Most research on language and identity has been conducted in contexts in which English is an official language. As a result, the Western-derived framework guiding identity research may not be representative for L2 learners/speakers in localized settings. To address this potential disparity, this qualitative study examines L2 identity construction and negotiation in the local context of Korea and investigates how English shapes self and social identity through actual use of English in day-to-day interaction. Using purposive homogenous sampling techniques, open-ended questionnaires and in-depth interviews were conducted with 10 adult bilingual Korean-English speakers who have lived abroad for over 4 years, a criterion which assumes the formation of self and social identity aside from their native L1. Analysis of the interview and questionnaire data reveals the challenges and opportunities to reconstruct and renegotiate L1/L2 identities locally. Findings show (1) challenges in using English in the local context, (2) strategic use or non-use of language to blend in or distinguish themselves from the local population, and (3) "natural" L2 expression and identity occurring mainly in private or professional circumstances. Findings suggest that L2 identity negotiation in local contexts is a complex process raising the question of L2 identity options and (dis)empowerment. Pedagogical implications relating to L2 language instruction follow.