1. BILATERAL/MULTILATERAL ISSUES

Hong: FTA must be ratified before U.S.  [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2939228

Summary: While speculation grows in Washington that the U.S. Congress won’t likely approve the Korea-U.S. free trade agreement before it goes into recess next month, the head of the ruling party in Korea said yesterday that the National Assembly must be the first to ratify the long-pending pact. “The Korea-U.S. FTA must be ratified in August for the sake of national interest and the people’s livelihood,” Hong Joon-pyo, chairman of the Grand National Party, said yesterday at a senior-level policy coordination meeting between the Lee Myung-bak administration and the ruling party.  Fifty administration and GNP leaders held the discussion on a wide range of issues, including FTA ratification and tuition cuts.  “No matter how good the policies presented by the Lee administration are, they become useless if the National Assembly fails to conclude them,” Hong said. “I will meet with opposition leaders, including Democratic Party Chairman Sohn Hak-kyu, to seek their cooperation.

Trade minister urges quick approval of KORUS FTA [English, CSY]

http://english.yonhapnews.co.kr/business/2011/07/21/0502000000AEN20110721006400320.HTML

Summary: South Korea's top trade official said Thursday that he hopes to see a lot of progress in moves toward the ratification of the long-pending free trade pact with the U.S. during next month's parliamentary session amid skepticism that the U.S. Congress may fail to pass the pact before its August recess.  Recently, optimism has run high that Congress may approve the free trade pact next month. But due to drawn-out debt ceiling talks and a worker-aid program there, doubt arose about the possibility of the U.S. government securing ratification of the trade pact this summer.   The trade agreement, signed in 2007 and supplemented last December, has been awaiting approval from the legislatures of the two countries.

 [Editorial] 10 plus 2 KORUS FTA renegotiations [English, CSY]

http://english.hani.co.kr/arti/english_edition/e_editorial/488203.html

Gov’t: Pass U.S. FTA by next month [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2939154

Summary: The government wants the National Assembly to approve a free trade pact with the United States by next month, despite the possibility that the U.S. Congress will fail to approve it this summer, Seoul’s senior trade official said yesterday.   The government and the ruling Grand National Party have been seeking to pass the long-pending accord through the Assembly during an extra session in August with the United States moving to get Congress to approve the deal by early next month.   Congress is due to enter recess on Aug. 6, and the Obama administration, eager to expand exports and create jobs, has informally set the date as the deadline for passing long-overdue free trade bills, including the free trade agreement with Korea.

S. Korea in dilemma over U.S. stalemate in FTA ratification [English, CSY]

http://english.yonhapnews.co.kr/business/2011/07/21/13/0502000000AEN20110721000100315F.HTML

Summary: With skepticism spreading about the possibility of the U.S. government securing ratification of a free trade pact with South Korea this summer, South Korean officials expressed concern Wednesday over major diplomatic and political fallout at home.   The Lee Myung-bak administration has eagerly awaited the passage of the free trade agreement (FTA) bill before the U.S. Congress   goes into recess on Aug. 6. Lee would like to make an official or state visit to Washington in September or October on the occasion of a signing ceremony.   Known for his efforts to strengthen the Seoul-Washington alliance, Lee hopes for such a symbolic event on what would be his last bilateral trip to the U.S. as South Korea's leader, according to presidential aides.

Opposition party against Kor-US FTA? [English, CSY]

http://english.donga.com/srv/service.php3?biid=2011072185858

Summary: The main opposition Democratic Party has demanded renegotiation of the free trade agreement with the U.S. by questioning 10 items in the accord. The 10 items, however, are a mere aggregation of previous requests, including the delay of tariff reductions on beef by 10 years and the recognition of goods produced at North Korea`s Kaesong industrial complex as South Korean made. The abolition of the provision on the investor-state dispute settlement and the ratchet provision is the request of hardline and left-leaning members of the Democratic Party.

The opposition party`s leader Sohn Hak-kyu and supreme council member Chung Sye-kyun are urging the government to renegotiate the accord by saying the previous renegotiation broke the balance of interests between South Korea and the U.S. The government, however, struck a balance by squeezing compromises from the U.S. in the livestock and medical sectors while making concessions in the automobile sector. In addition, Hyundai Motor Group and the (South) Korea Automobile Manufacturers Association said on the concessions, “Renegotiation will help us expand sales as it has eliminated uncertainty in the U.S., the world`s largest export market.” As such, the renegotiation cannot be said to have put South Korea at a disadvantage. If the Democratic Party wants to help develop the economy and business and create jobs, it should first heed voices from the automotive, medical and livestock industries.

2. BIOTECHNOLOGY ISSUES

Korean Trading Companies Put Efforts to Acquire Additional Palm Tree Farms Overseas to Secure Bio-Diesel Resource [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011071932931&nid=004&sid=0104

Summary: Major Korean trading companies are reportedly putting heavy efforts to acquire palm tree farms in south Asian countries to secure bio-diesel resource.  Korean government’s new regulation will mandate from next year blending of 2 percent bio-diesel into regular diesel sold in gas stations.  LG Trading Co., which already owns 16,000 ha of palm tree farms in Indonesia acquired in 2009, has a plan to double up the size of its Indonesia farms in the near future.  Samsung Trading Co., which currently owns 24,000 ha of palm tree farms in Sumatra, Indonesia, also plans additional acquisitions.  Daewoo International Co. also has acquired a large scale palm tree farm in Indonesia this April.

