1. Bilateral/Multilateral Issues

2. Biotechnology Issues

3. Economic Issues

4. Grain/Oilseed Issues

5. Livestock Issues

6. Marketing Issues

7. North Korea Issues

8. Other/Miscellaneous Issues

1. Bilateral/Multilateral Issues

Korea resumes FTA negotiations with Columbia [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=100&oid=001&aid=0003253855

Summary: Korea began a three-day talk with its Columbian counterparts to discuss the FTA between the two nations in Los Angeles.  The two countries will continue on with the discussions based upon what was discussed during the second round of talks in Columbia in March.  The next round of talks will be held in Seoul from June 14.

RDA signs MOA with Texas A&M [Korean: BYK]

http://www.hyunchuk.co.kr/news/4773

Summary: The Rural Development Administration and Texas A&M University signed a MOA for cooperation in livestock science and technology on April 9, 2010.  The two parties will conduct a joint research project for 3 years in developing functionally healthy beef that contains higher percent of oleic acid.

Bangladesh wants ties in green growth, energy [English, CSY]

http://www.koreatimes.co.kr/www/news/nation/2010/05/113_65985.html

Summary: Bangladeshi Prime Minister Sheikh Hasina said Sunday South Korea's technology and expertise in green growth will help her country develop renewable sources of energy and promote economic growth in the future. Ways to foster a bilateral partnership on green growth and climate change are expected to be high on the agenda at her summit with President Lee Myung-bak at Cheong Wa Dae Tuesday.

2 US senators urge KORUS FTA ratification before G-20 [English, CSY]

http://www.koreatimes.co.kr/www/news/nation/2010/05/116_65722.html

Summary: Two U.S. senators are pressing President Barack Obama to submit the stalled Korea-U.S. Free Trade Agreement (KORUS FTA) to Congress before Seoul hosts the G-20 Summit later this year.  In a letter released Monday, Senators John Kerry and Richard Lugar called on the Obama administration to resolve outstanding issues and submit the deal ``as soon as possible.’’

S. Korean delegation to visit U.S. to urge FTA approval [English, CSY]

Summary: A group of South Korean officials and business leaders will visit the U.S. this week to attend an annual meeting with their U.S. counterparts and urge Washington's early ratification of a bilateral free trade agreement (FTA), a local business body said Tuesday.

The group of 26 officials and business representatives, including Trade Minister Kim Jong-hoon, will attend the 23rd Korea-U.S. Business Council to be held in Washington for two days from Wednesday (Washington time), the Federation of Korean Industries (FKI) said in a press release.

More work needs to be done before KORUS FTA's approval: U.S. official [English, CSY]

Summary: The U.S. government needs to do more work before it submits a bill to parliament on a free trade agreement (FTA) with South Korea, a ranking American official said Monday.  Washington and Seoul concluded the deal in 2007, but it still awaits ratification from the legislatures of both countries. The Obama administration has been reluctant to move on ratification of the trade deal, citing lopsided auto trade and restricted shipments of U.S. beef.

Trade ministers from S. Korea, China, Japan to meet over FTA [English, CSY]

Summary: Top trade officials from South Korea, China and Japan will hold talks in Seoul this week to discuss pending trade issues such as a three-way free trade agreement, Seoul's foreign ministry said Wednesday.  During a meeting on Sunday, South Korean Trade Minister Kim Jong-hoon, his Chinese counterpart Chen Deming and Japanese Trade Minister Masayuki Naoshima will also discuss measures to boost three-way economic and trade cooperation, the ministry said.

Earlier this month, the three nations launched a working-level joint study on the feasibility of a free trade agreement (FTA) among the three Northeast Asian countries, with the aim of concluding the project by the end of 2012.  The three nations agreed to further discuss the matter in Japan and China in September and November this year, respectively.

S. Korea, Australia launch free trade talks [English, CSY]

Full text: South Korea and Australia opened their fifth round of free trade negotiations in Canberra, Australia on Monday, Seoul's trade ministry said. During the five-day talks that are scheduled to run through Friday, the two sides will discuss a variety of issues such as tariff concessions, investment, services and dispute settlements, according to the ministry. Two-way trade reached US$19.9 billion last year with South Korea posting a deficit of $9.5 billion, government statistics showed.

 South Korea exported $5.25 billion worth of electronic goods and automobiles to Australia, while importing $14.75 billion worth of crude oil, coal, iron ore and meat last year. Currently, South Korea has free trade agreements with Chile, Singapore and the European Free Trade Association, as well as a pact with the Association of Southeast Asian Nations and India. A free trade pact between Korea and the United States was signed in 2007 but still awaits ratification in the legislatures of both countries. In November, South Korea initialed a similar trade pact with the European Union, and is set to sign the deal soon.

