Today's Date:  Tuesday, June 12, 2012

1. BILATERAL/MULTILATERAL ISSUES

US Trade deficit with Korea, a month after FTA [Korean, SLK]

http://imnews.imbc.com/replay/nwtoday/article/3075145_5782.html

The survey show that U.S. trade deficit with Korea has tripled in April. The Chamber of Commerce announced April’s trade import from Korea was 5.5 billion. This rate is 14.6 percent higher from March, reaching the highest growth rate by far. The deficit was most noticeable in auto parts and cars by 0.2 billion dollars. The Korea and US FTA has been in effect since March 15^th.   

2. LIVESTOCK ISSUES

The government considers to withdraw ‘50% open inspection’ on beef imported from the U.S. [KSH: English]

http://news.hankooki.com/lpage/economy/201206/h2012061202331221500.htm

Summary: After the mad cow disease incident in California (US) on April 24^th, the government has raised the open inspection rate on beef to 50%. However, MIFAFF has decided that they have not discovered any SRM within the country until now. MIFAFF also asserts that even though the government raises the inspection rate, it is hard to find a beef product containing SRM. At the same time, the distribution industry argues that beef products are losing freshness and storing cost on those products is high. To converge the claims above, the government is considering to withdraw the open inspection policy or to lower the inspection rate.

3. MARKETING ISSUES

A Bottle of Wine Sold at 13 Million Won in an Auction in Seoul … Romanee Conti 2007  [Korean, OSY]

http://news.donga.com/Society/3/03/20120612/46935028/1

Summary: A bottle of DRC Romanee Conti 2007 was sold at 13 million won in an open auction held in Hyundai Department Store Apgujung branch on June 10.  It was the first time that DRC Romanee Conti was offered in an open auction in Korea.  According to the importer, total number of Romanee Conti imported into Korea is 29 to 31 bottles a year, most of which are sold on a reservation basis.

Namyang Dairy to Build a Large-scale Instant Coffee Mix Manufacturing Plant … Part of Its Long-term Plan for a 50 Percent Market Share [Korean, OSY]

http://economy.donga.com/ENews/3/0108/20120612/46931760/4

Summary: Namyang Dairy Co. has announced that it will invest 180 billion won to build a large-scale coffee mix manufacturing plant in Najoo, Junranamdo province.  The plant will have a capacity to produce 5 billion units of instant coffee mixes per year.  According to AC Neilson, Namyang Dairy currently has 12.5 percent market share in the instant coffee mix market in Korea.  Namyang Dairy commented that the investment is part of its long-term plan to achieve a 50 percent market share.

4. MIFAFF PRESS RELEASES

► MIFAFF promotes volunteerism to take pictures for elders in rural area.

► MIFAFF to train professional labor force for the food service industry.

► MIFAFF chooses the fruit of this month as watermelon.

► Minister Suh visits drought-harmed site in Choong-nam city.

► Minister Suh opens International Pig Veterinary Society Congress 2012 Korea.

► MIFAFF simplifies civil complaint procedures on fishing boats

► 73.7% of the surveyed plans to go back to farming in upcoming years

► MIFAFF holds inspection conference on preparation for the natural disaster

► QIA implements urgent countermeasure to prevent spread of Cenchrus longispinus

► A large drop in FAO food price index by 4.4%

Notice of purchasing auction for 500 tons of Fresh Ginger in foreign currency.