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October 2009

2009.11.04

 

1. BILATERAL / MULTILATERAL
 
KORUS FTA to be ratified during first half of 2010 [Korean: BYK]
http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=001&oid=001&aid=0002891275&
Summary: Trade Minister Jong Hoon Kim (Jay Kim) predicted that the KORUS FTA could be ratified in both countries during the first half of 2010.  He also said that the preliminary signing of Korea-EU FTA will take place on October 15 with the formal signing to take place in March 2010.  This is because it takes about 4 months to complete the official translation of the agreement into 23 different languages.
 
'Korea can protect vulnerable sectors from FTA with EU' (English, DN) http://www.koreaherald.co.kr/archives/result_contents.asp
Summary:  A senior government official said yesterday that Korea's relatively vulnerable industries, such as pork can still be protected even if the free trade agreement between Korea and the European Union takes effect. The local pork market, in particular, has 10 years to be ready for a 0 percent tariff on European pork after the agreement takes effect. The government had already said in November, 2007 that it will provide a 21.1 trillion won support for the agricultural and fisheries industries to help them enhance competitiveness of their products from 2008 to 2017.
 
Korea inks free trade pact with EU [English: CSY]
FTA with U.S. is still in limbo over its automobile importing provisions
http://joongangdaily.joins.com/article/view.asp?aid=2911364
 
Trade pact would bring down tariffs with EU [English: CSY]
http://joongangdaily.joins.com/article/view.asp?aid=2911351
Summary: Now that Korea has initialed a free trade agreement with the world¡¯s biggest economic bloc, the European Union, experts predict local ship, automobile and electronics industries will reap benefits. However, they also forecast that industries in which the bloc excels in including machinery and chemicals will see EU imports rise fast when the pact finally takes effect.   At least in agricultural produce, the government has been extremely careful. Rice is exempt from tariff reductions, while peppers, garlic, onions, beans, barley, potatoes, ginseng, Jeju tangerines and brown sugar products will not see tariffs lifted.
 
Even so, the Korea Rural Economic Institute and the Korea Maritime Institute said Korea¡¯s agricultural industry would lose a total of 2.3 trillion won ($1.99 billion) in the next 15 years due to the deal. The government plans to give financial support to Korean farmers to help them modernize and improve the competitiveness of their products.  Korea has already announced plans to give a total of 21.1 trillion won in support to local agriculture and fisheries until 2017. ¡°A conclusive government plan to deal with Korean industries after the Korea-EU FTA is finalized will be announced during the first quarter of next year,¡± said an official at the Ministry of Strategy and Finance.
 
S. Korea, Peru to hold free trade talks next week [English: CSY]
http://english.yonhapnews.co.kr/business/2009/10/16/0502000000AEN20091016001400320.HTML
Summary: South Korea and Peru will hold their fourth round of free trade negotiations next week, Seoul's trade ministry said Friday.  During the five-day session that runs in the Peruvian capital of Lima through Thursday, negotiators from both sides will seek to iron out differences on tariff concessions and other key issues, according to the ministry.
 
Ambassador plugs FTA as U.S. economic stimulus [English: CSY]
¡®The FTA is very important, not only for Korea but also for the U.S. in terms of jobs.¡¯
http://joongangdaily.joins.com/article/view.asp?aid=2911384
Summary: Korean Ambassador Han Duck-soo Thursday called for early congressional approval of a bilateral free trade deal, saying that it will help boost the U.S. economy, struggling amid the worst recession in decades.   ¡°The effectuation of the Korea-U.S. free trade agreement is another form of economic stimulus package,¡± Han told a forum at the Heritage Foundation. ¡°The Korea-U.S. FTA is very important, not only for Korea but also for the U.S. in terms of jobs.¡±
 
In remarks clearly aimed at the Democratic Congress, concerned about a backlash from trade unions over possible job cuts, Han said the Korean economy is big enough to help boost the slumping U.S. economy by ¡°creating and maintaining jobs in the United States.¡±
 
U.S. needs to ratify FTA with Korea before EU: AMCHAM Chief [English: BYK]
http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=001&oid=044&aid=0000086234&
Summary: The Korea-U.S. free-trade agreement should be ratified before tariffs on goods from the European Union get cut in Asia`s fourth-largest economy, president of the American business lobby group here said yesterday.  "I don`t want to see tariffs on EU goods reduced before goods on U.S. goods are reduced," Amy Jackson, president of the American Chamber of Commerce in Korea, said at her inaugural press conference in Seoul. The former director of Washington D.C.-based C&M International, an international trade and investment consulting firm, assumed her new post on Aug. 31.
 
