Joseon’s Silver Circulation in the late 17th Century through the early 18th Century

Abstract

China and Japan led the silver trade in east Asia since the 16th century. China was the world’s biggest silver importing country and Japan was Asia’s biggest silver exporting country. Joseon was influenced by these two in the silver trade, although only after late 17th century they allowed the international silver trade. At the time as China’s southeast coastal route deteriorated, the silver circulation route was most vibrant via Joseon en route to China’s northeast. At this time Joseon actively exploited the silver that was coming in large quantity from Japan for Chinese diplomacy and trade. Joseon wished to replace the indigenous products to silver for the annual tribute to China, and spent silver for the diplomacy expenses as well. However, above all most imported silver was utilized as the trade fund. As silver was utilized as the trade transaction means, beyond the ruling class’s luxury items production or the diplomacy expenses, Joseon grew up to be one of the principal agents in the east Asia silver trade system. The silver trade system positively contributed to the east Asian economy development, but in the late 18th century drastically shrank and faced the crisis. Each country had to respond either by expediting the domestic production of the imports or by developing new trade products.