More than 2,000 officers and men of the Navy under Commander Ito Youheng were killed, more than 6,000 soldiers of the port logistics and transport fleet were killed, the Second Army suffered more than 1,000 casualties, the port of Incheon was in ruins, more than 12,000 tons of military supplies were destroyed, and direct economic losses exceeded 10 million pounds.

On the same day, the commander of the Second Army, Admiral Oyama Iwa, sent a telegram to the Sasebo base camp informing him of what had happened.

The base camp was shocked when he heard the news, and the chief of the general staff, Prince Yusugawa Miyachihito (hereinafter referred to as Gong Chiren), jumped into a rage and scolded Ito Yuhei for misleading him. However, after learning that Ito had already cut himself, he still sighed regretfully.

However, what to do with the mess that follows? Gong Chiren thought that the main force of the Ben Navy had been destroyed, all the supplies and supplies in Inchon had been destroyed, and the Second Army's plan to land on the Liaodong Peninsula had been stranded, and the remaining rations were less than two days, and the Second Army would face life and death.

Gong Chi-in decided to immediately mobilize more than 60 steamers and troop carriers from Sasebo and quickly sail to Incheon to bring back the Second Army of Daesanam.

The navy is gone, and the supply routes of the war against China are under the threat of an exposed attack by the Beiyang Naval Division, and it is impossible to support the army to launch a war of aggression against China. Therefore, Gong Chiren decided to enter the strategic defensive stage of the war against China, and at the same time ordered Komura Shoutaro, the negotiator in Yanjing, to immediately negotiate peace with the Qing Empire, and to make an armistice in advance in order to buy as much time as possible to fully withdraw the Yue army from the Qing Empire.

A few days later, as news of the Battle of Incheon began to circulate widely around the world, the Ito cabinet tried to control public opinion reports, denying the facts and saying that further verification was pending and intended to stabilize the population. But the news still spread in the country, and the people were extremely panicked, and the calls for a halt to the war rose higher and higher.

On November 8, Emperor Meiji summoned Prince Miyachihito and severely reprimanded him in person. However, the facts could not be changed, the defeat was decided, and the only thing that could be done was to end the war as soon as possible while the army still had the advantage.

Beginning on the 9th, affected by the Sino-Chinese war, the stocks of various countries in China began to rise, and the funds that had been withdrawn from China began to flow back. On the contrary, the government bonds issued by the British government fell sharply, and businessmen from various countries ended their investments in the capital and sold their stocks one after another to cash out the funds and withdrew from the capital.

On the 10th, the stock of the Tokyo Stock Exchange fell sharply, when it fell by more than 30%, and the next day it fell by 55%, and the stock market was turbulent. Three days later, all foreign capital was withdrawn, and the shareholders lost more than 110 million yuan, or about more than 10 million pounds, a large number of listed companies on the stock market collapsed, and countless people were in debt and chose to commit suicide by jumping off buildings, and the country was in turmoil.

On the 15th, Ito's cabinet urgently introduced a bailout policy, pulling out 10 million pounds of government bonds from the 50 million pounds issued by the United Kingdom to replenish the stock market, fill the vacuum left by the withdrawal of foreign capital, and try to stabilize society.

However, due to the impact of the war, the bonds fell sharply on the London Stock Exchange on the same day, and the British sold the bonds one after another, but no one dared to take them. On the 17th, the news reached Tokyo, and the stock market collapsed immediately. It was said that the 10 million pound bailout plan of the political axe was in vain, and all the money was wasted.

Before the war, because the economic development after the Meiji Restoration was very good, the great powers were optimistic about the Qing Empire, so Britain bought 50 million pounds of government bonds. As a result, at this moment, it is said that the Tokyo stock market crash has caused a silent loss of more than 20 million pounds, and with the consumption of the war, nearly 40 million pounds have been lost, and it is not surprising that the British are obviously panicking and selling their treasury bonds one after another.

On the 18th, Emperor Meiji convened an imperial council and bitterly criticized the incompetence of the Ito Hirobumi cabinet. Ito Hirobumi was criticized by both the government and the opposition, and the next day he submitted a letter of resignation to Emperor Meiji and was forced to resign.

On the 20th, Emperor Meiji appointed the Speaker of the Privy Council, Kiyotaka Kuroda, to reorganize the cabinet as acting prime minister, and he had two tasks. The first is to immediately end the war between the Qing Dynasty and the Qing Dynasty, and the second is to stabilize the national sentiment and try to bring back international investment to save the economy.

On the one hand, Kuroda Kiyotaka sent a note to the Qing Empire's minister requesting an armistice and peace talks, and on the other hand, he urgently contacted the British minister in Japan, asking Britain to help mediate and end the war as soon as possible.

The British Empire also felt the need to stop the Qing war, and at this time it was said that the navy was completely destroyed, and most of the war had been lost. In addition, the international community abandoned the capital, the stock market collapsed, the market was turbulent, and the economic crisis hit the capital hard.

The economy is on the verge of collapse, and if it continues to fight, the fragile finances will simply not be able to repay the UK's loans. In order to ensure that the loan could be recovered with interest, the British side intervened.

