Gungye Regime moved its capital city several times, including the ones from Cheolwon to Gaesung, from Gaesung back again to Cheolwon. But the movement in 896 A.D, was non-systematically made because its national system was not well organized. In 898 A.D., when they moved their capital to Songak, even the name of a new state was not yet made so that it could not adequately be called a proper-type of movement of a capital city. In 904 A.D., Gungye changed both his nation title and his royal year and he settled down 1,000 families of Cheongju to Cheolwon in 905 A.D. In the process, Gungye promoted Cheolwon to a capital-level titled city, calling it "a New Capital City", which was differed from other cities, because it implied that a capital city governed by an emperor.
In this imperial city, Gungye wished to realize his marvellous national program. Through several innovations, including the reorganization of governmental system, and the establishment of novel relationship with neighboring governments, he tried to realize his vision of an ideal state. Building lofty palaces, he wanted to promote a royal status, and he also had a will to renovate the traditional class system.
Gungye wanted to realize several ambitious programs in and around his capital city of Cheolwon. In the process of execution, he met obstacles from political opponents, resulting his own downfall. But his own tragedy put a great influence upon Goryo regime. Gungye's idea to set an imperial city in Cheolwon shows his dream to transform the original power structure, from Shilla-centeredness to Cheolwon- centeredness, as an emperor-governing capital city in the mid-central region of the Korean peninsula. In this respect we must interpret the year 905 A.D., as the first year of Gungye's imperial state.