BAK Je-gha's Thoughts on Logistics and Overseas Commerce in The 18th Century in Korea : A Comparative Study of Those of Adam Smith and Korean Scholars

BAK Je-gha is one of distinguished Silhakjas (Korean pragmatic Confucianists) in the 18th century in Korea. The most important thoughts of BAK Je-gha lay in his words that properties could be increased by way of investment like a well and agriculture is like intestines and the wagon is like blood vessels in the human body. These are foresighted in that it nearly equals to Say's words; “supply can create demand itself”, and nowadays logistics cost can affect competitiveness of industrial enterprises. No one except BAK Je-gha gave an idea that government could increase its national wealth and power through home and foreign trade in Korea, though someone mentioned the importance of commerce. Even Adam Smith, contemporary great economist of BAK Je-gha, gave an emphasis on domestic trade rather than oversea trade, for he wanted to point out defects of mercantilism and to assert the advantages of free trade. He also explained that capitals are increased by parsimony. As seen above, BAK's thoughts on distribution and commerce had originalities in comparing with those of contemporary Korean Confucianists and even Smith, father of modern economics.