Today's Date:     Tuesday, February 21, 2012

1. BILATERAL/MULTILATERAL ISSUES

President Lee condemns the opposition party for conveying KORUS FTA termination letter to the U.S. Embassy [Korean, LSH]

http://news.khan.co.kr/kh_news/khan_art_view.html?artid=201202142157025&code=910302

Summary: President Lee showed hostility on the opposition party for trying to send the KORUS FTA dissent letter to the U.S. Embassy. “The act of delivering the termination letter to the Embassy is against national etiquette”, President Lee states. President also claimed “asserting termination before the agreement has implemented is a significant matter. Standing straight on center of political position is required to deal with such an important issue.”

KORUS FTA battle coming in April general election [English: CJW]
http://english.hani.co.kr/arti/english_edition/e_national/519336.html
Summary: Democratic Party lawmaker Chung Dong-young and former Trade Minister Kim Jong-hoon had a number of face-offs during the final National Assembly debates just prior to the railroading of the South Korea-United States Free Trade Agreement ratification in October. Now the two men, who battled each other from the two extremes on the KORUS FTA issue, may be facing off once again for Seoul‘s Gangnam-B seat in April’s general election.

KORUS FTA battle coming in April general election [English, CSY]

Rival politicians who clashed on free trade set to go head to head in Gangnam

http://english.hani.co.kr/arti/english_edition/e_national/519336.html

summary: Democratic Party lawmaker Chung Dong-young and former Trade Minister Kim Jong-hoon had a number of face-offs during the final National Assembly debates just prior to the railroading of the South Korea-United States Free Trade Agreement ratification in October. Now the two men, who battled each other from the two extremes on the KORUS FTA issue, may be facing off once again for Seoul‘s Gangnam-B seat in April’s general election.  Chung has already announced his intent to run, while the Saenuri Party is currently mulling a nomination for Kim.

DUP backpedals on FTA scrapping [English, CSY]

After public response, emphasis shifts to renegotiations with U.S.

http://koreajoongangdaily.joinsmsn.com/news/article/article.aspx?aid=2948623&cloc=joongangdaily|home|top

Agriculture Minister Eliminates Several Vegetable Items from China FTA Discussions [Korean: CJW]
http://biz.heraldm.com/common/Detail.jsp?newsMLId=20120218000112
Summary: Agriculture minister Seo Kyu-yong said on Saturday that sensitive food items including garlic, peppers and onions would be exempt from the negotiating list for a free trade agreement between South Korea and China. Seo made clear this decision during a visit to a cabbage farm in Yesan, south Chungcheong province on Saturday. The minister explained South Korean farms would be hit hard if everything was opened to China, and sensitive products would be chosen before discussions for the FTA start. Seo also urged Nonghyup to be more active in contracts with farmers to stabilize cabbage prices, demanding a probe be started on the issue.

Better perception of Chinese agricultural products in the future perhaps? [Korean: YJY] 
http://www.nongmin.com/article/ar_detail.htm?ar_id=199097
Summary:  Among domestic consumers, 96.4% said they do not feel comfortable about Chinese farm products.  On the other hand, 72.7% of restaurant owners and 65.3% of Koreans in China agreed.  Surprisingly, 1.3% of restaurant owners and 6.7% of Koreans in China said they trust Chinese farm products more than Korean farm products.  Moreover, despite the spread of origin identification in restaurants, more restaurant owners expressed their willingness to use Chinese food supplies.  With the elimination of tariff under Korea-china FTA, Chinese agricultural products will make their inroads into the Korean market mainly through these restaurant channels.

2. BIOTECHNOLOGY ISSUES

To hold smuggled pesticides and unregistered fertilizers in check [Korean: YJY]
http://www.nongmin.com/nongki/ar_detail.htm?ar_id=199134
Summary:  Last year, 144 cases were found of selling smuggled pesticides that aren’t registered domestically or running a business without registering for retail business.  Additionally, 73 cases were detected of making or importing unregistered fertilizers and not properly labeling components.  Such cases have been on the rise from 167 in 2009 to 217 in 2011. Smuggled pesticides come in via parcels and are delivered to each farm by individuals’ cars. Also, small fertilizer businesses are flourishing, making hard to track them down.

3. ECONOMIC ISSUES

When total budget increases 5%, budget for agricultural and food products increases only 1% [Korean: YJY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=199005

Summary:  Out of the total national budget, the portion taken by budget for agricultural, food, and fishery products is decreasing every year.  In 2006, 6.7% of the budget was directed to agriculture, but in 2009 it fell to 5.6%.  This trend of downturn is expected to continue, eventually decreasing to 4.9% in 2015. The government claims that it had to consider the decrease in farmers and fishers.  Also, the portion agriculture, forestry, and fishery industry takes in GDP is decreasing.

