During Joseon dynasty, Bukchon was the most preferred district to live in among mandarins and royal families, as the district was located between the two palaces of Gyeongbok(the official palace, or bupgung[法宮] of the dynasty; was burnt down during Imjin wars, but the site maintained its symbolic importance) and Changdeok(was built as residential palace, or yigung[離宮] at first, but was used as bupgung till Gyeongbok Palace was reconstructed in 19th century), which made the commute easier for the residents.

Currently, the district is famous for its numerous traditional Korean houses that survived the tides of time. Most of the houses were once parts of larger estates, which were divided into smaller lots when their owners could no longer afford to live in them as Joseon fell under Japanese rule, and had to sell them. The real estate dealers had to divide them as very few of those who were interested in buying land in the district were wealthy enough to purchase whole estates.