Korea's development paradigm is now at a crossroads. Most of the impressive economic growth of Korea in the past has been underpinned by strong capital accumulation and growth in labor inputs, to which the role of the government as nationwide resources mobilizer and manager was critical. The background, facades, and the dynamism of the knowledge revolution and an emerging knowledge-based economy(KBE) are well known. Increasing scientific understanding is making knowledge and information one of the most important factors for competitiveness. Reductions in transportation and communications costs, technical progress, and fierce forces of globalization are leading to a more interdependent and competitive world. This paper outlines the strategy and policy of Korea's KBE plan and briefly focuses on the problems associated with its implementation.