Under Japanese rule, Luodong was developed into the base for industries established by the Taiping Mountain logging business. In 1916, the Japanese government established the Giran Branch Office of the Forest Administration Bureau in charge of logging, transportation and storage of Taiping Mountain area timber with a log pond set up in today's Yuanshan Township. The branch office was then later on moved to Luodong due to the change in the lumber transportation from waterway to railway. Finally in 1924, upon the completion of railway connecting Luodong and Tuchang (土場 in Datong), the branch office was officially moved to . From that moment onward, Luodong became a commercial center. From 1920-1945, Lutung was administrated as of Taihoku Prefecture.