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Seoul Olympics of 1988 has been regarded among the most successful events in modem Olympic history in terms of increased number of participants and political transformation in South Korea. This paper deals with both as an event and as a long-term effort contributed to political, economic and cultural change. Politically, it was central tool for successful diplomacy and an important factor in liberalization of the internal policies; economically coincided with the rise of the nation's electronics and telecommunication industry; and culturally, played a leading role in opening new perspectives on the outside world particularly for young generation of Koreans. The paramount goal at that time was to update and improve its national image; it was largely associated with political agenda expecting numerous socio- political consequences and could be used as a project to mobilize entire nation. The political leadership adopted the policy of confidence building measure well before the commencement of Seoul games, resulting in almost universal participation, and successfully conducted some events also in North Korea, and regarded as one of the great diplomatic achievements of this peninsula towards peace and fraternity.