The volume of cargo being transported in Korea has increased enormously due to the sustained economic growth the nation continues to experience. However, the expansion of infrastructure such as roads, railways, and the like has not been sufficient for the efficient handling of those cargos. Moreover, existing facilities have been operating in a less-than-efficient manner, and the bulk of logistics-related administrative institutions have been impractical. In addition, transport policy itself has traditionally emphasized passenger traffic over cargo. For this reason, Korea must be considered an underdeveloped country in the area of logistics, where it lags approximately 20 years behind developed nations in terms of institutions, facilities, operation, and general level of awareness concerning the field. Of particular note: While the inauguration of the WTO regime ushered in the era of unlimited competition among economies, the ratio of logistics costs to total sales in the manufacturing industry in Korea amounts to 17%--a disturbingly high figure--compared with 7% in the U.S.A and 11% in Japan. Ultimately these high costs lead to an increase in the cost of products, and a decrease in the quality of service. It is no doubt that such logistics costs have weakened our national competitiveness. In order to effectively address this issue, the business sector must make continuous efforts to solve problems related to logistics. To be sure, government has a responsibility to support the efforts of the business sector, as well as to improve inefficient institutions and expand logistics infrastructure. to this end, the government prepared a $oxDr$Basic Plan for the Improvement of the Cargo Distribution System$oxUl$ last year; this plan will serve as a guide in formulating a 10-year comprehensive distribution policy. The purpose of the proposed governmental distribution policy is to reduce the high distribution costs mentioned earlier to the level of that of developed countries within 10years. This is to be accomplished through the provision of safe, swift, inexpensive, and convenient distribution services designed to strengthen national competitiveness. To this end, major measures currently being pursued are outlined below. First, form the view point of hardware, we plan to expand SOC consistently, establish a cargo transport network to connect each regional distribution center, and transport long-distance and mass cargo by railway and coastal shipping. In particular, when the construction of the Seoul-Pusan High-Speed Railway is completed, existing seoul-Pusan rail routes will be designated to handle transport cargo, for the most part. This is expected to greatly increase cargo transport capacity between Seoul and Pusan. From the viewpoint of software, we plan to make the operation of facilities highly efficient, and to make mechanization, automation, and intermodal transport possible by standardizing distribution facilities and equipment. We also plan to establish a comprehensive logistics information network in order to use the EDI system in business, as well as to promptly provide information related to logistics. In addition, we plan to guarantee the autonomous distribution activities of private companies by reducing unnecessary regulations related to logistics. Finally, in the long term, in order to take a leading role in international society as a logistics hub in the East Asian region, we will endeavor to have the New Seoul Metropolitan Airport function as an international logistics center. Also in conjunction with this goal, we will ensure that the major seaports at Pusan and Gwangyang play the primary role in maritime service by expanding those ports in order that they might handle the transfer cargos of neighboring countries, including China, and we will establish a transport system connected with the Trans-Asian Railway, such as the TCR or TSR.