This paper's objective is to provide insights about the problems and expansion strategies of electronic trade. Korean small and medium-sized firms have adopted the Internet since the end of 1990s in order to reshape their competitiveness, and it is now being utilized as a major export marketing instrument to develop new customers, save export transaction costs ad facilitate new work processes. However, at present, the use of the internet in the field of trading is limited to the collection of market information, owing to legal, technical and institutional restraints between countries. In addition to that, because firms have the difficulties in making the trade contract through the e-trade system, the negative recognition on its' utility has been spreaded gradually between companies. This is one of the barriers to block the expansion of e-Trade between Korean firms. Therefore, this paper points out the problems of e-trade in the environmental, institutional and strategic view and provides many considerations for establishing the expansion strategy of e-trade by the Korean government and trade supporting institutions.