China FTA study to finish ahead of Wen visit [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2920704

Summary: Korea and China aim to complete their long-protracted joint study on the feasibility of a bilateral free trade agreement ahead of Chinese Premier Wen Jiabao’s planned trip here next week, a government source said yesterday.  Wen is scheduled to arrive in Seoul on May 28 for a one-on-one meeting with President Lee Myung-bak and then he will fly to the southern resort island of Jeju on the weekend for an annual trilateral summit also involving Japan’s prime minister, the source said, asking not to be named before the announcement of the Chinese leader’s itinerary.

Korea-Peru FTA could be completed by November' [English, CSY]

http://www.koreatimes.co.kr/www/news/nation/2010/05/113_66562.html

Negotiations on a Korea-Peru free trade agreement (FTA) could be finalized by November, a development that would further enhance bilateral ties and precede a possible state visit by Peruvian President Alan Garcia, Peru's vice foreign minister said Wednesday.

2. Biotechnology Issues

A Local Biofuel Company To Establish a Pilot Plant For Bio-Ethanol From Sea Algae [Korean, CSY]

http://economy.hankooki.com/lpage/industry/201005/e2010052616542670260.htm

Summary: Biolsystems, a local biofuel company to establish the pilot plant for bio-ethanol from sea algae in Goheung, Jeonnam province on May 26, 2010. The Biolsystems plans to operate the pilot plant in 2011, targeting 1.2 million liters bio-ethanol production per year.

3. Economic Issues

KDI urges quick rate hike to cut cost threat [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2920554

Summary: Korea’s top state-run economic think tank yesterday urged the central bank to “pre-emptively” hike interest rates as it raised its forecast for economic growth for this year. The Korea Development Institute revised upward its 2010 growth projection from 5.5 percent to 5.9 percent, which would mark the fastest rate of expansion in eight years.

Euro Declines to the Lowest Level in Four Years while USD Gains Strength against KRW [Korean, OSY]

http://kr.news.yahoo.com/service/news/shellview.htm?articleid=2010051915014839502&linkid=4&newssetid=1352

Summary: The exchange rate of Euro against other currencies fell to the lowest level in four years on May 19, reflecting unstable economic condition in Europe.  The exchange rate of US Dollar to Korean won rose by 18 won to 1,165 won per $1 at the market closing on May 19.  Market analysts in general forecast stronger US Dollar against Euro and Korean won through this year.

OECD foresees Korea’s GDP growth rate at 5.8% in 2010 and 4.7% in 2011, respectively.  (Korean: CSC)

http://www.wownet.co.kr/news/vodnews/view2.asp?vodnum=42701

4. Grain/Oilseed Issues

Additional rice procurement of 2009 crop is scheduled on May 7th 2010. (Korean: CSC)

http://www.nongmin.com/article/ar_detail.htm?ar_id=174238&subMenu=articletotal

http://www.nongmin.com/article/ar_detail.htm?ar_id=174218&subMenu=articletotal

Summary: Korean government plans to make additional rice purchase of 2009 crop that has been still held by rice farmers, private RPC and local farmer’s coop to keep farm gate price from sliding further.  Initial procurement of 100,000 MT will be made through the NACF from May 7th 2010 on.   When farm gate price is not rebound by the initial procurement, government plans to purchase another 100,000 MT held by them.  

Rice Sub-Committee will hold a farmers group workshop on the Benefit of Rice Tariffication on May 7th 2010. (Korean: CSC)

http://www.asiae.co.kr/news/view.htm?idxno=2010050210251807570

S. Korea's consumer prices rise 2.6 pct in April [English, CSY]

Summary: South Korea's consumer prices grew at a relatively stable pace in April, easing anxieties that inflation could hamper the government's drive to bolster the economy, a report showed Monday. According to the report by Statistics Korea, the consumer price index rose 2.6 percent last month from a year earlier, compared with a 2.3 percent growth in March. It remained under the 3 percent mark for a third consecutive month. The figure is slightly higher than the 2.4 percent predicted in a poll by Yonhap Infomax, the financial news arm of Yonhap News Agency. Core inflation, excluding volatile oil and food prices, rose 1.5 percent from a year ago, unchanged from the previous month, the report showed.

