyeong in Jianzhou seemed impressive, the entire operation was a gamble, relying on the promise of future gains.
Success in the first year led to increased military spending in the second, consuming almost 90% of the state's revenue. Kyung-sik's desperate sale of official positions stemmed from a lack of funds.
While this might seem like a militaristic state, such financial structures were common in premodern times. Even before Kyung-sik's arrival, 5,000 out of Joseon's 7,000 official positions were military.
Moreover, much of the supposed military expenditure was actually used to buy equipment from the Ministry of Military Affairs and fund other government operations through indirect profits.
Unlike the central government's Ministry of Military Affairs, the Border Management Office had little to sell to its soldiers. While the payments for soldiers in the Border Management Office were processed through the trading post in Gilju, the ever-increasing debt burden of the Border Management Office was alarming.
Essentially, while the central government gave soldiers only a small cash allowance, most of the financial burden fell on the investors of the Border Management Office, with their revenues heavily reliant on fur and ginseng trade.
As the main investor and commander of the Border Management Office, Yun Pil-sang's personal losses directly correlated with its financial struggles.
In such circumstances, a sensible person would naturally consider reducing the military presence.
Unlike the “descendant of Sejong” who squandered increased revenue from tax reforms on military modernization and Manchurian expansion within two years, Yun Pil-sang was pragmatic.
Reducing the military presence by two-thirds seemed feasible. Profits from fur trade with China alone could potentially turn a profit.
However, the Jurchens were formidable opponents.
The various Jurchen tribes, historically enemies, were difficult to manage even with the enhanced military presence of 3,000 armored soldiers. Without this force, internal conflicts would likely resume, leading to a withdrawal from Joseon's control.
Moreover, the Jianzhou Jurchens, who had been beaten back earlier, were still a threat, occasionally testing the borders.
Hwanghyeong, the most capable and profitable commander, was also a troublemaker.
Reports surfaced that Hwanghyeong, in league with the Ulji tribe, had attacked Nimacha beyond the Ulji range, despite their apparent non-aggression.
Managing irreplaceable troublemakers felt like dealing with the central government in Seoul.
Ultimately, Yun Pil-sang had to request additional support from the king.
"Upon my inspection of the four outposts, Your Majesty's designated areas are indeed fertile lands. If cultivated, they could yield up to 30,000 Jeongbo. Currently, we buy grain for the soldiers at double the price due to traders inflating costs. Cultivating these lands as military farms would significantly reduce expenses."
In simpler terms, he was asking for the rights to develop land near the four outposts.
Kyung-sik, already planning to gradually develop and colonize these areas, saw Yun Pil-sang's subtle hints about financial deficits and granted permission.
A minor issue was that most of the arable land near the four outposts was already cultivated by the Jurchens.
Koreans often stereotype the Jurchens as primitive nomadic hunters, but by this era, they had learned farming from Joseon and China and had begun settling down.
The Nimacha Jurchens, living a week's journey north of Onsong, were even cultivating rice.
During Sejo’s reign, Joseon burned more Jurchen fields during invasions than vice versa.
Thus, the Border Management Office registered already cultivated Jurchen lands as new military farms, applying a 50% tax rate as per traditional Joseon methods.
Unlike Kyung-sik's recent reforms, this tax was collected in kind, not cash, as the Jurchens were more accustomed to a barter economy.
This approach, similar to contemporary and future European colonial companies, wasn't unusual.
Applying traditional Joseon practices to the Jurchens was arguably generous.
However, 50% tax in kind was still burdensome.
Yet, the Jurchens cultivating these lands were pragmatic enough not to rebel.
Instead, they chose to exact revenge on the foolish Jurchens who were inclined to resist Joseon.
Whack!
A Joseon soldier's retainer kicked a Nimacha tribesman in the chest.
"What is he saying?"
"Thank you, it’s an honor!" translated the Altari Jurchen landowner, who had always disliked the Nimacha.
