Normative grading compounded with socio-educational conditions in East Asian countries amplifies the effect competition beliefs have on learning outcomes. Competition beliefs may be especially influential in videoconference courses since some students feel reluctant to interrupt the instructor, avoid talking over others, or dominate the class conversation. This study investigates how instrumental motivation relates to competitiveness and how that relationship influences foreign language (FL) anxiety and learning outcome beliefs among students attending video conference EFL courses. To this end, structural equation modeling was used to model the relationships between instrumental motivation, academic competitiveness, FL performance anxiety, and learning outcome beliefs. Further, the indirect effect of academic competitiveness and FL anxiety was identified. A cross-sectional survey design for a mediation analysis was implemented among 318 South Korean EFL students attending classes taught remotely that combine videoconference and learning management system (LMS) features. Results indicate that South Korean university students have high levels of instrumental motivation to learn English. Further, instrumental motivation had a positive relationship with FL performance anxiety, indicating feelings of anxiousness among motivated students in South Korea's competitive learning environment. This positive relationship vanished when academic competitiveness was added to the model, indicating full mediation when accounting for confidence in outcompeting classmates. Lastly, negative mediation on learning outcome beliefs was observed with increasing levels of FL performance anxiety. Highly competitive students are prone to the negative consequences of FL performance anxiety, which negatively influences perceived learning outcomes. These findings along with pedagogical implications are discussed.