This is to report the objectives, planning and the process of the establishment of an on-line information retrieval system in Korea. The model is the case of the Library of the Korea Institute of Science and Technology (KIST) which is the multi-disciplinary contract research organization in science and technology. The report explains the objectives and the step by step process such as input materials, analysis of the materials, structure of the data base files, indexes, command language, and the process, technique and logic of information retrieval. A brief comparison is made with other systems such as OCLC and BALLOTS and the authors gave various illustrations and samples to clarify the processes. The authors regrets that they could not give any detailed information on the budget or the cost accrued so far.