The capital and largest city of South Korea is Seoul . Korean Soul , formally Soul-t'ukpyolsi ( "Special City of Seoul" ) , city and capital of the Republic of Korea ( South Korea ) , located in the northwestern part of the country on the Han-gang ( Han River ) 37 miles ( 60 kilometres ) from the Yellow Sea . Except for a brief period , Seoul was the capital of all of Korea from 1394 until the formal division of the country into North and South Korea in 1948 . Except for a brief interregnum ( 1399-1405 ) , Seoul was the capital of Korea from 1394 until the formal division of the country in 1948 . The city's name itself has come to mean "capital" in the Korean language . The name itself has come to mean "capital" in the Korean language . Seoul is on the Han River in the northwestern part of South Korea , about 37 miles ( 60 kilometers ) from the Yellow Sea . Korean Soul , formally Soul-t'ukpyolsi ( "Special City of Seoul" ) , city and capital of the Republic of Korea ( South Korea ) , located in the northwestern part of the country on the Han-gang ( Han River ) 37 miles ( 60 kilometres ) from the Yellow Sea . Seoul sits on both banks of the Han . Korean Soul , formally Soul-t'ukpyolsi ( "Special City of Seoul" ) , city and capital of the Republic of Korea ( South Korea ) , located in the northwestern part of the country on the Han-gang ( Han River ) 37 miles ( 60 kilometres ) from the Yellow Sea . Most of the people in Seoul are Koreans . Koreans constitute nearly all of the population , the number of foreign residents being insignificant . The city has one of the highest population densities in the world , meaning that it has many residents living in a relatively small area . The population of Seoul has grown extremely rapidly since 1950 , and the city now has one of the highest population densities in the world . Among the city's cultural institutions are the National Academy of Arts , the National Academy of Sciences , the Sejong Cultural Center , and the National Theater of Korea . It is the home of the National Academy of Arts and the National Academy of Sciences and nearly all of the nation's learned societies and libraries . Seoul is an important industrial , commercial , and banking center of South Korea . Seoul is the centre of finance for the country . Its industries include textiles , clothing , machinery , and chemicals . The textile , machinery , and chemical industries are the chief sectors in manufacturing , but food and beverage processing , printing , and publishing are also important . Many banks and the major stock exchanges have their headquarters in Seoul . The headquarters of the major stock exchanges and banks are located there , and the city plays host to many annual trade shows . Many trade shows take place in the city every year . The headquarters of the major stock exchanges and banks are located there , and the city plays host to many annual trade shows . Settlement on the site of Seoul can be traced back at least to the 1st century BC . The earliest historical mention of Seoul and the surrounding area dates from the 1st century BC . Not until a royal summer palace was built there in 1068 AD , however , did a fairly large settlement grow on the site . It was not , however , until King Munjong of Koryo built a summer palace in 1068 that a fairly large settlement existed on the site of the modern city . In 1394 , in the early years of the Yi , or Choson , Dynasty ( 1392-1910 ) , Seoul was selected as the national capital . The city was popularly called Seoul in Korean during both the Yi dynasty ( 1392-1910 ) and the period of Japanese rule ( 1910-45 ) , although the official names in those periods were Hansong and Kyongsong , respectively . In 1394 , in the early years of the Yi , or Choson , Dynasty ( 1392-1910 ) , Seoul was selected as the national capital . Modern Seoul was founded in 1394 by Gen . Yi Song-gye , the founder of Korea's Yi dynasty , as the capital of a unified nation . In 1394 , in the early years of the Yi , or Choson , Dynasty ( 1392-1910 ) , Seoul was selected as the national capital . After the formal establishment of Seoul as the capital of the unified Yi state in 1394 , construction and growth were very rapid . An 11-mile ( 18-kilometer ) defensive wall with gates , in Chinese style , was built around the city in 15th century . The natural defensive advantages of the basin were reinforced two years after the city's founding by the construction of an 11-mile ( 18-kilometre ) wall along the ridges of the surrounding hills . The city was devastated during the Korean War but was then rebuilt . The city was left devastated by the Korean War . The city hosted the Summer Olympic Games in 1988 . The city also has excellent sports and recreational facilities , notably the Seoul Sports Complex , which was built for the Asian Games in 1986 and the Olympic Games in 1988 .