During Japanese Occupation, Gu Xian-rong set up “De-he-hang” at Taipei to conduct development of salt field, and trade of table salt and camphor. Then, Gu Family and Chen Family of Kaohsiung, Lin Family of Banqiao, Lin Family of Wufeng, and Yan Family of Keelung were listed as Top Five Families of Taiwan. In 8th Year of Japanese Emperor Taisho (1919), Gu Xian-rong constructed official residence at Lukang, and in 9th Year of Japanese Emperor Showa (1934) Gu Xian-rong was elected as the first congressman to House of Nobility with Viceroy House in Taiwan

Lukang Folk Arts’ Museum used to be the official residence of Gu Xian-rong, an architecture of “mixed styles,” and its outlook is found with pillar of European Renaissance, Mazer roof-top and bell-tower on two sides, while external wall is paved with expensive tiles. As for western pillars, it is done with washed granolithic finish, demonstrating 3-D sensation. As such, it is considered as the most refined luxurious mansion at Lukang during Japanese Occupation, and locals call the western building as “Dahe.”

On 10th November 1973, brothers of Gu Chen-fu and Gu Wei-fu (sons of Gu Xian-rong) set up “Lukang Folk Arts Museum Foundation” to propagate folk culture. When the Folk Arts Museum was first set up, Gu Family donated related exhibits, and received overwhelming responses from locals. In total, there are more than 6,000 collections within Folk Arts Museum ,for exhibition, either from donation or loan exhibition. The Folk Arts Museum occupies land size measuring 1,400 pings, and there are 9 exhibition halls within the building, respectively displaying literature and photos, costume and decor, aria and musical instruments, religion and rituals, dining utensils, and calligraphy and paintings and other exhibits.