This study describes the concept and characteristics of identity which has become an important topic in literacy studies, explores how identity and literacy is related, and reviews the literature on identity for the last 30 years. Based on the review, this study suggests several points regarding identity in implementing literacy studies and literacy education. In constructionist perspective, meaning is socially constructed from the interaction among the people of a society. Each individual participated in this social meaning-making based on his subjective and non-neutral self-concept, that is, identity. Literacy practices functions as a dominant tool of this meaning-making. Korean society is never free from the matter of the politics of identity as ethnic formation becomes diverse and silenced voice becomes heard from many directions such as gender, class, religion, location, and so on. Purpose of literacy education is to help them explore and understand the diversity through literacy practices so that they get to negotiation and mediation. This is why identity matters in literacy studies and literacy education in Korea.