This will undoubtedly deal a massive blow to the economies of all countries, especially those industries heavily dependent on specific Wilderness resources.
Moreover, a loose and chaotic Wilderness, constantly consuming itself internally, like scattered sand, poses no substantial threat to the Southern Countries.
But a centralized kingdom ruled by a powerful Legendary Red Iron Dragon is utterly different.
It might, with its unique allure, gather other non-human races and even attract some powerful humans who find no success or are forced into exile from human society, thereby weakening the talent pool and influence of the Southern Countries to some extent.
More terrifying is that the potential for cohesion and warfare of the Wilderness Kingdom itself is extremely high.
After establishing a kingdom, this aspect will grow exponentially, becoming a military power that cannot be underestimated.
