1. BILATERAL/MULTILATERAL ISSUES

Chinese Ambassador Urges Korea-China FTA [English, CSY]

http://english.chosun.com/site/data/html_dir/2011/05/17/2011051700987.html

Full text: Chinese Ambassador to Seoul Zhang Xinsen on Monday urged Korean businesses to invest more in China. "The growth potential of the Chinese market is expected to more than double over the next five years, and the purchasing power of China's middle class is also growing," Zhang told a seminar hosted by the Chungcheong Forum. "At a time when countries around the world are researching ways to enter this market, I hope that our Korean friends will not fall behind and find successful opportunities."

Zhang stressed the two countries need to speed up negotiations for a free trade agreement for the benefit of both countries.   In remarks on North Korea, the envoy stuck to the official Chinese line. "The Korean Peninsula is in a difficult political situation, but China is seeking dialogue by various means," the ambassador said. He also stressed that long-term peace and stability can be achieved "through the six-party talks."   Asked whether Beijing's support for Pyongyang following the sinking of the Navy corvette Cheonan and shelling of Yeonpyeong Island disappointed Seoul, Zhang said China has recommended "self-restraint, dialogue and cooperation" to maintain peace and stability on the Korean Peninsula.

2. GRAIN & OILSEED ISSUES

<May 8, 2011> Malaysia promotes palm oil in Korea [English, CSY]

http://www.koreatimes.co.kr/www/news/nation/2011/05/113_86647.html

Summary: With palm oil gaining popularity for its wide range of uses ­ from cooking to alternative fuel ­ Malaysia stands ready to supply greater amounts to Korea, an official said.  Palm oil products from Malaysia, Korea’s leading palm oil supplier, took the spotlight at a recent trade fair in Seoul organized by the Malaysian Palm Oil Council (MPOC) and the Korean Society of Food Science and Technology (KSFST).

“Malaysia takes its position as South Korea’s favored palm oil supplier seriously,” said Tab Sri Bernard Dompok, Malaysian minister for plantation industries, in a keynote speech. “We will continue to foster closer ties and encourage further use of palm oil in both the food and non-food sectors.”  The affordable oil has emerged as a source of alternative energy at a time when crude oil prices have soared. Its products represent 21 percent of the oil and fats industry here.  So far Korea, which imports a vast majority of its palm oil from Malaysia, uses it mainly in instant noodle and snack food production. But Seoul recently implemented a biodiesel mandate of 2 percent by 2012, a move Dompok said bodes well for the strengthening of economic ties between the sides.

3. LIVESTOCK ISSUES

WTO to Rule on Korea-Canada Beef Dispute by August … Korea Likely to be Pressured to Open the Market to All International Countries if No Bilateral Agreement is Reached with Canada Before WTO Ruling [Korean, OSY]

http://news.donga.com/Economy/Market/3/0108/20110517/37322522/1

Summary: It is reported that WTO will make a final verdict on the beef trade dispute between Korea and Canada by the end of August.  It is highly likely that Canada will win the dispute based on the “BSE Safe” OIE status that Canada achieved in 2007.  As a result, Korea will be under pressure from other countries that are qualified for beef export under OIE standard, to open the beef market.  Trade experts have advised that Korea should make a bilateral agreement with Canada on the issue before the scheduled WTO ruling to avoid additional disputes with other countries under WTO venue.

4. MARKETING ISSUES

Working Moms are the Leading Customers of Internet Shopping [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/05/17/0318000000AKR20110517201600003.HTML?template=2089

Summary: According to Lotte.Com, an internet shopping business arm under Lotte Group, female consumers between 30 to 34 years old accounted for 32 percent of the customers that purchased products through ‘smart pick’ service, which allows the customers to pick up products that they ordered in the cyber store from off-line stores under Lotte Group.

E-Mart Launches ‘Dawn Chicken’ that Has Only One Day of Shelf Life [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011051840441&sid=0104&nid=004&ltype=1

Summary: E-Mart has launched on May 18 new fresh whole chicken, branded as ‘Dawn Chicken’ that has only one day of shelf life.  The birds are slaughtered at midnight and arrive in E-mart stores at 11 a.m. every day.  Unsold chicken within the day are removed from the store, added E-Mart.  E-Mart says daily production of the one day shelf life chicken will be increased from current 700 to 2,000 over the next three months.

Lotte Chilsung Launches Juices Containing Blueberries [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011051847731&sid=0104&nid=004&ltype=1

Summary: Lotte Shilsung has launched on May 18 ‘Tropicana Blueberry Mix 100’, a premium fruit juice for chilled distribution.  The juice contains five different ‘anti-oxidant’ fruits including blueberries and pomegranates.  Label of the bottle shows the number of fruits that are contained in each bottle.  For one 950ml bottle of the juice, 96 blueberries, 47 red grapes, 20 strawberries are contained.

5. OTHER MISCELLANEOUS ISSUES

Consumption of Premium Scotch Whisky Surges [Korean, OSY]

http://news.donga.com/Economy/Market/3/0108/20110517/37323298/1

Summary: According to major whisky suppliers, premium whisky has led the growth of the market during the first four months this year.  According to Perno Ricard Korea, Sales of 17 year and 21 year Scotch whisky have increased 9.8 percent and 83.8 percent from the same period last year, while 12 year Scotch whisky declined 7.8 percent.  Other suppliers have also reported similar sales outcome.  Industry analysts commented that regular Scotch whisky was facing increased competition from expansion of lower alcohol content Soju.