Waegwan (enclave)

In the late Joseon period, the only remaining waegwan in Busan became de facto extraterritorial enclave, as Japanese diplomats were forbidden to negotiate in Seoul.

Unlike the Ming dynasty's policy of haijin (restricting maritime trade), Korea permitted free entry of ships into its ports.

When Joseon harbors became targets for wokou pirates, in 1407, King Taejong restricted Japanese ships to the ports of Busan, Naei, and Yeom.

Due to overpopulation some kokyowa lived outside of waegwan boundaries, intermingling with local Korean villagers and engaged in fishing and agriculture, some in smuggling.

[3] When King Jungjong of Joseon succeeded his half-brother Yeonsangun to the throne in 1506, the Korean government implemented reforms that included the elimination of tax breaks for Japanese citizens.

[4] The rebellion was quickly stamped out and King Jungjong ordered the shutdown of the sampo waegwan, though they would be reopened after the Treaty of Imsin [ko; ja].

Located on the south bank across the bay from Ulsan's old town, it was re-opened in 1426 following the Oei Invasions, with 150 Japanese living by 1494; after the Disturbance, the waegwan closed in 1510 and never reopened.

[5] There was a small Japanese enclave in the Joseon capital Hanseong (modern day Seoul), though it was not a permanent settlement and was purely an accommodation facility for ambassadors and merchants.

Ultimately, however, King Seonjo acquiesced and established a temporary waegwan on Jeolyeong Island, in present-day Yeongdo District, Busan in 1601.

It was also called kowakan (古倭館, 'old wakan') as the location of the waegwan was moved in 1678, over complaints that Jwacheon was too narrow and had a lack of dock facilities.

[9] Tsushima-Fuchū oversaw the construction of facilities like Tōkō-ji (東向寺) temple, guest quarters, izakayas, and more, centered around a banquet hall, the Yŏnhyangdaech'ŏng (연향대청; 宴享大廳).

[10] About 400-500 people lived in Choryang at any given time; only the daimyō of Tsushima and his staff were allowed to stay on waegwan grounds, along with a handful of Japanese merchants and peddlers.

For the Choryang waegwan, the settlement was abolished and re-established as the Busan Japanese Concession (일본 전관 거류지; 日本專管居留地), which later served as an important military entrepôt during and after the annexation of Korea established by the Japan–Korea Treaty of 1910.

[12] During the medieval ages, Japan exported goods such as gold, sulfur, copper, fragrant sappanwood, and Ryukyu pepper, while Korea traded in Bombax ceiba (kapok) wood and cotton.

After the 17th century, waegwan trade began to decline considerably as Japanese silk quality improved and ginseng farming became profitable in Japan.