Today's Date:   Wednesday, November 28, 2012

1. BILATERAL/MULTILATERAL ISSUES

KORUS FTA Facilitates South Korea’s Exports to U.S. [English: BYK]

http://news.mk.co.kr/newsRead.php?year=2012&no=785240

Summary: South Korea’s exports to the US have steadily increased while shipments to the nation’s major export market, China and the European Union (EU), remained sluggish. The increase in exports to the US is estimated to have been bolstered by the Korea-US Free Trade Agreement (FTA).

Since the FTA came into effect, Korea’s exports to the US jumped to $30.63 billion, up 2.9 percent on-year between April and September this year, said the FTA Information & Business Support Center (IBSC) who analyzed statistics of imports and customs released by the US International Trade Commission (ITC). During the six months, shipments of cars and car parts bound for the US went up 20.1 percent, those of machinery 10.6 percent, and those of petroleum products 25 percent. The domestic sectors that enjoy export benefits under the FTA recorded an overwhelmingly higher growth rate of their exports to the US than other sectors.

Farmers ask for suspension of FTA [Korean: BYK]

http://www.seoul.co.kr/news/newsView.php?id=20121128014013

2. MARKETING ISSUES

“Korean Beer is Not Even as Tasty as Daedonggang (North Korean) Beer”, Economist UK Points Out that Gov’t Regulations Prohibit Diversified Beer Market in Korea [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2012112734611

Summary: Economist UK reported in its recent issue that strict government regulations have prohibited development of diversified beer market in Korea.  Economist observed that the market was dominated by two large-scale brewers (Hite and OB) who were only offering low quality, low price products.  Examples taken by Economist included minimum production volume capacity, 150,000 liters, required for the local brewers to be able to market the product through the wholesale supply chain.  Economist also pointed out that Korean government maintained very high import tariffs on key ingredients for better quality beer.  For example, rye is subject to a 500 percent import tariff.

aT’s Cyber Ag Trade Market Exceeds 1 Trillion Won of Transaction This Year [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/11/28/0318000000AKR20121128076500002.HTML

Summary: Agro-Fishery Marketing Corporation (under the Ministry of Agriculture, Fishery and Food) reported that its cyber trade market (www.eat.co.kr) that bridges local farms, distributors and retailers marked 1 trillion won of transactions as of November 26.  Total volume of transactions last year was 0.6 trillion won.

Diageo Korea Recalls Distribution License for J&B Whiskey from Suseok Trading as the Distribution Partner is in Financial Trouble [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/11/27/0318000000AKR20121127093500003.HTML

Summary: Diageo Korea announced on November 27 that it had canceled partnership with Suseok Trading for J&B whiskey in Korea.  Diageo Korea added that it will directly distribute the whiskey to the market until new distribution partner is developed.  Suseok Trading, a subsidiary of Dong-A Pharmaceutical Co., is reportedly in a financial trouble.

3. aT PUBLIC NOTICE OF STATE TRADING

► Tender result for 3,000 MT of MMA table rice (long grain)