Ikseon-dong belonged to Jeongseonbang in the central part of Hanseong-bu in the fifth year of King Taejo (1396), and it belonged to the upper and lower bound of Donnyeong-bu of the central Joengseonbang in 27th year of King Yeongjo. In 1895, it contains districts of Donnyeong-dong, Han-dong, Ik-dong, Lu-dong, Gung-dong, and Ni-dong in the Joengseonbang of Hanseong-bu. In 1910, the area was changed from the middle west of Hansung-bu to the central part of Gyeongseong-bu. Some areas of Gung-dong, Ik-dong, Donnyeong-dong, Ni-dong, and Han-dong, which was reorganized in 1911, were newly integrated in 1914 and called Ikseon-dong. The name of Ikseon-dong was coined in 1914 after taking the word "ik" from Ik-dong, which has been the name of dong-ri in the area since the Joseon Dynasty, and after the word "seon" from Jeongseonbang.
In Ik-dong during the Joseon Dynasty, there was Nudong Palace, the private mansion and shrine of the 25th king of Cheoljong, where descendants of Yeongpyeong-gun Lee Gyeong-eung, Cheoljong’s older brother, lived reportedly until the Japanese colonial period. Since then, real estate developer Jeong Se-kwon has bought 166, 33 and 19 Iksong-dong, including Nudong Palace, divided them into small-scale fields, and built and bargained small-sized Hanoks, forming the framework of the Hanok village in Ikseon-dong as it is today.
At 34-8 Ikseon-dong, where tourist hotels are located, there was Ojinam, called the Three Fairies in the 1970s and 1980s, along with Daewongak and Samcheongak. Ojinam, the first restaurant registered in Seoul and one of the most popular commercial Hanoks in the early 1910s, was the house where painter Lee Byung-jik lived and the historic venue for discussing the July 4 South-North Joint Statement that led to the settlement of the Cold War era between the two Koreas in 1972. Ojinam was demolished in 2010 as a tourist hotel was built, with its elements being relocated to 315-3 Buam-dong, which is being used as a center for traditional cultural facilities for residents at Mugyewon.