Today, Seoul's housing prices are constantly at the center of debate. But would you believe that 250 years ago, Joseon's capital, Hanyang, was also abuzz with real estate issues? During King Jeongjo's reign, Hanyang, a symbol of prosperity, was experiencing real estate speculation and commoners' struggles for homeownership surprisingly similar to today, due to rapid population influx and commercial development. Beyond a mere recounting of historical facts, let's delve deep into what insights Hanyang's real estate craze of that era offers us today.
In the late 18th century, King Jeongjo's policy of impartiality (Tangpyeongchaek) and commercial promotion transformed Hanyang into Joseon's largest economic hub. Rural populations migrated to Hanyang in search of better opportunities, and as commercial activities flourished, a new class of wealthy merchants emerged. The problem was Hanyang's spatial limitations. As the population surged within the confined space of the Four Great Gates, demand for housing began to overwhelm supply. Historical records such as the 『Jeongjo Sillok』 (Annals of King Jeongjo) and 『Seungjeongwon Ilgi』 (Diaries of the Royal Secretariat) frequently mention the concerns of court officials regarding rising prices in Hanyang and the hardships of commoners. In particular, housing prices began to be perceived not merely as living spaces but as a means to flaunt wealth and status, and as a tool for stable asset accumulation.
In this situation, real estate speculation naturally arose. Houses in desirable locations both within and outside the city walls were constantly traded, and their prices skyrocketed. According to contemporary records, a small thatched house in downtown Hanyang could cost as much as, or even more than, a large rice paddy in the countryside. This phenomenon is strikingly similar to today's situation where the price of an apartment in Seoul can exceed that of vast tracts of land in rural areas. Some wealthy individuals owned multiple houses, earning rental income or repeatedly buying and selling to profit from market price differences, a practice akin to today's 'gap investment.' Speculative buying of land outside the city walls, only to resell it for profit as the city expanded, was also prevalent. A house had ceased to be 'a place to live' and had become 'something to buy.'
The greatest suffering, of course, fell upon the common people. Faced with surging housing prices and 'jeonse' deposits (or monthly rent-like 'bangse'), their dream of homeownership remained distant. Lower-ranking officials and ordinary citizens were often pushed to the outskirts of Hanyang amidst its prosperity, or spent their entire lives as tenants, unable to escape rented rooms. If modern terms like 'yeonggeul' (literally 'pulling in every last bit of soul' for loans) or 'byeorakgeoji' (literally 'sudden poor,' referring to those feeling relatively impoverished due to rapid asset disparity) had existed back then, they would have aptly described the plight of Hanyang's commoners in the 18th century. Government intervention was minimal. For the rulers of that era, an overheated real estate market was likely perceived as a natural market phenomenon or an issue of individual wealth disparity, rather than a 'policy problem' in the modern sense.
The real estate frenzy in Hanyang 250 years ago is not just a story from the past. Under conditions of limited space, population concentration, and commercial development, the transformation of housing from a mere living space into a speculative asset, leading to the impoverishment of common people, reveals a facet of human society that repeats across eras. King Jeongjo's Hanyang and 21st-century Seoul—the time and space are different, but the desire for 'my own home,' the conflicts surrounding it, and the deepening of asset inequality are remarkably similar in their essence. What, then, can we truly learn from past history, and how should we understand this persistent cycle of desire? This question was a concern for those who walked the streets of Joseon 250 years ago, and it remains a challenge for all of us who light up the nights of Seoul today.
In the late 18th century, King Jeongjo's policy of impartiality (Tangpyeongchaek) and commercial promotion transformed Hanyang into Joseon's largest economic hub. Rural populations migrated to Hanyang in search of better opportunities, and as commercial activities flourished, a new class of wealthy merchants emerged. The problem was Hanyang's spatial limitations. As the population surged within the confined space of the Four Great Gates, demand for housing began to overwhelm supply. Historical records such as the 『Jeongjo Sillok』 (Annals of King Jeongjo) and 『Seungjeongwon Ilgi』 (Diaries of the Royal Secretariat) frequently mention the concerns of court officials regarding rising prices in Hanyang and the hardships of commoners. In particular, housing prices began to be perceived not merely as living spaces but as a means to flaunt wealth and status, and as a tool for stable asset accumulation.
In this situation, real estate speculation naturally arose. Houses in desirable locations both within and outside the city walls were constantly traded, and their prices skyrocketed. According to contemporary records, a small thatched house in downtown Hanyang could cost as much as, or even more than, a large rice paddy in the countryside. This phenomenon is strikingly similar to today's situation where the price of an apartment in Seoul can exceed that of vast tracts of land in rural areas. Some wealthy individuals owned multiple houses, earning rental income or repeatedly buying and selling to profit from market price differences, a practice akin to today's 'gap investment.' Speculative buying of land outside the city walls, only to resell it for profit as the city expanded, was also prevalent. A house had ceased to be 'a place to live' and had become 'something to buy.'
The greatest suffering, of course, fell upon the common people. Faced with surging housing prices and 'jeonse' deposits (or monthly rent-like 'bangse'), their dream of homeownership remained distant. Lower-ranking officials and ordinary citizens were often pushed to the outskirts of Hanyang amidst its prosperity, or spent their entire lives as tenants, unable to escape rented rooms. If modern terms like 'yeonggeul' (literally 'pulling in every last bit of soul' for loans) or 'byeorakgeoji' (literally 'sudden poor,' referring to those feeling relatively impoverished due to rapid asset disparity) had existed back then, they would have aptly described the plight of Hanyang's commoners in the 18th century. Government intervention was minimal. For the rulers of that era, an overheated real estate market was likely perceived as a natural market phenomenon or an issue of individual wealth disparity, rather than a 'policy problem' in the modern sense.
The real estate frenzy in Hanyang 250 years ago is not just a story from the past. Under conditions of limited space, population concentration, and commercial development, the transformation of housing from a mere living space into a speculative asset, leading to the impoverishment of common people, reveals a facet of human society that repeats across eras. King Jeongjo's Hanyang and 21st-century Seoul—the time and space are different, but the desire for 'my own home,' the conflicts surrounding it, and the deepening of asset inequality are remarkably similar in their essence. What, then, can we truly learn from past history, and how should we understand this persistent cycle of desire? This question was a concern for those who walked the streets of Joseon 250 years ago, and it remains a challenge for all of us who light up the nights of Seoul today.
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