National Assembly criticizes MIFAFF for not correctly inspecting large intestine imports [Korean: BYK]
http://www.heraldbiz.com/SITE/data/html_dir/2009/10/20/200910200652.asp
Summary: During the National Assembly audit on MIFAFF, a Democratic party member accused the government for not having inspected the large intestines to see if there were any traces of distal ileum.   This assemblyman asserted that large intestines are considered as SRM in EU.  Korea has imported 23 MT of large intestines since the beef imports resumed in 2008.
 
Korea allows imports of European beef under the FTA [Korean: BYK]
http://www.hani.co.kr/arti/opinion/editorial/382765.html
Summary: According to the Korea-EU FTA agreement that was recently initialed, Korea has agreed to allow imports of European beef, which is known to be much more dangerous than U.S. beef. 
 
The Long Road to a Korea-Japan-China FTA [English: CSY]
http://english.chosun.com/site/data/html_dir/2009/10/19/2009101900845.html
Summary: President Lee Myung-bak, Chinese Prime Minister Wen Jiabao, and Japanese Prime Minister Yukio Hatoyama met in Beijing on Oct. 10 and agreed they all want a Korea-China-Japan free trade pact. The road to concluding an FTA, however, will be long and rugged. Bitter memories of when their neighbors rejected calls for help in order to protect their own interests still linger.
 
Reaching a Korea-China-Japan FTA will require navigating through a minefield of conflicting interests, and progress will be slow. Indeed, nothing very new came out of the talks in Beijing. Little has developed since the Korea-China-Japan Summit in November 2002, when Zhu Rongji, then prime minister of China, first proposed a three-nation FTA.
 
Super supermarket limit may violate WTO rules [English: CSY]
Favoring local grocery stores could lead to int¡¯l arbitration
http://joongangdaily.joins.com/article/view.asp?aid=2911537
Summary: If the Korean government takes action to regulate large retailers opening smaller ¡°super supermarkets¡± to compete with neighborhood grocery stores, the retail chains could be justified in bringing the issue before the World Trade Organization for arbitration, according to a report released by the National Assembly Research Service yesterday.  The report comes amid a fierce debate between the retail titans and the local merchants who feel threatened by the competition.
 
Free trade committee urges speedy ratification of FTAs [English: CSY]
http://english.yonhapnews.co.kr/business/2009/10/27/81/0502000000AEN20091027003700320F.HTML
Summary: A civilian free trade committee on Tuesday called for the speedy ratification of free trade pacts with foreign countries that it claims can fuel South Korea's economic growth.  The committee made up of representatives from the country's leading business umbrella groups claimed ratification of free trade agreements (FTAs) with countries like the United States and the European Union is vital for the economy.
 
Korea , Japan and China agree to initiate joint study on feasibility of FTA among these three nations [Korean: BYK]
http://www.nongmin.com/article/ar_detail.htm?ar_id=167516&subMenu=articletotal
Summary: The Trade Ministers of Korea, China and Japan agreed to initiate a joint research on the feasibility of an FTA agreement among the government, academy and industry in early 2010.  So far, the joint research has been conducted at the research institute level since 2003 and this will be the first joint research where the government is getting involved.   
 
Han pushes FTA approval [English: CSY]
http://joongangdaily.joins.com/article/view.asp?aid=2911809&cat_code=05
Summary: Korea¡¯s ambassador to the U.S., Han Duck-soo, urged President Barack Obama Monday to submit the two countries¡¯ pending free trade agreement to Congress early next year.  ¡°I hope the Obama administration will complete the health care reform this fall and pursue the Korea FTA¡¯s ratification as the top priority task next spring,¡± Han told a forum in Dallas, according to a transcript released here. ¡°Otherwise, the FTA¡¯s ratification might be delayed to after the midterm elections in November 2010.¡±
 
S. Korea, New Zealand agree to seek early FTA deal [English: CSY]
http://english.yonhapnews.co.kr/business/2009/10/27/0502000000AEN20091027007300315.HTML
Summary: The foreign ministers of South Korea and New Zealand reaffirmed Tuesday that their countries' envisioned free trade agreement will upgrade bilateral relations not only in the economic sector, but also in education, culture, and human resource exchanges, Seoul's foreign ministry said.  In his talks with New Zealand Foreign Minister Murray McCully here, Foreign Minister Yu Myung-hwan expressed hope that many South Korean companies will be able to take part in the island nation's establishment of broadband Internet networks, it said in a press release.
 
