[Korea Root] 'Taejo's Cheondo'... Political Power and Merchant Forces

Published 19 Feb.2022 15:47(KST)

Seoul Relocation... Decline of Goryeo's Powerful Clans and Kaesong Merchants
Gyeonggi-do, Rise as the Center of Joseon Commerce... Sijeon Merchants and Private Traders

Woodblock Map of Hanyang Created by Kim Jeong-ho, 'Suseonjeondo (首善全圖)' [National Museum of Korea]

[Asia Economy Reporter Ra Young-cheol] Taejo, who founded the Joseon Dynasty, relocated the capital in 1394 and forcibly moved the residents living in Gaeseong (Gaegyeong), the former capital of Goryeo, to Seoul.

This was a political decision and a nationwide policy project aimed at dismantling the foundation of the previous dynasty and establishing the groundwork for the new nation.

The wealth and power exercised by the powerful noble families of Goryeo, centered around Gaeseong, were naturally affected by the capital relocation.

The commercial forces in Gaeseong were the strongest base supporting the power of the Goryeo ruling class.

During the Goryeo period, Gaeseong was a large city with a population of hundreds of thousands, serving as the capital and thriving not only in domestic commerce but also in trade with the Song Dynasty of China, Japan, and Arabian countries.

As domestic commerce and foreign trade became linked and the exchange economy developed, the royal family and powerful noble families intervened in commerce, and merchants connected to this privileged class dominated the distribution system.

However, when the new political power forcibly relocated the merchants and residents of Gaeseong to Seoul, the influence of Gaeseong’s merchant forces declined.

In 1399, five years after the capital relocation, the capital was moved back to Gaeseong, and the relocation policy aimed at dismantling the previous dynasty’s economic base slowed down.

But six years later, in 1405, when King Taejong re-relocated the capital to Seoul, Gaeseong’s commercial district was once again driven into decline.

■ Commercial Districts in Gyeonggi Province and Sijeon Merchants

Joseon Peddlers' Accounting Documents [National Museum of Korea]

According to historical records, the Gyeonggi region, through which the Han River and Imjin River flow, was a key point for waterway transportation heading to Seoul.

Songpa and Sapyeong in Gwangju, located in the Han River basin adjacent to Seoul, Baekae Village in Yeoju in the South Han River basin, and Jingpado and Goryangpo in the Imjin River area were representative commercial ports.

Even today, Gwangju in Gyeonggi Province and Songpa in Seoul are considered major transportation hubs with the Jungbu Expressway, Seoul Metropolitan Area Outer Ring Expressway, Gyeongchun Expressway, and Olympic-daero nearby, providing excellent connectivity.

The fishing and salt production areas in the Gyeonggi Bay region, forest product areas in the northeast, and grain production areas along the Han River and plains were all under the influence of these port hubs.

Because of this advantageous location, the ports in Gyeonggi Province emerged as commercial centers.

Many merchants who activated product trading in the Gyeonggi region and linked local markets (jangsi) to the national distribution network were peddlers (bobusang) who had bases throughout Gyeonggi Province.

In the early Joseon period, these merchants, simply called “haengsang” (itinerant merchants), circulated among periodic markets within a certain area, connecting producers and consumers and distributing goods.

They formed merchant associations, organized themselves, and conducted commercial activities under strict regulations; some even operated across nationwide markets.

They also played the role of cultural transmitters by conveying local conditions and information along their routes.

When markets opened in the Gyeonggi region, local goods circulated actively there, inevitably reducing the volume of goods brought into Seoul.

Seoul, as a consumer city, was difficult to sustain without a continuous inflow of goods from outside.

Considering this, the government allowed Gyeonggi residents to bring their products into Seoul for barter or sale.

Heunginjimun Gate in 1919 [Seoul Museum of History]

Additionally, the establishment of markets in the Gyeonggi region was more strictly prohibited than in other regions.

Nevertheless, by the late 16th century, small-scale markets centered on grain, salt, and handicraft product trading appeared.

