In the last decade, the issue of supply chain management(SCM) has emerged as a significant topic in the logistics literature in the developed countries. Also recently the concept of SCM has generated considerable interest in korean firms. However, there has been little systematic analysis of the experience of those companies that have used such SCM philosophy. This paper studies introduction and Application of Korean Trading Companies using SCM philosophy. This study forcuses on how Korean firms can use the SCM by reinforcing their logistics systems. The objectives of this paper are. 1. To develop an understanding of the forces that have created an interest in SCM. 2. To examine the obstacles encountered in implementing SCM. 3. To suggest the impact of the use of SCM and the directions for institutional Development.