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The ‘Internal Development Theory’ means the historial methods and perception on Korean history, which was conducted in North and South Korea, and Japan during the 1960s and 1970s. It arose as a project that tried to replace colonial historiography with the post-colonial one based upon the one country perspective. This new perspective was predicated upon the nation state building. This theory in Korea is divided into two categories. One is to show internal capacity and development in contrast to heteronomous and stagnant theory featuring the colonial historiography. It has an aim that seeks for the ‘(scientific) systemization of Korean history.’ The other is the ‘capitalism sprout theory’ which finds outlook for the possibility to achieve autonomous modernization in the socio- economic changes since the late Joseon dynasty. This article aims to show the two ‘internal development theory’ schools in terms of the formation and process of this theory, and to find an alternative discourse to overcome the limits of the two schools. Many ideas are already suggested: understanding the systemization of Korean history through the more scientific research in terms of positivistic and theoretical dimensions, the elucidation on the traditional economy which is precondition to modern economic development, and diverse development possibilities which overcomes the western model. All are eclectic alternatives. In addition to these ideas, I suggest the ‘regional history’ which crosses the territorial boundaries and sets up the diverse communities. This history would lessen the gravity of the state/national history while it appreciates the value of human communal life. Through this alternative ideas, the ‘internal development theory,’ which was a method for one state/national historiography during the nation state formation era, would complete its historical mission and would be reborn filled new concepts and contents.