Sprouting and Growth (10)
Yi Yeon had too many complaints about the Joseon tax system.
“I was born, not because I wanted to be born, and the fact that I was born isn’t a crime, so why is the first thing they do is collect taxes?”
The main taxes in Joseon were land taxes on paddy fields and dry fields, which carried little injustice.
But the forced labor of corvée workers and the household-assigned public labor that felt like a poll tax caused serious problems.
‘That’s why the Daedong Law earned praise.’
The Daedong Law was the groundbreaking tax reform that abolished corvée labor’s abuses. It graded taxes by the size and fertility of land rather than people, and it had been widely lauded.
‘Still, corvée labor didn’t disappear.’
The poll tax, levied regardless of income, stirred social discontent and gave birth to the phrase “it’s a crime to be born.”
So he had decided to abolish corvée labor.
‘But to do that, he needed to develop commerce.’
He couldn’t simply abolish corvée labor; the country might collapse. Insufficient tax revenue would paralyze administration.
That was why he had decided to develop commerce to make up for the shortfall.
Only by buying and selling goods would profit arise and taxes be generated.
But corvée labor forced people to hand over their entire produce as tax to the state, which stifled commercial development.
‘If I just leave corvée labor alone, no additional tax revenue will come anyway.’
So he started by abolishing it.
Even that alone would let commerce develop naturally.
He also planned to attach taxes to income.
That was why he had instructed the spread of the phrase “pay taxes or you can’t take the civil service exam.”
Because so many people with income still refused to pay.
Yet the reaction was hotter than hot—it was scorching.
“Damn bastards.”
Memorials against it were still pouring in endlessly.
“It’s unjust!”
The managers of the Royal Secretariat and the Office of the Censors had no rest.
They were being used as torches to burn up those endless memorials.
“This one’s tax-poor…”
When tax revenue increased, the country’s economy would flourish.
Thieves would still eye the royal coffers, but even so, the process of collecting and spending taxes would activate the economy.
Last year’s tax intake had been pitiful.
Even after a good harvest.
‘Less than the taxes I paid alone in my past life.’
He had transferred most of his property to a living trust to avoid the hassle of managing it, so he didn’t know how much he had paid anyway.
Anyway.
In his past life, during middle school, there had been a social-studies and history teacher.
He often hosted drinking parties.
He worked for a large corporation.
After retirement, when he couldn’t find a regular job, he became a substitute teacher.
Kim-sensei, same situation, same period as a substitute, similar age—easy to become close.
*
“Sensei, why are you doing this job? I heard you’re the youngest in a successful family.”
“I’m bored.”
“That’s nice. I’m just trying to eat and live…”
“So I buy drinks for you.”
“Thank you. Thanks to Sensei, I’m drinking marinated beef and makgeolli.”
Kim-sensei had said that after retirement he was scammed out of all his retirement pay.
That was why his words always ended with accumulated resentment.
Still, it was refreshing to see him reflect on himself and say it was his own greed that caused the trouble rather than blaming others.
“By the way, do you know why Joseon declined?”
“How would I know that?”
“I read alternative-history novels whenever I get a chance, so I thought I knew.”
“I just read them because they’re fun.”
“Exactly. Fun is the most important thing. But if you knew the inner workings, it would be even more interesting.”
According to him.
Joseon’s commerce had developed rapidly after the Imjin War and the Byeongja War.
“After two wars everything was ruined, but during recovery and reconstruction commerce flourished.”
“How? There was nothing to eat.”
“Didn’t they introduce the transplanting method?”
“Ah…”
“Introducing transplanting was a masterstroke. Without it, many would have died.”
“That’s true.”
“And when corvée labor was abolished and the Daedong Law enforced, Joseon’s commerce began to develop rapidly.”
“Really?”
Yi Yeon tilted his head; he couldn’t find the connection.
Then Kim-sensei grinned.
“Do you know what gongan is?”
“Yes, I know that much.”