S. Korean institute to grow crops in desertified northern China [English, CSY]

Summary: South Korea's state-run institute will grow crops in a Chinese province becoming desertified as part of a cooperative project with a non-governmental organization (NGO) to help its original inhabitants move back to the area, a researcher said Monday.  The Korea Research Institute of Bioscience and Biotechnology (KRIBB) will provide about 20 genetically modified potatoes and sweet potatoes for local farmers in the Neimenggu province in northern China, according to Kwak Sang-soo of the institute.

As MIFAFF announced to implement the COOL requirements for all traditional liquor included Makkoli (Korean Rice Wine), effective 5th of August 2010(http://mbn.mk.co.kr/news/newsRead.php), E.Mart, the largest discount store, is in the works to remove Makkoli made of imported rice and flour from its shelves as early as next month

Corn Demand in South Korea to Rise After Sugar Surge [English, CSY]

http://www.businessweek.com/news/2010-05-18/corn-demand-in-south-korea-to-rise-after-sugar-surge-update1-.html

Summary: Corn demand in South Korea, the third-biggest buyer, may climb as much as 6 percent after a surge in sugar prices earlier this year spurred a shift to the grain as a sweetener, the nation’s top food processor said.  Consumption may increase to as much as 8.8 million metric tons this year from 8.3 million tons in 2009, Sung J. Park, Executive Vice President at CJ CheilJedang Corp., said in an interview yesterday. Corn demand for food use may jump 26 percent, while raw sugar consumption may drop 6 percent.

Korea Milling Wheat Imports May Drop 5% as Rice Use Increases [English, CSY]

http://www.businessweek.com/news/2010-05-18/korea-milling-wheat-imports-may-drop-5-as-rice-use-increases.html

Summary: Milling wheat imports by South Korea, Asia’s second-biggest grain importer, may decline by about 5 percent this year as the country boosts consumption of rice flour, said an executive at the nation’s biggest food processor. Shipments may fall to about 1.9 million metric tons from 2 million tons in 2009, Sung J. Park, executive vice president at CJ CheilJedang Corp., said in an interview yesterday.

MIFAFF plans to increase the budget of purchasing rice paddy land to support rice farm gate price by reducing rice production next year, expanding to 300 billion Korean won to buy 2000 HA of paddy land from current 75 billion Korean won to cover 500 HA this year.  (Korean: CSC)

http://biz.chosun.com/site/data/html_dir/2010/05/18/2010051802519.html

5. Livestock Issues

Korea to release more information about imported beef that gets rejected at port [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=001&aid=0003257159

Summary: MIFAFF stated that it would provide more detailed information about imported beef that got rejected during quarantine inspection from this month.  It will also provide information about domestic food’s safety at a food safety site (www.foodsafety.go.kr). 

Protestors hold ceremony on 2nd anniversary of the candle light protest [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=102&oid=001&aid=0003256343

Summary: A group of about 130 protestors gathered in front of the Seoul Railroad Station held a rally to commemorate the 2^nd anniversary of the Candle light protest.  In a statement released by the organizers, they claimed that “The owner of the Republic of Korea is its citizens.  That is why we gathered in front of the city hall on May 2, 2008.  The people that gathered to oust the dictator ship are the candlelight itself and its conscience.”  Although the police dispatched its forces to prevent any problems but there were no mishaps this day.

Beef traceability system to be applied not only to domestic meat but also imported meat [Korean: BYK]

http://www.mdtoday.co.kr/mdtoday/index.html?no=126635

Summary: According to revisions to the law that National Assemblyman Hak Yong Kim of Grand National Party submitted and passed the general assembly, it has allowed for the Korean government to legally require beef traceability for imported meat as well as domestic meat.  From now on, imported meat handlers must provide a traceability number that contains the information on COO, slaughter/processing plant, frozen/chilled, cut, usage of the cut, shelf life, etc.

Fears grow as animal disease moves inland [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2919925

Summary: Fears about foot-and-mouth disease are spreading as the fatal animal epidemic penetrated into a state-managed livestock research institute in central Korea on Saturday.  The news that the contagion has hit a state-run livestock organization for the first time has raised doubts about the government’s quarantine system and its ability to deal with the disease. As the alarm grows, provinces in the south are gearing up to guard against a possible attack.  The government confirmed the presence of foot-and-mouth at the livestock and veterinary science institute in Cheongyang, South Chungcheong, on Saturday. It is the 10th outbreak of the disease since April 8.

