Today's Date:      Friday, March 16, 2012

1. BILATERAL/MULTILATERAL ISSUES

COO Audit Requests from FTA Partner Countries Soar [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/03/13/0301000000AKR20120313186700002.HTML?template=5567

Summary: According to the Korea Customs Office, the number of Country of Origin (COO) audit requests on products that Korean companies exported to Free Trade Agreement (FTA) partner countries under preferential duty treatment has shown a rapid increase over the last three years.  So far this year, a total of 59 audit requests were received from FTA partner countries, including Chile, Singapore, ASEAN, and EU, which is a quite high increase from last year’s total 88 requests.  Industry analysts point out that many small to medium Korean exporters lack the resources to fully meet the COO guidelines for FTAs.

FTA mastermind believes it will give job market a boost[KJH, English]

http://koreajoongangdaily.joinsmsn.com/news/article/html/924/2949924.html

Summary:  KITA chairman’s exclusive interview with the Korea JoongAng Daily. The investor-state dispute settlement (ISD) clause, a controversial sticking point in the free trade agreement between Korea and the U.S. that went into effect at midnight, will contribute more to economic growth than hamper local business interests, according to Han Duk-soo, the new chairman of the Korea International Trade Association (KITA).

2. LIVESTOCK ISSUES

Price of American Beef Remains Unchanged Despite Implementation of KORUS FTA, Retail Stores[Korean, OSY]

http://news.donga.com/Economy/New/3/01/20120315/44803304/1

Summary: It is reported that price of imported American products in retail stores, including meat, fruits, and beer, are likely to remain unchanged for as long as two months to come despite the Korea-U.S. Free Trade Agreement implemented on March 15.  Retailers commented that it would take some time for the stores and suppliers to sell the existing inventories before offering new products imported after the implementation.  In addition, the import cost of many of the products has risen significantly recently, and the reduction in import duties under the KORUS FTA may not big enough to compensate for the increase in the import cost of the product.

3. MARKETING ISSUES

On-line Shopping Industry Forecast to Grow 13% This Year [Korean, OSY]

http://economy.donga.com/Top_Feed/3/0113/20120316/44803355/4&top=1

Summary: According to a report by the Korea On-line Shopping Industry Association, total sales of the industry this would grow 13 percent to reach 44.5 trillion won.  Total sales of the industry amounted to 39.4 trillion won in 2011, up 17 percent from the previous year.  Internet shopping malls was the leading segment of the industry, selling 18.4 trillion won last year.