Although a considerable amount of time had passed since the introduction of the steam engine, industrialization had yet to take firm root in the European powers. This was an unavoidable consequence of the historical context.

With the exception of the Italian city-states and the commercial powers of the Middle East, there were almost no properly developed merchant classes. The Hanseatic League in Northern Europe existed, of course, but its primary trade goods were salt, beer, and various textiles. They were notably weak in industries that required heavy and extensive production facilities, such as steel.

Moreover, a closer look at these few commercial powers reveals that they were generally small in scale. There were indeed colossal financial powers that could sway all of Europe, like the Medici family of Florence. However, most were akin to confederations of smaller merchant guilds.

In short, they lacked the capacity to project capital on a large scale to create massive industrial facilities. And it was not just capital that they lacked. As mentioned, their very nature was that of a confederation of small merchants. Naturally, their decision-making process was convoluted, and agreements were frequently overturned depending on the gains and losses of individual members. The one issue they could unite on was their active support for the establishment of a centralized government centered on the king, as a centralized system was more beneficial to them than the traditional, nobility-focused feudal system.

The weakness of the commercial class was one factor, but the weakness of the great powers themselves was also a problem. Both England and France were still suffering from the aftereffects of the Hundred Years’ War. The same was true for Spain and Portugal, who were still dealing with the aftermath of the Reconquista.

The consequences of war were not the only issue. The core of the economies of France, Spain, and Portugal was still agriculture. In the case of Spain and Portugal, they had seen great profits from the slave trade, utilizing slaves captured in Africa, but in terms of the overall scale of their economies, agriculture remained the mainstay. To be more precise, their primary economic activity was the operation of large-scale plantations in their African and North Atlantic colonies, worked by vast numbers of slaves.

The only nations with the foundational capacity to continuously develop commerce and industry were England and Italy, but they too had their limits. Italy had other great capitalists besides the Medici family, but they could not see beyond the borders of their own city-states. It was not a geographical boundary, but a limitation of their thinking. They roamed every corner of the Mediterranean, trading and reaping enormous profits, but their macroscopic perspective never extended beyond their home city.

This was true even for Cosimo de’ Medici, who possessed outstanding insight. Though he had discerned the Empire’s true intentions earlier and more accurately than anyone else, in the end, he could not break free from the interests of Florence and his own family. It was only after the unification of Italy that they began to look beyond their own cities and adopt a broader perspective, but this time, they were bogged down by the aftermath of the unification war.

In England’s case, the commercial class had been able to grow thanks to the protectionist trade policies that had been in place since the time of Edward III. However, England had to overcome a major obstacle: its market was far too small.

During this period, England had not yet united with Scotland and Ireland. Therefore, it had a market that was too small and weak to support proper growth. For the European powers to overcome these obstacles and grow into strong, wealthy nations, they had no choice but to expand outward. The problem was that Hyang, half intentionally and half by coincidence—or rather, ninety percent intentionally—had blocked this path.

***

From Europe’s perspective, Sejong and Hyang’s preemptive claim of New Frontier was a colossal disaster. A vast, resource-rich territory had effectively disappeared. In return, the Empire offered them Terra (Australia) and Gloria (South America), but most of these regions consisted of barren deserts and dense jungles.

Compared to their overall size, the amount of habitable land was very small. There were ways to develop these barren lands, of course. But this was a massive undertaking that would require a great deal of time and money, and the great powers lacked sufficient capital. Furthermore, there were simply too many countries trying to get a piece of the pie.

In Terra, all the major European powers had already established colonies and were eyeing each other with suspicion. In Gloria, England and France, having secretly followed the Portuguese and Italian ships, were furtively preparing to plant their own flags.

***

India and Southeast Asia were also situations where Hyang had thrown a wrench in the works. Starting with the saltpeter trade, which had begun in the time of King Sejong, the Bengal Sultanate, as well as the larger and smaller princely states of India, were now armed with rifles and cannons comparable to the armies of the European powers.

And it was not just India. The various sultanates of Southeast Asia, including Luzon and Malaya, were also armed with rifles and cannons, thanks to the diligent sales efforts of the Ming and Japan.

Furthermore, nations like Dai Viet (Vietnam) and Siam (Thailand) were even attempting to produce their own. As a result, the European powers could not simply force their way in. In a way, they were surrounded on all sides, and their gazes naturally turned toward the Empire and the Ottoman Empire.

However, both the Empire and the Ottomans were formidable opponents.

***

The Ottoman Empire was the absolute power in the southern Mediterranean. They had seized most of the territory of their once most powerful rival, the Mamluk Sultanate, and were expanding their territory into the Arabian Peninsula and the Persian region. Ironically, the greatest influence on the Ottoman expansion was the Empire.

In accordance with the treaty signed during the construction of the Suez Railroad, the Ottomans had halted their northward advance at Constantinople. Instead, after a massive military reorganization, the Ottomans had turned their armies toward North Africa, the Arabian Peninsula, and the Persian region.

