King of Commerce, Yeonsan-gun Ch.43

 Enclosure

While Kyungsik had spent much of the year focusing on suppressing Japanese pirates and establishing trade relations with Japan, he had also been busy with various other tasks.

In April, as the Japanese envoys prepared to return home and the Tongsinsa delegation readied for their journey to Japan, the king was leisurely strolling through Jeokjeon (籍田), feeling quite pleased.

The flax he had planted in early spring had grown and was now in full bloom.

Kyungsik marveled at the beauty of the flax flowers, a sight he had never truly appreciated in modern Korea.

Realizing this, he wondered, “...Have I developed a sudden love for flowers since coming to Joseon? Could this be influenced by Yeonsan-gun?”

He remembered how he had been delighted by the blooming flowers in the spring of his first year in Joseon.

However, he decided not to dwell on it. After all, how much trouble could Yeonsan-gun’s fondness for flowers possibly cause?

Besides, as Kyungsik, the fact that Japan was practically handing over its sovereignty on a platter was enough to keep him in high spirits. Although he hadn’t received a definitive response yet, he was confident the Tongsinsa would bring back good news.

“This flax brings joy to the heart with its flowers in spring and summer, and in autumn, it can be used for making fabric from its stems and oil from its seeds, which can also be used as food or medicine. What other plant could be as beneficial? Including hemp among the five grains is only right if this flax takes its place.”

Kyungsik planned to distribute the flax seeds harvested in the fall, along with cultivation methods, across the country, aiming to encourage widespread cultivation.

While contemplating flowers, he also thought about developing the floriculture industry to increase farmers’ incomes.

Economic geography, a subfield of economics, emerged in the 19th century with the agricultural location theory proposed by the German nobleman von Thünen. This theory posits that the crops a farmer grows are determined by rent and transportation costs.

In simple terms, around a central market, vegetables and flowers are grown closest to the market, followed by forests, fields, and pastures in concentric circles (*2).

Even without this agricultural location theory, it is commonly taught that perishable goods like flowers and vegetables are grown near cities because they spoil quickly.

However, the market economy in Joseon had not yet developed to such an extent.

While Kyungsik had rapidly pushed for a market economy system, society had not yet caught up with the pace of change.

Genuine economic criminals, like some clever literati, had not yet emerged in large numbers, with most crimes being limited to counterfeiting money. The swift changes brought by Kyungsik were overwhelming the society.

The predominantly agricultural economy of Joseon had not yet offered farmers opportunities to reorganize their farming practices in line with the market economy structure.

Agriculture is, after all, a sector that plans for a year at a time, and it had only been two cycles since Kyungsik arrived.

As time went on, farmers would find that their productivity and income declined under the market economy. Grains have low added value.

This is why Kyungsik had established agricultural cooperatives and reinstated the Gwonongwan (권농관), originally intended for each Myeon (면), to help farmers increase their incomes through commercial crops.

One such commercial crop could be flowers.

The cities in Joseon—though Kyungsik had only seen Seoul—lacked street trees and green spaces, making them seem stark and barren.

As a time traveler, he felt it was his duty to improve the mental well-being of Hanseong’s citizens by creating green spaces in the city.

Flowers could also be used to produce products like perfumes.

Wouldn’t there be a shortage of grain?

As seen in the past two years, the real issue was the falling grain prices due to excess production, rather than a shortage.

The lack of urban consumers for the grain and the insufficient industrial capacity to produce goods that could improve farmers’ living standards were the main problems.

Although the land survey and modern population census were not yet complete, it was clear from the current agricultural production and population in Joseon that, unlike in later historical periods, there wasn’t an absolute shortage of food production.

Moreover, Joseon people actually needed to eat more.

There’s a theory that eating too much can lead to inefficient digestion, where the digestive system can’t process large quantities effectively. Given the amount of food Joseon people consumed, Kyungsik wondered if this was affecting them.

In any case, it wasn’t yet time to worry about absolute grain production.

“Your Majesty! Following the spring famine, a drought has affected the barley crop, causing the price of grains to skyrocket!” (*1)

“What did you say?!”

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Thanks to Kyungsik’s overhaul of Joseon’s taxation system, the government didn’t collapse in the face of a minor famine as it might have historically.

In the original Joseon, where taxes were paid in grain, a famine would mean no taxes, empty granaries, unpaid officials, and an inability to mobilize labor.

Even in good years, taxes weren’t always collected efficiently. The lack of transport ships and storage facilities often meant waiting for the next famine to deplete reserves.

This inefficiency and constant state of poverty were why Joseon struggled to maintain a strong military and infrastructure despite its potential.

In Kyungsik’s Joseon, the market economy centered around currency and reformed tax structures prevented such extreme crises.

Grain prices were managed through warehouses filled with reserves, built by mobilizing thousands of workers from the first year, ensuring stability.

However, a new phenomenon was emerging.

“Please spare a single Mun! Buddha will bless you for your charity!”

