Today's Date:  Wednesday, August 01, 2012

1. ECONOMIC ISSUES

Business Sentiment Falls to Lowest Since Global Crisis [English, CSY]

http://english.chosun.com/site/data/html_dir/2012/07/30/2012073001533.html

Full text: Business sentiment for August fell to the lowest level since just after the 2008 global financial crisis. The index, which measures future outlook based on a survey of the nation's top 600 businesses by the Federation of Korean Industries, stands at 82.7 points.  The lowest BSI was 76.1 points in March 2009, when the impact of the global financial crisis was being felt around the world. A reading below 100 means pessimists outnumbers optimists.   "It appears that businesses have a gloomy outlook of the economy due to concerns that the eurozone crisis could spread to Germany and other key European countries or that China's economy will falter," an FKI spokesman said.

2. GRAIN & OILSEED ISSUES

U.S. Drought Threatens Korea's Food Prices [English, CSY]

http://www.arirang.co.kr/News/News_View.asp?nseq=134209&code=Ne4&category=3

Full Text: The worst U.S. drought in decades has caused wheat and corn prices to soar worldwide.  This is bad news for Korea as the U.S. supplies the vast majority of Korea’s total wheat and corn demand.  As of last Thursday, corn futures stood at nearly eight U.S. dollars a bushel on the Chicago Board of Trade, up over SEVENTEEN-percent compared to the year before.   Wheat futures spiked by over THIRTY percent to almost nine dollars a bushel in the same period.   Korea's food ministry warns that this year's upsurge in food prices may be similar to that of 2008, but the impact could be bigger this time.

Surging grain prices fuel 'agflation' fears in S. Korea [English, CSY]

http://english.yonhapnews.co.kr/business/2012/07/30/29/0502000000AEN20120730003300320F.HTML

Spiking global agricultural product prices sparked by droughts in major farming nations are stoking fears over "agflation" in South Korea as the country depends heavily on imports for its grain and other major produce needs, experts said Monday.   According to data provided by the Korea Center for International Finance, the price of corn futures at the Chicago Board of Trade (CBOT) stood at US$7.81 per bushel last Thursday, up 17.4 percent from $6.65 on July 29 last year. Wheat prices also jumped 31.5 percent over the same period.

The spike in the prices of corn and wheat, which are closely related to costs of a wide range of food products, stemmed mostly from reduced harvests in the United States following severe droughts in its major farming areas.  South Korea depends on imports for almost all of its corn and wheat, which is setting off fears over agflation, a phenomenon in which high food prices exert upward pressure on inflation.   The renewed agflation fears come as South Korea's food prices remain high despite the overall stabilization of consumer prices. Food costs have been driven higher mostly by a prolonged drought in spring.

3. NORTH KOREA ISSUES

Heavy Rains in North Korea [Korean: CSC]

http://www.hankyung.com/news/app/newsview.php?aid=2012073176441&ltype=1&nid=009&sid=010620&page=4

 

4. OTHER MISCELLANEOUS ISSUES

Price of Coffee Beverages and Canned Tuna to Rise [Korean, OSY]

http://news.donga.com/3/all/20120730/48193225/1

Summary: Coffeebean Korea announced on July 3029 that it had increased the price of most of the coffee beverages it offered by 200 to 300 won per cup.  For example, ‘Today’s Coffee’ was increased from 3,800 won to 4,000 won.  Sajo Industry, a leading canned tuna processor, announced on July 30 that the price of its ‘Sajo Lohi Tuna Meat Can’, a new product line launched on July 30, would be sold at 8.4% higher price than existing products, 2,380 won per can.

CJ Bibimbap Chain Launches in London to Spread Korean Cuisine in Europe [English, CSY]

http://english.chosun.com/site/data/html_dir/2012/07/31/2012073101280.html

Summary: The restaurant chain bibigo, which specializes in the popular Korean dish bibimbap, has made its way into the heart of London. CJ Group launched an 80 sq. m branch of its flagship restaurant on Great Marlborough Street near Oxford Circus on July 25. With 86 seats, it is the first branch of the Korean franchise to open in Europe.