While it was mainly a residential area, some of its components took important role in Joseon's governmental functions, including diplomacy and defense.

[1]: 95–98 In early period of Joseon, one of the Seongjeosimni's main function was tree farm to provide wooden materials for the national government.

Instead, government-led granaries to store tax paid by grains, diplomatic missions and military post for defense of the capital city filled this sparsely populated area.

[1]: 100–118 However, as Hanseong city's downtown region inside the Fortress Wall became overly crowded in the late 15th century, the national government tried to redevelop the Seongjeosimni as residential area.

Japanese residents in colonial Joseon were mainly concentrated around southside inside of the Fortress Wall, an area named by Koreans as 'Namchon' (남촌; lit.

[4]: 316–327  Following this geographic status, in 1914, Japanese Government-General changed name of colonial Joseon's capital from 'Hanseong' to 'Keijō', and reduced its city limit to areas a lot close to the Fortress Wall and Yongsan.

It was primarily designed as place for Joseon's international relations, since Seogyo was essential node along the passage connecting capital city of China and Korea.