The purpose of this study was to analyze the characteristics of educational reform in 1990's. Especially, this study was to investigate the socio-political meanings of Sagyehwa (total globalization policy) and educational reform, and to find the right directions for educational reform. Major findings were summarized as follows. The basic principle of educational reform was emphasized market's role. free to choose, competition and consumer sovereignty, and the aims of educational reform were increased the economic productivity of state (nation's competitiveness). Politically the meaning of educational reform was the exclusionary repression by market mechanism to response the open of educational market. The state's role was crucial in process of educational reform. This reform reproduced educational inequality and collapsed community's value and devalued the relative merit of others. Thus we should pay attention to state and market's role in the educational decision-making. This effort will increase human value and conviviality.