This cross-border SCM system is expected to empower export companies to launch practical electronic trade. In addition, a system model will be designed to link the domestic network for automated trade and customs clearance to the SCM process between the two countries.

The Ministry of Commerce, Industry and Energy (MOCIE) and KTNET (Korean Trade Network) announced that they would collaborate to build an e-trade hub, the SCM system between Korea and China and a partnership for clearance automation system between Korea and Japan, kicking off pilot service by July 2003.

The envisioned e-trade hub is key to implementing national e-commerce and electronic trade, including e-AMP enterprise, between Korea and Japan, creating e-trade infrastructure between the two countries hosted both by KTNET and MOCIE's Bureau of Trade Policy.

Capitalising on global-based e-commerce and powerful e-trade infrastructure, this global SCM system will allow domestic corporations to make active inroads into the global market more easily and enhance e-commerce between companies at home and abroad, streamlining procedures for trade, design and technology research.

Moreover, this system will be preferentially applied to the explosively growing Chinese market, connecting the headquarters of domestic corporations with their affiliates as well as local clients abroad.

MOCIE will take the initiative in basic market research with the authorities in China and take follow-up measures to expand the project nationwide. In addition, the ministry will build the e-trade hub into a global SCM network encompassing Asian nations.

The most likely model for the global SCM network is Internet SCM (encompassing 50 thousand corporations and 200 supply chain systems) in which the government of Taiwan government invested US$2 billion (approximately 72 billion won) from 1999 to 2001. Through the Internet SCM, Taiwan's government is supporting e-commerce and global distribution activities of multinational corporations and domestic enterprises.

Meanwhile, MOCIE and KTNET will promote the interoperation of customs clearance automation systems between Korea and Taiwan, the initial phase in terms of extension of e-trade business. The final goal is to enhance the complicated customs clearance process, which is a prerequisite for smooth electronic trade among nations.

With this, the two countries will jointly study the customs clearance environment and push for the tentatively named "Pilot Enterprise for Clearance Automation" in earnest. They will also review the related laws and systemic environment for mutual authentication of electric documents in the customs clearance sector.

A MOCIE official said, "This work is focused on the extension of e-commerce and electronic trade. The practical results are expected by July next year."