2. MARKETING
 
Department Stores Report Unexpected Decline of Wine Gift Set Sales during Korean Thanks Giving Day Season (Korean, OSY)
http://news.donga.com/fbin/output?f=b0_&n=200910070030
Summary: Sales of wine, one of the most popular products as gift sets during the Korean Thanks Giving Day season for the last several years, in department stores showed a sharp decline this year along with related products such as imported cheese.  While health functional foods, ginseng products in particular, showed over 30 percent of sales growth in the leading department store chains, wine marked a 7 percent decline over last season.
 
Gov¡¯t to Support Neighborhood Mom-and-Pop Grocers (Korean, OSY)
http://kr.news.yahoo.com/service/news/shellview.htm?linkid=4&articleid=2009100802574289710&newssetid=1352
Summary: Bureau of Small Business announced a plan on October 7 that will help small scale grocery stores in the neighborhood compete against large scale retailers.  Under the plan that is based on 600 billion won of government funds, a consolidated brand and purchase organization will be developed on behalf of 10,000 small grocers across the nation. 
 
Food tracking system expanded (English, DN)
http://www.koreaherald.co.kr/archives/result_contents.asp
Summary: The retail industry is expanding their selection of products whose history can be traced as consumer demand for such information grows. Shinsegae Co.'s E-Mart said it has recently applied the product traceability system to marinated meat, an expansion from only applying it to raw meat. Lotte Mart said it planned to add imported beef, such as Australian beef, to its product traceability program..
 
Voluntary Labeling to Indicate Caffeine Contents in Confectionery Goods [Korean: CSA]
http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=102&oid=001&aid=0002913811
Summary) KFDA announced that it would implement the voluntary labeling program to indicate caffeine contents in confectionery goods such as frozen dessert, semi-chocolate, processed chocolate, drinks, and others.  KFDA said that this voluntary labeling is to meet the demand for consumer¡¯s right to know and to discourage children¡¯s caffeine intake.
 
E-Mart Unveils New Plan to Strengthen Private Label Business (Korean, OSY)
http://news.mk.co.kr/newsRead.php?sc=30000001&cm= Çìµå¶óÀÎ&year=2009&no=534430&selFlag=&relatedcode=&wonNo=&sID=
Summary: E-mart, the leading hypermarket chain in Korea, launched on October 15 its new private label (PL) business.  The new plan has incorporated a three tier strategy.  While ¡®Save¡¯ tier and ¡®E-Mart¡¯ tier offers value-oriented products, ¡®Best¡¯ tier offers quality-oriented products that are even superior in quality than premium national brand products.
 
Gov¡¯t to Promote Production and Sales of Local Liquor (Korean, OSY)
http://kr.news.yahoo.com/service/news/shellview.htm?linkid=11&articleid=2009093002573226810&newssetid=464
Summary: Fair Trade Committee unveiled in a report to the President Lee deregulation plans that will promote production and sales of locally made liquor products.  Plans include reduction of entry barriers for liquor manufacturing license in that the minimum production volume requirement will be reduced to promote establishment of small-scale liquor companies.  In addition, sales of ¡°traditional¡± local liquor products through Internet will be allowed.  New regulations are scheduled to take effect next year.
 
Food producers use more Korean-grown produce (English, DN; CSY)
http://joongangdaily.joins.com/article/view.asp?aid=2911303
Summary: Korean food producers are trying a new tack to appeal to local consumers - patriotism. To set their products apart, companies are marketing processed foods made from 100 percent ¡°made-in-Korea¡± ingredients. Rising government support for local farmers provides an added incentive to use local wheat and rice.
 
3. ECONOMIC
 
Korea ' s Economic Recovery Pace 6th in G20 (English, DN)
http://www.koreatimes.co.kr/www/news/biz/2009/10/123_52865.html
Summary: Korea was ranked sixth in the pace of economic recovery among G20 economies in the second quarter.
 
S Korea ' s trade surplus surges in Sept. (English, DN)
http://news.xinhuanet.com/english/2009-10/01/content_12157247.htm
Summary: SEOUL, Oct. 1 (Xinhua) -- South Korea's trade surplus topped 5.37 billion U.S. dollars in September, sharply rising from 1.7 billion U.S. dollars a month ago mainly due to imports falling faster than exports, a government report showed Thursday.
 
Korea`s economy to grow 4 percent next year: World Bank [Korean: BYK]
http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=001&oid=044&aid=0000086117&
Summary: Korea`s economy is expected to grow 4 percent next year thanks to the government immediate actions against the global financial crisis, a senior World Bank official said in Seoul yesterday.  "The World Bank is comfortable with the 4 percent outlook made by Seoul," James Adams, vice president of the World Bank, said at a press conference.  Adams is currently in Seoul to participate the Berne Union meeting hosted by the Korea Export Insurance Corp.
 
