It is undeniable that Korea successfully overcame the global financial crisis faster than any other country in the world. Last year, the Financial Times complimented Korea as it seemed to have pulled off a textbook recovery, and French intellectual Guy Sorman commented that the Korean economy had gone from strength to strength. Although it is certainly appreciated that there is high regard for the Korean economy, it is equally undeniable that past success does not always guarantee success in the future. To keep the Korean economy above water in the future, the central question is how Korea will be able to find answers to challenges and turn them into opportunities. It is presently being claimed that Korea is faced with global and domestic challenges for both the short- and long- terms. As to global challenges, there will likely be lingering downside risks in the global economy, followed by deepening uncertainty in the global financial market, high commodity prices mingled with geopolitical instability in the countries of the Middle East and North Africa, sovereign vulnerabilities in the euro area, volatility of capital flows, and the impact of Japan’s nuclear disaster.