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Recent development of information technology has brought dramatic increase of strategic use of information system in businesses all over the world. This paper will examine e-business application for customer satisfaction especially in Korean small and medium businesses to illustrate the major impact of information technology on small and medium sized firms in Korea, find out the roles of e-commerce within their supply chain systems in those small and medium-sized enterprises, and then, identify major barriers that prevent Korean small businesses from entering into e-commerce. Finally, this paper will propose an analytical framework for e-commerce penetration into small firms as a guideline of future applications in similar cases.