In the late 19th century, the town was considered "one of the finest harbours in east Asia, though still only a fishing-village.

"[1] In October 1898, the Japanese, who were aiming at the control of Korea and were planning to build a railroad with its starting point at nearby Busan, began buying up land in the town; Colonel Tamura Iyozo, who was centrally involved, said the following June that "if Russia gets her hands on Masampo, Japan must become useless.

"[2] In May 1899 the town became a treaty port,[3] and the Russian navy tried to buy land for its use, only to discover that the Japanese had already acquired some of the parcels they needed.

"[2] The Japanese cabinet insisted that Russia not acquire any site that commanded the harbors of Koje Island, and Japan placed its fleet on a war footing.

The tension was lessened by a secret agreement between Russia and Japan later that year, and the war scare was finally ended with the coming of the Boxer disturbances in June.