King of Commerce, Yeonsan-gun Ch.52

 Southward

In the spring of 1498, Seoul was buzzing with excitement due to the birth of a prince.

Officials suggested that with the birth of the crown prince, they should offer rituals at the Jongmyo Shrine, hold banquets, pardon prisoners, and conduct special examinations.

Gyeongsik knew it was a time for celebration and joy.

However, an inexplicable sense of unease crept in.

It wasn’t the kind of self-conflict where he felt the child wasn’t his due to sharing a body with Yeonsan-gun.

It felt more like he might have made a mistake in securing a suitable heir, a feeling of impending doom.

More specifically, he worried that a Confucian sage king might destroy the capitalist society he was striving to build.

How did Joseon kings deal with heirs they weren’t satisfied with? The rice chest?

Shaking his head, he dismissed these thoughts.

"No, if I educate him well, it should be fine. Why am I having such thoughts already..."

What the child would see, hear, learn, and what kind of personality he would develop were all unknowns.

Moreover, fearing a Confucian sage king was ridiculous.

After all, Yeonsan-gun, the body he inhabited, was known as the worst tyrant in Joseon history. A Confucian sage king would surely be better.

Gyeongsik didn’t understand why he was feeling such paranoid anxiety.

He briefly considered the possibility that it might be due to Yeonsan-gun's influence, but there seemed to be no reason for Yeonsan-gun to feel this way about his first son.

Deciding to set aside his unease, Gyeongsik chose to enjoy the celebration.

After all, this was the first son for Yeonsan-gun and Queen Shin, the next monarch for Joseon, and for Gyeongsik, someone to pass his responsibilities onto.

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The excited atmosphere in Hanyang was not solely due to the birth of the prince.

“Last year’s harvest was indeed poor, but this spring, all the crops are ripening well, making it a bountiful year. Having inspected the situation in the northern Four Fortresses, I find the conditions have stabilized. The resettlement to the north can proceed as planned,” reported Lee Geuk-gyun, who had been appointed as the construction overseer for the defenses. His role involved supervising the building of new fortresses as part of the resettlement process.

As he said, fortunately, this year promised a good harvest after the lean season.

This meant the costs associated with feeding the settlers during their initial stages would be significantly reduced.

In Joseon, production costs largely comprised wages due to the labor-intensive nature of the work.

However, these wages had a minimum threshold related to the basic living costs. No one would work for wages that couldn’t cover their basic needs, so production costs were closely tied to food prices.

For instance, when a poor harvest affected not only grains but also cotton, the price of cotton soared, impacting the cost of industrial raw materials linked to agriculture.

Since food and clothing were essential, the state of agriculture influenced overall living costs and inflation.

Thus, a good harvest led to a general decline in prices.

Furthermore, the Ministry of Taxation’s year-end accounts showed that revenue had surpassed 20 million jeon. This increase was primarily due to the introduction of customs and consumption taxes on luxury goods.

With such positive indicators, both the populace and the court began to feel more at ease.

From the fall harvest of the previous year through the winter, impoverished debtors, mainly recruited from Chungcheong Province, had been gathered and prepared.

They had been trained, fed, and educated, learning how to organize themselves, use firearms and crossbows, and defend fortresses. Leaders were selected to take responsibility for various aspects of the resettlement process.

Local support systems had also been identified, ensuring that there were enough resources and locals to assist the settlers.

This method was far more organized and meticulous than the haphazard way European settlers first colonized the Americas.

Barring any unforeseen extraordinary variables, there would be no mass starvation.

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Meanwhile, progress was also being made in the south.

Negotiations with the Ouchi clan were proceeding smoothly.

The treaty Gyeongsik envisioned was almost entirely applied, resembling a reverse version of the Treaty of Ganghwa.

Although they couldn't adopt the phrase "Joseon is an independent nation with equal rights as Japan," they agreed that the Ouchi and Joseon's Ministry of Rites would negotiate as equals.

While there would be no restrictions on the number of ships, the privileges and hospitality previously extended at Dongpyeonggwan were significantly reduced.

They would not provide free provisions to Japanese merchants but wouldn't restrict food trade either.

“What is this registration certificate? And what about the bill of lading?” asked the Ouchi representatives.

“The registration certificate is related to the ship’s registry, carried by the ship owner…”

Upon hearing the explanation, the Ouchi were pleased with their decision to trade with Joseon.

In a time when trade often involved piracy, Joseon’s transparency in documenting ship and cargo information was admirable, almost too good to be true.

In appreciation, the Ouchi offered to allow Joseon forces to use their ports while attacking Tsushima, under the guise of support.

