The application of Internet-technologies to support inter-business transactions and relationships (also termed business-to-business, B2B, electronic commerce) has recently received tremendous attention. Recognizing the importance of the Internet as a powerful business tool, many companies including public organization such as KEPCO(Korea Electronic Power Corporation) have moved quickly to take advantage of electronic commerce. This study explores the impact of Internet-based technology on the procurement function, howe-procurement is helping organizations to enhance their competitiveness and the challenges to its adoption. The study also presents the findings from a survey conducted to gain insight into the adoption of e-procurement by KEPCO. Specifically, it seeks to uncover the prevalence of and extent to which public organization is adopting e-procurement, the benefits reaped and the barriers encountered in the course of implementation.