This article focuses on South Korea, where the basis of the economy rapidly transformed from labor-intensive industries to heavy/chemical industries and then to technology-based industries within a short time period. The Korean case shows how national research systems evolve along with economic development. On the other hand, such rapid research system development is accompanied by problems and challenges. This article focuses on university research as a part of Korea's national research system in support of economic development, what Korean research universities have accomplished through policy initiatives, and the challenges the universities currently face.