“Is there any public work available? I haven’t eaten for four days!”

“Oh dear, I can’t stand to see this. We need someone to weave mats. Would you like to try?”

“Thank you so much! I won’t forget your kindness!”

“I’ll do anything—porter, water carrier—just don’t chase me away!”

Farmers who had frowned during the good harvests were not smiling now. The idea that the country could support its population based on its agricultural capacity alone was a miscalculation.

It’s not just about absolute production; it’s about land ownership per capita and income.

Currently, nearly 30% of Joseon farmers owned less than one Jeongbo (結) of land or none at all.

These were the farmers who had struggled to pay taxes even during good harvests.

Even those who owned about 3-4 Jeongbo of land, enough to use a plow and an ox, didn’t find good harvests to be particularly beneficial.

During a famine, these small farmers, who couldn’t make ends meet during good years, saw their incomes completely disappear.

Farmers with 3-4 Jeongbo of land might have had some reserves from previous harvests or might have saved some money, allowing them to survive.

But the current economic structure of Joseon, with too many farmers and insufficient land, meant that many farmers struggled regardless of the harvest.

Historically, these impoverished farmers might have become servants or farmhands for the wealthy.

However, since the reign of King Seongjong, the development of commerce had begun to change this pattern.

Starting in King Seongjong’s time, these impoverished farmers moved to Hanyang (modern-day Seoul), taking up temporary jobs and living in slums outside the city walls.

The influx of 20,000 refugees to the Seoul area in Kyungsik’s first year had this background.

In the rapidly changing Joseon under Kyungsik, this phenomenon accelerated.

Kyungsik noticed another shantytown forming outside the city gates.

“This is the third time. The first year, we built Jeongbyeongyeong to handle it. The second year, we expanded Hwalinseo. How many times will this happen?”

Though there were only about 30 trading hubs and markets established nationwide, they were starting to function as commercial centers. Seoul, with its continued draw of wealth and goods, provided what impoverished farmers needed most.

Money.

Farming on a tiny piece of land, struggling with debt during good years and facing ruin during bad ones, was untenable. Selling their land and moving to the city for day labor was more viable.

With their wages, they could buy grain to sustain themselves.

However, the innovations introduced by Kyungsik at the end of the previous year didn’t always benefit the farmers.

“With this large sickle, one person can do the work of five, making it incredibly convenient!”

“His Majesty’s invention, the flail, allows even women to thresh grain easily, doing the work of five men!”

Officials, still lacking economic understanding, praised these tools for their convenience. But Kyungsik’s inventions reduced the need for labor.

“Do you need a farmhand for the harvest season? If you could just let me work during the harvest…”

“Hiring help? Hmm… With our family alone, we can harvest all the barley quickly. I don’t think we need extra hands.”

Farmers with 3-4 Jeongbo of land were relatively wealthy, requiring 2-3 workers to farm a Jeongbo by hand.

During busy seasons like harvest, they might temporarily hire farmhands, usually impoverished villagers.

However, having an ox or using Kyungsik’s new tools reduced the need for extra labor.

The ongoing land survey (Yangjeon) also exacerbated the issue.

Historically, land ownership in Joseon was acknowledged, but the state didn’t effectively guarantee it.

If land was left fallow, anyone could report it and start farming, often leading to informal land rights being sold.

In this new land survey, such practices were eradicated.

Joseon already had the Ip-an (입안) system for land transactions, but it wasn’t properly utilized, often replaced by informal agreements.

The new Yangjeon system would issue mandatory Ip-an for all lands, recording the price, location, shape, size, and ownership history, transforming them into modern land certificates.

The previously secretive land registries would become public records, with property and use rights fully controlled by the owner. Tenant farmers could no longer sell cultivation rights.

Tax obligations and voting rights in local assemblies would be based on these certificates.

This policy clearly aimed at transitioning to a capitalist system.

While it seemed complex, the existing structures made the transition relatively smooth, merely formalizing what had been informally practiced.

The population census would also change from the arbitrary methods used for tax purposes to a comprehensive national survey.

Historically, Joseon’s registered population was far below estimates, with records kept primarily for tax purposes, often excluding the landless poor.

This time, the census would count everyone for governance purposes, using existing resources more effectively.

While it seemed like a huge change, it was a matter of formalizing and expanding existing practices, making use of the increased number of government officials and even mobilizing military and students.

Only the local gentry, upset about having to officially register their land, showed any significant resistance.

This reformed land ownership system fostered numerous small and medium landowners.

Kyungsik’s reforms didn’t stop at the land ownership system; he also aimed to restructure land distribution.

He recognized the cultivation rights of tenant farmers as ownership and distributed state-held lands among the populace.

This policy was in line with Joseon’s historical emphasis on promoting self-sufficient small farmers.

How did the dispossessed landowners feel? Given the previously weak enforcement of land ownership rights, many had lost land through fraudulent transactions by tenant farmers.