Chicken Consumption Increases Due to the FMD Spreads [Korean, CSY]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=001&aid=0003259222

Summary: Chicken sales in discount store chains (E-Mart and Lotte Mart) increased 30.5% and 12.3% respectively in April due to the outbreak of FMD since April 8th, while the beef and pork sales decreased 7% and 4% respectively in Lotte Mart during the same period.

Marathon cancelled due to FMD [Korean: BYK]

http://news.chosun.com/site/data/html_dir/2010/05/05/2010050501242.html

Summary: Yicheon country cancelled its plan to hold a marathon race over the weekend to prevent any outbreak of FMD.  Other county offices are also cancelling some of the events that it had planned to prevent FMD from spreading into its county.

11th outbreak of foot-and-mouth verified [English, CSY]

80 animals have been culled at cattle farms near a southern quarantine authority

http://joongangdaily.joins.com/article/view.asp?aid=2920163

Korea’s Food Ministry confirmed a new outbreak of foot-and-mouth disease yesterday at a cattle farm in Cheongyang, South Chungcheong, the 11th since the first reappearance of the disease here on April 9.  The Ministry for Food, Agriculture, Forestry and Fisheries said that a cow at the farm started showing symptoms of the illness, including blisters on the nose, on Thursday, and that tests conducted by the National Veterinary Research and Quarantine Service were positive.

Vets helped spread FMD [English, CSY]

Farmers’ meetings, feed transport also blamed 

http://joongangdaily.joins.com/article/view.asp?aid=2920605

Summary: The outbreak of foot-and-mouth disease this year was caused by the import of the virus from neighboring countries, but the spread of disease within Korea was mainly due to veterinarians who visited infected farms, officials said yesterday. The first outbreak of FMD in Pocheon, Gyeonggi in January was likely caused by a foreign worker from a Northeast Asian country, believed to be either China or Mongolia, who entered Korea last October, according to the National Veterinary Research and Quarantine Service, which conducted an investigation. The immigrant worker was hired by a local farm and received an package containing clothes and shoes, believed to be contaminated with the FMD virus, sent from his homeland in November.

Chicken Festival will be held at COEX [Korean, CSY]

http://news.mk.co.kr/outside/view.php?year=2010&no=272195

Summary: The Korea Chicken Council (KCC) will hold the 2010 Chicken Festival at the COEX exhibition center for May 28 – 30, 2010.  It is the first chicken exhibition hold by the local broiler industry and about 70 chicken related companies will be participated during the festival. The KCC reported that Korea’s per capita chicken consumption increased by 49 percent for the past 5 years from 9.6 Kg in 2004 to 14.3 Kg in 2009. The local industry forecasts the domestic chicken consumption will be doubled in 5 years.  

6. Marketing Issues

Medium & Small Business Agency to Help Neighborhood Grocers with “Na-Deul” Grocery Store Network [Korean, OSY]

http://kr.news.yahoo.com/service/news/shellview.htm?articleid=2010050403000066010&linkid=4&newssetid=1352

Summary: Medium & Small Business Agency (MSBA) announced that 200 “Na-Deul” stores opened on May 3.  “Na-Deul” store is a grocery store platform that MSBA developed to help small mom and pop grocers in the neighborhood market compete against the expansion of Super Supermarkets (SSM) under large scale retail companies.  “Na-Deul” platform provides standardized store layout, POS system, consolidated product distribution and expert consultation service at minimal cost.  MSBA plans to open 2,000 “Na-Deul” stores within this year and eventually build a network of 10,000 stores by 2012.

7. North Korea Issues

The Ministry of Unification sent relevant authorities an official letter that requests to tentatively quit doing DPRK businesses related with government budgets.  (Korean: CSC)

http://www.ohmynews.com/NWS_Web/view/at_pg.aspx?CNTN_CD=A0001383517

Seoul halts trade, shuts sea lanes to NK (English: CSC)

http://www.koreatimes.co.kr/www/news/nation/2010/05/116_66412.html

8. Other/Miscellaneous Issues

Food prices soar on bad weather [English, CSY]

http://www.koreatimes.co.kr/www/news/biz/2010/05/123_65273.html

Summary: Food prices in the nation soared in April due to a sharp fall in supply caused by the lingering winter and unseasonal cold weather, raising concerns that inflation will continue to rise down the road. Statistics Korea said Monday that the so-called fresh food price index, a composite index of fresh food, rose 12.1 percent in April year-on-year, the largest monthly increase since last May, when it grew 15.7 percent.

