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The current study examines the ways in which stigma affects the identity negotiation of multicultural youth residing in South Korea. Studies report that Koreans hold an unfavorable view of members from Southeast Asia and Japan. Accordingly, Korean born multicultural children with a Southeast Asian or Japanese ethnic background inherit the stigma ascribed to their parents and must negotiate their ethnic identities amidst stigma and homogeneity. This study used semi-structured in-depth interviews to explore the ways in which participants feel pressure to racially “pass” or solely identify as an ethnic Korean because of the stigma affixed to their ethnic minority identity. Results show that though Southeast Asian-Koreans and Japanese-Koreans experience similar forms of stigmatization and discrimination, most of the Southeast Asian-Korean participants racially identify as Korean while Japanese-Koreans primarily adopt a multicultural identity. Possible reasons for the disparity in racial identification are provided as well as implications for future research.