1. BILATERAL/MULTILATERAL ISSUES

Cabinet gives approval of EU trade pact [English, OYS]

http://joongangdaily.joins.com/article/view.asp?aid=2934433

Summary: The government approved a revised ratification bill for Korea’s free trade agreement with the European Union in a cabinet meeting yesterday, a step necessary to get parliamentary consent, after fixing additional translation errors in the Korean text of the pact.

A plan for retracting an old version of the FTA ratification bill was also endorsed during the meeting, said Vice-Minister of Culture, Sports and Tourism Park Sun-kyoo.

The two sides signed the deal in October last year with a consensus to put it into effect on July 1. The EU’s Parliament approved the deal in February.

2. ECONOMIC ISSUES

National debt grows slower than expected

Tax revenues rise, while spending falls  [English, OYS]

http://joongangdaily.joins.com/article/view.asp?aid=2934435

Summary: Korea’s national debt increased slower than expected last year and increased tax revenues resulting from economic recovery and decreased spending helped improve the country’s fiscal health.
According to a report by the Ministry of Strategy and Finance yesterday, the estimated debt owed by the central and regional governments grew by 33.2 trillion won ($27.9 billion) in 2010, raising the total state debt to 392.8 trillion won. The total debt is 14.4 trillion won less than the initially anticipated figure of 407.2 trillion won. The increase is mainly attributed to the growing issuance of government bonds aimed at filing the gap in the budget.

Korea’s national debt grew to 392.8 trillion won (360.4 billion dollars) last year, according to the Ministry of Strategy and Finance yesterday. Debt per capital amounts to 8.04 million won.

Hynix sale prospects seen improving [English, OYS]

http://joongangdaily.joins.com/article/view.asp?aid=2934427

Summary: The stalled sale of Hynix Semiconductor Inc. is likely to be revived as creditors of the chipmaker are considering selling new shares in an effort to unload their stake, market watchers said yesterday.
Creditors of Hynix plan to resume the process to sell a 15.9 percent stake in the world’s No. 2 computer memory chip maker following a set of failed attempts. Investors have been wary of buying Hynix mainly because huge investments are needed to operate the chipmaker.
Last week, the chief of the state-run policy lender Korea Finance Corp. (KoFC) said creditors are considering issuing new shares, a move to help the chip maker bolster its finance strength and to ease the financial burden for additional capital investment by a new owner.

3. MARKETING ISSUES

Radioactive water dumped from Japan to pose little problems for S. Korea  [English, OYS]

http://english.yonhapnews.co.kr/news/2011/04/05/0200000000AEN20110405009800320.HTML

Summary: SEOUL, April 5 (Yonhap) -- Radiation-contaminated water released from Japan's quake-damaged nuclear power station is expected to pose little environmental hazard for South Korea, experts said Tuesday.
Despite growing public concerns, the general flow and speed of currents off Japan's east coast make it unlikely that contaminated water will reach the Korean Peninsula in the near future, said researchers at the Korea Ocean Research and Development Institute (KORDI) and the Korea Institute of Nuclear Safety (KINS).

Retailers abroad boost local goods [English, OYS]

 [Last in a three-part series: Local retail targets foreign shores]
Korean outlets showcase products in Asian markets, some for the first time

http://joongangdaily.joins.com/article/view.asp?aid=2934429

Korea Slaps Temporary Ban on Japanese Farm Imports [English, CSY]

http://www.arirang.co.kr/News/News_View.asp?nseq=114558&code=Ne2&category=2

Full text: Korea has announced a temporary import ban on agricultural products from Japan's Chiba Prefecture.  Korea's Food and Drug Administration announced the measure on Tuesday, a day after the Japanese government's decision to halt shipments of green vegetables from the region due to high levels of radiation.  The import ban is in line with Seoul's earlier measures to keep out farm products from four other northeastern Japanese prefectures.  Korea's FDA also said that no farm produce has been imported from Chiba Prefecture since the devastating earthquake last month.  It plans to conduct radiation screenings on other food imports from Japan with those results published daily on the agency's web page.

