This area, furnished with more than 200 buildings, showcases the Koreans' traditional customs. The district is divided into villages representing Koguryo Kingdom (277 B.C.-668 A.D.), Palhae Kingdom (late 7th century-early 10th century), Koryo Kingdom (918-1392) and the last feudal state of Korea (1392-1910).

Koguryo village is arranged with ten blocks of buildings showing the then history, culture and customs. Those buildings are roofed with tiles of red color, quite different from other sections. Among them are part of castle, a temple with one tower and three halls for Buddha and library of Buddhist sutras and government office used for exhibitions of weaponry, military uniforms and colors.

What is peculiar in Palhae village is the Palhae Royal Palace, which was restored on the basis of archaeological evidences of several royal buildings in Sanggyongryongchonbu, the capital of Palhae Kingdom.

Koryo village showcases architecture and customs created and established by the then people. On display there are an exhibition of Koryo remains and relics, the Koryo Tongmyong Inn which was used by government officials and foreign envoys at that time and kiln whereby celebrated Koryo celadons were made.

The village representing the last feudal state of Korea is classified into northern, central and southern regions, which are furnished with typical dwelling houses and other things in such a way as to show regional features in terms of economic and cultural life. At each house visitors can take special food indigenous to localities. The structures exhibited include tailor shop, mill, drugstore, private village school and the Sungnyong Hall, a shrine where the people used to make sacrifices to Kings Tangun and Tongmyong, founders of ancient states.