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This paper explores the structure of Korean fiscal administration before, and its transformation during the war against Japanese invasion. The Korean government found itself not only fighting the ferocious Japanese invasion force, but also allying uneasily with the Ming expedition force. Notwithstanding Ming commanders' complaints about lack of support from Korea in logistics, Korea scored impressive victories at sea and also fought bravely on land. How did the Korean government extract revenue and muster resources during this difficult period? Did the influx of silver-craving Chinese transform Korean financial system? This paper answers these interesting questions with data from the Choson Veritable Record and other archives.