In reality, Tsushima was a vassal of the Shooni clan, rivals of the Ouchi. Allowing Joseon to attack Tsushima benefited the Ouchi by removing a threat and a barrier to their trade with Joseon.

Kim Yul, the official in charge of negotiations with the Ouchi, was aware of this but readily agreed.

“Very well. As promised, we will pay for provisions in Hakata with our new currency.”

Joseon’s interest in Tsushima had waned. Previously, it served as a stopover point for Joseon's ships, but now, Hakata was easily reachable.

Moreover, the king’s goal was to engage directly with individual Japanese provinces, eliminating the need for intermediaries like the Tsushima lords.

Most of the trade ships coming from Japan were from Hakata, with the Tsushima lords merely acting as customs agents, collecting fees and engaging in illegal fishing and piracy.

With the king’s directive, the Haedong Jeguksa was ordered to devastate Tsushima’s coasts, preventing future piracy.

The Haedong Jeguksa, made up of hastily trained civilians, were to stick to coastal raids to avoid land battles, where they might lose.

Though some members of the Haedong Jeguksa, motivated by greed, occasionally landed to seize valuable items (including people) and were sometimes ambushed and killed.

Nonetheless, the operation left Tsushima’s coast desolate, with no villages or boats, forcing the residents to starve in the forests.

The negotiations between Joseon and the Ouchi concluded satisfactorily, with both sides believing they had secured favorable terms.

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The Ryukyu expedition also progressed well.

An analysis of the initial expedition led by Choi Maldong revealed that the presence of experienced sailors, who were unfamiliar with Choi, had caused discipline issues.

For the next expedition, most crew members were selected from those familiar with Choi, with only a few experienced sailors acting as deputy officers.

Additionally, Yu Pyo, a Confucian scholar who had effectively managed the crew during the first expedition, was promoted by two ranks and reassigned to the next ship.

Choi was given limited authority to enforce discipline, subject to the agreement of two Confucian scholars on board—one maintaining the log and the other acting as a legal officer.

This revised organization proved effective. The second expedition successfully charted a course to Taiwan and opened Satsuma to trade without firing a single cannon.

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However, the opening of Satsuma was unique.

“You’ve come from Joseon? I’ve been interested in Zhu Xi’s Confucianism since my youth. I’ve heard it’s flourishing in Joseon. Can you send us your classics?” asked the lord of Satsuma, showing a genuine interest in Confucianism and keen to establish trade relations.

Gyeongsik, who assumed the Japanese were still predominantly Buddhist, was surprised.

Upon hearing this, the scholars at the court and Sungkyunkwan were delighted, urging the king to send the classics to maintain friendly relations.

Gyeongsik also saw it as an excellent opportunity.

Like missionaries investigating local conditions before full-scale entry, this was a strategic approach.

Though Confucianism did not engage in missionary work, this was an unexpected yet beneficial outcome.

Initially planning to introduce the Japanese daimyos to the future knowledge of Japan, such as the koku-daka and land surveys, Gyeongsik adjusted his plans for Satsuma.

The koku-daka system, similar to Joseon’s Daedong Law, unified tax collection based on rice.

Both Daedong Law and koku-daka facilitated the development of commerce by standardizing tax collection, leading to urbanization and economic growth.

The samurai class, receiving salaries in rice, sold it in the market, which boosted urban trade, allowing Japan to achieve high urbanization rates by the 18th century.

This structure enabled Japan to develop sophisticated financial systems, like the rice futures market, during the Edo period.

Why help Japan with such advanced systems?

Because Joseon would be the one supplying the money.

Conversely, Joseon would purchase rice from Japan.

The koku-daka system ensured rice farming’s dominance, forcing farmers to continue cultivating rice despite its low relative value as the economy diversified.

As the economy advanced, the value of rice declined, causing chronic fiscal shortages for the samurai and the shogunate, a problem not resolved until the Meiji Restoration and the adoption of British land tax systems.

While innovative at the time, both the Daedong Law and koku-daka had underlying flaws that only Gyeongsik and a few officials understood.

Excited to introduce this system to the Ouchi, Gyeongsik received a peacock as a gift in gratitude but declined the unnecessary bird.

Instead, he decided to introduce Satsuma to the Confucian economic system rooted in ancient Zhou dynasty tax principles.

Officials were shocked at the king’s plan to teach Satsuma the outdated and inefficient tribute system, which had caused many problems in Joseon.

“But can Satsuma handle the corvée system amid their ongoing conflicts? Our tribute system, based on Tang law, failed even in our peaceful country,” they argued.

Understanding the need for rice and recognizing Japan’s frequent conflicts, the officials disagreed with Gyeongsik’s plan.