Consumer Survey Index Marks a Seven and a Half Year High (Korean, OSY)
http://kr.news.yahoo.com/service/news/shellview.htm?articleid=2009102803000038810&linkid=4&newssetid=1352
Summary: Consumer Survey Index (CSI) by the Bank of Korea marked 117, a seven and a half year high, in October.  Survey revealed that consumers were expecting increased spending on health care (113) and transportation/communication (113).  However, consumers showed a conservative stance on travel (86) and dining out (92).
 
4. GRAIN AND OILSEED
 
Angry rice farmers raze paddies to protest (English, DN)
http://www.koreaherald.co.kr/archives/result_contents.asp
Summary: Farmers frustrated by falling rice prices are razing their paddies in a spreading nationwide protest, demanding measures beyond the current yearly government purchases.
 
Korea to purchase more rice to stabilize price (English, DN)
http://www.koreaherald.co.kr/archives/result_contents.asp
Summary: The government will buy 230,000 metric tons of more rice this year than last to stabilize the domestic market price and lift farmers' sentiments dampened by declining rice demand, the Agriculture Ministry said yesterday. The 230,000 tons would be an addition to the 2.47 million tons earmarked early this year, putting the total at 2.7 million tons. The government is expected to set aside 370,000 tons for the nation's emergency rice stockpile, while the rice processing centers of Nonghyup, the nation's farming cooperative and private rice processing centers will buy the other 2.33 million tons.
 
MFAFF enlists NIS and police to suppress farmers¡¯ protests [English: CSY]
http://english.hani.co.kr/arti/english_edition/e_national/384414.html
Document from MFAFF shows plans to use harsh techniques to suppress protesting farmers, which observers say will be equated with past authoritarian period.
Summary: It was confirmed on Tuesday that the Ministry for Food, Agriculture, Forestry and Fisheries (MFAFF) has put together a plan to take countermeasures against farmers who have taken part in demonstrations to address the plummeting price of rice. These countermeasures include a request to National Intelligence Service (NIS) and police officers to use harsh treatment against farmers who participate in demonstrations.
 
5. LIVESTOCK
 
Thirty percent of Jeju black cow registered as authentic Jeju cattle.  [Korean: BYK]
http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=001&oid=001&aid=0002900640&
Summary: According to Jeju Livestock Promotion Institute, 29.7 percent of the black cows being raised in Jeju were found to be of authentic pure-bred Jeju black cow by the Korea Animal Improvement Association.  The Jeju province plans to promote the breeding of the black cattle within its region. 
 
RDA close to fully interpreting the genome of Hanwoo cattle.  [Korean: BYK]
http://www.asiatoday.co.kr/news/view.asp?seq=291199
Summary: According to the Rural Development Administration, Korea has almost completed interpreting the DNA information for Hanwoo cattle.  This will help improve the quality of Hanwoo beef. 
 
J.F. O¡¯Neill recalls beef that had not been removed of its tonsils [Korean: BYK]
http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=001&oid=003&aid=0002911936&
Summary: A U.S. beef packer is recalling 33,000 pound of beef that had been sold without removing the tonsils.  J.F. O¡¯ Neill is recalling these products after FSIS discovered that this plant had not been removing the tonsils, which are considered as an SRM.  It remains to be seen if this packer had exported any of these beef to foreign markets or not. (Embassy comment:  This packer has been approved to export beef to Korea under the QSA program.)
 
U.S. beef packer¡¯s profit more important than the public health [Korean: BYK]
http://www.mdtoday.co.kr/mdtoday/index.html?no=102312
Summary: Assemblyman Kang Ki Gap asserted that a total of 94 violations were found since the U.S. beef imports resumed.  This is an average of 3.9 violations per establishment (based on 24 establishments).  However, Kang criticized the government for not revealing the detailed information about the violation on a plant by plant basis.
 
Chicken Meat Price on a Roller Coaster ¡¦ Fluctuated Drastically in Recent Months (Korean, OSY)
http://changup.mk.co.kr/news/new_newsView.php?cate=0000100001&no=5138
Summary: Price of chicken meat has shown a drastic fluctuation in the last three months.  The price plunged by 20 percent during September-October period due to a large bumper stock released into the market as a result of weak chicken meat consumption in the summer.  The price earlier showed over 20 percent hike in June-July period due to weak Korean won against international currencies which resulted in a decline in imports.
 
