Today's Date:   Wednesday January 16, 2013

1. BILATERAL/MULTILATERAL ISSUES

ROKG determines that renegotiation of KORUS FTA is not possible [Korean: BYK]

http://news.ichannela.com/society/3/03/20130114/52307479/1

Summary: During MOFAT’s briefing to the Presidential transition team, it stated that renegotiation of the KORUS FTA is not possible.  It explained that the ISD clause is also needed to protect the Korean companies. 

2. LIVESTOCK ISSUES

Warning against massive spread of avian influenza during the period March – April [Korean: BYK]

http://www.mt.co.kr/view/mtview.php?type=1&no=2013011510195216689&outlink=1

Summary: The possibility of a massive spread of avian influenza during the period March ~ April is heightening as the Government has detected 3.9 times higher level of low pathogen avian influenza in feces collected from wild birds.  Although, the government has so far not detected any high pathogen avian influenza, it is not ruling out the possibility.

3. MARKETING ISSUES

On-line ‘Open Market’ Shopping Malls Report Strong Sales … Mobile Shopping Reports Fast Growth [Korean, OSY]

http://news.donga.com/3/all/20130115/52347161/1

Summary: 11^th Street (www.11st.co.kr), a leading on-line shopping mall in Korea, reported that its annual sales in 2012 exceeded 4 trillion won.  It took only one year for 11^th Street to achieve 4 trillion won sales whereas it took 15 years for department store 7 year for hypermarket store on average to achieve 4 billion won of annual sales.  On-line ‘open market’ shopping mall industry generated an estimate of 39.8 trillion won of sales in 2012, up 17 percent from the previous year.  In particular, shopping through mobile gears (largely cell phones) showed the highest sales growth for on-line ‘open market’ shopping malls.  In case of 11^th Street, shopping through mobile gears increased over 4 times in 2012 to 280 billion won.

Samyang Co. Launches Beverage Business [Korean, OSY]

http://news.donga.com/3/all/20130115/52347586/1

Samyang Co., a leading food company in Korea largely based on flour mill and cooking oil business, announced on January 15 that it had entered beverage business.  The first product launched was “BDLab Skinny”, a functional drink targeting people on diet.

Expansion of Convenience Stores Likely to Continue This Year Despite New Regulation that Prohibits New Stores within 250 Meter from Existing Stores [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013011548211

Summary: Leading four convenience store chains have reportedly planned to open a total of 2,900 new stores this year.  The number of stores under the top four chains totaled 24,170 at the end of last year.  Smaller scale chains are also likely to add a significant number of new stores this year.  Industry analysts agree that ‘convenience store fair trade guideline’ introduced by Fair Trade Committee to restrict opening of new stores within 250 meter radius from existing stores under same franchise will have a limited impact.

4. OTHER MISCELLANEOUS ISSUES

Presidential Transition Team Announces Reorganization of the Government [Korean: BYK]

http://news.donga.com/3/all/20130116/52349823/1

Summary: The Presidential transition team announced the plan for reorganizing the current government.  The Ministry for Food, Agriculture, Forestry and Fisheries (MIFAFF) was hit the hardest by this reorganization.  It not only lost the fisheries sector which will now move to the revived Ministry of Marine Affairs and Fisheries, but it also lost the ‘food’ sector.  The new name for MIFAFF will now be Ministry of Forestry & Livestock.  The Korea Food and Drug Administration (KFDA) has been up-scaled to Ministry of Food and Drug Safety.  The Ministry of Foreign Affairs and Trade (MOFAT) lost the trade negotiation section which will be moved to the Ministry of Industry, Trade and Resources (former Ministry of Knowledge and Economy).  As this ministry is scheduled to move to Sejong city, the trade negotiation segment of the current MOFAT will also be moved to Sejong city.

Will oyster exports be resumed? [Korean: BYK]

http://www.ytn.co.kr/_ln/0115_201301152329551960

Summary: Since oyster exports to the United States was suspended last May, due to the detection of norovirus, an onsite inspection team from U.S. FDA is visiting the oyster production area.  The team will be checking the system for preventing norovirus up to January 18, both at the sea and on land.  The head of the FDA onsite audit team, Mr. Paul Distefano stated, “The purpose of this audit is to verify the measures that the Korean government had provided.  The purpose of this visit is verification.”  The result of this audit will determine whether the oyster exports can be resumed or not.  The final decision is expected to come out by the end of this month if early and at the latest by next month.    

5. MIFAFF PRESS RELEASES

►  MIFAFF puts out warning that there is a high possibility that HPAI may break out this spring in Korea