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This study investigates the longitudinal effects of the norm-referenced evaluation system called Naeshin grading on psychological adjustment, social comparison, and achievement goals among South Korean high school students. The sample consisted of 282 students, attending two general high schools located in a metropolitan city in South Korea. Data collection was conducted three times: June in 2021, December in 2021, and June in 2022. The current study uses latent growth modeling to identify the longitudinal changes in psychological adjustment and social comparison over the course of 18 months. Adopting Ecological Developmental Theory, this study provides empirical evidence of the effects of competitive classroom atmosphere on psychological adjustment and social comparison. The details, implications, and limitations of the results will be presented.