e-Trade can improve the high-cost Korean trade structure basically by reducing auxiliary expenses dramatically through trade process innovation.
Despite quantitative growth in becoming the world's 12th largest trading nation, Korea has a problem with added-value decline due to its high-cost trade structure. Auxiliary trade auxiliary expenses vs. GDP in 2000 showed Korea at 12.8% and Japan at 9.6%.
Considering that the KITA-established trade automation (EDI) system for export/import customs clearance alone could save 5.4 trillion won annually, e-trade is expected to save a significant amount when it goes into full-scale operation.
According to the survey results of a specialized agency, when the e-trade system is completed in 2005, the nation will be able to save an estimated US$14.5 billion in auxiliary trade expenses (17.4 trillion won: 24.5% of total trade expenses), increase exports by US$7.9 billion and create more than 120,000 new jobs annually.