Gov't to strengthen animal decontamination prior to regional elections [English, CSY]

The government will tighten animal and personnel decontamination efforts prior to the upcoming regional elections to contain the spread of foot-and-mouth disease, officials said Monday.  According to the officials at the Ministry for Food, Agriculture, Forestry and Fisheries, the next couple of weeks will determine if the highly contagious livestock disease can be checked.

Local food producers go overseas for opportunities [English, CSY]

‘The local market is seen as saturated.’

http://joongangdaily.joins.com/article/view.asp?aid=2920491

Summary: Local food producers whose businesses were once reliant on the domestic market are looking overseas for new opportunities as the industry becomes increasingly saturated, according to retail sources.  According to the Korea Agro-Fisheries Trade Corporation, the total volume of Korea’s exports of processed foods during the first four months of the year reached $955 million, a 23.2 percent on-year increase.

According to the official, CJ CheilJedang, the nation’s leading food manufacturer, spends more than half of its morning meeting discussing ways to expand its overseas business and it believes it has the best prospects in developed and emerging countries. The firm has been introducing various items overseas. It is already exporting Dashida, the popular bouillon powder, with a chicken flavor, to mainland China. Early this month, it announced it will be exporting the powder to Russia. The firm is aiming to raise more than $120 million in export revenue this year.

Kimchi surplus dips as imports from China rise [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2920449

Summary: An unusually harsh winter and heavy snow that hammered cabbage harvests across Korea led to a dip in the country’s kimchi trade surplus as imports of the spicy dish from China increased.  According to the Korea Agro-Fisheries Trade Corp., Korea exported $23.7 million in kimchi during the first quarter and imported $18.6 million from other countries. As a result, its kimchi trade surplus amounted to $5.09 million, down about 30 percent from $7.17 million posted a year ago.

U.S. cotton bigwig sees bright future [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2920374

Summary: Korea has for many years been a very important market for the United States’ cotton industry, and that will continue despite the growing demand for synthetic and chemical fibers, according to Wallace Darneille, president of Cotton Council International, who was in Seoul with other council and industry representatives yesterday to celebrate Cotton Day with an event at a downtown hotel, jointly organized by the council and the Spinners and Weavers Association of Korea.

That trade could get an even further boost if the currently stalled Korea-U.S. free trade agreement comes into effect. The agreement would lead to more direct opportunities for Korean textile and apparel exporters, which hopefully would result in more American cotton coming into Korea, and yarn sent back, said Messura.

Junk Food to Get Color-Coded Warning Labels [English, CSY]

http://english.chosun.com/site/data/html_dir/2010/05/17/2010051700953.html

Full text: Red means caution. Green light gives you a go. Junk food will soon be labeled with color-coded warnings as part of the government's efforts to promote a healthier diet, especially among children.  The Korea Food and Drug Administration will require the colored labels on junk food packages according to the amount of fat, salt and sugar each contains.  Under the new regulation, over 70 percent of chocolates and hamburgers will require red labels.  Manufacturers in the food industry are raising concerns over the potential backlash the policy could bring.

S. Korea seeks Chinese help to stem illegal fishing in Yellow Sea [English, CSY]

Summary: South Korea will ask China to help curb illegal fishing by its boats along the inter-Korean sea border in the Yellow Sea, the government said Monday.  The Ministry for Food, Agriculture, Forestry and Fisheries said it will raise the illegal fishing issue at the four-day-long talks that start Tuesday in Qingdao, China.

S. Korea to share bird flu quarantine knowhow with ASEAN countries [English, CSY]

Summary: South Korea will share its knowhow on bird flu quarantine with Southeast Asian countries as part of its effort to help contain future outbreaks of the disease, the government said Monday.  The National Veterinary Research and Quarantine Service said 30 quarantine experts from eight Association of Southeast Asian Nations (ASEAN) countries have been invited to the country next week.

S. Korea aims to boost traditional wine exports to Hong Kong [English, CSY]

Summary: South Korea will step up efforts to help local manufacturers of two traditional wine products increase their exports to Hong Kong, a state-run agricultural corporation said Monday.  The Korea Agro-Fisheries Trade Corporation said it will take part in the 2010 Vinexpo Asia-Pacific in Hong Kong this week to help introduce both "makgeolli" and "bokbunja" wines to local consumers. The three-day exhibition that begins Tuesday is a international wine and spirits fair for the Asia-Pacific region.  Makgeolli is a traditional alcoholic beverage that uses rice as its main ingredient, while bokbunja wine is made from locally raised black raspberries.

Stronger punishment for contaminants in food [English, CSY]

http://www.koreatimes.co.kr/www/news/nation/2010/05/117_66443.html