In this article, some constructs that are useful for understanding cultural differences between Western and Korean societies are reviewed. Also reviewed are some issues surrounding these constructs. A model of family change which reflects cultural diversity and socioeconomic change is introduced. More specifically, individualism and collectivism, the constructs that are widely used in the field of cross-cultural psychology, are explained along with some critical issues related to these constructs. The culture of relatedness and the culture of separateness are introduced. These constructs are deemed to be theoretical formulations that further develop the constructs of individualism and collectivism on the psychological dimension. Cultural diversity concerning the concept of a functional family is discussed and a model of family change which encompasses cultural diversity and socioeconomic change is described. Finally, implications for family therapy and research in Korea are discussed.