[Reality of the labor force in the agriculture sector not as sunny as planned in 2005 [Korea: YJY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=199007

Summary:  The Korean government announced in 2005 that labor force in the agricultural sector will be increased each year by 4,500 people, reaching 45,000 in 10 years.  In 2005, the record was 4,294 farmers, highest number during 2005 to 2009.  However, the number decreased to 2,448 in 2007 and 2,620 in 2009.  Also, the agricultural population is aging and more females are working in the field than males, as 34% of the farmers are those older than 65 and 52% females.  

4. LIVESTOCK ISSUES

Botulinum toxin killed the cows since September 2011 [Korean: YJY]
http://www.nongmin.com/cow/ar_detail.htm?ar_id=199112
Summary:  After all, the reason that killed the cows in Gyeonggi region since last September is found to be toxic botulinum.  Animal, Plant and Fisheries Quarantine and Inspection Agency (QIA) checked on 17 farms, 70 cows regarding BSE, epidemic, fungal toxin, and metabolic disorder.  As a result, 18 cases were caused due to parasitic disease carried by mosquitoes and 5 due to botulinum toxin.  However, bearing in mind that there aren’t mosquitoes during this season and anthelmintics have been used, the direct cause of the cows’ death is botolunim toxin.  Botolinum was found in feed and the water basin.  QIA added that since rivers were flooded in Gyeonggi province due to heavy rain last year, botulinum in the soil was exposed and polluted water and hays.  Vaccines for botolunim toxin have been emergently distributed.

Improving distribution structure of livestock products [Korean: CJW]
http://app.yonhapnews.co.kr/YNA/Basic/article/new_search/YIBW_showSearchArticle_New.aspx?searchpart=article&searchtext=%ec%b6%95%ec%82%b0&contents_id=AKR20120217114700002
Summary: Recently, livestock-raising families have experienced many difficulties as a result of a drop in prices of livestock products and a rise in the price of feed, and there is a large gap between producer prices and consumer prices that is clearly shown by the livestock product distribution system. Under the Plan for Improvement of Livestock Product Distribution, the government will expedite affiliations by producers of livestock products within the NACF’s livestock product division; reduce the number of small slaughterhouses from the current 85 to 36 by 2015 through modernization and adjustment of the structure of the slaughterhouse system; encourage distribution of cuts of meat rather than meat carcasses; and improve the livestock product distribution structure by establishing farmers’ markets, utilizing new distribution channels and expanding the number of the NACF’s meat restaurants.

5. MARKETING ISSUES

Imported fruits are enjoying strong popularity amid a rise in domestic fruit prices [Korean: CJW]
http://app.yonhapnews.co.kr/YNA/Basic/article/new_search/YIBW_showSearchArticle_New.aspx?searchpart=article&searchtext=%ec%98%a4%eb%a0%8c%ec%a7%80&contents_id=AKR20120220045400003
Summary: A spike in the cost of fruits in South Korea has driven the highest increases in sales of imported fruits. Lotte Mart said Monday that imported fruit accounted for 31 percent of all fruit sales last year. The South Korean chain store added that 2011 marked the first time the portion of imported fruit sales surpassed 30 percent. Bananas accounted for 34 percent of total imported fruits sales and oranges and grapes both made up 17 percent.

6. OTHER MISCELLANEOUS ISSUES

Each Korean Adult Drank 84 Bottles of Soju in 2011 [Korean, OSY]

http://news.donga.com/Economy/New/3/01/20120215/44072914/1

Summary: According to a annual liquor consumption report released by the Korea Alcohol Industry Association, total sales of Soju (traditional local hard liquor that contain about 20 percent of alcohol) amounted to 3.27 billion bottles (360ml bottle basis) in 2011, down 0.07 percent from the previous year.  This means that each Korean adult (19 years or older) drank 84 bottles of the liquor on average last year.  ‘Cham-e-seul’ brand by Hite Jinro was the leading supplier with 47.1 percent market share, followed by ‘Cheo-eum-cheo-rum’ brand by Lotte Liquor (15.6% market share).

9 Pizza Restaurant Chains and 3 Dairy Processors under Investigation for Fake Labeling Their Products as “100% Natural Cheese Products” while Using Imitation or Processed Cheese  [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/02/16/0302000000AKR20120216043700017.HTML?template=2087

Summary: Korea Food & Drug Administration (KFDA) reported on Feb. 16 that its investigation had revealed fake labeling by pizza restaurant chains and dairy processors.  According to KFDA, 9 pizza restaurant chains and 3 dairy processors had labeled their products that contained either imitation cheese (made from soybean oil) or processed cheese as “100% natural cheese product”.  Companies violated the rule include Pizza School (688 outlets), 59 Pizza (546 outlets), Pizza Maru (506 outlets), and Jeil Dairy (dairy processor).

