Today's Date:  Friday, August 24, 2012

1. BILATERAL/MULTILATERAL ISSUES

S. Korea awards first damage from EU FTA [English, CSY]

http://english.yonhapnews.co.kr/business/2012/08/23/25/0502000000AEN20120823002500320F.HTML

Summary: South Korea has recognized damages from the country's bilateral free trade agreement (FTA) with the European Union (EU) for the first time since the trade deal went into effect last year, the government said Thursday.  The decision came at a meeting on Wednesday, in which the National Trade Commission accepted a claim from a local pork processing company that it suffered damages from the growing market share of European pork in the country.

3. ECONOMIC ISSUES

U.S.-Led Food Crisis: The U.S. Lays back while the World Goes into a State of Emergency [English, CSY]

http://english.khan.co.kr/khan_art_view.html?artid=201208231453297&code=710100

Summary: As a world food crisis seems imminent, the faces of the U.S., a major exporter of grain, and the poor grain importing countries show a sharp contrast. The U.S., which produces 40% of the world's corn, is expected to record the worst yield since 1995. Droughts have struck a heavy blow on 90% of the farmland.    Yet, there will be no huge loss to the farmers, since, with government subsidies, most farmers have taken out crop insurance, for which they only pay 40% of the premium. Thus the insurance will make up for the loss.  The Wall Street Journal recently predicted that the U.S. government and insurance companies will provide farmers with approximately $20 billion. They will sell the crops at an increased price to offset the loss.

The problem is that droughts in the breadbaskets, which many see as a result of climate change, are not a problem unique to the U.S. Russia, Ukraine, and Kazakhstan are in a state of emergency as they witnessed their wheat harvest decrease by 22%.   A food crisis is fatal to underdeveloped countries and the poor. In Yemen, a poor nation in the Middle East--which depends on imports for 90% of the total wheat they consume--half the population live on an income of less than $2 a day (2,200 won). A sudden rise in food prices will deal a direct blow to the livelihood of the people of Yemen.

5. LIVESTOCK ISSUES

Beware of pigs in the US [English, CSY]

http://english.hani.co.kr/arti/english_edition/e_international/548367.html

Full text: The Korea Center for Disease Control and Prevention (KPCD) warned on August 22 that precautions should be taken for those visiting the United States due to a recent outbreak of a new form of influenza among people working in pig farms.   The influenza virus found is the H3N2 form of influenza A, which in the past had only afflicted pigs, but a mutated strain of the disease has spread to humans. According to data by the American National Health Service, from August of last year to August 17 of this year, there were 237 cases of people that had been contaminated but were treated. No deaths have been reported. Most of the people either worked in pig farms or had visited exhibitions related to pig farming.

The KCDC said that travelers to the United States should take precautions when on farms or anywhere else with pigs, and should take measures to wash hands and maintain good hygiene to prevent transmission of the virus. The Center also asked that if anyone who has visited the United States is either suffering from a high fever or cough, they should seek treatment at the nearest public health center.

6. MARKETING ISSUES

Smart Phone Users in Korea Exceed 30 Million [Korean, OSY]

http://www.mt.co.kr/view/mtview.php?type=1&no=2012080917161494850&outlink=1

Summary: According to the industry, total number of smart phone users in Korea exceeded 30 million as of August 2012.  Smart phone was first introduced to Korea in November 2009 and has rapidly replaced old version cell phones over the years.

CJ to Establish a Tapioca Farm in Australia … 60 Million Sq. Meter Size [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2012082273141

Summary: CJ Cheiljedang, a leading food and feed manufacturer in Korea announced on August 22 that it would establish a joint venture company in Australia to develop a tapioca farm.  Located in Queensland area, the farm will grow tapioca and casaba in 60 million sq. meters of space.  CJ seeks to secure stable supply of tapioca and casaba, important ingredient for alcohol beverage and animal feed, through this investment.