China is making efforts to enhance its soft power in recent years. In Beijing Olympic games, China fully presented its fascinating traditional culture to the world. After Beijing Olympic games, Rising Cultural China became a matter of great concern in the world, especially in Korea. This article analyzes discussions and policies for making the Great Cultural China in China, focusing on China's soft power initiative. It posits that cultural policies in China are related with national security concept. This article also posits that China's new cultural strategy is consisted of two categories: overcoming of its weakness in cultural industry and reinventing of it's traditional culture. The new strategy for making Great Cultural China might not only influence on the cultural industry of Korea but also evoke cultural conflicts between China and Korea. This article is suggesting that Korean government should make efforts to develop new cultural policies to response China's challenges over cultural industry and cultural export. For example, Korea has to reinvent its image that differentiated from the image of Chinese culture in the world.