This study is designed to analyze progress, current issues and prospects of Korean trade with Eastern Europe. In 1989, Eastern European countries started transforming from socialist planned economies to capitalist market economies. This was made possible by the preceding revolutionary political changes in the process of which old socialist ideology was discarded. As Eastern Europe countries pursued the same goal - establishment of a market economy - the basic directions of economic transformation consisted of the same elements: liberalization of economic activities, macroeconomic stabilization, the privatization of state enterprises and the introduction of a market infrastructure. These eastern European countries, which had lower production costs than EU member countries, can serve as beachheads from which Korea might access the vast EU market. Thus, Korean must work out mew sales strategies and gradually increase participation in Eastern European local markets. Korea should also target increased direct investment in that region.