The Holy Empire of Penguland is a gargantuan, environmentally stunning nation, ruled by Professor Pengu with an even hand, and notable for its anti-smoking policies, national health service, and punitive income tax rates. The hard-nosed population of 10.94 billion Pengus are fiercely patriotic and enjoy great social equality; they tend to view other, more capitalist countries as somewhat immoral and corrupt.

The enormous government juggles the competing demands of Healthcare, Environment, and Law & Order. It meets to discuss matters of state in the capital city of Cutiepie City. The average income tax rate is 64.7%, and even higher for the wealthy.

The large but underdeveloped Pengu economy, worth 271 trillion Fish Pillows a year, is quite specialized and led by the Basket Weaving industry, with major contributions from Tourism, Pizza Delivery, and Arms Manufacturing. State-owned companies are common. Average income is 24,798 Fish Pillows, and distributed extremely evenly, with little difference between the richest and poorest citizens.

NPCs in MMORPGs regularly interrupt cutscenes with OOC reminders that they aren't real people, politicians are often found scavenging bins at night to supplement their income, politicians can be seen taking candy from babies, and Penguland's children are widely acknowledged as the most foul-mouthed in the region. Crime, especially youth-related, is totally unknown, thanks to the all-pervasive police force and progressive social policies in education and welfare. Penguland's national animal is the Bun, which frolics freely in the nation's many lush forests.

Penguland is ranked 272,059^th in the world and 330^th in Penguia for Highest Disposable Incomes, with 8,753.88 Standard Monetary Units.