1. BILATERAL/MULTILATERAL ISSUES

“Korea-EU FTA Makes a Successful Start”, Korean Exports to EU Up 19%, Korean Imports from EU Up 16% [Korean, OSY]

http://news.mk.co.kr/v3/view.php?sc=30000001&cm=%ED%97%A4%EB%93%9C%EB%9D%BC%EC%9D%B8&year=2011&no=463792&relatedcode=&sID=300

Summary: According to the Korea Customs Office (KCO), the trade volume between Korea and EU countries has increased significantly since implementation of Korea-EU Free Trade Agreement on July 1.  Korea’s exports to EU countries amounted to $1.48 billion during July 1 through 13, up 19 percent from the same period last year.  Korea’s imports from EU countries amounted to $1.65 billion, up 16 percent.  According to KCO, 55 percent of the Korean goods exported to EU during the period benefited from reduced import tariffs under the FTA, while 13 percent of the EU goods imported to Korea benefited from the FTA.  Korean government plans to designate more local suppliers as “certified Korean country of origin exporters” to help them comply with the Korea-EU FTA paperwork more easily.

After FTA, EU envoy busy man [English, CSY]

Kozlowski says cultural exchanges will inevitably follow merchandise

http://joongangdaily.joins.com/article/view.asp?aid=2939049

Democratic Party Announces 10+2 Measure for KORUS FTA [Korean: BYK]

http://www.joseilbo.com/news/htmls/2011/07/20110719120250.html

Summary: The opposition Democratic Party announced a “10+2 KORUS FTA Plan” on July 19^th and asked the Korean government to renegotiate the KORUS FTA deal.  In its announcement, the Democratic party asked the Korean government to renegotiate the part about beef imports so that the beef import duty would remain at the same level of 40% for 10 years and drop 8% each years from year 11 to Year 15, making it duty free on the 15^th year.

2. ECONOMIC ISSUES

It’s inflation, stupid!!! [English, CSY]

Policy readjusted to stabilize consumer prices but ...

http://www.koreatimes.co.kr/www/news/biz/2011/07/123_91095.html

Summary: The government has struggled to keep a lid on consumer prices, which it fears will blow off in the coming weeks after petrol and utility costs rise.  A more immediate blow is the bad weather in recent weeks that has decimated crops to push up fresh food prices again, and policymakers are also concerned about the Chuseok holiday, an annual inflation feeder, which comes about 10 days earlier than usual this year in early September.

3. LIVESTOCK ISSUES

Harim seeks to buy U.S. poultry company [English, CSY]

http://english.yonhapnews.co.kr/business/2011/07/18/0501000000AEN20110718008100320.HTML

Summary: Harim Corp., a leading South Korean food company, said Monday that it is seeking to buy a  U.S. poultry company as part of its efforts to expand its global market presence.  Harim, headquartered in Iksan, 230 kilometers south of Seoul, said it has decided to bid for Allen Family Foods Inc., which filed for bankruptcy protection last month following severe cutbacks in the U.S. poultry industry.

Strong Demand in Korea and China Raises American Cheese Price by 58% … Exports to Asia Doubles This Year [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011071892211&sid=01012014&nid=002&ltype=1

Summary: Bloomberg reported that a rapid increase of exports to Asian countries, Korea and China in particular, has raised price of cheese in the U.S.  Wholesale price of cheddar cheese in the states reached $2 dollar per pound on July 17, up 58 percent from January.  Exports of American cheese to Korea and China surged three times and twice respectively so far this year.    

4. MARKETING ISSUES

European Wine & Beer Flood into Hypermarket Stores [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011071499181&sid=0104&nid=004&ltype=1

Summary: Elimination of import tariffs due to Korea-EU Free Trade Agreement is encouraging local hypermarket retailers to launch many new European wine and beer products.  For example, Shinsegae E-Mart has launched about 15 new European beers this month.  E-Mart is also working on adding some 10 new European wine brands in the second half this year.  Most of the wines will be carrying E-Mart’s own brand names.  Other leading hypermarket chains, including Tesco and Lotte Mart, are reportedly making efforts to beef up their European wine and beer offerings.

