Black Corporation: Joseon [EN]: Chapter 171

171. Aftermath and Currency (6)

Of course, there was the issue of a 10% fee being charged for physical exchanges.

However, after learning that paper money was popular in the Ming Dynasty, Sejong acted swiftly and sent an envoy to the Emperor at the end of the Giyu year.

Since the establishment of the joint trading company, the Ming Emperor had been treating Joseon’s envoys generously. Because of this, the newly dispatched envoys were able to meet with the Emperor promptly.

“The winter solstice envoy came and went not long ago, so what brings you here again?”

“Your Majesty, I apologize for the intrusion, but in truth…”

Through the audience with the Emperor, the delegation secured an imperial edict stating, ‘Joseon’s laws shall govern Joseon’s currency.’

Of course, the Emperor didn’t grant this favor simply out of goodwill towards Joseon.

“Merchants are quick to calculate profits and never accept losses. Hearing this edict, they will never hand over silver to Joseon.”

The Chief Secretary of the Cabinet bowed his head at the Emperor’s words.

“Your judgment is truly wise, Your Majesty.”

The response from the people of Ming to this imperial edict was muted, as it wasn’t an issue as long as they didn’t exchange it for physical silver.

The attitude of Waegu (Japan) was even more proactive than that of Ming.

* * *

At that time, only Ming possessed the technology to refine high-purity silver. However, Hyang’s involvement introduced a new factor.

“What was it called again… the Yeon-eun method, was it?” [Yeon-eun method: A silver refining technique.]

Thus, thanks to Hyang, Joseon was able to produce silver of comparable purity to Ming more easily. The Yeon-eun method, proven by Hyang, was more productive than the cupellation method [cupellation method: another silver refining technique] used by Ming at the time.

However, due to the importance of this technology, neither Ming nor Joseon shared the Yeon-eun or cupellation methods with Waegu.

As a result, the silver ingots produced by Waegu were of lower purity. Therefore, Joseon demanded Ming’s pure silver whenever possible when trading with Waegu. Otherwise, Joseon calculated three *nyang* [nyang: a unit of currency] of Waegu silver as one *nyang*, and this was applied in official records.

For example, in the case of the Tripitaka Koreana [Tripitaka Koreana: a collection of Buddhist scriptures] that Hyang had previously sold to Waegu, the ‘500 *gwan* [gwan: another unit of currency] of silver (approximately 1.87 tons)’ recorded in official records was the final amount converted into Joseon silver, and what Waegu actually paid was 1,500 *gwan* of Waegu silver.

In this situation, Joseon’s ‘one *nyang* of silver’ banknotes were the best means of trade and wealth accumulation for Waegu merchants.

It became commonplace for Waegu merchants to load their ships with silver ingots and enter Joseon to exchange them for banknotes.

In this way, Joseon’s banknotes were becoming the official trading currency of the three Northeast Asian countries.

* * *

It wasn’t just Waegu that was loading silver and exchanging it for banknotes.

Merchants from Ming also brought silver into Joseon through the trade office in Shandong and exchanged it for banknotes.

At Joseon’s trade office, the purity of the silver brought by the merchants was thoroughly investigated, and only genuine pure silver (*cheon-eun*) was accepted for exchange. The exchange wasn’t done on the spot either. Only after the silver on the ship arrived in Joseon and was verified were newly printed banknotes sent by ship to Shandong and handed over to the merchants.

Although it took time, the merchants of Ming were satisfied.

“Joseon officials don’t accept bribes!”

“If you send 10 *nyang* of silver, you get exactly 10 banknotes!”

As these rumors spread, confidence in Joseon’s banknotes gradually increased, and more and more Ming merchants gathered in Shandong with silver.

The problem was that this all happened within just a few months, from the autumn of the Giyu year to the spring of the Gyeongsul year.

* * *

As a large amount of silver flowed in from Ming, Kim Jeom immediately rushed to Sejong to report the situation.

“A lot of silver is coming in from Ming.”

“Didn’t you make the same report recently?”

At Sejong’s question, Kim Jeom explained in more detail.

“The amount coming in has exceeded expectations. Until last month, it was 50,000 *nyang* of pure silver, but this month it’s almost 1 million *nyang*.”

