Abstract
The purpose of this paper is to analyse, on the basis of Japanese consular reports and other historical records, money and prices in Korea after the 1880s. Main conclusions are the following. (1) Inflation characterized the Korean economy at the last stage of Yi rule. Debasement and overissue of currency was responsible for the inflation. (2) There was a noticeable regional difference in the rate of inflation after 1880. The Seoul-Inch'on area experienced a high rate of currency depreciation, whereas Pusan and Wonsan did a lower rate of it. Behind this contrast was division of the currency area. The traditional unitary currency area was divided into two parts as a result of the issue of debased currency. This happened because the authoritative power to force circulation of the debased currency did not reach regions remote from the capital. (3) Generally, relaive prices turned favorable to agriculture, as trade with Japan developed. As a consequence, specialization in agriculture proceeded. Of agricultural products, however, raw cotton lost its importance since demand for domestic cotton cloths decreased. A fall in cotton crop and domestic spinning and weaving produced surplus of labor, especially of female labor, in the farms. All in all, the currency system in Korea after the opening of ports was in chaos more than ever. The economic impact of this chaotic currency system and expansion of foreign trade was different from region to region. After 1905, the Japanese government replaced the Yi government in Korea and at the same time the order replaced the chaos in the currency system.
