We attempt to examine how the Principles of Economics Textbooks in Koreadescribe the nature of capitalistic free market economy and the role ofgovernment, evaluating any fundamental problems inherent in theirdescriptions and providing some pertinent alternatives for right descriptions.Not surprisingly, there are two main biases in textbooks with respect to thefree market economy and the function of government. First, most of KoreanEconomics Textbooks provide no descriptions on the fundamental nature of thecapitalistic market economy but focus disproportionately on the price andmarket mechanism. Secondly, with regard to the role of government, theTextbooks tend to bias towards the productive function instead of protectivefunction and thereby corrective function for market failures. With those inmind, we thus suggest that in explaining free market economy the Textbooksmust emphasize two fundamental pillars, private property rights and freedomto choose, and government’s protective function. In addition, we suggest thatthe free market economy and government’s role should be taught in thehistorical perspective, which leads to the superiority of market economy.