Korean beef hits its priciest ever [English: CSY]
Demand for hanwoo fails to fall after Chuseok holiday season ends

http://joongangdaily.joins.com/article/view.asp?aid=2911420
Summary: The price of hanwoo, or Korean beef, is soaring when it should be falling, according to several retail sources yesterday. Usually beef gets cheaper after Chuseok, when families eat beef to celebrate, but this year prices are still on its rise.  The price usually falls after the holiday since there is less demand, but even several days after Chuseok ended, on Oct. 9, one kilogram of the best quality hanwoo was selling for 22,677 won, the highest price ever.
 
Imported beef is sold without information on its grade [Korean: BYK]
http://www.consumernews.co.kr/news/view.html?gid=main&bid=news&pid=172077
Summary: Imported beef is being sold without any information about its grade.  Australian beef does not have any information about its grade while U.S. beef uses its own grain system, such as prime, choice, etc.  As Korean beef is required to label its grade by 1++, 1+, 1, 2, 3, it is confusing the consumers.  The Korean Consumer Protection Board has requested the ROKG to revise the current regulations to address such problems.
 
Pork records the highest number of Country-of-origin violations [Korean: BYK]
http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=001&oid=003&aid=0002919483&
Summary: According to a report put out during the national Assembly audit by a GNP National Assemblyman, the total number of cases caught for violating the country-of-origin regulations was 19,507 cases in the past 5 years.  Among these, pork accounted for 5,217 cases with beef following at 3,012 cases.  The violation by rice cakes was 655 cases, red pepper was 602 cases and rice accounted for 128 cases.
 
Kang Ki Gap put out press release about unfair protocol [Korean: BYK]
http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=001&oid=098&aid=0002079569&
Summary: National Assemblyman, Kang Ki Gap put out a press release stating that the protocols established with the United States is extremely unfair.  In the press release, he compared the requirements for exporting oysters to the United States with that for importing beef from the United States.  He pointed out the following: 1) The United States is allowed to immediately suspend import of oysters from Korea if a serious food safety hazard is found whereas Korea can only hold consultations with the United States if a similar problem is found with U.S. beef.  2) The beef import protocol allows for onsite audit of representative samples of the plants whereas the oyster protocol allows the United States to inspect all of the establishments.  3) United States can immediately suspend imports from a plant when a serious violation is found whereas there ahs to be 2 serious violations before Korea can suspend imports from a plant.  4) Korean can only conduct a periodical onsite audit of U.S. meat plants whereas United States is allowed to conduct audits whenever it wants.  5) The United States promised to allow for onsite audit of cod head plants in return for loosening up the total bacteria count standards in cod heads in 2004.  However, it has not kept this promise and there has not been a single audit of cod head plants since the market was opened in 2001.
 
RDA develops technology to verify Hanwoo DNA [Korean: BYK]
http://www.asiatoday.co.kr/news/view.asp?seq=295490
Summary: RDA has developed a portable Hanwoo DNA testing technology that will enable people to verify whether a piece of beef is Hanwoo or not at the store itself, without having to bring back a sample to the laboratory.
 
The Livestock Grading Service, in conjunction with the 3 major mobile phone service providers will begin to promote the beef traceability system from October 23rd.  [Korean: BYK]
http://www.asiatoday.co.kr/news/view.asp?seq=296135
Summary: The promotional activity will be to alert consumers that they can verify the traceability of the beef that they are purchasing by punching in the traceability number after calling a certain number on the mobile phone. They will also give prizes for people that use this system to increase the usage of this system.
 
EU beef cannot come in. [Korean: BYK]
http://www.cbs.co.kr/nocut/Show.asp?IDX=1295263
Summary: Hye Min Lee, Chief FTA Negotiator, MOFAT explained that even after the FTA between Korea and EU goes into effect, there will not be any beef imports from EU.  He explained that despite what the FTA states, beef imports can only happen when there has been a SPS agreement.  However, EU has not asked for such agreement and Korea does not have any intention to establish such agreements.
 
Seoul High Court determines that MIFAFF should publicize the details for U.S. beef that got rejected [Korean: BYK]
http://www.asiatoday.co.kr/news/view.asp?seq=297134
Summary: The Seoul High Court determined that the Korean government must release the details for shipments of U.S. beef that got rejected during quarantine inspection.  The Coalition of Lawyers for a Democratic Society (An NGO that strongly opposed the resumption of U.S. beef imports) had filed a law suit against the Korean Government for not publicizing the total number of U.S. beef imports that had got rejected, its volume, cause for the rejection and information about the subject establishment.  It had already won the case in the primary court.  The article does not elaborate whether the ROKG will appeal to the Supreme Court or not.
 
