Today's Date:  Thursday, July 05, 2012

1. ECONOMIC ISSUES

Korea Showed Third Highest Increase of Consumer Food Prices among OECD Countries in May [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/07/04/0301000000AKR20120704187200002.HTML

Summary: According to an OECD report, the consumer food prices in Korea rose 6.4 percent in May compared to the same period last year, which was the third highest among all OECD countries.  Chile (6.7%) and Iceland (6.6%) were the only OECD countries that showed higher increase in consumer food prices.

2. MARKETING ISSUES

Korea-EU FTA Boosts Sales of European Wine [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/07/02/0302000000AKR20120702200200003.HTML

Summary: Total imports of European wine into Korea amounted to $76 million in the first half this year, up 21 percent from the same period last year.  Traders pointed out that elimination of the import tariff under the Free Trade Agreement between EU and Korea was a key reason for the outstanding import growth of European wine.  On the contrary, imports of Chilean wine amounted to $26 million, almost no growth from last year.

Paris Baguette Opens a New Store in New Jersey … 20th Store in the U.S. [Korea, OSY]

http://www.yonhapnews.co.kr/economy/2012/07/02/0318000000AKR20120702100900003.HTML

Summary: Paris Baguette, a leading bakery shop chain in Korea, reported that its new store in New Jersey, which is its 20^th store in the U.S. market, opened on June 29.  Paris Baguette said total number of stores in the U.S. market will grow to 28 by the end of this year.

3. OTHER MISCELLANEOUS ISSUES

Hot Weather in the U.S. may Cause Global Food Crisis [Korean, OSY]

http://www.jejunews.com/news/articleView.html?idxno=1371469

Summary: It is reported that grain harvest in major farming areas the U.S., including Indiana and Illinois, has shown a significant decline this year due to hot weather.  As a result, prices of grain in Chicago Commodity Market have surged.  For example, price of soybean in the market on June 2 marked $15.42 per bushel, a record high since July 2008.  Corn price has increased 30 percent since mid-June this year compared to the same season last year.  US Commercial Service reported that the hot weather this Summer may decrease the corn harvest as much as 22 percent.

Fried Chicken Restaurant Franchises Banned from Opening New Outlet within 800 Meters from Existing Outlets [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/07/04/0301000000AKR20120704146800002.HTML?template=2087

Summary: Fair Trade Committee announced new regulation that intends to protect member restaurants under franchise restaurant chain.  Fried chicken restaurant franchises will be banned from opening new outlets within 800 meters of existing member outlets.  Pizza restaurant franchises will be banned from opening new outlets within 1500 meters from existing member outlets.  FTC added that additional rules for café and convenience store franchise business will be introduced later this year.