The modernization of Japan was accompanied by Western containment. The West’s fear of Japan after Japan won the Russo-Japanese war, manifested as ‘Yellow Peril.’ In response, Imperial Japan tried to improve its foreign relationship with Western countries. At the same time, Japan changed its continental policy to strengthen its national power. The Yellow Peril and Western countries’ policy of containment made the Japanese government recognize its identity as the Orient. The thought of ‘Asianism’(亞細亞主義), which was based on an idea of racial hierarchies like the West’s idea of Yellow Peril was spread. The key concept of Asianism was that Japan should lead the Orient as the leader. Therefore, in Japan’s new continental policy, the first step was to accomplish the annexation of Korea. The basic plan to annex Korea was designed by General Yamagata in the interests of Japan’s national development. The concept of ‘interest line’(利益線), which included Korea was seen integral to the sovereignty of Japan. It was based on a military point of view, seeing national defense as a key point for development. The view was shared among Japanese politicians. However, Japan’s continental policy contained two subtle differences in management plans. The differences were whether the political autonomy of Governor-General should be secured or not. This was closely related to the industrial development of Korea. The differences were very important in colonial governing of Korea as they were closed related to the issues of how to rule annex Korea.