Korea is a country of several myths and legends which have made profound influence on its culture and society since the historical times. However, the two ancient myths are playing an important role in contemporary Korea. One is the myth of the foundation of the Korean nation by Dangun in 2333 BCE and the other is the myth of the marriage of an Indian princess to a Korean King Kim Suro in 48 CE. Both myths were mentioned in the ancient Korean text of Samguk Yusa or the "Memorabilia of the Three Kingdoms" which was written in the 13^(th) century CE. The myth of Dangun symbolizes the ethnic homogeneity of the Korean people; on the other hand the myth of Kim Suro's marriage symbolizes the multiracial and multicultural aspect of the Korean society. Both myths are used for and against the arguments regarding multiculturalism in contemporary Korea. Despite the fact that Korea has increasingly become globalized and multicultural in the recent years, but the forces against this trend have also become stronger as is evident from some recent surveys and reports. A "multicultural Korea" is still an oxymoron as Korea remains a closed society. Presently, the Korean society is deeply divided over the issue of maintaining racial and cultural homogeneity or accepting the heterogeneity in Korea. This paper is an effort to understand the significance of these two ancient myths in the contemporary Korean society and politics and to look into ways to bring about a balance between the two antagonistic ideas exemplified by these myths.