The Nimacha tribesman was beaten to a pulp by the Joseon retainer.
After the beating, the retainer said,
"Plow all these fields today. This is the Joseon you chose to submit to. Plow with all your might. No one will plow for you. This is how it is everywhere in Joseon, not just here. Remember that."
Though not an official soldier, the retainer acted high and mighty, tormenting the captured Jurchen.
The fact that the Nimacha Jurchen had not voluntarily submitted to Joseon was irrelevant to everyone involved.
Having chosen to oppose Joseon, the Nimacha Jurchens, captured in each conflict, became slaves to the Altari Jurchen landowners.
The fields in the Mudan River basin, once home to the Nimacha Jurchens, were overgrown and frequented by wild animals.
Utilizing his authority over the Jurchens, Yun Pil-sang devised another revenue-generating scheme: tribute.
While inefficient and burdensome to the subjected society, tribute was an effortless means of revenue collection for the collector.
However, Yun Pil-sang avoided the previous Joseon practice of demanding impossible tributes.
Instead, he allocated seasonal quotas of game meat and hides to each Jurchen village as tribute to the Border Management Office.
While sable pelts were the most lucrative, other furs also yielded profit. Additionally, game meat, dried into jerky, and antlers were valuable commodities.
Recognizing the Jurchens' need for oxen, Yun Pil-sang implemented a scheme to rent out oxen at a profit.
He also monopolized the sale of salt and iron to the Jurchens, essential commodities for their survival, imposing steep markups.
This reversal of the pre-Border Management Office trade structure highlighted Yun Pil-sang’s shrewdness.
Concerns about potential Jurchen uprisings due to exploitation were irrelevant to Yun Pil-sang, who expected his term to end before any rebellion and considered his age a safeguard against any long-term consequences.
The Border Management Office, ostensibly for appeasing and comforting the frontier tribes, mirrored the "honorable" East India Company in its practices.
The pursuit of profit wasn't limited to Yun Pil-sang.
Hwanghyeong amassed Jurchen horses, heading to Liaodong.
While sable pelts were valuable, horses fetched even higher prices in Joseon and doubled in value in China.
Joseon profited significantly from horse trade, often involving middlemen. Desperate soldiers in Pyongan Province sometimes sold government-issued horses to China, despite severe punishment.
Selling Jurchen horses directly to China promised substantial profits.
Seeing the arriving Joseon cavalry with thousands of horses, Liaodong soldiers initially mistook them for a Mongol invasion, raising alarms.
Clearly, this was Hwanghyeong's mistake.
After clarifying their intentions, they were allowed entry, but something felt off.
"What are all these horses? Lately, Joseon traders have been bringing large quantities of goods, seemingly defying imperial restrictions. Are you engaging in private trade?"
Hwanghyeong didn't flinch. This official seemed unaware of his connections with the former Liaodong Governor.
Hwanghyeong discreetly handed over some silver.
However, the official rejected the bribe, growing angrier.
"Do you take me for a fool?!"
Hwanghyeong realized his mistake wasn't the bribe amount but that his ally, Governor Zhang Xu, had been replaced.
Zhang Xu had been dismissed for accepting bribes and smuggling, unrelated to Hwanghyeong’s actions.
Hwanghyeong’s failed trade was a minor consequence of the butterfly effect caused by Joseon's reforms.
The pursuit of trade wasn't limited to Yun Pil-sang and Hwanghyeong. Illegal private trade was rampant, and the king was arguably the most enthusiastic.
Kyung-sik realized that missions to China were nearly the only legitimate means of trade and decided to encourage it openly for state revenue.
He registered merchants, issuing permits, and formalizing their status as private shareholders in the trade missions, effectively creating Joseon's first private joint-stock company.
Allowing most exports while inspecting and taxing them, he imposed a 200% tariff on gold and silver, previously punishable by death, considering this lenient.
This highlighted the benefits of a monetary tax system, allowing tax rates over 100%.