Gyeongsik’s attempt to trap Satsuma with an inefficient economic system was thwarted by the ethical Confucian officials.

Satsuma was poised to offer valuable sulfur and copper at lower prices, making the missed opportunity even more regrettable.

“Then we’ll establish an agreement similar to the one with the Ouchi and send Confucian scholars to teach and oversee the education,” Gyeongsik concluded.

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The Ryukyu expedition had other successes as well.

The Ryukyu Kingdom served as a trade hub connecting Southeast Asia, Japan, and China.

During their trade activities, Choi Maldong’s fleet interacted with Southeast Asian traders, who expressed interest in Joseon.

“For the first time in a century, we have contact with Southeast Asian countries,” they reported.

While Gyeongsik didn’t recognize the names due to the Chinese transliterations, he knew the countries they referred to.

Somnath (暹羅) was Siam, which would later become Thailand, and Balni (渤泥) was the flourishing Sultanate of Brunei.

Through the triple translation from Chinese, Ryukyu, and Japanese, the original names had been lost, confusing Gyeongsik.

Had he recognized the names, he would have immediately pursued trade, given his knowledge of Southeast Asian history.

At this time, Southeast Asia was a major maritime trade network connecting India and China, with various states vying for dominance.

Their advanced navigation skills would soon astonish arriving Europeans.

Their large ships, known as jong, were much larger than Joseon’s vessels, and their navigational techniques were far superior.

To advance Joseon’s maritime technology and prepare for potential conflicts with the Portuguese, establishing ties with Southeast Asia was crucial.

However, Joseon wasn’t about to welcome these new contacts without caution, recalling past experiences with false envoys during King Seongjong’s reign.

“The relationship between Somnath and our country has been dormant for a century. It’s suspicious that they would claim to visit us through Ryukyu. They might be impostors,” officials speculated.

Agreeing with this cautious approach, Gyeongsik acknowledged the need for further information before welcoming Southeast Asian envoys.

“There’s much we don’t know about the southern nations. Next time, we should establish a post in Ryukyu, with officials stationed there to handle relations with the southern countries,” he decided.

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Overall, despite some setbacks in his plans for Japan, Gyeongsik found most developments to be progressing well.

While the operations in Haerangdo revealed hidden complexities, such problems were typical in a pre-modern context.

Considering his newly gained financial leeway, Gyeongsik began planning investments to boost domestic production, exploring ways to promote cotton cultivation in the south, establish pastures in the north, and disseminate flax nationwide.

However, the relative calm of five months made Gyeongsik anxious, as he had grown used to the unpredictable actions of Joseon’s populace.

“Something significant is bound to happen soon…” he mused.

Gyeongsik’s instincts were correct, as unforeseen events were about to unfold, challenging his influence over East Asia.

Footnotes:

*1: During the period depicted in the story, the lord of Satsuma, Shimazu Tadamasa (島津忠昌, May 21, 1463 - March 16, 1508), showed great interest in Neo-Confucianism, laying the foundation for the Satsunan school of Confucianism that continued into the Edo period. This interest led him to attempt trade with both Ryukyu and Joseon, although it seems that Joseon did not recognize these efforts significantly.

*2: Joseon's public tribute system claimed to follow Tang Dynasty laws, but in reality, the "jo" (調) in the Tang system referred to textiles rather than local specialties. In ancient Japan, which also adopted Tang Dynasty laws and achieved centralization, "jo" similarly referred to textiles. While it's unclear if the pre-Joseon dynasties in Korea did the same, they likely followed Tang laws. Both China and Japan transitioned to tax systems based on currency once the Tang system collapsed—China with the Two-Tax System (兩稅法) and Japan with the Kanko system (貫高制).

Records from the late Goryeo to early Joseon periods show that Goryeo also began collecting most taxes in cloth in regions where transporting local specialties was difficult. During King Taejong's reign, efforts to reform the tax system saw the failure of the Jeohwa policy but succeeded in establishing the tribute system through public ledgers, thus forming a system based on collecting local specialties. By King Sejo's reign, substitute payments were prevalent, which Sejo considered formalizing, but King Yejong strongly prohibited it, and King Seongjong aimed to reduce the burdens of tribute. However, the tribute burden during King Seongjong's reign was deemed unsustainable for the government by King Yeonsangun, leading to increased tribute demands and the continuation of substitute payments as an underground economy.

Korea's notably delayed adoption of currency is often seen as a challenge, but the period's strong administrative power allowed for collecting tribute in kind. Even with administrative gaps leading to an underground economy, Joseon's persistent in-kind tax system is a unique historical case.