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The area once was a scenic beach area that catered towards Chinese ambassadors and merchants. Around this time, it was called Cheonggwan Street. Beginning around , it became a red light district that provided a variety of services, although namely drinking and prostitution, to American soldiers in the area. The area has since shifted locations and decreased in size somewhat, especially after the Busan Station Fire [ ko ]. The area's character has changed since the late s.
Fewer American troops were stationed nearby U. Navy and Marines have been prohibited from entering since at latest [3] , and more Russian sailors arrived. The area began to cater less towards entertainment, and more towards normal businesses. Hundreds of Russians and Koryo-saram ethnic Koreans of the former Soviet Union began moving into the area, making it an ethnic enclave.
However, the area has still retained some of its red-light district nature, despite government efforts. The area around modern-day Choryang-dong [ ko ] was originally considered an open, scenic beach area, with white sands and pine trees.
A Chinese consulate and land concession to Qing formerly occupied the area, and Chinese merchants set up there. Qing Establishment Street. A shanty town formed next to a nearby American military base. Residents provided a diverse array of legitimate and illegitimate services to the American soldiers, including namely alcohol and prostitution.
Minors were banned from entering the area; this ban remained in effect for decades afterwards. Koreans feared the area and considered it unsafe due to the drunken antics of soldiers. The area gradually lost its association with American servicemen beginning in the late s, as the number of troops stationed in Busan began to decrease. Streets became virtually deserted, with many businesses closing. The Soviet Union collapsed in In , South Korea and Russia established diplomatic relations.