Before the modernization period, a village was a community where both family life and agricultural production took place based on natural boundaries. Villages have existed since the Neolithic period, but clan villages where people with the same surname lived increased significantly during the Joseon Dynasty.
The residential area of a clan village is located at the boundary between rice paddies and fields, that is, at the foot of the mountain where the flat land ends and the slope begins, and on a southern slope for sunlight. In a clan village, due to the influence of Feng Shui geography and Neo-Confucianism, the head house and shrine were placed in the highest position at the back of the village where the energy of the mountain descended, and the village was formed around it. In order to prevent the village from being immediately visible from the outside, artificial forests were created or the natural terrain was used to create entrances that were not direct. The alleys in a clan village freely connect to each house with a main road that goes from the entrance to the head house. Therefore, these alleyways have an organic shape and are divided by the walls of each building, so they are very cozy, and are considered one of the representative elements that show the beauty of the Hanok Village. Examples of clan villages include Oeam Village in Asan, Wanggok Village in Goseong, and Hahoe Village in Andong. Aside from clan villages, Eupseong villages consists of guesthouses that form the center of the county and prefecture, the Magistrate's Office and castle wall, ritual facilities and surrounding rural villages. However, in the Japanese colonial period, most were lost along with urbanization. Examples of Eupseong villages include Suwon Hwaseong, Gyeongju Eupseong, and Haemi Eupseong.
In the 1930s, due to a shortage of housing from rapid urbanization, there was a demand for inexpensive houses that were easy to construct with a larger area. This led to the emergence of housing management companies that specialize in providing housing. Housing managers purchased large lands, built and supplied several hanoks, and improved marketability by using new materials such as glass and tiles. At this time, the gradually developed areas have atypical branch-shaped alleys, and the rapidly developed areas have typical grid-shaped alleys, which can be seen in Gahoe-dong in Bukchon and Bomun-dong in Seongbuk-gu. Examples of urban hanok villages include Bukchon in Seoul and the Hanok Village in Jeonju.