Black Corporation: Joseon
Chapter 171

Certainly, there was the issue of a 10% deduction when exchanging banknotes for physical silver. However, King Sejong acted swiftly upon learning of the popularity of Joseon’s banknotes in Ming China. He sent envoys to the Ming emperor towards the end of the Giyu year.

After the establishment of the joint trading company, the Ming emperor treated envoys from Joseon with great hospitality. Thanks to this, the newly dispatched envoys were quickly granted an audience with the emperor.

“What brings the ambassador from Joseon again so soon after your last visit?”

“Your Majesty, I come with an important matter to discuss, if I may…”

Through this audience, the Joseon envoys managed to obtain a decree from the Ming emperor stating that “in matters concerning Joseon’s currency, Joseon’s laws shall be followed.”

The Ming emperor’s consent wasn’t just out of favor for Joseon. He had his own calculations.

“Merchants are quick to see profits and avoid losses. With this decree, they will never willingly hand over silver to Joseon.”

At the emperor’s words, his chancellor bowed deeply.

“Your judgment is truly wise, Your Majesty.”

With this decree from the Ming emperor, the response in Ming China was relatively calm. There was no issue as long as they didn’t exchange the banknotes for physical goods.

In Japan, the response was even more enthusiastic.

* * *

At that time, only Ming China had the technology to refine high-purity silver. However, Hyang’s intervention introduced a variable.

“What was it… the cupellation^[1] method?”

Thanks to Hyang, Joseon could produce silver of a purity comparable to Ming’s, more easily. The cupellation method Hyang verified was more productive than the amalgamation method used in Ming at the time.

However, due to the significance of this technology, neither Ming China nor Joseon shared the cupellation or amalgamation methods with Japan.

Consequently, the silver ingots produced in Japan had lower purity. Therefore, when trading with Japan, Joseon usually demanded high-quality silver from Ming. If not, three nyang of Japanese silver was valued as one nyang in Joseon, and this rate was officially recorded.

For instance, the ‘500 kan of silver (about 1.87 tons)’ recorded as the official price for the Tripitaka Koreana sold to Japan by Hyang was the final amount converted into Joseon silver. In reality, Japan had paid with 1,500 kan of their lower-purity silver.

Given these circumstances, Joseon’s ‘one nyang’ silver banknotes became an optimal tool for trade and wealth accumulation for Japanese merchants.

Japanese merchants commonly loaded their ships with silver ingots, exchanged them for Joseon’s banknotes upon arrival, and this practice became routine.

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

* * *

Japan wasn’t the only country exchanging silver for banknotes.

Merchants from Ming China also brought silver to the trading ports in Shandong, exchanging it for Joseon’s banknotes.

At Joseon’s trading ports, the purity of the silver brought by the merchants was meticulously inspected, and only exchanges for high-quality silver were accepted. The exchange wasn’t immediate; the silver had to arrive in Joseon and be verified before the newly printed Joseon banknotes were shipped back to Shandong and handed over to the merchants.

This stringent process ensured that only high-quality silver was accepted in exchange for the banknotes, maintaining the integrity and value of Joseon’s currency in international trade.

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

“Joseon’s officials don’t take bribes!”

“If we send 10 nyang of silver, we exactly get 10 banknotes in return!”

Such positive reputations bolstered the trust in Joseon’s banknotes, attracting more Ming merchants to bring silver to Shandong.

The remarkable aspect was that this surge in trade happened within just a few months, from the fall of Giyu year to the spring of Kyungshul year.

* * *

As substantial amounts of silver began flowing in from Ming China, Kim Jeom rushed to report the situation to King Sejong.

“Your Majesty, a significant amount of silver is coming in from Ming China.”

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

At King Sejong’s query, Kim Jeom elaborated in greater detail.

“The amount has exceeded our expectations. Until last month, it was 50,000 nyang of silver, but this month it’s nearing 1 million nyang.”

“1 million nyang!”

King Sejong was visibly shocked at Kim Jeom’s report, and so were the ministers. According to a recent report from the Ministry of Taxation, the total value of wealth circulating in the entire Joseon Dynasty, converted to silver, was about 2 million nyang (Note 1).