The main battle faction on the side of the Qing Empire had the upper hand at this time, refusing to believe them on the grounds that the political axe had no credibility to speak of. In fact, they didn't want to see Li Hongzhang's Beiyang Naval Division win a big victory and let him monopolize the credit, so they hoped to take the opportunity to launch a counterattack on land to regain the lost territory, get back face, and then negotiate peace.

At this time, the First Army of the First Army had learned of the destruction of the Yamaben Navy, and the base camp of the First Army strictly ordered the commander of the First Army, General Yama Prefecture Aritomo, to quickly withdraw and return to China.

Considering that there was no navy available, the supply at sea would be a problem, and that Korea was poor and white, and there was no corresponding military industry to assist the army to defend it, so it was decided to give up even North Korea.

However, the first time Yama Youpeng invaded China, he was in high spirits, and the defeat of the navy could not dispel his crazy thoughts. He saw that the Qing Imperial Army was vulnerable, and he felt that the base camp was too cowardly to even want to give up Korea, so he was not convinced, and he decided to fight Yanjing in one go.

Youpeng in Shanxian was determined to attack Mukden first, which was the birthplace of the Qing Empire, and once Mukden was defeated, the Qing Empire would inevitably be forced to submit. However, at this time, it was said that the country was already in chaos, the anti-war voice was rising, and the Ito Hirobumi cabinet had fallen.

Moreover, it is said that the sea is no longer able to supply the army, and if the first army of Youpeng in Shan County attacks Mukden again, the battle line is too long, which is obviously equivalent to sending him to death in vain.

He said that the base camp had been completely destroyed by the navy and was frightened, so he ignored any reason for Shan Shan County Youpeng, and issued thirteen orders in two days urging Shan County Youpeng to quickly withdraw his troops, but he did not listen. Therefore, when Prince Gong Chihito issued the 14th order, Emperor Ku Hui directly dismissed him from his position as commander in the name of the emperor, and said to the outside world that he would let the mountain county return to China to recuperate.

Soon, some friends in Shanxian County were forced to be called back to China to recuperate. However, the general was not subject to the orders of the foreign army, and before leaving, he ordered the First Army to attack Haicheng.

On November 25, the 3rd Division of the 1st Army began to attack Haicheng. The Qing army garrisoning Haicheng had a total of 24 battalions, which belonged to the training army under General Sheng Jing, but there was a serious shortage of less than 4,000 people. Moreover, the elite were all transferred to the front line of Motianling by Shengjing's general Yiktanga, and the remaining batch of training troops had limited combat effectiveness, and most of them were the Huai Army and the old Hunan Army that Pyongyang had defeated all the way. At this time, Li Hongzhang was deprived of the right to command the army, so they were very uncooperative.

The two sides fought fiercely for less than a day and two nights, and Li Ke, the commander of the Kezi battalion of the Huai Army, deliberately damaged the artillery of the battery, and then said that the fort had been destroyed and had no value to hold on, and took the lead in escaping.

Under the chain effect, the outer defense line of Haicheng was completely defeated, and the army conquered Haicheng in the early morning of the next day, and the Qing army retreated to Liaoyang.

After the fall of Haicheng, the army looked at Liaoyang and Fengtian in the north, Niuzhuang and Yingkou in the west, and the cities of Jinzhou and Ningyuan were in danger, and the overall situation was critical. Qing Zheng axe was shocked and issued an edict and ordered Song Qing to lead the army to meet the battle.

On November 30, Song Qing led his troops to assemble at Ganquan Town, north of Haicheng, intending to intercept the attempt of the Yue army to attack Liaoyang and then attack Mukden. At the same time, Nie Shicheng's troops went out of the ancient city to prevent the Yue army from trying to enter the camp west, and tried to attack the Haicheng Yue army with Song Qing on both sides.

On December 1, Shengjing General Yiketanga and Jilin General Changshun led a total of more than 30,000 main forces of Shengji Eight Banners and 42 Green Battalions to the south, desperately trying to keep Fengtian.

The Qing army intended to start a decisive battle with the First Army in Haicheng, but the Qing army moved too slowly, and the First Army was not stupid enough to wait until the Qing army was assembled before the decisive battle, so it struck first.

On December 2, the Qing Dynasty broke out the largest battle between Liaoyang and Haicheng since the land war, known as the Battle of Liaohai in history. The two sides invested a total of more than 50,000 troops, after 17 days of fierce fighting, the Qing army Song Qing and Nie Shicheng were the first to be defeated by the Yue army because the reinforcements came too late.

On the 22nd, the army successfully attacked the flank of the Qing army from the area of Gongchangling, causing the Qing army to lose the defensive line in the south of Liaoyang, and lost Liaoyang on the night of the 23rd.

All the defeated troops of the Qing army retreated to Mukden, and the base camp did not expect that the mourning soldiers would win, and the first army would be able to achieve such a great result, so they acquiesced to the action of the first army. Because in this way, he can support Komura Shoutaro, who negotiated in Yanjing, and try to recover the losses of the Yuben Empire.

The Qing court was shocked, and Cixi issued an edict demanding that immediate peace talks not be lost. The main battle faction led by Guangxu wavered at this time, and was forced to negotiate under pressure from the party.