[Market Economy Guide] The Merchant Spirit of Joseon Trader Im Sang-ok

He Succeeded by Burning Red Ginseng in Defiance of Chinese Buyers Who Drove Down the Price

A leading merchant in the Joseon era who understood trade when merchants were treated with contempt

When talking about the leading merchants of the Joseon era, the first name that comes to mind is none other than Im Sang-ok. The epithet “great merchant” always follows his name. Im Sang-ok traveled back and forth to Yeongyeong (present-day Beijing, China) with envoys bound for China. It was by no means an easy journey. He had to pay extra just to barely join the diplomatic procession, and he also had to carry the envoys’ baggage and do miscellaneous chores for them. Of course, he also had to provide travel expenses.

A Great Merchant of Joseon

Joseon had the worst possible environment for merchants to operate in. Most goods were prohibited from being traded, and trade with other countries was largely illegal as well. In other words, selling goods to China was mostly illegal, and so was purchasing goods in China and bringing them back. Left with no alternative, merchants joined diplomatic missions and engaged in smuggling, and one of them was Im Sang-ok.

Joseon red ginseng was highly popular in China because of its outstanding quality and efficacy. Chinese buyers were willing to pay high prices for it. By contrast, Joseon royalty and yangban elites favored Chinese silk, fur, furniture, books, ceramics, and other goods. For merchants, trade with China was therefore extremely attractive.

Im Sang-ok’s Masterstroke

There was one problem in the red ginseng trade with China: price. Chinese merchants bought the red ginseng brought by Joseon merchants at very low prices. They knew very well that most red ginseng transactions by Joseon merchants were illegal and that, having gone through great trouble to bring the ginseng in, they had no choice but to sell it before returning home. So they bought it cheaply and reaped considerable profits. The man who challenged these Chinese merchants was Im Sang-ok. He wanted to raise the trading price of red ginseng. Choi In-ho’s novel Sangdo includes an anecdote about Im Sang-ok negotiating red ginseng prices during one of his trips to China.

In an effort to break the practice of Chinese merchants forcing down the price of red ginseng, Im Sang-ok demanded a price fully twice as high as before. The Chinese merchants were aghast and threatened that they would not buy the ginseng unless it was sold at the old price. Im Sang-ok stood his ground, saying that if they would not pay a proper price, he would not sell it. The tense standoff between Im Sang-ok and the Chinese merchants showed no sign of ending.

Unable to buy the red ginseng at the price they wanted, the Chinese merchants soon grew agitated. Im Sang-ok had also put on a brave face, but he was just as anxious. At that moment, word arrived that the great scholar Chusa Kim Jeong-hui would be visiting Yeongyeong. Im Sang-ok sought him out, explained his situation in detail, and asked for advice. In response, Kim Jeong-hui wrote the following phrase for him:

“Baekcheokgandu Jinilbo.” “Baekcheokgandu” refers to an extremely dangerous and difficult situation, as if one were barely standing at the tip of a very tall bamboo pole. “Jinilbo” means to take one more step forward. In other words, only by overcoming fear and staking one’s life can a path to survival finally appear. After reading the phrase, Im Sang-ok bowed deeply to Kim Jeong-hui three times and returned to his lodging.

“Then I’d Rather Burn It”

The next day, Im Sang-ok ordered that some of the red ginseng he had brought from Joseon be burned in the courtyard. Soon the smell of burning red ginseng filled the entire neighborhood. News that the red ginseng was being burned quickly reached the Chinese merchants. They were shocked and rushed to Im Sang-ok in a panic. And for good reason: opportunities to obtain Joseon red ginseng did not come easily. Chinese merchants could barely buy it only once or twice a year, when a Joseon diplomatic mission arrived. If they missed this chance, they too were sure to suffer major losses. In the end, the Chinese merchants paid the price Im Sang-ok had asked and bought up all of his red ginseng. Thanks to Im Sang-ok’s boldness, established trading practices with Chinese merchants could be changed, and afterward red ginseng merchants were able to travel to and from China with much lighter hearts.

The anecdote of Im Sang-ok prompts us to think once again about the proper attitude of a merchant. In an age when merchants were considered the lowest under the order of “scholars, farmers, artisans, and merchants,” Im Sang-ok was respected as a great merchant. Had he been born in our own time, he would likely have been an entrepreneur engaged in trade. It is because there are traders armed with the spirit of commerce—people who break through crises and open up new opportunities—that crises can become opportunities, and innovation that creates new value in the face of adversity can become possible.

■ Please remember

In an age when merchants were considered the lowest under the order of “scholars, farmers, artisans, and merchants,” Im Sang-ok was respected as a great merchant. Had he been born in our own time, he would likely have been an entrepreneur running a trading business. It is because there are traders armed with the spirit of commerce—people who overcome crises and open up new opportunities—that crises can become opportunities, and innovation that creates new value in the face of adversity can become possible.

Sung-no Choi, President of the Center for Free Enterprise (CFE)

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Original title: [시장경제 길라잡이] 조선 상인 임상옥의 상인정신

Author: Sung-no Choi

Date: 2019-03-04

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=column&pn=14&idx=11508