This report examines how IT was incorporated into cargo clearance procedures in Korea, and what its implications are for traders, SMEs in particular. After a short introduction in Section I, Section II examines the definition of SMEs in Korea, and SMEs’ role in Korean trade. In Section III, we describe the history of the adoption of IT in Korean cargo clearance. The introduction of IT to cargo clearance procedures in Korea can be roughly divided into two stages. The first stage includes the implementation of: Preparation for Customs Clearance Automation (1980s-1992), EDI Customs Clearance Automation Six Year Plan (1992-1997), Establishment of Paperless Customs Clearance System (1997- 2001); and the Plan for Establishment of Infrastructure for Information Technology and Knowledge Management (2001-2003). The main accomplishment of the first stage was a Value Added Network / Electronic Data Interchange (VAN/EDI) which linked KCS and traders in 1996. The system was subsequently expanded so that traders could access the system through the Internet..