While the state now promised to protect ownership rights, many landowners remained skeptical, expecting future lax enforcement.

They opted to wait and potentially buy back their lands later.

Joseon’s centralized authority, despite its historical inefficiencies, remained strong.

The real issue was “paid purchase and distribution.”

“So… I have to pay the state 10 Mun annually per Jeongbo?”

“I’m not a magistrate, but a Kyungchagwan. Yes, you pay 10 Mun per Jeongbo annually. Since you own 3 Jeongbo, that’s 30 Mun.”

“One Jeongbo was originally mine, and now I have to pay 40 Mun annually to Magistrate Han for the other 2 Jeongbo?”

“No, the 2 Jeongbo are now yours. You pay 20 Mun per Jeongbo to the original owner for 10 years.”

“But I didn’t ask to buy this land.”

“Some people refuse land even when offered. You now own it, so work hard to pay off the debt and taxes.”

While it seemed manageable with good harvests, a famine at this crucial moment made things difficult.

Farmers, not wanting to lose their newly acquired lands, sought ways to reduce household expenses.

Under a per capita tax system, they might have reduced the number of newborns during hard times.

But with the unified land tax system, they needed money more than fewer mouths.

“Mak-dong, you know things are tough. How about trying your hand at trading in town?”

“Trading? I’ve only farmed. I’m no merchant.”

“If you try, you might manage. You could work as a porter if needed. Towns now have markets, and many are venturing into trade. Staying here, you’ll never get married.”

“Will trading help me find a wife?”

“If you can earn a living, you’ll find a partner. There’s no future for you here.”

All circumstances were pushing people to the cities (*3).

The problem was that Joseon’s cities didn’t have the industrial capacity to provide jobs for these people.

Contrary to farmers’ expectations, the cities couldn’t embrace them with open arms.

Many ended up begging or doing menial labor.

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Kyungsik was the only one who could fully understand and address these issues.

Officials had to acknowledge that the king could come up with solutions beyond their usual relief measures.

A few brave Neo-Confucian scholars might argue for abolishing money (*4), claiming it caused greed and corruption.

Others might call for closing markets, saying they disrupted the people’s primary occupations, a recurring theme in Joseon’s history.

But for three years, the king had dismissed such arguments.

Recently, he had even resorted to using his mother to assert his authority.

Officials realized it was better to support the king than risk opposing him.

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‘This is a rural overpopulation issue, typical of developing countries transitioning to capitalism. I should have anticipated this, but the good harvests made me forget.’

As seen, keeping too many people on the land leads to fragmentation and declining productivity.

This must be resolved by urban industry, creating jobs with higher productivity, boosting the overall economy.

If left to natural urbanization and industrialization, this problem might not arise, but historically, conditions rarely align so perfectly.

Many factors, like land ownership issues, feudal dependencies, and systemic suppression of commerce, usually hindered progress.

In fact, the emergence of capitalist societies, despite such adverse conditions, is almost an anomaly.

Currently, Kyungsik’s Joseon has many conditions conducive to a market economy and capitalism.

The land ownership structure is being reformed, feudal dependencies were dismantled last year, and commerce is no longer suppressed.

The problem lies in the lack of capital and technology.

Cities need capital and technology to create productive jobs.

In the future, countries often bridge this gap with foreign loans and technology transfers, but Joseon has no such options.

However, they do have Kyungsik.

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Notes:

*1: As noted in Episode 9 <Let's Trade 2>, despite Kyungsik’s significant reforms, he hasn’t yet fundamentally changed the deep-rooted economic structure or overall income levels. During a famine, farmers’ incomes still drop sharply, causing grains to act as Giffen goods due to the income effect.

*2: This agricultural location theory-based structure emerged during the late Joseon period, with the development of commercial crop cultivation as mentioned in textbooks. Although floriculture did not develop commercially, the supply of fodder and timber, heavily allocated as tributes in Gyeonggi Province, reflected such economic principles. The need for fodder for the royal stables and timber for fuel and construction was significant, yet the physical tax burden remained.

*3: While the traditional view of the “Enclosure Movement” attributes the rise of urban labor to displaced rural workers, recent interpretations suggest urban growth and suburban influx fueled London’s industrialization. In contrast, countries like South Korea experienced rapid industrialization post-land reforms, with surplus rural labor moving to cities, supplying the workforce needed for swift industrial growth.

Kim Jong-hyun (2006). Re-examining the British Industrial Revolution. Seoul: Seoul National University Press.

*4: Abolishing money, though seemingly absurd today, was a serious proposal in late Joseon. The Silhak scholar Yi Ik, for instance, advocated for the abolition of currency, arguing that it incited luxury and theft, harming agriculture and impoverishing people. This was not just Yi Ik’s unique perspective but was seriously debated, with King Yeongjo supporting it, leading to reduced minting and subsequent deflation, ultimately worsening conditions for farmers.

This light novel blends historical events with speculative fiction to create an engaging narrative that explores both historical realities and imagined possibilities.