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This study is intended for a hands-on analysis on features involving intra-industry competition and structural features, drawing an improved plan for minimized by-products and, at the same time, maximized profit upon a possible FTA among the three neighboring countries. Targeted is a general machinery industry, an infrastructure on which a nation's competitiveness hinges with a continuous effect on a large scale. The three Northeast Asia countries shares competitiveness and sensitivity on several areas, including molding, power plant infra, and construction and manufacturing machinery, one that forces Korea to show a high inferiority to Japan, and to enjoy a competitive edge over China. These may greatly increase in number, as FTA would enlarge a pool of transaction items. In other words, Korea needs to have a sustained competitive edge over China, and come up with measures to heighten its competitiveness in order to provide customized products that meet the fluctuating demands from the mainland. Also, it is to overcome a rather weak competitiveness against Japan by securing a source technology, improved governmental infrastructure, eased restrictions and increased support for small- and medium-sized companies.