Gov’t Criticized for Not Stopping Risky Japanese Processed Foods [Korean, OSY]

http://news.donga.com/Inter/3/02/20110406/36188190/1

Summary: The measures that Korean government has implemented so far to protect local market from radioactivity risk of Japanese food and agricultural products have many loopholes.  The import ban on fresh produce was limited to four Japanese provinces that have never exported fresh produce to Korea.  Although some of the processed food imported from Japan have been tested positive for radioactive contamination, Korean government has not introduced import ban on any processed food from Japan so far.  The government office in charge is reportedly concerned about impact that any import ban will have on local importers of processed food.

Sales of Imported Fruits Remain Strong due to High Price of Local Fruits [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/04/06/0318000000AKR20110406100100051.HTML

Summary: According to retail companies, sales of imported fruits have shown a strong growth so far this year.  While imported fruits are selling at similar price as last year, price of local fruits in general have soared for reduced production.  Mega Mart, a regional hypermarket chain, reported that its sales of Chilean grapes and American oranges rose by 85 percent and 52 percent in March compared to same month last year.

OB Beer Outsells Hite Beer for the First Time in 17 Years [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/04/05/0301000000AKR20110405196200003.HTML

Summary: According to the Korean Liquor Industry Association, Oriental Brewery (OB) outsold Hite Brewery in January 2011 for the first time since 1994.  Opinions are divided among market analysts whether OB will outsell Hite in the coming months.  However, OB says that it has developed much stronger presence in regional markets outside of Seoul, which will help the company further increase its market share in the future.  The two leading brewers, OB and Hite, account for over 90 percent of all beer sold in Korea.

4. NORTH KOREA ISSUES

N. Korea reports detection of radioactive materials  [English, OYS]

http://english.yonhapnews.co.kr/news/2011/04/05/0200000000AEN20110405012200320.HTML

Summary: SEOUL, April 5 (Yonhap) -- North Korea's official media reported on Tuesday that the country detected traces of radioactive materials in major cities following Japan's nuclear crisis triggered by the March 11 earthquake and tsunami.
The North said in a report carried by the official Korean Central Broadcasting Station that traces of radioactive iodine and cesium were found in the cities of Pyongyang, Wonsan and Cheongjin, but the report did not disclose detection levels of such materials.

S. Korea stresses objective review before resuming food aid to N. Korea  [English, OYS]

http://english.yonhapnews.co.kr/news/2011/04/05/0200000000AEN20110405011200315.HTML

Summary: SEOUL, April 5 (Yonhap) -- South Korea will closely review the food situation in North Korea before it decides on resuming large-scale food aid there, an official said Tuesday, stressing the government's strict conditions for helping the poor but nuclear-armed nation.
In a report to the National Assembly, First Vice Foreign Minister Park Seok-hwan said his government is "thoroughly reviewing" an assessment of North Korea's food situation released last month by the World Food Program and two other United Nations agencies. The U.N. report called for 434,000 tons of outside food aid to feed more than 6 million vulnerable North Koreans suffering from chronic food shortages, including children, pregnant women and the elderly.

5. OTHER MISCELLANEOUS ISSUES

Amb. Han exchanges MOU with Gov. McDonnell on driving test exemption for Koreans [English, OYS]
http://english.yonhapnews.co.kr/news/2011/04/06/0200000000AEN20110406000200315.HTML

Summary: WASHINGTON, April 5 (Yonhap) -- South Korean Ambassador Han Duck-soo Tuesday exchanged a memorandum of understanding with Gov. Bob McDonnell of Virginia that will exempt holders of South Korean drivers license from taking tests.
The "Driver's License Reciprocity Arrangement" will allow holders of South Korean drivers license to get a Virginia license without taking a written and driving test.