THE Korean fairytale is over, ended at the hands of a ruthless German team that last night qualified for its seventh World Cup final.

South Korea, the outsiders who made it to the semi-finals on a cocktail of skill, emotion and national pride — defeating European heavyweights Portugal, Italy and Spain along the way — were felled by a 75th-minute goal from German midfielder Michael Ballack.

But for the millions of fans who watched the game on giant screens erected in Korean cities, this was anything but a defeat. And from the kick-off, no matter the result, many justifiably felt they had won already.

“We’ve gone so much farther than anyone dreamed of, so no one will be sad if we lose,” said student Annie Kim.

The World Cup has been a revelation for Korea, a nation haunted by the ghosts of an economic meltdown in the late 1990s, endless corruption scandals and a collective self-doubt about its place in the world.

The contrasts between this football festival and the 1988 Olympics are stark. Then, there were heavily armed soldiers at every turn, fingers on the trigger. Now, there are smiling and unarmed policemen and women who stroll more than march.

The ramifications of Korea’s extraordinary run have been far- reaching, according to both government and independent analysis.

The local currency, the won, has strengthened against the dollar, and global investment banker Goldman Sachs has issued a report predicting a huge return for Korea because of the positive spin- offs generated by both the World Cup and the team’s success.

“With the World Cup, a tremendous energy is gushing out of the Korean people,” said President Kim Dae-jung after meeting with foreign investors.

“Korea is now making a leap into the world.”

In Sydney, the 2000 Koreans watching the game on giant screens at Darling Harbour applauded enthusiastically after the full-time whistle, despite the result.

Mother of two Huyun Jooshin, 34, said it was a very special night for Koreans. “It is the first time for us to get these kind of results,” she said. “We are satisfied. We had a big win for us, to get so far. Koreans all over the world have come together over this. It has made me very proud of my country and my soccer team.”

Kiung Han, 19, a student, said for Korea the match was easily the most important event of the millennium. “Australian Koreans are very patriotic, they are very proud,” he said.