The Skunk Works of Southern Karafuto is a mammoth, cultured nation, ruled by Kumagai Rena with an even hand, and remarkable for its keen interest in outer space, sprawling nuclear power plants, and punitive income tax rates. The hard-nosed, cheerful population of 8.368 billion Karafutans have some civil rights, but not too many, enjoy the freedom to spend their money however they like, to a point, and take part in free and open elections, although not too often.

The medium-sized, corrupt government juggles the competing demands of Industry, Defense, and Education. It meets to discuss matters of state in the capital city of Toyohara-Otomari. The average income tax rate is 95.4%.

The frighteningly efficient Karafutan economy, worth a remarkable 2,519 trillion ¥ - NetYens a year, is broadly diversified and led by the Information Technology industry, with significant contributions from Retail, Arms Manufacturing, and Book Publishing. Average income is an amazing 301,143 ¥ - NetYens, and evenly distributed, with the richest citizens earning only 3.0 times as much as the poorest.

Students memorise knock-knock jokes for their mandatory twice-a-term Comedy Examinations, the government has ordered a moratorium on referenda, monocled merchants with funny accents are applying for Karafutan citizenship in droves, and famous artwork is regularly confiscated for plagiarism. Crime, especially youth-related, is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Southern Karafuto's national animal is the Blakiston's Eagle Owl, which can occasionally be seen dodging aircraft in the nation's cities, and its national religion is Netcultism.

Southern Karafuto is ranked 187,468^th in the world and 510^th in Horizon for Largest Gambling Industry, scoring 32.5 on the Kelly Criterion Productivity Index.