To facilitate this, he even provided (sold) robust carts, ensuring large-scale trade.
Jo Bok-joong, a merchant who had traded on behalf of the royal family since Sejo’s reign, received a spring-loaded cart with reinforced wheels, appreciating the king’s support despite the high taxes and cart costs.
Upon seeing the vast quantities of goods brought by Joseon envoys, Ming officials were shocked.
Kyung-sik, misunderstanding the era by about a century, saw this as a major diplomatic opportunity, despite Ming's strict maritime trade restrictions.
With no proper roads, Joseon’s determination to transport goods by cart seemed insane, especially considering the prevailing strict sea trade policies.
Historically, from Seongjong's reign, private trade by Joseon envoys expanded, reaching a point during Yeonsangun's reign where Ming considered banning it.
Kyung-sik's aggressive expansion of envoy trade outpaced Yeonsangun's policies.
While Ming hadn’t formally banned private trade by Joseon envoys, they pressured the Liaodong Governor to crack down, resulting in Zhang Xu's dismissal and Zhang Yu's appointment, focusing on curbing Joseon’s illegal trade.
Hwanghyeong found himself in a difficult position.
Dongamang-gai, a subordinate Jurchen leader who had submitted to Joseon earlier in the year, asked Hwanghyeong,
"What will you do, General Hwang?"
"A frontier general cannot defy the empire's wishes. Let’s return."
Disheartened, Hwanghyeong spotted Jianzhou Jurchens trading for Chinese silk at the market.
Why were these Jurchens allowed to trade while the most civilized and esteemed tributary state, Joseon, faced rejection?
Regardless, these unruly Jianzhou would likely raid Liaodong under some pretext.
An idea struck Hwanghyeong.
"Dongamang-gai, you were part of Jianzhou, right? Did you ever trade at the market?"
"No, only those with imperial permits could trade, and Jianzhou never shared those with us."
Ming issued permits to Jianzhou, who then used the trade goods to subjugate other tribes.
Dongamang-gai's tribe submitted to Jianzhou for this reason, seeking scraps from the trade goods.
"These permits often cause fights among the tribes, right?"
"Yes, but why…?"
Seeing Hwanghyeong’s expression, Dongamang-gai recognized a cunning Jurchen-like look on his face.
Returning from a successful raid, Hwanghyeong handed an imperial permit taken from a Jianzhou Jurchen’s body to Dongamang-gai, saying,
"Your clan name is now Aisin Gioro."
Changing one’s clan name was a grave insult among the Jurchens, who were significantly Confucianized by this era.
Dongamang-gai, stunned by the absurdity, finally understood upon seeing the permit.
"I'll do it immediately."
During trade at the imperial market, Dongamang-gai would be known as Aisin Gioro.
"Aren't we better off using a fake name entirely? How about Shurgaci?"
Hwanghyeong didn’t care about Jurchen names, whether Aisin Gioro Shurgaci or anything else, but he praised,
"Great, that’s a fine name."
Notes:
*0: The portrayal of Joseon and Ming trade in the text is based on historical research. For more details, see:
- <張海英. (2015). 14∼18세기 중국-조선의 민간무역과 商人. 민족문화연구,(69), 61-91.>
- <朴平植. (2018). 16世紀 對中貿易의 盛況과 國內商業. 역사교육, 146, 253-296, 10.18622/kher.2018.06.146.253>
- <朴平植. (2018). 15世紀 後半 對外貿易의 擴大. 한국사연구,(181), 181-235, 10.31791/JKH.2018.06.181.181>
*1: Zhang Xu and Zhang Yu are real historical figures, with Zhang Xu being dismissed in 1497 (3rd year of Yeonsangun) for corruption and smuggling, as reflected in the text. However, Zhang Yu’s strict enforcement of trade regulations is fictional.
*2: The Aisin Gioro clan name became prominent with Nurhaci, the founder of the Qing dynasty. The adoption of the name in the text is a parody.
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