In simple terms, it meant that half the circulating wealth of the entire Joseon Dynasty was being imported.

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

Faced with an unexpected scenario, King Sejong was more worried than pleased. At King Sejong’s reaction, minister Jo Mal-saeng immediately responded.

“Traditionally, it is said that ‘more is better,’ so isn’t this a good thing? We just printed a few sheets of paper, and in return, a vast wealth is coming in. Isn’t this a cause for celebration?”

Jo Mal-saeng’s optimistic view was immediately countered by Kim Jeom.

“But there’s also an old saying, ‘too much is as bad as too little.’ And just a few sheets of paper? Do you understand the value and effort behind those banknotes?”

This marked the beginning of a heated debate.

The ministers engaged in a fierce argument over whether the influx of large amounts of silver from Ming China was beneficial or detrimental. A notable difference from past debates was the absence of personal attacks involving each other’s parents. Instead, they now attacked based on the other’s ranking in past civil service exams.

Eventually, King Sejong had to intervene.

“Enough! What disgraceful behavior! Are we here to solve the problem or to boast about ourselves?”

At King Sejong’s reprimand, the ministers immediately bowed.

“We apologize for our behavior!”

“Please forgive our disgraceful conduct!”

“Tsk!”

King Sejong, displeased, commanded the high official.

“Go and summon the Crown Prince!”

“Yes, Your Majesty!”

Meanwhile, a historian seated in a corner of Geunjeongjeon diligently recorded everything.

—As the ministers’ debate intensified, the King halted their arguments and called for the Crown Prince.

The historian noted:

—The ministers have served in their positions for decades, and in terms of scholarship, they are among the most respected in Joseon.

Yet, whenever a complex issue arises, they struggle to find solutions, often relying on the Crown Prince, who has just reached adulthood. This is problematic.

I, too, wish to amass a stack of banknotes. The salary of this low-ranking official is too meager.

* * *

“The situation is a crisis, a major one at that,” declared Hyang, who had hurried over after being summoned. His expression turned serious after hearing the explanation of the problem.

“Why so?” asked King Sejong.

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

“Ming.”

“And between Ming, Joseon, and Japan, where is silver most needed?”

“Ming…”

As King Sejong responded, he trailed off, his face growing grave.

“This is a disaster of the highest order!”

“Exactly.”

Hyang and King Sejong’s exchange left the ministers muttering to themselves.

‘Here they go again with their cryptic exchanges!’

‘Do they think they’re the only ones who need to understand?’

Finally, Minister Heo Jo stepped forward as a representative to ask for clarification.

“Your Majesty, why is this situation a disaster?”

With a look of frustration, King Sejong turned to Hyang.

“Crown Prince, explain.”

“Yes, Your Majesty. Your Excellency.”

“Yes, Your Highness.”

“Do you remember what I once said? ‘No one likes it when the wealth from their own granary is taken by others.’ That’s what I’m referring to.”

“Remember when I mentioned that no one likes to see their wealth being taken away by others? The same principle applies here. Do you think Ming would be pleased with their silver flowing out of the country?”

“That makes sense.”

“But even if the Ming emperor doesn’t object and lets it happen, it poses a problem for us.”

“Why is that?”

“Because Joseon simply doesn’t have the capacity to absorb all this silver.”

At this point, Heo Jo raised an objection.

“We have many plans that were delayed due to funding issues. With this influx of funds, we can execute those projects and increase Joseon’s capacity to utilize the resources, can’t we?”

“Your point has merit. However, the silver currently entering our country is ours but also not ours.”

“What do you mean?”

Heo Jo looked perplexed, and he wasn’t alone. Seeing the confused faces of the other ministers, Hyang sighed.

“Sigh… Your Excellency.”

“Yes, Your Highness.”

“Imagine we start using this silver for various projects, and suddenly, a large group of Ming merchants comes demanding to exchange their banknotes for silver. What would we do then?”

“Could such a situation really happen?”

At Heo Jo’s question, Hyang responded decisively.