Traceability system for pigs will be implemented from the latter half of 2013 [Korean: YJY]

http://www.nongmin.com/cow/ar_detail.htm?ar_id=199031

Summary:  With this traceability system, real-time information on farming, butchery, processing, and sales will be available.  At present, only the traceability system for cows exists.  Once traceability system for pigs is practiced, butchering pigs without identification number will be banned.  Also, farms that do not indicate their identification number will be excluded from all sorts of supports.  Japan, Canada, Demark and the Netherlands are some of the countries that have traceability system for pigs.

Wild birds AI virus cases increasing [Korean: YJY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=198914&subMenu=dsearch&key=ai

Summary:  Recently, the rate of AI virus detection for wild birds increased, now 10 times higher than last December.  National Institute for Environmental Research (NIER) stated that AI virus spread due to lack of food and stress with heavy snow and severe cold wave.  NIER added that HPAI has not been found in wild birds.

Tightened monitoring of heavy metal content and radiological contamination in agricultural products [Korean: CJW]
http://app.yonhapnews.co.kr/YNA/Basic/article/new_search/YIBW_showSearchArticle_New.aspx?searchpart=article&searchtext=%ec%8b%9d%ed%92%88%ec%95%88%ec%a0%84&contents_id=AKR20120220189000002
Summary: National Agricultural Products Quality Management Service to reinforce monitoring of heavy metal content and radiological contamination in agricultural products.  The division aims at expansion of investigation to detect pathogenic bacteria contaminating foods and agricultural products from 14% to 20%. It will also investigate larger quantities of agricultural
products cultivated near metal mines and industrial complex.

KFDA to intensify safety education for traders in the food import sector [Korean: YJY]
http://www.nongmin.com/article/ar_detail.htm?ar_id=199130
Summary:  KFDA announced their policies to strengthen safety of food imports, which will be implemented soon.  First component is the ‘food safety education instructions,’ designed to encourage importers to bring in products of good quality.  Under this policy, traders that bring in inappropriate products will be inspected and such products will be collected. Such unlawful traders will be trained for more than 3 hours mandatorily. In addition, ‘import food reporting agent’ is a measure to develop agents that report on import food on behalf of importers into import food safety consultants.

Consumers using organic stores increased two-fold [Korean: YJY]
http://www.nongmin.com/article/ar_detail.htm?ar_id=199129
Summary:  One out of 10 households is assumed to be regularly using organic stores, in line with the increase in the number of organic stores.  This increase in consumers using organic stores is due to higher interest in food safety.  This awareness was increased with accidents like the release of radioactive materials during the Japanese earthquake and the emergence of super-bacteria in Europe.  Also, stores specializing in organic products have diversified distribution channels and adopted annual production management system, thus stabilizing supply and price.

7. MIFAFF PRESS RELEASES

► Korea Electric Power and KT will cover installed charge for electrical facilities or other
communication facilities

► MIFAFF announced its plan to push forward a business agricultural machine for chili and garlic, separate from 350 agricultural machines to be built by 2015

►According to poll conducted by MIFAFF, 63.5% answered that they think the actual state of land usage in rural areas is critical

► National Agricultural Products
Quality Management Service invigorate food and agricultural product industry

► MIFAFF to host livestock policy coordination meeting

► MIFAFF will bring measures to improve livestock distribution structure

► Amid dry-weather
forecast, MIFAFF Minister Seo Gyu-yong plans to inspect spring cabbage cultivation trend and prevention activity that is being pushed forward on the risk of forest fire

► Dead cows at farms in Pocheon and Yeoncheon has been linked to outbreaks of botulism poisoning

► Double election held to elect National Federation of Fisheries Cooperatives union representative

► Cultivation area of spring cabbages expanded from 7,700ha to 8,493ha (‘12. 2. 15)

► MIFAFF to establish International Plant Quarantine Accreditation Board (IPQAB) which
will carry out ship inspection for Asian Gypsy Moth (AGM) and preclearance program

► MIFAFF Minister Seo Gyu-yong to produce a publicity booklet to expand Korean ginseng exports

► MIFAFF to assess the safety of solar salts on salt ponds across the nation

► MIFAFF to host International agri-food cluster forum at the Seoul Palace Hotel's Grand Ballroom