The US has declared its intent to strategically compete with the rising power of China on all fronts. However, Washington’s overt extension of US–China rivalry into the ideological realm presents unique challenges to its Indo-Pacific order-building process. The balance of threat theory provides a useful conceptual toolkit to unravel the case of the geostrategic positioning of South Korea, which is a close US ally and already engaged in a delicate balancing act between the US and China, to set the stage for a deeper examination of how the strategic community within South Korea views America’s augmented policy of resisting “authoritarianism” and national debates on the prospect of an ideational “threat” from China. It then contemplates how policymakers in South Korea could respond to the new challenges this raises, concluding that the advent of an intensified values competition requires further finessing of their already delicate balancing act.