Broiler price in big discount store is surged due to the reduced supply [Korean: CSY]
http://economy.hankooki.com/lpage/industry/200910/e2009102820034847670.htm
Summary: Korea Chicken Council (KCC) reported that the recent retail broiler price  surged by 30 percent in a month due to reduced supply since the Chuseok holidays. Local broiler farmers reduced its broiler inventory after they experienced decreased demand during the high-demand season in summer.
 
Taiwan also faces possible demonstration against U.S. beef.  [Korean: BYK]
http://news.khan.co.kr/kh_news/khan_art_view.html?artid=200910300340035&code=970204
Summary: Some of the Taiwanese people, including the mayor of Taipei who is from the opposition party, is criticizing the Taiwanese government for agreeing to open up the market for U.S. beef.  The Mayor is stating that they should boycott U.S. beef but the Taiwanese government that needs to import U.S. weapons is strongly opposing any renegotiations with the beef import protocol.
 
6. BIOTECHNOLOGY
 
Joint Local University Research Team Succeeded bio-ethanol production from Corn stalk [Korean: CSY]
http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=001&oid=001&aid=0002941464&
Summary:  Professor Kim, Soon Kwon in Kyoungguk University, a famous corn expert in Korea and professor Yoon, Kyoung Pyo in Gyemyung University succeeded in producing bio-ethanol from cornstalks not from corn itself.   
 
7. NORTH KOREA
 
14 Lawmakers Call for Use of Rice Surplus as NK Aid (English, DN)
http://www.koreatimes.co.kr/www/news/nation/2009/09/205_52753.html
Summary: A group of 14 opposition lawmakers urged the government Wednesday to resume sending rice aid to North Korea to help stabilize prices here. Rep. Lew Seon-ho of the Democratic Party (DP) and 13 other opposition legislators also called on the government to purchase 580,000 tons of rice to help farmers on the verge of bankruptcy. The proposal also plans to give low interest loans to the Federation of Korea Agricultural Cooperatives, or Nonghyup, and private rice processing complexes (RPCs) if they purchase an additional 15 percent or more rice than they did last year. President Lee called on North Korea to follow steps needed for denuclearization in return for economic assistance, linking incentives to the North's nuclear programs. Critics say the South's rice shipments to the North have not helped ordinary North Koreans because Pyongyang fed military personnel, not civilians, with the food assistance.
 
Seoul Rules Out Massive Aid to NK [English: CSY]
http://www.koreatimes.co.kr/www/news/nation/2009/10/113_53725.html
Summary: The government is likely to commence talks this week over whether or not to send humanitarian aid to North Korea, a senior official of the Ministry of Unification said Sunday.  The administration would not offer a large amount of assistance, which goes against its North Korean policy, the official said on condition of anonymity.
 
North Korea was behind the candlelight protest [Korean: BYK]
http://www.independent.co.kr/news/article.html?no=35287
Summary: One fo the more conservative NGO published a leaflet that asserts that North Korea was behind the 2008 candlelight protest, as some of the claims made during the protest were identical with the propaganda released by North Korea.
 
Korea to provide corn to North Korea [Korean: BYK]
http://media.daum.net/politics/view.html?cateid=1020&newsid=20091026103813792&p=yonhap
Summary: The Korean government announced that it will be providing 10,000 MT of corn to North Korea as aid through Korea Red Cross.  It will also provide dried milk and pharmaceutical products as part of its aid to North Korea.
 
N.Korea to Produce 5-10% Less Food This Year [English: CSY]
http://english.chosun.com/site/data/html_dir/2009/10/27/2009102700598.html
Summary: The government estimates that North Korea will produce about 5 to 10 percent less food this year than last year. The estimate came as Seoul offered 10,000 tons of corn to North Korea on Monday.
 
"This year, North Korea has suffered fertilizer shortage and damage from cold weather. North Korea's estimated production of food last year was 4.31 million tons, but that could fall by about 5 to 10 percent to less than 4 million tons this year," a government official said.  The North produced some 4.01 million tons in 2007, when it suffered such serious flood damage that it had to postpone the second inter-Korean summit
 
Gov`t to Send Food Aid to N. Korea [English: CSY]
http://english.donga.com/srv/service.php3?bicode=050000&biid=2009102702968
Summary: The government yesterday said it has proposed humanitarian food aid to North Korea.   Unification Ministry spokesman Chun Hae-sung in Seoul said, ¡°We notified North Korea that the (South) Korean Red Cross will send to its North Korea counterpart 10,000 tons of (imported) corn, 20 tons of powdered milk, and medical supplies for vulnerable members of society such as infants, children and pregnant women.¡±
 
8. OTHER ISSUES
 
Korean quarantine service ranks 5th in int'l food analysis review (English: DN)
http://www.koreaherald.co.kr/NEWKHSITE/data/html_dir/2009/10/04/200910040014.asp
Summary: Korea 's state-run veterinary and quarantine service ranked fifth in an international food analysis proficiency review, the government said Sunday. The ranking was awarded by Britain's Food and Environment Research Agency.
  
