This paper examines the recent bi-polarization phenomenon in Korean farm income, using farm-level data collected over the period 1998-2006. This study employs the identification-alienation approach suggested by Esteban and Ray(ER index) to obtain the degrees of bi-polarization across farm income sources. In addition, farm income distributions are investigated through the nonparametric kernel density estimation techniques. The results find that farm income have been bi-polarized over the period. Agricultural income among the farm income has walked the path of bi-polarization at a fast speed during 2001-2004. A significant bi-polarization in off-farm income has occurred between 2005 and 2006. A better understanding of the current status of polarization within farm incomes has implications for direction and strategy for Korean agriculture transformation.