Today's Date:   Thursday, November 15, 2012

1. BILATERAL/MULTILATERAL ISSUES

Japan Gives Up Hope for Starting FTA Negotiations with Korea and China in 2012 [Korean: BYK]

http://www.ytn.co.kr/_ln/0104_201211141141173785

Summary: According to a Japanese newspaper, the Japan government has given up hopes to begin the trilateral FTA negotiations between Korea, China and Japan before the end of this year.  This is due to the deterioration of the diplomatic relationship with China.

US-EU FTA may hurt S. Korean exporters: MOSF [English: BYK]

http://news.mk.co.kr/newsRead.php?year=2012&no=749526

Summary:  U.S. – EU FTA negotiation is expected to bring an unfavorable factor to South Korean exporters which already suffer from low demand.  The FTA aims to reduce tariff barriers between the EU and U.S., weakening the price competitiveness of Korean exporters in both markets.  The Ministry of Strategy and Finance (MOSF) held a meeting of economic ministers Tuesday where it said Korea needs to prepare for the FTA negotiation through research on the possible impact on the domestic economy. The US and the EU began FTA talks from late last year and the negotiations are expected to gain momentum early next year as President Obama was reelected.   

Korean Companies in Gaesung Industrial Complex Ask for Inclusion in FTA [Korean: BYK]

http://economy.hankooki.com/lpage/industry/201211/e20121114183526120180.htm

Summary: Korean companies that have factories in the Gaesung complex, located in North Korea, are asking the Korean government to negotiate with its FTA partners to allow for products produced at these factories to receive the same FTA benefits as those factories located in Korea.  Mr. Dong Kyu Choi, Director General, FTA Policy Bureau, MOFAT, who attended the seminar, stated that “The political situation between South and North Korea is an external variable that cannot be resolved currently and we just can’t continue to wait.  We will try to set a standard for getting the products produced in the Gaesung Complex recognized sometime around the first half of next year with EU, etc.”  The article asserted that Korea would try to get some kind of a deal during the respective meetings to be held between March ~ May next year with EU and the United States.

Korea-Australia FTA to Provide a Lot of Benefits to Consumers [Korean: BYK]

http://news.kukinews.com/article/view.asp?page=1&gCode=cul&arcid=0006629407&cp=nv

Summary: Mr. Stephen Kelly, Director for Australian Meat Industry Council states that both countries need to move forward with its FTA negotiation.  He stated that the KORUS FTA is allowing for U.S. beef to become very competitive as the duty will continue to drop by 2.66% for the next 15 years.  When the duty drops by 5.3% next year, it will allow U.S. beef to be much more competitive then Australian beef.

2. LIVESTOCK ISSUES

Social Commerce Company Gets Caught for Faking Beef Grade [Korean: BYK]

http://news.donga.com/fbin/output?n=200907140153

Summary: A social commerce company that sells products through internet called Coupang got fined for selling low quality Australian beef as if it was premium grade.  This company advertised that it was selling “Special S Grade” short ribs at half price when they were actually selling “S grade” which is almost the lowest grade.  There is no such “Special S Grade” in Australian beef.

Consumption of Meat in Home Shows Steep Decline [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/11/13/0302000000AKR20121113109100003.HTML

Summary: According to a report by Harim Group, purchase of meat by Korean family has declined 10.3 percent over the last 3 years.  Chicken meat showed the largest decline, down 14.4 percent to 115,000 metric tons, followed by pork meat, down 12.3 percent to 238,000 tons, and beef, down 1.1 percent to 123,000 metric tons.

3. OTHER MISCELLANEOUS ISSUES

Korean Bakery Store Chains in Rally to Open More Stores in Foreign Markets [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/11/13/0302000000AKR20121113192051003.HTML

Summary: Strengthened government regulation, including ban on adding new stores within 500 meters from existing stores, has led Korean bakery store chains to expand out to foreign markets.  Leading players, Paris Baguette and Tour les Jours, currently operate 3,160 and 1,400 stores in Korea respectively.  Paris Baguette currently has 127 stores in four different foreign countries.  Tour les Jours has 71 stores in seven different foreign countries.  Market analysts agree that leading players will see more new store openings in foreign markets in the coming year.  For example, Paris Baguette plans to operate 1,000 stores in 20 different foreign countries by 2015.

Consumer Group Survey Indicates that Many Consumer Products, including Wine, Coffee Beans, Beer, Infant Formula, are Sold at Much Higher Price in Korea than in Foreign Countries [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/11/15/0301000000AKR20121115094200002.HTML?template=2087

Summary: ‘Consumer Citizens’ Coalition’, a NGO group, reported results of its price survey on November 15.  The survey compared retail price of 55 products in 18 different cities around the world against Seoul.  Seoul was within top five expensive cities for 17 of the 55 products surveyed.  Notable products included Ridge Vineyard Riton Spring Zinfandel 2008 that was sold at the highest price in Seoul (113,000 won per bottle versus 28,000 won in New York).  The NGO argued that import price of these products should be disclosed to local consumers to help them avoid hefty markups.

Large Scale Retailers Agree to Voluntarily Restrict Opening New Stores in Areas with Less than 300,000 Population Until 2015 [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/11/15/0302000000AKR20121115063600003.HTML?template=2087

Summary: In a meeting among representatives of local retail industry, hosted by the Ministry of Knowledge & Economy, on November 15, large-scale retailers agreed to voluntarily restrict opening new stores in areas with less than 300,000 population until 2015.  The retailers also agreed to restrict opening of SSM grocery stores in areas with less than 100,000 population at the same time.  Those stores currently under construction would be excluded from the agreement.  Retailers also agreed to maintain two week days off per month.  However, it is likely that the conflict between the large-scale retailers and existing small grocers will continue in many areas in Korea.

“Korea will Loose Its Fishing Quota in Russian Seas Unless it Helps Stop Illegal Fishing of Russian Crabs”, Russian Department of Fishery Warns [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/11/15/0302000000AKR20121115013900080.HTML

Summary: Russian Department of Fishery (RDF) commented in a bilateral fishery meeting with Korean government officials in Moscow on November 14 that Korean would loose its fishing quota in Russian seas unless it joins Russia in the effort to stop illegal fishing of crabs.  RDF claimed that as high as 600 tons of crabs caught by third country flagged boats in far eastern Russian seas are currently imported into Korea via Japan.  RDF demanded that Korea must require COO certificate officially issued by Russian government on Russian crabs imported from Japan to prevent this illegal traffic of Russian crabs.  Korea has been allocated a total of 62,000 metric tons of fishing quota in Russian seas for 2012 (Pollack 40,000 MT, squid 8,000 MT, Spanish mackerel 7,500 MT, cod 4,450 MT).

4. MIFAFF PRESS RELEASES

US FDA to begin procedures for resuming oyster exports – FDA to provide its position, including onsite audit, etc., by November 17