“The people who appeared after corvée labor was abolished were called gongan, and they developed commerce.”
“Gongan?”
“Don’t you know?”
“Aren’t they people who work in offices?”
“Hmm… you could say that, but more precisely they are merchants who deal with the government.”
Instead of corvée labor, they supplied provisions to the royal family and court, and they were called gongan using the character for “tribute.”
“During the process of buying goods and delivering them, Joseon’s commerce began to develop rapidly. They also accumulated capital. With that capital they became doja who controlled artisans or became private merchants.”
“Ah… I see. Then what is a private merchant?”
“Do you know about the money-soak monopoly rights?”
“Roughly.”
“After the disasters, when disorderly commercial activities ran rampant, the court granted the gongan exclusive rights to monopolize certain businesses.”
“So that was the money-soak monopoly rights?”
“Exactly. Those who held those rights were called private merchants.”
“Ah…”
The private merchants centered in Hanyang grew branches across regions and eventually dominated overseas trade.
“They were just like trading houses.”
“Correct. We started with trading houses too, didn’t we?”
“That’s right. Then what about doja?”
“Hmm… you don’t need to overthink it. Just think of them as big corporations. They controlled a large number of artisans in various industries and led mass production.”
“Ah…”
The more Yi Yeon listened to Kim-sensei’s story, the more amazed he was.
The history after the disasters and the tragic history after the Six-Year War seemed similar.
“In fact, you could say they drove Joseon’s late period. People with capital were at the heart of the economy, they allied with power, they advanced technology, and they made culture flourish.”
“Really?”
“Yes. Look it up for yourself. You’ll see that the gap between rich and poor widened rapidly because of them.”
It seemed unbelievable, so he pulled out his smartphone and searched.
He was shocked.
The actions of the doja matched exactly what today’s big corporations do.
And the negative image too.
“Hmph… to summarize, thanks to doja and private merchants who started as gongan, late Joseon had developed manufacturing and commerce. As a result, surplus goods accumulated and prices fell, correct?”
“Correct.”
“They also monopolized profits by allying with power?”
“Yes.”
Kim-sensei grinned.
As if he had just recognized the smart student who understood his words immediately.
But Yi Yeon had a doubt.
“Then why did Joseon decline? If commerce and manufacturing kept developing as you said, wouldn’t it have succeeded?”
“It was the harm of monopolies, but I think reckless issuance of currency is what destroyed the country.”
“Currency issuance destroyed the country?”
“Yes. The currency introduced to make tax collection and commercial transactions smooth ended up ruining everything.”
“What?!”
As the scale of industry and commerce grew, demand for coins also increased.
So during King Sukjong’s reign, the paper money issued under the name of Sangpyeong Tongbo was printed endlessly, causing prices to skyrocket and inflation to hit.
As a result silver became the main currency for transactions again, and coins were relegated to a supporting role.
Just like countries that printed money wildly in the twentieth and twenty-first centuries and collapsed.
“Wow, with reckless currency issuance prices soared and the economy fell into chaos—exactly what’s happening now.”
“So historians tell us not to study history, right? Yet history keeps repeating.”
Kim-sensei’s history lesson continued long after that.
Because the more he listened, the more amazed and shocked he was, he bought the best sashimi and lobster at the sashimi restaurant and listened attentively.
*
Because he had heard such stories, Yi Yeon had already abolished corvée labor first.
Even so, in a society with insufficient capital it might be delayed.
So he had ordered his second brother to establish the Joseon Bank.
“Just provide the funds and it will develop on its own.”
As if responding to his words, merchants circulating funds from the Joseon Bank were already recruiting people.
It was a good thing.
With transplanting in full swing, there was surplus labor, and now they were offering jobs.
But already they were scheming to commit fraud.
“As usual, the managers are the biggest problem…”
Since corvée labor had been abolished, the appearance of gongan was inevitable.
They couldn’t buy all the supplies needed by the royal family and court themselves.
Yet memorials accusing them of corruption were rising rapidly.
