This paper examines a new method of measuring the horizontal and vertical intra-industry and analyzes the evolving pattern of such trade between Korea and Japan during the period of 1991-2006 by employing it. Since Greenaway et al.(1994) adopt a unique method of using unit price of exports and imports to decompose intra-industry trade into its horizontal and vertical intra-industry trade, a large study has emerged at explaining horizontal and vertical pattern of intra-industry trade following the method of Greenaway et al. In Korea, almost all the study of horizontal and vertical intra-industry trade follow the method of Greenaway et al. in the measurement of horizontal and vertical intra-industry trade. The method of Greenaway et al., however, considers similar goods only in a industry, and misses different goods or goods of different steps in the vertically fragmented production process. The utility of the method, therefore, is limited to identify the all features of the horizontal and vertical intra-industry trade in trade between countries. This paper, therefore, tries to contrive a new method of decomposing different aspects of intra-industry trade and examines the method in trade between Korea and Japan. This paper shows a different result from the result of precedent study in fact that the portion of vertical intra-industry trade of trade between different quality goods in a similar goods category is not so great compare to that of horizontal intra-industry trade of trade between similar quality goods in trade between Korea and Japan. In addition, the result of the paper reveals that the magnitude of intra-industry trade in a goods category are irrelevant to the magnitude of export and import unit price gap.