New standard set for green products, firms (English, DN)
http://www.koreaherald.co.kr/archives/result_contents.asp
Summary: The government will certify businesses whose green products account for more than 30 percent of their total output as "green companies." Green business areas includes renewable energy, emission-free technology, state-of-the-art water management systems, green IT, green vehicles and green homes. New materials, clean production technology and eco-friendly agricultural products are also included in the list, officials said.
  
Bigger fines for origin rules violators (English, DN)
http://www.koreaherald.co.kr/archives/result_contents.asp
Summary: From next month, those found mislabeling the country of origin on imports and exports will be subject to fines of up to 300 million won ($253,000), up from the current 30 million won.
 
GAP Certification to be Expanded to All Agricultural Products (Korean, OSY)
http://www.yonhapnews.co.kr/economy/2009/10/10/0301000000AKR20091010029700002.HTML?template=2088
Summary: GAP (Good Agricultural Product) certification, a quality assurance program run by the Ministry of Agriculture, Forest and Fishery, will be available to all agricultural products from as early as later this month, according to the ministry.  GAP certifies that the product has met quality and safety standards set by the government such as contamination by agricultural chemicals, heavy metals and harmful micro organism through out the whole supply chain.  Modification in the regulation intends that small scale farmers and distributors can have an access to the certification.
 
Cancer patient dies from H1N1  (English, DN)
http://www.koreaherald.co.kr/archives/result_contents.asp
Summary: According to a weekly influenza surveillance report issued yesterday, the spread of the flu virus here showed a moderate increase during the period from Sept. 27 to Oct. 3. The number of influenza-like-illness patients was 7.27 per 1,000 inpatients during the period, up 1.3 percent from the previous week.
 
Korea 9th-largest CO2 emitter (English, DN)
http://www.koreaherald.co.kr/archives/result_contents.asp
Summary: The country's CO2 emissions have increased 113 percent to 488.7 million tons in 2007 from 1990. The percentage growth of greenhouse gases measured between 1990 and 2007 is the highest among the OECD member countries, the Ministry of Knowledge Economy added
     
Korea jumps into carbon capture race [English: CSY]
Government will spend $86 million to support technology for cleaner power plants, factories.

http://joongangdaily.joins.com/article/view.asp?aid=2911255
Summary: The government plans to invest 100 billion won ($86 million) in pursuit of technology to help capture and store carbon dioxide produced from factories and power plants over the next five years, according to the Ministry of Knowledge Economy yesterday.  The Korea Electric Power Corp. and its affiliate power plants will also invest 1.4 trillion won by 2020 to build new plants that emit over 90 percent less carbon dioxide.
 
S. Korea to export paprika to Australia [English: CSY]
http://english.yonhapnews.co.kr/business/2009/10/18/0502000000AEN20091018001500320.HTML
Summary: South Korea is expected to export paprikas to Australia starting next month, a move that can help local farmers find a new market for the produce, the government said Sunday.  The Ministry for Food, Agriculture, Forestry and Fisheries said that bilateral talks on quarantine inspections have been concluded that will permit shipments.
 
More organic labels faked [English: CSY]
http://joongangdaily.joins.com/article/view.asp?aid=2911535
Summary: With the increasing interest in healthy food, the number of agricultural products found to be labeled with exaggerated or distorted information about their quality is on the rise, a lawmaker charged yesterday.   Choung Hae-gul of the Grand National Party said during a parliamentary audit of the Agriculture Ministry that the number of such cases had jumped from 568 in 2006 to 2,438 last year. Among violations last year, 82 were serious, leading to criminal charges, Choung said. Makers or distributors of the remaining 2,356 products received warnings.
 
S. Korea to build up plant, livestock breeding industry into export engine [English: CSY]
http://english.yonhapnews.co.kr/business/2009/10/26/85/0501000000AEN20091026004500320F.HTML
Summary: South Korea plans to invest more than 1 trillion won (US$848 million) into plant engineering and livestock breeding to transform them into viable export industries by 2020, the government said Monday.  The Ministry for Food, Agriculture, Forestry and Fisheries said it aims to push up outbound shipments to US$200 million in the target year from just $29 million in 2008, and transform the country into a net exporter of plant seeds and breeding animals.
 