They claimed the managers were taking bribes and looking the other way.
Because of that, the Royal Secretariat and the Office of the Censors had ground to a halt.
They were also overwhelmed by memorials demanding they stop linking tax payment to the civil service exam.
But when memorials against the managers’ corruption began to increase, they could no longer cope.
“Damn it!”
Instead of fair competition, they were using tricks behind the scenes to snatch delivery rights.
It was something that could happen, and something he had anticipated.
So he had ordered thorough oversight, but it didn’t work.
He couldn’t investigate and punish everyone as the memorials claimed, or administration would completely freeze.
“I’m going crazy.”
He couldn’t move forward or backward in this situation—it felt unbearable.
“So that’s why they issued the money-soak monopoly rights?”
A thousand other thoughts came to mind.
No apparent connection.
Yi Yeon finally called Ho-pan Hongdam after long deliberation.
His reports had revealed these facts.
“I have the honor of reporting to Your Majesty.”
“Yes, have you thought of a solution?”
“I looked for one while coming here, but it seems there is only one answer.”
“What is it?”
“For now, do nothing and simply increase the number of managers.”
“Hmph…”
When Yi Yeon let out a sigh, Hongdam prostrated himself flat.
“I am deeply grieved, Your Majesty.”
“Your fault is not at fault, rise. But are you saying we should just watch them?”
“No, Your Majesty. It is a matter that cannot be resolved immediately, so the suggestion is to observe.”
‘A man who says “just observe” has no equal in terror.’ But the method seemed good.
They couldn’t halt national affairs.
But there was a problem.
“How about the budget?”
“It seems we can borrow from the Joseon Bank.”
“Huh?”
An answer he had never considered.
Issuing currency recklessly could destroy the country, so he had never thought of it.
Yet it seemed possible.
‘That’s why they say experience is important.’
“Explain in more detail.”
“Yes, Your Majesty.”
Hongdam’s plan was almost identical to what the United States had done in the twenty-first century.
Instead of a federal reserve led by private banks, the Joseon Bank owned by the royal family would simply lend money.
“You mean issuing national bonds.”
“If it’s national bonds…”
“Documents that borrow funds from the country and promise to repay them.”
“Ah… yes, Your Majesty. The court cannot increase managers now because tax revenue is insufficient. But if the Joseon Bank helps, that problem can be solved.”
“Then how will you repay?”
“As Your Majesty said earlier, activate commerce and it will work, won’t it?”
“Hmm…”
Lacking experience, he hadn’t considered debt repayment separately.
‘Bonds, for that matter…’
They had built Joseon the way it was—have it or have it not.
But unlimited borrowing was impossible.
Inflation from increased currency would only stir the people’s resentment.
‘It might even collapse.’
But it was fortunate.
The most basic need—food—had been solved.
The number of livestock farms had grown exponentially.
Thanks to that, egg and chicken prices had plummeted.
Moreover, the royal treasury kept swelling from the sales of chicks and feed.
‘If that hadn’t been solved, nothing could have been done.’
In an era when eating and living was the most important thing, if food were scarce, none of this could have been advanced.
Yi Yeon bowed his head and spoke quietly to Hongdam, who was waiting silently.
“Open a major court meeting right away and discuss this issue. Before that, investigate the corrupt managers, record the details, check how many more managers are needed, and report it at the meeting.”
“Yes, Your Majesty.”
“This could be overlooked. But I will not overlook it. If this becomes precedent, it will repeat. So I will send them all to the mines. They must experience hardship there before their spirits can be restored.”
“As Your Majesty commands.”
“So they must be selected generously.”
“I understand, Your Majesty.”
Looking at Hongdam’s worried face, Yi Yeon felt uneasy.
“It would be good if there were only such faithful ministers…”
It was only hope.
No matter how many times he reviewed history or imagined the future, he had never seen such loyalty.
“Even a little is success.”
That was why Yi Yeon worked with Hongdam to create that “little.”