“‘Unlikely’ scenarios have a way of catching people off guard.”

Hyang internally recalled the IMF crisis, a stark reminder of the unpredictable nature of financial markets.

* * *

In 1997, the financial instability triggered in Southeast Asia severely impacted South Korea. When the Korean capital market showed signs of instability, Japan was the first to pull out its funds, followed by other Western capital investors.

As a result, South Korea had to seek assistance from the International Monetary Fund (IMF).

The support from the IMF led to a harrowing experience for Koreans. Stable companies collapsed, and the middle class was decimated.

The trauma of the IMF crisis became deeply ingrained in the Korean psyche, embedding a belief that “we are not a developed country.” This mindset persisted even during the global pandemic of 2020. Despite Korea’s commendable handling of the situation and international praise, many Koreans felt perplexed rather than proud.

The common sentiment was, “Koreans undervalue themselves,” but even this recognition was met with skepticism by many Koreans.

In this context, Japan’s ongoing anti-Korean sentiment seemed almost natural to the wary Korean public.

* * *

Taking a moment to gather his thoughts, Hyang continued.

“Grain or rice can be re-cultivated annually. Cotton and hemp are similar. Even timber, though it takes time, can be regrown from saplings. But gold and silver are different. They aren’t unlimited; they have an end. Right now, Ming produces the most silver, but that supply isn’t eternal, is it?”

“That’s true,” agreed Heo Jo and the other ministers, nodding in understanding.

“If we use the influx of silver for various projects, it might seem easy and fast. But that’s just superficial growth. A hollow husk without substance is like a barren cob of corn – it’s inedible. We need to balance both the external and internal growth.”

The ministers all nodded in agreement with Hyang’s explanation.

After a brief silence, King Sejong spoke.

“We must send an envoy, then?”

At King Sejong’s suggestion, Hyang nodded.

“Yes. We should propose to Ming to create and circulate their own banknotes. If we don’t handle this carefully, it could lead to a military conflict with Ming.”

‘I regret giving up the position of a key currency, but Joseon is still too small for that role.’

“That seems best,” King Sejong concurred, but then Jo Mal-saeng interjected.

“Should we apply the same method for the silver coming from Japan?”

Hyang shook his head.

“No. The silver from Japan is in smaller quantities and lower in purity. It requires further processing by us, so it’s harmless to let it be.”

“But Japan might also react negatively.”

“There’s a sea between Joseon and Japan, and our navy guards that sea,” Hyang pointed out, emphasizing Joseon’s maritime strength and strategic advantage.

Understanding the strategic importance of Joseon’s navy in controlling the waters between Joseon and Japan, Jo Mal-saeng finally nodded in agreement. Hyang internally grumbled about the minister’s delayed comprehension.

‘Maybe he should be reassigned to the record-keeping office?’

Ultimately, the assembly decided on the composition of the emergency diplomatic mission to Ming.

* * *

“…So, you’ll be the chief envoy to Ming. You’re the most knowledgeable about the banknotes, aren’t you?” Kim Jeom addressed the Vice Minister of the Ministry of Taxation.

The vice minister expressed his displeasure, “Isn’t lord excellency more knowledgeable about banknotes than I am? I’m already swamped with work. Why me?”

Kim Jeom replied calmly, “I need to stay here to oversee the unfolding events, don’t I? Besides, at my age, should I be traveling all the way to Beijing?”

The vice minister grumbled internally, ‘Unbelievable! We’re both getting old, and yet he pulls this!’

“As soon as the diplomatic mission is assembled, the Crown Prince will give a special lecture. Make sure to prepare well.”

“…Yes.”

“And when you’re in Beijing, take the opportunity to indulge in all the healthful delicacies they have. It might do you some good.”

The Vice Minister almost choked in frustration.

* * *

Note 1: The tax revenue list mentioned in Chapter 168 is a fictional estimate based on the author’s imagination.

1. Cupellation is known as a process where ores are treated under high temperatures and controlled operations to separate noble metals i.e Gold and Silver, from base metals like lead, Copper, Zinc, and others present in the ore.[↩]