The country suffered a trade deficit of $62 million last year in those areas, with imports reaching $91 million.  "By 2020 South Korea may able to meet its domestic demand for seeds used to grow vegetables, fruits, animal feeds and for breeding livestock and become a net exporter in this field," Kim Jong-hoon, head of the ministry's green growth policy bureau said.
 
Makgeolli rice wine exports up this year [English: CSY]
http://joongangdaily.joins.com/article/view.asp?aid=2911685&cat_code=05
Summary: Exports of traditional Korean rice wine surged by more than 20 percent in the first nine months of this year mainly due to strong demand from Japan, a government report said yesterday.  Exports of makgeolli, or rice wine, reached $3.56 million totaling 4,380 tons up until September, the Korea Customs Service said.
 
This marks a 24.1 percent on-year gain from 3,530 tons worth of the alcoholic beverage exported in the three quarters of 2008, it said. In terms of value, this year¡¯s exports gained 23.2 percent from the $2.89 million tallied for the year before.
 
Winemakers regard Korea as test market for premium wines [English: CSY]
http://joongangdaily.joins.com/article/view.asp?aid=2911681&cat_code=05
Summary: Increasing rates of wine consumption have made Korea an important test market for wine makers around the world, according to various sources. When Isabel Guilisasti, marketing manager of Concha Y Toro, a leading producer of Chilean wine, visited Seoul on Tuesday, she said that the Korean market is one of its top targets.
 
Nonghyup split moved up [English: CSY]
Ministry hopes to divide group by 2011, execs prefer later

http://joongangdaily.joins.com/article/view.asp?aid=2911806&cat_code=05
Summary: The National Agricultural Cooperative Federation, better known as Nonghyup, will be divided into three separate but still connected entities by 2011, the government said yesterday.  The planned division, aimed at raising the efficiency of the huge state-controlled company, will come earlier than the company planned, leaving not much time to get everyone at the federation behind the change. Nonghyup is the largest local financial group by assets, counting its central governing body and regional bodies.
 
The Ministry for Food, Agriculture, Forestry and Fisheries, which controls Nonghyup under the law, said in a briefing that Nonghyup¡¯s finance and agro-livestock products distribution divisions, its two major businesses, will be spun off in 2011.
 
Warming cuts local fruit production [English: CSY]
http://joongangdaily.joins.com/article/view.asp?aid=2911873
Summary: There could come a day when apples and grapes, two of Korea¡¯s most popular fruits, will all need to be imported, according to government data released yesterday.  Due to gradual warming, the amount of local land used for growing some temperate-climate fruit has dwindled significantly over the past decade, the Rural Development Administration reported. On the other hand, the amount of land used to grow subtropical fruit such as peaches has grown, RDA data showed.
 
The RDA, part of the Agriculture Ministry, announced research results of the change in the size of the fruit and grain-growing land between 1997 and 2007. The research showed that the apple-growing land decreased by 12.3 percent during the decade, from 37,452 hectares (92,544.3 acres) to 32,853 hectares. Ironically, in cooler areas, such as Daegu and northern areas such as Andong in North Gyeongsang and Chungju in North Chungcheong, apple growing actually increased.
 
Korea Seeks 4% Cut in Carbon Emissions by 2020 [English: CSY]
http://www.koreatimes.co.kr/www/news/nation/2009/10/113_54446.html
The administration is seeking to reduce the country¡¯s greenhouse gas emissions by 4 percent by 2020 from 2005 by promoting the use of bio and nuclear energy, and energy-efficient technologies, officials said Wednesday.  The plan is expected to draw a fierce backlash from industries, which have already called the goal too ambitious, and from most small-sized firms, which say it is unrealistic.
 
Business associations complain that firms should make additional investments to update their production lines as recommended by the government to reduce carbon emissions.
In August, the Presidential Committee on Green Growth suggested three goals to cut greenhouse gas emissions by 21 percent, 27 percent and 30 percent by 2020 under the ¡°business as usual (BAU)¡± projections. The figures represent an 8-percent rise, a freeze and a 4-percent cut, respectively, when compared with emissions in 2005. The country¡¯s carbon emissions were recorded at 594 million tons in 2005, the 16th highest in the world. 
 
 
The information in this report was compiled by the Agricultural Trade Office(ATO) at the U.S. Embassy in Seoul, South Korea.  U.S. food exporters can learn more about market opportunities in South Korea by reviewing ATO Seoul¡¯s Exporter Guide, Retail Food Sector Brief, and other reports available at www.fas.usda.gov by clicking on ¡°attaché reports¡±.
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Agricultural Trade Office, U.S. Embassy - Seoul
Tel: 82-2-6951-6848 Fax: 82-2-720-7921
Email: atoseoul@state.gov