Today's Date:     Wednesday, December 28, 2011

1. BILATERAL/MULTILATERAL ISSUES

S. Korea bracing for fiercer competition under FTAs [English, CSY]

http://english.yonhapnews.co.kr/business/2011/12/27/95/0502000000AEN20111227001500320F.HTML

Summary: South Korea will likely face a markedly changed business environment next year as it is poised to enforce a long-standing free trade agreement (FTA) with the U.S. that would open up its market and eventually lead to gloves-off competition down the road.   The country signed the deal, known as the KORUS FTA, in 2007 but had to wait for years until late November for parliamentary approval due to objections from opposition lawmakers and civic groups. The U.S. Congress approved the pact in October, paving the way for them to enforce the deal early next year as planned.  The deal would lower most of tariff barriers between the two nations. South Korea hopes that it could provide a large and stable demand base for Korean products in one of the world's largest markets.    Its implementation would mean yet another achievement for the Seoul government, which has been pushing for free trade deals for many years. In July, Seoul enforced a free trade deal with the European Union.

New Law to Compensate for Farmer’s Loss from Free Trade Agreements [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011122728891&sid=0101&nid=002&ltype=1

Summary: A draft law that intended to protect local farmers from free trade agreements passed the Ag. & Food committee of the National Assembly on Dec. 27.  The draft law, now waiting for the general voting of the National Assembly, requires the government to compensate the farmers for up to 90 percent of decline in product price caused by increase in imports due to free trade agreements.  Ceiling of the compensation is set at 35 million won per farmer and 50 million per incorporated Ag. company.

2. LIVESTOCK ISSUES

Koreans Rank 10th in the World in Egg Consumption [English, CSY]

http://english.chosun.com/site/data/html_dir/2011/12/28/2011122800629.html

Full text: The average Korean consumed 283 eggs last year, the world's 10th largest amount, according to data from the Ministry for Food, Agriculture, Forestry and Fisheries. The number includes those used as ingredients or food making as well.  In a survey of 1,020 people released on Wednesday by the Korean Egg Board, 33 percent of respondents ate one to three eggs a week, and 32 percent consumed four to six.   According to the promotional organization, 65 percent of those surveyed consumed one to six eggs a week, followed by seven to nine (14 percent), 10 to 13 eggs (11 percent) and 14 or more (9 percent). Some 1 percent ate no eggs at all.

But Koreans did not greatly vary the way they cooked them. Some 58 percent of respondents liked fried eggs best, while 22 percent preferred them steamed. Some 6 percent used eggs on toast or sandwiches and the same percentage ate them poached, 3 percent in soup, and 2 percent griddled.  Other countries have a greater variety of preparation.  The board is trying to boost egg consumption including publishing recipes. But fluctuating egg prices are a stumbling block. According to the Korea Institute for Animal Products Quality Evaluation, a carton of 10 eggs cost W1,845 on average on Dec. 15, up W97 from the second-half low of W1,748 on Oct. 24 (US$1=W1,159).   But in late August the price soared to W2,156 because sweltering weather caused spawning rates to plummet. The price is likely to rise again as the mercury drops.

S. Korea to help stem FMD outbreak in Asian nations [English, CSY]

http://english.yonhapnews.co.kr/national/2011/12/26/99/0301000000AEN20111226002300320F.HTML

Summary: South Korea will spend US$2.61 million in the next four years to help fight foot-and-mouth disease (FMD) in Southeast Asian countries, a main source of the disease that affects hoofed animals, including cows and pigs, the government said Monday.   Under a joint prevention program with the United Nations Food and Agriculture Organization (FAO), the money will help set up disease prevention and control systems in Vietnam, Laos and Cambodia, according to the Ministry of Food, Agriculture, Forestry and Fisheries.   The move comes after South Korea's most recent FMD outbreak, reported late last year, was thought to have originated from Southeast Asia, where the disease is rampant.

3. MARKETING ISSUES

Emart Resumes Sales of ‘Half Price’ Coffee Beans [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011122721911&sid=0104&nid=004&ltype=1

Summary: Emart, the leading hypermarket retailer in Korea, announced that ‘half price’ roasted coffee beans would reappear in the store from Dec. 29.  The product got sold out in two weeks after launching earlier in November due to high demand, and Emart had taken extra effort to resume the sales as soon as possible, and the new shipments were brought into Korea via air shipping, commented Emart.  Emart plans to offer beans from more diverse origins next year, including Columbia and African countries.  At the moment, Emart offers only Brazilian beans.

Five Star Hotels in Seoul Report Excellent Business during Christmas Season [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/12/26/0318000000AKR20111226183600003.HTML?audio=Y

Summary: Leading five star hotels in Seoul have reported outstanding business outcome during the Christmas season this year.  Special events hosted by the hotels recorded over 95 percent ticket sales, and many of the hotels reported full room occupancy rate.