The main purpose of this study is to provide an empirical overview of the economic variables and the trade flows of Mokpo. A major feature of Mokpo's export structure is its high degree of dependence with Japan. This dependence has increased dramatically with the rise in export revenues. Specifically, exports of agricultural products and seaweeds to Japan constitute 99.7% and 90.8% in 2003, respectively. This paper, hence, estimates the income and price elasticities of demand for the exports of Mokpo, modelling export demand as exchange rate and industrial production. The empirical results reveal that the exchange rate performs a key role in the short-run and in the long-run. This paper hitherto applies impulse response functions to the model to get an information regarding the responses of exports to the shocks in the exchange rate and income. Another empirical results reveal that exports respond positively to the shock in the exchange rate and income, but the responses are small and short-lived