Rice Wine Steps Up to a Major Alcohol Beverage … Recovers 10% Market Share in 16 Years [Korean, OSY]

http://news.donga.com/Economy/Market/3/0108/20110719/38898821/1

Summary: According to National Tax Service, sales of rice wine last year amounted to 412,000 kilo liters in 2010, up 58 percent from the previous year.  Rice wine accounted for 12 percent of total alcohol beverage sales in Korea (by volume), recovering 10 percent level market share in 16 years.  Exports of rice wine last year amounted to 19,000 kilo liters, up 180 percent from the previous year.

National Tax Service announced the sales amount of Mokkoli to reach 412,000 Kilo liters in 2010, up 58.1 % from the previous year, which was 12 % of total Korean liquor market.  Mokkoli exports reached 19,407 kilo liter, increased 178.0 % from the previous year. (Korean: CSC)

http://www.hankyung.com/news/app/newsview.php?aid=2011071899751

Harim Broiler plans to participate in a competitive bidding to buy ‘Allen Family Food’ in Delaware in the United States on July 25, 2011.  The Allen Family Food went bankrupt due to a liquidity crisis last month.  (Korean: CSC)

http://www.wowtv.co.kr/news/wownews/view_nhn.asp?bcode=T01010000&artid=A201107190096

5. OTHER MISCELLANEOUS ISSUES

Production of Local Mountain Berry (Bok-Boon-Ja) Plunges due to Extended Rainy Season [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011071499181&sid=0104&nid=004&ltype=1

Summary: According to farms and producer cooperatives in Junra province, production of local mountain berry (Bok-Boon-Ja) this year has plunged mainly due to extended rainy season.  Total amount of Bok-Boon-Ja berry harvested in the province this year is estimated at 2,500 tons, which is about half of last year’s harvest.  As a result, price of the berry has remained very strong, about 20 to 40 percent higher than last year’s price.  It is also reported that a significant number of mountain berry farms have switched to other crops, particularly to blueberries, in recent years for higher profits.  

S. Korean firms go abroad for farming land [English, CSY]

http://english.yonhapnews.co.kr/business/2011/07/19/0501000000AEN20110719002300320.HTML

Summary: South Korean firms are going abroad in search of cheap arable land, but the country's high import tariffs virtually prevent them from bringing their farm produce here, a report said Tuesday.  Currently, there are 73 South Korean companies farming on a little over 23,000 hectares of land in 18 countries, including China and the Philippines, according to the report by a think tank run by the National Agricultural Cooperative Federation, known as Nonghyup.

South Korea to Expand Overseas Farming on Rising Food Costs [English, CSY]

http://www.bloomberg.com/news/2011-07-10/south-korea-to-expand-overseas-farming-on-rising-food-costs.html

Summary: South Korea, the world’s third- biggest corn buyer, plans to secure more farmland overseas to grow crops such as corn and wheat and secure a stable supply amid surging food prices.  The North Asian nation wants to secure a total of 380,000 hectares of overseas farmland by 2018, the agriculture ministry said in an e-mailed statement today, without giving a comparative figure. That area can produce about 1.38 million tons of corn, wheat and soybeans, or about 10 percent of the nation’s annual imports of the three major crops, it said. 

The government will help the nation’s companies lease arable land or buy stakes in overseas firms, the statement said. It will prioritize countries such as the Philippines, Cambodia, Ukraine, Indonesia and Russia for potential investments, it said.   South Korea also plans to expand its overseas grain trading business into countries including Brazil, Russia and Ukraine after a U.S. venture was set up earlier this year, the statement said. State-run Korea Agro-Fisheries Trade Corp. in April started a grain-trading venture in Chicago to help secure supplies, the statement said.

Oil Spill in Chinese Sea May Pollute Fishery Resource in Korea’s West Sea [Korean, OSY]

http://news.donga.com/Inter/New/3/02/20110719/38899678/1

Summary: While Chinese government has denied the speculation that the recent oil spill in its Bohai bay can potentially spread out to Korea’s West sea, a research by Korea Fishery Institute (KFI) suggests that the oil spill could be a threat to local fishery industry.  According to the on-going KFI research, sea mammals living in the area, such as seals, are migrating between Bohai bay and Baekryung island in West sea through the year, which indicates that contaminated Chinese fishery resource can also migrate into West sea.