This study aims to interpret the characteristics of the townscape of the market area in the Hongju Eupseong walled town based on the formation and transformation of modern urban tissue. Based on an analysis of the town plan using a cadastral map, land register, building management register, and aerial images, the change process of the urban tissue and townscape in the market area is divided into three phases: the expansion phase of the market’s function from the 1910s to 1940s, which featured an open market-based townscape; the declining phase of the market’s function from the 1940s to 1960s, which featured a route-shop-based townscape; and the expiration phase of the market’s function after the 1960s. More specifically, with the opening of roads, the functions of the open market gradually diminished from the 1940s on, and after the war, especially during the rapid urbanization of the 1960s, the market area changed into a roadside shop and inner residential area, and the foundation of the current townscape was fixed. Above all, it is noteworthy that since the 1960s, the urban tissue and townscape have formed on the foundation of the former open market based on Japanese capital.