This is a paper submitted to the international seminar in congratulation of the founding of KOREAN "BUK BANG" ACADEMY. This paper entitled "The Economic and Functional Strategy of Northern Arean Development for Hahn Race" deals at the outset with the concept of `national race` and meaning of `development` and at the same time treats the reason why it ought to be rather Northern directed option than any other area for Korea. The scope of the Hahn Race includes the people of Korean penisula, south and north together with the oversea Korean peoples particulary putting emphasis on Chosen Race inhabiting in China and old USSR. This paper excluded the matter of Korean unification not because of its matter of significance but it is the overflowing subject right now in Korean academic circle. In the treatment of Hahn Race, the argument has been made on the ethnicity, race and State in order to make a clear notion on the Korean national character. Few pages are allotted to clarify the scope of antique Korean territory. This paper concluded the meaning of `development` as to be the overcoming of the given contradictions. The original meaning of `development` could be argued being the access to the ideal state of anything or the high degree of the realization of the ideal status. However, the access to the ideal status is not easy at all owing to the enormous hindrances and obstacles Which occur from the contradictions or paradox. For this reason I defined the concept of development as to be the overcoming of contradictions. In relevance to thr title of this paper, Korea has the contradiction of two conflicting policies between North and South, namely the Continent and Ocean which are the issue inherent to the penisula States. I concluded that Korea insofar as the governmental policy efforts are concerned, must put more emphasis on the Northern area, where we fined the great number of Korean oversea people are inhabiting, leaving the Southern area which means Korean inhabitants of Japan, USA and South-East Asian area to the hand of Korean entrepreneurs on civilian and business basis. Here, the economic and functional strategy indicate the Governmental exortation and allurement over the business groups for the more economic investments and constractions in these areas and the direct financial aids reflected in the governmental budget. The Northern strategy proposed in this paper is based on the following five strategic conditions. First, the northern area was the original land where Korean ancesters have lived for thousands of years. Hahn race has more than nine thousand years of history. Secondly, outnumbered Korean people are living in Northern area ; one hundred and ninety thousand Korean people, what they call it Chosen race are living in China presently(eighty five thousand are living in Yongil, the north of Korean penisula). I employed the expression `outnumbered Korean` for there are almost none Chinese oversew people from Yon Byon area(80% of funds needed for the economic development of China have been supplied by oversew Chinese people) and Japanese people who had been living in Manchuria evacated from that area after Japan lost the world war. Thirdly, ample space in the Northern area is open to Korea available for cultivation and development good for Chosen race as well as Chinese people and. also good for Korea herself. This open space in Northern area has been produced because of the major worldly change and variables after the collaps of USSR. Fourth, enomous energy is emerging from for the localization of China The localization has been proceeded in a great degree as a general trend all over the China. This trend also offers the great opportunity to Korea enable for Northern development. Lastly, speaking of the national strategy-wise, ocean-options are already covered and shadowed by the major power such as Japan, USA and these ASEAN States. In this reason only the continent-option is the remnant area to g