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Unlike the popular image of Asian American communities where immigrants and families reside, do business, and enroll in school, in spatially concentrated areas, there is significant variation in neighborhood context that significantly impacts the racial perceptions among Asian American youths. This paper examines how differential community contexts shape the racial perceptions of Asian American youths using retrospective narratives of grown children of Korean immigrants. To capture the differential effect of racial composition of social contexts, I compare two subgroups—the respondents who grew up in “Korea towns,” and those from “non-Korea towns.” Findings reveal that those from Non-Korea towns tend to define race relations more as “hierarchical” difference, while those from Korea towns see them more as “cultural” difference. These differential ideas on race relations contribute to marked variation in their perception of incorporation. For those from Non-Korea towns, sociocultural incorporation into the white circle is understood as “forced” but “unattainable,” while those from Korea towns see it as a matter of “culture.”