The Royal Secretariat reported to the king: "We have prohibited the opening of markets in Gyeonggi Province to allow the people of Gyeonggi to bring their local products to Seoul for buying and selling, so that Seoul and Gyeonggi can mutually depend on each other in terms of production, distribution, and consumption. However, recently, markets have been established in the Gyeonggi region, and their number has gradually increased, making the flow of goods to Seoul less smooth than before. Therefore, it seems appropriate to order the Gyeonggi governor to close all markets opened in the Gyeonggi region except for Gaeseong." - 『Annals of King Seonjo』 Volume 129, Year 33 of King Seonjo (1600), September 26

"Geumnanjeon-gwon (禁亂廛權)" was a privilege granted by the state in the late Joseon period to regulate unauthorized markets (ranjeon) and was a special right of sijeon (official markets).

It granted permission to monopolize the sale of certain goods to official markets such as Yukujeon, which had national service obligations.

For the majority of commoners outside the upper ruling class and sijeon merchants, geumnanjeon-gwon was an inconvenient policy.

Sijeon merchants supplied goods needed by the royal family and government offices and, in return, held exclusive rights to sell those goods.

This monopoly on certain goods solidified price control, raising prices and making life difficult for the common people.

Small-scale merchants and unauthorized street vendors (ranjeon) faced difficulties operating, and private handicraft producers were hindered in purchasing raw materials.

The more sijeon merchants wielded geumnanjeon-gwon, the more dissatisfaction and resistance grew among other merchant classes and consumers.

■ Songpa Merchants’ Control of the National Distribution Network

Yukujeon [Seoul Museum of History]

In the early 19th century, the Songpa market was considered one of the top 15 markets nationwide. Goods from all over the country gathered and were sold at Songpa Market.

There was even a saying, "The honey cakes presented to the king pass through Songpa."

Songpa merchants mainly made large profits by hoarding goods and manipulating prices based on seasonal and regional price differences.

They bought fish, grains, tobacco, cotton, and other products produced in the southern provinces and northeastern regions, then sold them when prices rose.

Three types of merchants frequented Songpa Market. Farmers living nearby who brought vegetables, fruits, and grains they directly cultivated were traders.

Small-scale handicraft producers who set up stalls to sell products like earthenware and agricultural baskets were both producers and merchants.

Small merchants who took goods from producers and sold them in Seoul also regularly visited.

These small merchants were often targeted and regulated by sijeon merchants as unauthorized street vendors.

Itinerant merchants traveling around the provinces also frequented Songpa Market.

Private merchants (sasangdogu, 私商都賈) based in Songpa, relying on their personal economic power, were the main drivers behind Songpa Market’s growth into a nationwide market.

They were merchant groups who accumulated wealth through various methods, including distributing goods by connecting provincial markets nationwide, as well as engaging in unauthorized street vending.

They emerged from the monopolistic practices of sijeon merchants based on geumnanjeon-gwon.

The Royal Secretariat reported to the king: "According to sijeon merchants operating the internal and external fish markets, merchants from Paju, Songpa, and Samjeondo ignore the government’s prohibition and monopolize all fish entering the capital, manipulating prices. Therefore, they requested that such unfair commercial practices be prohibited according to the law." - 『Records of the Royal Secretariat』 Volume 198, Year 7 of King Sunjo (1807), January 23

Songpa merchants also traveled to production sites and rural markets to purchase goods in bulk and sell them.

They established a certain commercial network with private merchants in the metropolitan area.

They built distribution and sales networks by connecting with merchants from Seoul’s Chilpae Market and Ihyeon Market, merchants from Nuwonjeom in Yangju, and merchants from Songwoojeom in Pocheon, sometimes colluding to control supply and adjust prices.

Based on this network, Songpa merchants expanded their influence, pressuring Seoul’s sijeon merchants and gradually gaining the upper hand in product distribution and sales.

Although Songpa Market was established around the 18th century, it rapidly developed and by the 1750s had emerged as a commercial district threatening Seoul’s sijeon.