Amidst Joseon's isolationism in the 16th and 17th centuries, the market was limited to mostly Korean customers and merchants.

The market survived a number of attempts by the Japanese colonial government to shut it down.

According to the Seoul Institute, it contained 5,200 stores, had 9,090 workers, and had an area of 64,612 m2 (695,480 sq ft) as of 2016[update].

[2] In 1394, shortly after the establishment of the Joseon dynasty, King Taejo made Seoul the capital city.

They managed to place buildings like the royal palace Gyeongbokgung and the altar Sajikdan according to the book.

A government-licensed shop that specialized in importing silks (선전; 縇廛; seonjeon) was the first to open in the market.

In the aftermath of these invasions, activity rapidly picked back up, as farmers fled from the countryside and sought opportunities in the capital.

However, after Japan forced Joseon to open its ports in the Japan–Korea Treaty of 1876, the number of international traders and shops rapidly increased.

[7] Beginning in 1896, the Korean Empire (the successor to Joseon) government began efforts to rapidly modernize the country and Seoul.

Taxes were first collected by the Ministry of Agriculture, Commerce, and Industry, and then by the Office of Crown Property in 1901.

[11] Despite this, the market was the largest in the city around this time, with a total sales volume of 2,181,600 Korean yen in 1916.

Sales of general merchandise also decreased, as modern Japanese-owned department stores opened in the area.

In 1931, the colonial government sold ownership of the property to Jung-ang Trading Corporation altogether at a tenth of its market value.

The colonial government implicitly allowed merchants to operate while the Gyeongseong Market was being constructed.

After it opened on April 1, 1939, its impact was smaller than expected, so Namdaemun Market continued to thrive.

[17] When vendors returned to the market in June 1951, they found that the area had been cordoned off by barbed wire.

Its president Um Bok-man, who was involved in organized crime, siphoned off funds from the market.

Consequently, it was nicknamed "Dokkaebi Market", after a mischievous goblin-like creature from Korean folklore.

[17] Kkulkkuri-juk, an improvized dish that preceded the modern budae-jjigae, was sold in the market.

[22] In 1968, mayor of Seoul Kim Hyeon-ok proposed converting the market into an 18-story shopping complex.

[23] Beginning in 1977, efforts were made to move the wholesale agricultural and marine products vendors to different markets.

[27] Furthermore, the ownership structure of the market is reportedly complex, with stores sometimes belonging to five owners.

[29] The proportion of goods sold also changed; clothing went from 60% of the market's sales to 36.8%, and accessories went from 5% to 29.5%.

[31] The rise of the internet and online shopping has reportedly negatively impacted Namdaemun Market.

It has signs in other languages in order to appeal to them, translators, and multilingual employees are reportedly valued.

[38] Within the borders of the market is a historic Japanese colonial-era building [ko] now called Ilchul Apartment (일출 아파트).

In recent years, few people live in the building; it has mostly come to be used by merchants in Namdaemun Market as office or storage space.