The reason the Ottomans could pursue such a bold expansionist policy was Suez. To ensure the safe management of the Suez passage, France and Florence had supported the Ottoman invasion of the Mamluk Sultanate. This support was cut off with the outbreak of the Italian War of Unification, but for the Ottomans, it had been enough.

Having consolidated North Africa, the Ottomans proceeded to steadily expand into the Arabian Peninsula and the Persian region. With North Africa, the Arabian Peninsula, and Persia in their hands, the Ottomans secured the safety of the trade routes leading to the Empire and pursued their exchange with the Empire even more enthusiastically. They did not simply import weapons; they sent students to study abroad and absorb the Empire’s scholarship and technology, becoming the powerhouse of the Middle East. The military commands of the European powers, who analyzed this situation, all shook their heads.

“It would be difficult for any one of us to take them on alone.”

“Then what about an alliance?”

“Under what pretext?”

While signing the treaty related to Suez, the Ottomans had made Jerusalem a sort of semi-independent city.

• The prescribed taxes will be paid in full.
• No one shall force their religion upon another.
• As long as these conditions are met, anyone may come and live in Jerusalem.
• Pilgrims may enter Jerusalem upon payment of a toll.

Because of this, European Christians could also come and go from Jerusalem without any trouble. Smelling money in this arrangement, at the Empire’s suggestion, a railway was laid from Prince Henrique Port to Jerusalem, jointly funded by France, Florence, Portugal, and the Ottomans. As a bonus, famous resort towns sprang up along this railway, which was built along the scenic coastline. Of course, these resorts became just as famous for their rampant indulgence and decadence, earning the condemnation of pious Christian and Muslim clerics as a ‘second coming of Sodom and Gomorrah.’

Thus, the most useful pretext of all, Jerusalem, had been rendered useless.

“Still, if we were to force the issue…”

“France, Portugal, and Italy would never join in. We’d be lucky if they didn’t become our enemies.”

“We can’t forget Suez. As long as Suez remains indispensable, France, Portugal, and Italy will never join us.”

“Then all that remains is… the Empire?”

“After all this, are we back to the Empire?”

Those who had considered the Empire as an enemy now shook their heads.

“There’s no need to even calculate it. It’s a certain defeat.”

“It’s impossible for now.”

“But in time…”

They did not know the true reality of the Empire.

***

In this era, the only nations to have achieved an ‘economy of scale’ were the Ming and the Empire. The Ming, with its vast territory and large population in the Central Plains, had already established an economy of scale. Thanks to this, despite suffering two defeats in war and a civil war, it had once again established its presence as a powerhouse in Northeast Asia.

In the case of the Empire, it was by acquiring the northern territories and New Frontier that it was able to achieve an economy of scale. The most symbolic examples were the railways and the iron industry. Upon acquiring the northern territories, the Empire had enthusiastically constructed railways. The vast plains of the north were ideal for railway construction. Not content with crisscrossing the entire northern region from east to west and north to south, a massive project was undertaken to build a railway connecting to the northeastern forest regions and Lake Baikal, causing orders for rails to skyrocket.

And it was not just rails. The demand for iron horses, passenger cars, and freight cars to run on the rails also surged. To meet this demand, the Imperial court not only expanded the existing ironworks but also constructed new ones. As a result, mega-sized ironworks were established not only in the Empire’s heartland but also in the northern territories, and these ironworks began to produce steel in massive quantities.

As production volume increased, the price of steel fell, and other products made from steel could also be brought to market more cheaply. The same was true in New Frontier. In the initial stages of constructing the railway in New Frontier, materials were transported from the heartland, but this was a case of the tail wagging the dog. The officials of the Ministry of Finance finally waved the white flag to Hyang.

“Even though a certain someone wanted it so badly, we opposed it because it cost too much money. But now, we have no choice.”

“When you consider the shipping and construction costs…”

In the end, this was one of the biggest reasons for the creation of Area 52 in New Frontier. And the ironworks built in Area 52 more than pulled its weight. Later, when Hyang, along with Jinpyeong, visited New Frontier when the situation allowed, they were utterly astonished.

After it was properly established, the ironworks of Area 52 became the largest in the Empire. To give a sense of its scale, the single ironworks complex of Area 52 produced about thirty percent more than the combined output of all the ironworks in the Empire’s heartland and northern territories.

With this achievement of an economy of scale, the Empire was able to take on the challenge of building large iron ships. The best example was the steel armor plates that the European powers were finding to be the biggest problem in their ironclad construction. At this time, the Empire was producing the steel plates with the largest surface area in the world. The same was true for the keels and ribs.

And the effect of the Area 52 ironworks was not limited to this. The Monopoly Bureaus, the Imperial Army, and the Area 52 ironworks. These three became the primary means of rapidly assimilating the indigenous peoples of New Frontier, specifically those of the northeastern region, into the Empire.