The village where Jae-Ha was born, originally founded by Shu-Ten . Like the Village of Seiryuu , Ryokuryuu Village doesn't not respect or honor their village's dragon as the Village of Hakuryuu does. Unlike Seiryuu Village, Ryokuryuu Village fears strangers even more than it fears its dragons, and chains them up as a prisoner in order to prevent them from leaving the village, rather than using their Dragon Warrior as a frightful guardian.
It is not rich as Hakuyruu Village is. Once the Ryokuryuu's successor is born, they stop chaining up the previous Ryokuryuu and simply wait for them to die. The only way the Ryokuryuu will be unchained without having a successor is if King Hiryuu returns for their dragon warrior, in which case the villagers intend to entrust custody of the Ryokuryuu to Hiryuu. How this process would have gone is not shown, as Jaeha escaped the village himself well before Yona could have come for him.