The Jiyū Kyōwakoku of Southern Karafuto is a massive, cultured nation, ruled by Rena Aoki with a fair hand, and notable for its flagrant waste-dumping, unlimited-speed roads, and complete absence of social welfare. The hard-nosed, hard-working, democratic, cheerful population of 3.329 billion Karafutans live in a state of perpetual fear, as a complete breakdown of social order has led to the rise of order through biker gangs.

The relatively small, corrupt, liberal, pro-business, outspoken government juggles the competing demands of Industry, Defense, and Education. It meets to discuss matters of state in the capital city of Toyohara-Otomari. Citizens pay a flat income tax of 19.2%.

The frighteningly efficient Karafutan economy, worth 930 trillion ¥ Digi-Yens a year, is broadly diversified and led by the Information Technology industry, with major contributions from Retail, Arms Manufacturing, and Book Publishing. Black market activity is extensive. Average income is an amazing 279,548 ¥ Digi-Yens, but there is an enormous disparity between incomes, with the richest 10% of citizens earning 1,731,646 per year while the poor average 19,471, a ratio of 88.9 to 1.

A soldier's body is a temple, trespassers entering Rena Aoki's office are immediately vaporized, the nation's forests are full of treasure hunters in military-grade survival gear, and it is illegal for police officers to carry out searches due to strict privacy laws. Crime, especially youth-related, is a problem, with the police force struggling against a lack of funding and a high mortality rate. Southern Karafuto's national animal is the Blakiston's Eagle Owl, which teeters on the brink of extinction due to toxic air pollution, and its national religion is Shintō.

Southern Karafuto is ranked 5,006^th in the world and 3^rd in Cape of Good Hope for Largest Automobile Manufacturing Sector, scoring 8,399.88 on the Henry Ford Productivity Index.