Today's Date:   Tuesday, December 11, 2012

1. BILATERAL/MULTILATERAL ISSUES

<12/7/2012> S. Korea to prioritize FTA with China [English, CSY]

http://english.yonhapnews.co.kr/business/2012/12/07/72/0502000000AEN20121207004400320F.HTML

Summary: South Korea will prioritize the conclusion of a free trade agreement (FTA) with China over a possible trilateral free trade deal that further encompasses Japan, Seoul's top envoy to Beijing has said.  "We would like to accelerate bilateral free trade talks with China, and then enter into negotiation of a trilateral free trade agreement among South Korea, China and Japan," Lee Kyu-hyung, the South Korean ambassador to China, said in a recent meeting with Chinese media outlets, according to local news reports on Friday.  Lee expected South Korea and China will be able to speed up in their FTA talks when South Korea's presidential election is over. The election is slated for Dec. 19

2. ECONOMIC ISSUES

Korea faces Japan-style crisis of low growth, interest rates [English, CSY]

http://english.donga.com/srv/service.php3?bicode=020000&biid=2012121008998

Summary: The outlook for Korea’s economic growth has gotten bleak in the face of low growth and low interest rates, with the country facing a precarious situation similar to that of Japan two decades ago.   Despite low interest rates, risk aversion by companies has further slowed down the economy. Certain high-ranking officials in economic ministries said the Korean economy even faces what Japan did in the initial stage of its long-term slowdown over the past 20 years.

Korean Won – U.S. Dollar Exchange Rate Fell Below 1,080 Level in 15 Months [Korean, OSY]

http://www.fnnews.com/view?ra=Sent0401m_View&corp=fnnews&arcid=201212100100083490004510&cDateYear=2012&cDateMonth=12&cDateDay=10

Summary: The exchange rate of Korean won per U.S. dollar marked 1,079 ($1 = 1,079 won) on December 10, down 2.7 won from the day before.  The last time that Korean won was exchanged below 1,080 level was September 9, 2011.  Market analysts in general agree that Korean won would gain additional strength against U.S. dollar in the coming months.

Korea Achieves $1 Trillion Dollar of International Trade Again This Year [Korean, OSY]

http://www.seoul.co.kr/news/newsView.php?id=20121211024033

Summary: Korea International Trade Association (KITA) announced that Korea’s international trade volume for year 2012 marked $1 trillion dollar on December 10.  KITA added that Korea would step up to the 8^th largest trading country in the world this year, one step higher than last year.  Korea joined $1 trillion dollar club last year for the first time.  This year, $1 trillion dollar trade was achieved 5 days later than last year.

3. MARKETING ISSUES

Maotai, Famous Chinese Liquor Tested Positive for Environmental Hormone [Korean, OSY]

http://news.donga.com/3/all/20121211/51484939/1

Summary: A Chinese blogger claimed on December 9 that a recent test in a Hong Kong lab found 2.2 times larger amount of DEHP, an environmental hormone, than the safety limit in Maotai liquor, a famous distilled liquor in China.  Stock price of the liquor distiller in Shanghai Stock Exchange fell sharply after the announcement.  The distiller stated that the product had been produced in a safe way and it would have the liquor retested by official test lab to ensure the safety.

Ministry of Ag. Completes Relocation into New Headquarter in Sejong City [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2012121074661

4. OTHER MISCELLANEOUS ISSUES

<12/8/2012> Veggie prices soar after early snow [English, CSY]

http://koreajoongangdaily.joinsmsn.com/news/article/Article.aspx?aid=2963618

Summary: Due to the early and heavy snow, prices of winter vegetables are soaring, especially napa cabbage and radish, which is bad news for households who postponed their kimchi making for the winter.  According to Seoul Agro-fisheries and Food Corporation yesterday, the wholesale price of fresh vegetables traded at Garak Market, a large wholesale food market in Songpa District, southern Seoul, jumped for two consecutive days.

Bakery chains vow to limit new stores to help rivals [English, CSY]

http://koreajoongangdaily.joinsmsn.com/news/article/Article.aspx?aid=2963748

Summary: CJ’s bakery brand Tous Les Jours said yesterday it will refrain from expanding its franchise stores in a bid to protect small, independent bakery shops.  CJ Foodville, the country’s largest food company and an affiliate of CJ Group, said yesterday that it has voluntarily made the decision to halt expansion in response to public calls to protect mom-and-pop operations from the encroachment of large chains.

<12/7/2012>Korea Scrambles To Protect Crops Amid Cold Wave [English, CSY]

Full text: Working against the clock to save the country's precious farmlands, the disaster response team at Korea's agricultural ministry is doing everything in their power help the millions of farmers across the nation.   Here in the situation room, climate reports with up-to-the minute data are sent to emergency relief teams in the field to quickly coordinate efforts.

[Interview: Choi Ei-kyu, Disaster Insurance Team Leader, Ministry for Food, Agriculture, Forestry and Fisheries] "In order to reduce secondary damage from frostbite due to recovery delays, we plan to cooperate with local officials and rapidly push for recovery efforts. "   The recent snow storm that hit the central regions is predicted to be just the beginning of a harsh winter.  Most farmers have quickly covered and bundled up their fields, in order to reduce damage to crops such as napa cabbage a vegetable essential to the country's supply of kimchi.

[Interview: Jung Dong-hwan, Extension Planning Division, Rural Development Administration] "We need to be thorough with insulation management in order to improve growth of crops. Also when snow melts it can cause damage to your house. In order to prevent this damage, drainage management should be thoroughly applied."  The icy blanket has also prompted many of Korea's ranchers and fish farmers to prepare to sell off livestock before they suffer any additional losses due to the frosty weather.

[Editorial] Return to farming

http://nwww.koreaherald.com/view.php?ud=20121210000610