1. BILATERAL/MULTILATERAL ISSUES

EU trade jumps in first days of FTA / Exports are most affected by pact [English, CSY]

한·EU “FTA 효과 있네”

http://joongangdaily.joins.com/article/view.asp?aid=2938993

Summary: In just two weeks, the free trade agreement between Korea and the European Union has already boosted trade.  According to the Korea Customs Service (KCS) and a report by the Yonhap News Agency yesterday, in the July 1-13 period, exports to the EU jumped 19 percent compared with the same period last year to $1.5 billion, while imports increased 16 percent to $1.7 billion. The KCS said that 55 percent of Korea’s exports to the EU and 13 percent of imports to Korea benefitted from the FTA. That compares favorably to previous free trade agreements. The free trade pact with the Association of Southeast Asian Nations benefitted 29 percent of exports and 68 percent of imports during all of last year, while the one with India helped 17.7 percent of exports and 45.8 percent of imports.

Trade with EU Rises after FTA takes effect [English: BYK]

http://www.koreaherald.com/business/Detail.jsp?newsMLId=20110717000263

Summary: South Korea is witnessing a clear increase in trade volume with the European Union after a free trade agreement between them took effect on July 1.  The Korea Customs Service said Sunday that the exports and imports with the EU amounted to $1.48 billion and $1.65 between July 1-13, an increase of 19 percent and 16 percent, respectively.

2. ECONOMIC ISSUES

Consumer Prices in Korea Keep on Rising [English, CSY]

http://www.arirang.co.kr/News/News_View.asp?nseq=118210&code=Ne2&category=2

Summary: Latest data show consumer prices in Korea are continuing to rise.  According to the Korea Agro-Fisheries Trade Corporation on Sunday, prices of agriculture products have risen considerably over the last month, mainly due to the impact of monsoon season.  As of July 15th, 100 grams of red lettuce were marked at around 1,400 won, or 1 dollar and 30 cents, a more than 120 percent jump from a month earlier.  It costs approximately six dollars to buy a kilogram of spinach, double what it cost last month, and around 60 percent more to buy a zucchini.  The price of rice, a staple food for Koreans, also went up by 20 percent from the same period last year with 20 kilograms costing around 37 dollars.  The rise in prices is not just limited to agricultural products, with the prices of gold, oil and cars also joining in on this upward trend.  And it looks like the situation won't be getting any better in the second half of this year.

3. MARKETING ISSUES

The hottest coffee spots   / Jung District a good place for business, Mapo a dud [English, CSY]

커피전문점 창업 최적지는 부산 … 서울은 용산

http://joongangdaily.joins.com/article/view.asp?aid=2938978

Summary: A report on the coffee shop industry by the financial research arm of KB Financial Group earlier this month shows that despite a plethora of coffee shops in the capital, new ones are still opening and making money.  But some parts of Seoul are doing better than others.  The report extrapolated data from coffeehouses that accept payment from the group’s credit card affiliate KB Kookmin Card to evaluate customers’ coffee-purchasing habits.   In Seoul, the central business district is a good place to sell coffee. The report found Jung, Yongsan and Seodaemun Districts in central Seoul are the top three districts to open a coffee shop as the revenues of existing stores in the areas continued to rise at an accelerating rate despite heavy competition.

<A Picture> Sticker shock [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2938975

Consumers browse coffee products at a discount store in Seoul, yesterday. The price of coffee has jumped more than six times the average increase in consumer prices in the second quarter. [YONHAP]

 

Food Products Account for 64% of Internet E-Mart Sales [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/07/13/0302000000AKR20110713194900003.HTML

Summary: Shinsegae E-Mart, the leading hypermarket store in Korea, reported that food products accounted for a 64 percent of the sales that its internet on-line store earned in the first half this year, which was much higher than the share of food category in the sales revenue of its off-line conventional stores, 52 percent, during the same period.  Total sales revenue of the internet store increased 162 percent compared to the same period last year.   Leading consumers of the internet store was young people of 26 to 35 years old.

4. NORTH KOREA ISSUES

Heavy downpours raise fresh concern about food shortages in N. Korea [English, CSY]

http://english.yonhapnews.co.kr/northkorea/2011/07/16/64/0401000000AEN20110716002800315F.HTML

Summary: Heavy downpours battered much of North Korea earlier this week, causing casualties and flooding homes, farmlands, and roads, the country's media reported Saturday.  The massive flooding raises fresh concern that the North's already serious food shortages may worsen.   The North's Korean Central News Agency said that downpours hit many parts of the country from July 12-15, with North and South Hwanghae provinces and South Hamgyong Province hit hardest. Hwanghae Province received more than 250 milimeters of rain during the period.

5. OTHER MISCELLANEOUS ISSUES

For SMEs, green is the new black [English, CSY]

[SERI FOCUS] Small companies on a budget might consider link with big company.

http://joongangdaily.joins.com/article/view.asp?aid=2938971

Summary: Going “green” is posing challenges and inflicting burdens on small and medium sized enterprises (SMEs) as greenhouse gas reduction requirements and stricter environmental regulations come into being. According to a survey of 129 SMEs regarding government green growth policies by the Korea Federation of Small and Medium Businesses (Kbiz), 51.2% of respondents said they would be significantly affected by government green growth policies. They added that they cannot effectively respond to cost increases and stricter environmental regulations because they lack information and expertise.

<7/15/2011>Coffee makers colluded: FTC [English, CSY]

Namyang and Maeil get big fines for fixing prices on popular RTD products

http://joongangdaily.joins.com/article/view.asp?aid=2938899

Summary: The country’s antitrust agency said yesterday it fined two ready-to-drink (RTD) coffee manufacturers a combined 12.8 billion won ($12.09 million) for fixing prices.  The move comes as the government revs up investigations into price fixing amid growing inflationary pressure and higher food costs.  According to the Fair Trade Commission yesterday, officials from Namyang Dairy Products and Maeil Dairies met several times in early 2007 and agreed to raise the price of their RTD coffee products by 20 percent from 1,000 won to 1,200 won.  Based on the agreement, Namyang and Maeil increased prices at different times, one in March 2007 and the other in July, to avoid being suspected of price-fixing. The RTD coffees included Namyang’s French Cafe and Maeil’s Cafe Latte, commonly found in convenience stores and supermarkets.