Korea's traditional foreign policy toward Latin America was based on anti-communist ideology, international emigration, and limited commercial relations. The end of Cold War and diplomatic diversification efforts on both parts of Korea and Latin America, however, have made the anti-communist ideology lose its strength as diplomatic resource to mobilize. Korea's economic growth and Latin American countries' economic difficulties until the early 1990s challenged the usefulness of the emigration policy. Finally, market-oriented economic reform and trade liberalization of Latin American countries have provided Korea with new opportunities to enhance its economic relations with Latin America, which experienced limited development because of Latin America's former import-substitution industrialization strategy. New directions in Korea's foreign policy toward Latin America focus on the economic cooperation in its broad sense. Emigration policy has been modified to promote national integration of Korean firms. Trade, investment, and financing and development assistances have been expanded for the best advantage of the sea-change in economic and business environments of Latin America. What will happen in the coming years? This paper argues that Korea will be forced to further restructure its traditional pillars in foreign policy toward Latin America, and that Latin American countries will become major strategic partners in Korea's new focus on globalization. At the same time, it argues that improved economic relations between Korea and Latin America can be attained only by serious efforts to enhance economic interdependence, and that they should be strategic in the sense that both parties should benefit from such relations while meeting their own economic challenges at the turn of this century. In the late 1990s, the Korean economy are facing a financial crisis. Major Latin American countries such as Brazil and Argentina are suffering from the impacts of the East Asian financial crisis. Thus, economic stability in both sides should be the major factor in determining Korea-Latin America economic relations in the medium term. Although the long-term prospects for Korea-Latin America trade and investment are bright, there are several challenges to deal with for a mature relationship in addition to the immediate task of economic stabilization.