“1 million *nyang*!”

Sejong was greatly surprised by Kim Jeom’s answer. Not only Sejong but also the other ministers were equally surprised.

According to a recent report from the Ministry of Taxation, the total value of goods circulating throughout Joseon was about 2 million *nyang* of silver. (Note 1)

In simple terms, it meant that half of the wealth circulating throughout Joseon was coming in.

“Is this a good thing? Or a bad thing?”

Faced with an unexpected situation, Sejong was more worried than pleased. Jo Mal-saeng responded immediately to Sejong’s reaction.

“Since ancient times, it has been said that the more, the better. Isn’t it a joyous occasion that so much wealth is coming in just by printing a few pieces of paper money?”

Kim Jeom immediately retorted Jo Mal-saeng’s words.

“There’s also the saying that too much is as bad as too little. And a few pieces of paper money? Do you think that paper money is just printed?”

It was the sound of a bell signaling the start of a verbal battle.

A fierce debate ensued on the topic of ‘Is the large influx of silver from Ming a good thing or a bad thing?’ The only difference from the past was that they didn’t ask about each other’s parents.

Instead, they now attacked each other based on their past examination scores.

In the end, Sejong had to step in again.

“Enough! What kind of disgraceful behavior is this! Are you here to discuss solutions to the problem, or are you having a boasting contest?”

The ministers immediately bowed their heads at Sejong’s rebuke.

“We are deeply sorry!”

“Please forgive our disgraceful behavior!”

“Tsk!”

Sejong clicked his tongue with a displeased expression and ordered the head eunuch.

“Go and summon the Crown Prince!”

“Yes, Your Majesty!”

Meanwhile, the historian sitting on one side of Geunjeongjeon Hall [Geunjeongjeon Hall: the main hall of Gyeongbokgung Palace] recorded all of this without omission.

-Thus, as the ministers’ debate intensified, His Majesty stopped them and summoned the Crown Prince.

The historian says:

The ministers have been in office for decades and are among the most learned in Joseon.

However, it is problematic that they cannot easily find answers when even a slightly difficult problem arises and have to rely on the Crown Prince, who has just come of age.

I also want to live with a pile of banknotes. Lower-ranking officials are poorly paid.

* * *

“It’s a disaster. A very big disaster.”

Hyang, who had rushed over after being summoned, immediately wore a serious expression after hearing the explanation of the problem.

“Why is that?”

At Sejong’s question, Hyang asked back.

“Your Majesty, which country among Joseon, Ming, and Waegu produces the most silver?”

“Ming.”

“Then, which country among Ming, Joseon, and Waegu needs the most silver?”

“Ming…”

Sejong, who was answering Hyang’s words, couldn’t finish his sentence and wore a serious expression.

“This is a disaster among disasters!”

“That’s right.”

The ministers grumbled inwardly at the conversation between Hyang and Sejong.

‘It’s starting again! Their own riddle!’

‘Is it over if only they know?’

In the end, Heo Jo stepped forward as a representative and remonstrated.

“Your Majesty, why is it a disaster?”

“Tsk!”

Sejong clicked his tongue with a dissatisfied expression and turned to Hyang.

“Crown Prince, explain it.”

“Yes, Your Majesty. Minister.”

“Yes, Your Highness.”

“Do you remember what I said before? ‘No one likes others taking the wealth from their own storehouse.'”

‘When did you say that? How can we still remember! It must be nice to be so smart!’

While grumbling inwardly, Heo Jo bowed his head.

“Ah! I remember!”

“This is the same situation. Do you think Ming will like it if their silver flows out?”

“That’s true.”

“Even if the Emperor doesn’t find fault and allows it, it will be a problem for us.”

“Why is that?”

“Our Joseon doesn’t have the capacity to digest it.”

At those words, Heo Jo raised an objection.

“There are more than a few things that have been planned but postponed due to funding problems. But if this money comes in, we can carry out those projects and increase our Joseon’s digestive capacity, can’t we?”

“Of course, there is some truth to that. However, the silver that is coming in now is ours, but it is also not ours.”

“Yes?”

