Abstract：The year of 2011 is a marvelous one for South Korea. There are some focus issues such as the phenomenon of Ahn Chul-su, female's participation in politics, permission of FTA between U.S.-South Korea, free meal for school children, institutional reform in universities, movement for half tuition fee, tax reform, North Korean defectors, fishery dispute between China and South Korea, crimes by U.S.forces in South Korea and environmental problems, which are serious challenges for South Korean government and the people as well. The phenomenon of Ahn Chul-show and female's participation in politics particularly not only reflected the political struggle in the court and the commonalty, but also concerned the political trend of South Korea. The economic growth of South Korea has slowed this year obviously. The prices went up while private consumption and equipment investment were decreasing, government enterprises are heavily in debt. Economy of PRC and South Korea in 2011 achieved remarkable development in spite of facing the serious situation of the world economy. The year of 2012 is the last one for President Lee's government. The politics and diplomacy of South Korea is faced with serious challenges. Ahn Chul-show and his supporters will become a new competitive force in the latter. However, the biggest weakness of him is that he is lack of experience in ruling state and dealing with politics. Similarly, whether Park Geunhye can become the next president is still attracting people's concern. In the year of 2012, the barrier in economic development of South Korea will be continued. South Korea will be faced with serious external environment challenges in fields of diplomacy security. It's worth paying attention that the year of 2012 is the 20 anniversary of diplomatic relation between China and South Korea. For 20 years, although there are some unpleasant factors indeed, the two countries will keep their friendly cooperation relations for long.