It was founded in 698 after Koguryo and existed for over 200 years.

It took over the advanced economy and culture of Koguryo and developed them further still.

The people of Palhae achieved highly developed productive forces by their creative labor and displayed their resourcefulness, wisdom and talent in all fields such as science, literature and art to be widely known to surrounding countries.

It carried on extensive trade with Japan, starting with the dispatch of its first delegation there in 727.

In 746 more than 1,100 people of Palhae crossed to Japan to be engaged in trade of large scale. Through them Palhae exported clothes including bear and sable leather garments, medicinal materials such as insam, honey and musk, toys and so on.

Through such broad trade its people showed the high economic standard of Palhae and awakened the backward Japanese economy.

Palhae had also a notable cultural influence on Japan. A number of Japanese anthologies and collections of works of individuals handed down till today tell about the high literary talent of envoys of Palhae and are unsparing of praises on them.

"Sonmyong Calendar", an astronomical calendar which was taken to Japan in 859 by O Hyo Sin, an envoy of Palhae, was used there for nearly 823 years from June 16, 861 to March 3, 1684.

According to a historical record of Japan, a performance was given by Palhae artistes before more than 5,000 Japanese audience in December 749 to be enthusiastically acclaimed. The Japanese king and nobles were struck with such admiration that they dispatched Japanese musicians to Palhae for learning.

Palhae had a great influence on other cultural fields of Japan including handicraft and religion.