Heo Jo wore an expression that he didn’t understand. No, not only Heo Jo but all the ministers wore similar expressions, and Hyang sighed.

“Hoo~. Minister.”

“Yes, Your Highness.”

“If you are carrying out projects while consuming that silver, what will you do if the merchants of Ming suddenly flock in, hand over their banknotes, and ask to exchange them for silver?”

“…Do you think such a thing will happen?”

Hyang answered Heo Jo’s question firmly.

“You never know what might happen.”

‘The IMF grabbed people like that!’

* * *

The instability of the capital market that started in Southeast Asia in 1997 hit Korea hard. As Korea’s capital market also showed unstable movements, the damned Japan was the first to withdraw funds, followed by other Western capital also withdrawing their investments in droves.

Thanks to this, Korea had to request support from the IMF [International Monetary Fund].

Receiving support from the IMF, Koreans experienced rock bottom. Decent companies collapsed, and the middle class collapsed.

This IMF trauma was later imprinted on the DNA of Koreans, and they lived with the belief that ‘We are not a developed country.’

This way of thinking of Koreans was the same even in the global pandemic that occurred in 2020. Because they showed better results than other countries – especially developed countries – many countries praised them, but quite a few people were more bewildered than pleased by the situation.

There was talk that ‘Koreans underestimate themselves too much!’ but Koreans who heard such words were rather suspicious.

“What are these guys up to?”

In the eyes of Koreans filled with suspicion, Japan, which continued to hate Korea, was rather natural.

* * *

Hyang, who had taken a moment to catch his breath, continued to speak.

“Rice and grain can be replanted and harvested again next year. The same goes for cotton and hemp. Timber also takes time, but seedlings can be grown and harvested again. But gold and silver are different. They are not infinite. They are things that must have an end. Looking at the current situation, Ming is producing the most silver, but that silver is not coming out forever, is it?”

“That is not the case.”

Heo Jo and the ministers nodded at Hyang’s words.

“If we release the silver that is flocking in now and proceed with the work, it will be fast and easy. But this is only growing the outer shell. If only the shell is large and the inside is empty, it is just chaff that cannot be eaten. Right now, we are in a situation where we have to balance and grow both the outside and the inside.”

The ministers all nodded at Hyang’s words.

A moment of silence passed, and Sejong opened his mouth.

“I guess we’ll have to send an envoy?”

Hyang nodded at Sejong’s question.

“Yes. Proposing to Ming to create and circulate Ming’s banknotes is the best policy for now. We might end up in a military conflict with Ming if we do it wrong.”

‘It’s a bit of a shame to give up the position of the key currency. But Joseon is still too small.’

“I guess so.”

As Sejong nodded at Hyang’s words, Jo Mal-saeng interjected.

“Then should we take the same approach with the silver coming in from Waegu?”

At those words, Hyang shook his head.

“No. The amount of silver coming in from Waegu is small, and the purity is low, so we have to process it once more with our own hands, so it’s okay to just leave it alone.”

“But there may be a backlash from Waegu.”

“Isn’t there a sea between Waegu and our Joseon? And our Joseon’s navy is protecting that sea.”

“Ah….”

At Hyang’s words, Jo Mal-saeng nodded his head greatly. At that sight, Hyang grumbled inwardly.

‘Should I send that old man back to the records office?’

In the end, the composition of the delegation to be sent urgently to Ming was decided.

* * *

“…So I want you to take on the role of chief envoy to Ming. You know the most about banknotes, don’t you?”

At Kim Jeom’s words, the Vice Minister of Taxation complained.

“The Minister of Taxation knows more about banknotes than I do, doesn’t he? I’m busy right now, so why me?”

Kim Jeom answered calmly at the Vice Minister’s words.

“Don’t I have to stay here and take command of the urgent matters? And at this age, should I go to Beijing?”

The Vice Minister grumbled inwardly at Kim Jeom’s words.

‘Damn it! You’re being too much in the same boat!’

“The Crown Prince will be giving a special lecture as soon as the delegation is formed, so prepare well.”

“…Yes.”

“There are many good things for the body in Beijing, so get some and take care of yourself.”

“Crunch!”

* * *

Note 1) This is a fictional figure with the author’s imagination based on the income list written in episode 168.