The purposes of this paper are to review the current situation of cooperation between Korean SMEs and Japanese SMEs focusing on technical training in Japan and to draw some policy implications for future direction of cooperation. Four implications have been drawn from the analysis. First, the technical training program needs to be focused on the Korean firms with financial investment from Japanese firms. Second, the government needs to support more on marketing-oriented programs that help firms with strong intension of exploring the Japanese market. Third, the government needs to utilize industry associations to promote the mutual interchange of Korean and Japanese firms. Fourth, the government needs to develop more programs that promote human interchange between Korea and Japan, which will eventually lead to business relation between firms of the two countries.