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According to Wikipedia (citing http://www.namisum.com), the "Naminara Republic" declared itself as a country:
the "passport" issued from Naminara is required in order to enter Namisum. It declared itself a self-governing country in 2006
Is the Naminara Republic recognized by any nation?
Is it tolerated by South Korea?
No other country (here I am using UN membership as a definition) has official diplomatic ties with this notional micro state. Therefore the answer is, "no, it is not recognized by any other nation"
South Korea in particular does not recognize any sovereignty, so them it is just a claim not worth dealing with. An individual can add any restrictions he wants to people entering his property, but if this republic were to seek to deviate from South Korean law, the cops would get involved.
The situation is mostly likely akin to the "conch republic" of key west. A notional idea at best, but don't try to go against the cops with a blockade.
It is possible that other non-member micro states may choose to recognize this one, but by the common definition of country that the general public would recognize- ie ones generally recognized- the answer is no.
The "Naminara republic" is as independent of South Korea as Disneyland is of the USA.
It is a theme park expressing a vision of being a magical, fairy-tale world. Part of this pretence is the notion of it being an independent republic. But the flag, the money, the passports, this is all part of the kayfabe, not "real".
The island only claims "cultural independence" and not "political independence" or "sovereignty".
So treat the idea that Naminama is an independent state on the same level as the idea that there is a real man sized mouse walking around a park in California. It is a bit of fun. As long as it stays a bit of fun, Korea is happy to play along.
