This paper concerns the paradox of democratization in South Korea, whose progression has been entwined with neoliberal capitalism beginning in the 1990s. A particular form of democratization addressed in this paper is the broad-reaching initiatives to transform the relationship between the state and society. Specifically, the initiative to rewrite colonial and cold-war history was examined. This particular initiative is part of an effort to correct a longstanding tendency of previous military regimes that suppressed the resolution of colonial legacies and framed Korean national history within an ideological confrontation of capitalist South Korea and communist North Korea.