3. ECONOMIC ISSUES

Korean Won Has Strengthened 7 percent Against U.S. Dollar So Far This Year … Much Steeper Incline in Value than Euro and Japanese Yen … Serious Threat to Korean Exporters [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011072108351&sid=0101&nid=002&ltype=1

Summary: Export-oriented Korean companies are in a serious threat due to steep increase of the value of Korean won against U.S. dollar.  So far this year, the value of Korean won has increased 7.1 percent against U.S. dollar, while Euro and Japanese Yen has strengthened 7.0 percent and 3.4 percent respectively against U.S. dollar.  This means that Korean products are loosing price competitiveness in the world market in comparison to products from Europe and Japan.  

4. GRAIN & OILSEED ISSUES

South Korean Importers Said to Buy Australian Milling Wheat [English, CSY]

http://www.bloomberg.com/news/2011-07-21/south-korean-importers-said-to-buy-australian-milling-wheat-1-.html

Full text: Five South Korean flour producers bought a total of 30,000 metric tons of wheat from Eastern Australia, the first purchase from the region, as buyers seek cheaper alternatives to U.S. supplies.   Importers including CJ CheilJedang Corp. (097950) and Daehan Flour Mills Co. bought the cargo from Grain Corp Ltd. at $317.5 a ton on a cost and freight basis, said two industry executives who took part in a tender yesterday. The grain is for shipment between late July and early August, they said, asking not to be identified as the information is confidential.    The flour makers may increase purchases from Eastern Australia as the grain from the region was cheaper than the U.S. and Western Australian crops, the executives said. South Korea, which imports almost all its wheat requirements, meets almost half the needs from the U.S., with some 45 percent from Australia and the rest from Canada.

5. LIVESTOCK ISSUES

Red meat market widens for Australia, U.S., Canada [English, CSY]

http://www.koreaherald.com/business/Detail.jsp?newsMLId=20110721000575

Summary: Imported red meat from Australia, the United States and Europe is enjoying a fast-increasing market share in Korea, benefiting from the huge loss of livestock here after the worst-ever foot-and-mouth disease outbreak in the past year.  And competition in the imported beef market is set to become fiercer as Canada will soon resume its beef exports to Korea.  Beef and pork from Australia and the United States have become successful substitutes for local produce for even some health-conscious meat lovers after local prices nearly tripled in recent months.   Imports also enjoy a 25 percent tariff exemption, which Seoul imposed on the first 95,000 metric tons of pork for this year, making their pricing even more competitive against local produce in serious short supply.

6. MARKETING ISSUES

Super Supermarkets (SSM) Banned Within 1 Kilometer from Traditional Markets in Seoul … Strengthened from 500 meter Rule [Korean, OSY]

http://news.donga.com/Society/New/3/03/20110721/38987334/1

Summary: City of Seoul announced on July 21 that it planned to revise regulation on ‘Designation & Protection of Traditional Retail Market Zone’ by the end of next month that would double the areas in the city that restricts entry of grocery stores under large-scale retail companies.  The revision plans to increase the affecting area from the existing 500 meters from the designated traditional market to 1 kilo meter.  The new regulation will go into force from September 1 if the process moves forward as planned.

Radio-active Compounds Found in Ballasting Tank Water of Ships Commuting between Japan and Korea [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/07/20/0304000000AKR20110720122000003.HTML?template=2088

According to the Korea Ministry of Land and Ocean, its tests on five vessels that commuted ports between South Korea and Japan in May and June have found radio-active compounds, Cecium 134 and Cecium 137, in ballast tank water of three vessels.  The Ministry explained that these compounds should not be found under normal circumstance.  The Ministry added that although the amount of compounds found was below safety limits, it will keep monitoring incoming vessels from Japan.  Incoming vessels are now ordered to discharge the water in the ballast tank before entering the Korean sea.

7. OTHER MISCELLANEOUS ISSUES

<A Picture>One fish, two fish ...  [English, CSY]

5 vice ministerial posts named by President Lee [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2939223

Summary: President Lee Myung-bak named technocrats as the new vice ministers for agriculture and environment yesterday in a minor reshuffle that also affected three other vice ministerial posts.   Lee Sang-kil, a senior agriculture ministry official, was tapped as the ministry’s first vice minister, while Yoon Jong-soo of the environment ministry was also promoted to the ministry’s No. 2 post, senior presidential spokesman Kim Du-woo announced.

‘World food supply faces tough future’ [English, CSY]

http://www.koreaherald.com/national/Detail.jsp?newsMLId=20110721000622

Summary: The world’s population will hit 7 billion people later this year, the U.N. estimates. With this, comes the challenge of feeding a population that has increased by 40 percent in just over 20 years.  Just this week, the U.N. declared a famine in parts of Somalia with neighboring countries also affected by the worse drought to hit the horn of Africa in 60 years.   To find ways to respond to the greater need for the world’s basic needs, President of the International Fund for Agricultural Development and head of the U.N. Rural Poverty agency Kanayo F. Nwanze is in Korea to meet with government and agency officials to discuss agriculture investment and to bring forward IFAD’s messages about how best to accomplish feeding the one billion hungry people.

<7/19/2011>Korean Companies Cultivate Overseas Land 28 Times Size of Youido [English, CSY]

http://www.arirang.co.kr/News/News_View.asp?nseq=118283&code=Ne4&category=3

Full text: It is increasingly important for a country to secure a stable amount of grain amid the rapid rise in international grain prices and abnormal weather conditions around the world.  And Korea is no exception.  According to a report released by the Nonghyup Economic Research Institute on Tuesday, 73 Korean companies currently cultivate 23,600 hectares of land in 18 different countries.  This is about 28 times the size of Yeouido in Seoul.  However, most of the companies that carry out business in this field are small and medium sized firms that focus on developing farms, production processes and storage facilities.  The report states that most of the firms want more support from the government and effective distribution channels so that agricultural products grown overseas can be brought to Korea.