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The institution was established in [[1443]], alongside the establishment of special privileges for the [[So clan|Sô samurai clan]] of Tsushima as the preeminent Japanese with whom the Koreans would engage in trade and diplomacy (as intermediaries representing the shogun). In [[1512]], following a naval clash in [[1510]] between Sô and Joseon ships in which the former were supporting a Japanese traders' and fishermen's protest, Tsushima's representatives in Korea were restricted to the ''Wakan'' while in Korea.
 
The institution was established in [[1443]], alongside the establishment of special privileges for the [[So clan|Sô samurai clan]] of Tsushima as the preeminent Japanese with whom the Koreans would engage in trade and diplomacy (as intermediaries representing the shogun). In [[1512]], following a naval clash in [[1510]] between Sô and Joseon ships in which the former were supporting a Japanese traders' and fishermen's protest, Tsushima's representatives in Korea were restricted to the ''Wakan'' while in Korea.
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Relations between Korea and Japan shut down entirely as a result of [[Toyotomi Hideyoshi|Toyotomi Hideyoshi's]] [[Korean Invasions|invasions of Korea]] in the 1590s, but were later restored. The walled complex, at that time large enough to house roughly 500 Japanese officials and merchants, reopened in [[1607]]. Official trade took place in the course of ritual diplomatic interactions, as the representatives of the Sô clan, as vassals of the Korean king, received formal seals reaffirming their trade monopoly, and exchanged [[tribute]] goods for gifts. Goods presented to the king by the Sô often included pepper, alum, and sappanwood obtained from Southeast Asia via [[Nagasaki]], as well as water buffalo horn, copper, and tin. In return, they received ginseng and considerable amounts of cotton; from the mid-17th century onwards, the Sô also received roughly 8300 ''[[koku]]'' of rice annually, an important source of food for both samurai officials and commoners & peasants of the domain, which only produced itself about 20,000 ''koku''. The more significant portion of trade for the Japanese, however, was private trade, conducted by merchants from Tsushima engaging with officially authorized Korean merchants at a particular designated market just outside the ''Wakan''. The overall size of this trade was limited by the Korean authorities to a certain number of ships a year (initially 50, reduced to 25 after 1512), and to only certain market days each month, but still constituted a significant volume of trade. The chief goods the Japanese sought in Korea were ginseng, and Chinese silks.
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Relations between Korea and Japan shut down entirely as a result of [[Toyotomi Hideyoshi|Toyotomi Hideyoshi's]] [[Korean Invasions|invasions of Korea]] in the 1590s, but were later restored. The walled complex, at that time large enough to house roughly 500 Japanese officials and merchants, reopened in [[1607]]. It was later moved to a larger compound in Ch'oryang (at Pusan Harbor) in the late 17th century; at any given time roughly 500 to 1000 men were in residence at the ''Wakan'' from that time forward.<ref>Hellyer, 43.</ref>
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Official trade took place in the course of ritual diplomatic interactions, as the representatives of the Sô clan, as vassals of the Korean king, received formal seals reaffirming their trade monopoly, and exchanged [[tribute]] goods for gifts. Goods presented to the king by the Sô often included pepper, alum, and sappanwood obtained from Southeast Asia via [[Nagasaki]], as well as water buffalo horn, copper, and tin. In return, they received ginseng and considerable amounts of cotton; from the mid-17th century onwards, the Sô also received roughly 8300 ''[[koku]]'' of rice annually, an important source of food for both samurai officials and commoners & peasants of the domain, which only produced itself about 20,000 ''koku''. The more significant portion of trade for the Japanese, however, was private trade, conducted by merchants from Tsushima engaging with officially authorized Korean merchants at a particular designated market just outside the ''Wakan''. The overall size of this trade was limited by the Korean authorities to a certain number of ships a year (initially 50, reduced to 25 after 1512), and to only certain market days each month, but still constituted a significant volume of trade. The chief goods the Japanese sought in Korea were ginseng, and Chinese silks.
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James B. Lewis has suggested that while tax revenues from trade comprised as much as 50% of the tax revenues of Kyŏsang province (where Pusan is located), the costs of receiving the missions from Tsushima, maintaining the ''Wakan'', and providing rice and other goods to the missions, exceeded the economic benefits. Further, the residents of the ''Wakan'' often caused trouble for the provincial government (and even occasionally for the royal court), calling for additional food and supplies, engaging with Korean prostitutes, and occasionally rioting as a negotiating tactic. Lewis argues that Joseon may have maintained ties with the Sô despite this out of fears that the people of Tsushima might return to [[wako|piracy]] once again if access to authorized trade were denied, and/or out of a sense of obligation of their more civilized kingdom towards the people of Tsushima.<ref>Hellyer, 41-42, citing James B. Lewis, ''Frontier Contact between Chosŏn Korea and Tokugawa Japan, Routledge Curzon Press (2003), 107-145.</ref>
    
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