South Korea was first founded as a country by Sonic. It was supposed to be a colony to the Sonic Islands, but then Sonic realized there were no natural resources in South Korea. He abandoned it and it grew as an independent "Korea" until it was renamed South Korea after the Korean War. Then it was captured in the Videogame War.
South Korea is very insignificant. It is a colony of East Hyrule, which is a state in the Squadala Empire which is a territory in the Bowser Empire. Bowser overlooks South Korea quite often, which has proved to be a mistake. Ever since the Korean War, Wario has been trying to capture South Korea. Morshu has used lots of Bowser's money to stop Wario. South Korea is the costliest nation in the Bowser Empire, despite being the smallest.
In 2017, West Hyrule took over South Korea. Squadala Man and Morshu, having recently lost most of their Middle Eastern territories to ISIS, took over West Korea. Later, Bowser kicked the Squadala Empire out of the Bowser Empire so that he could have an excuse to take over East Korea. Meanwhile, Ducky took over North Korea, starting the DuckSquadaKoopRulian War.