The core purpose of this paper is to describe a new educational paradigm as well as possible directions and tasks for education reform in the 21st century. The present-day education system has failed to nurture the kind of creative people who can play leading roles in development or to produce citizens of a good character and democratic tendencies. We need to look at education from the standpoint of expanding the totality of possibilities for national development. The current educational system of Korea can be characterized as one of "manpower-centered education." In this system, education functions to produce the human resources needed by the nation, and there is a strong belief in the classification and selection of high-quality human capital via the school system. We can think of an educational model that is parallel to the current system of manpower classification and selection and call it "competency-based education." In this model, the identification of individual ability, talent, and aptitude is deemed to be the most important, and the key task of education is self-actualization through recognition and cultivation of such talents and abilities. What educational values should be pursued within a new competency-based paradigm? First, we can reduce the relative weight of subject-centered education and introduce a competency-based curriculum in order to teach key competences for life. Second, new intelligence theories must be introduced into education in order to foster the development of students' talents, aptitudes, and potentials. Third, we can make use of positive psychology, which is a newly emerging field, the core concept of which is the belief that happiness in life depends on one's ability to develop and maintain positive feelings and emotions.