[4] The Jurchens asked that the nine forts be handed over and that a peace agreement be reached, and in May 1109 Yejong decided to accept, considering that in the meantime the Korean territory had been hit by famine and disease.
[9] In 1116 a large embassy was dispatched to the Song court, while the second gift of musical instruments, consisting of 428 pieces had arrived, as well as ritual dance accessories and manuals, starting Korea's tradition of aak.
[16] Trade and official contacts continued: in 1117 Song established a special office to deal with Goryeo merchants and envoys; furthermore, a large Chinese mission arrived in 1122, including the Confucian scholar Xu Jing (1091–1153), whose notes are an important source of information about the period.
[3][4] In 1116, he created academic institutions and libraries such as Cheongyeongak (청연각; 淸讌閣) and Bomungak (보문각; 寶文閣), and in 1119 he established the scholarship foundation Yanghyeongo (양현고; 養賢庫; lit.
[25] In 1110, the Song emperor sent some ambassadors and two priests to Goryeo to instruct the people on Taoism, and that same year Yejong began the seven-year long construction of the country's first Taoist temple, Bogwongung (복원궁; 福源宮).
[26][27][28] He also renovated existing temples and religious institutions,[4] and maintained cordial relations with the Confucian scholar, later a Taoist hermit, Kwak Yeo (1058–1130), often inviting him to the palace, asking for advice and exchanging poems.
[30][31] As soon as he ascended the throne, Yejong had to confront the opposing bureaucracy, which still adhered to a barter economy and taxation in kind established by the dynasty's founder Taejo, popular sentiments and the underdevelopment of markets.
[31] The sovereign tried to defend the use of the currency by noting that Liao had also introduced it, but the ministers brought the Ten Injunctions of Taejo in support of their reasons, stating that the founder had warned against adopting foreign customs and traditions.
[32] Yejong replied that Taejo's warning was directed at extravagant and unnecessary spending, and insisted on the monetary policy,[31][32] but ultimately the coins failed to spread on a large scale; the silver currency was instead used continuously until the end of the dynasty, mainly by the nobles.
[34] Necessity to adjudicate factional struggles and the strain of managing complicated diplomatic and military efforts led Yejong to retreat further and further into his books and Taoist rituals.