Today's Date:   Tuesday, March  05, 2013

1. MARKETING ISSUES

Farniente, A Premium Napa Wine was Served in Inauguration Party of President Park [Korean, OSY]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=100&oid=001&aid=0006124076

 

Investigation Found Illegal labor Use by E Mart … Ministry of Labor Ordered E Mart to Direct Hire 1,978 Illegal Part-time Employees [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013022845831

Summary: Ministry of Labor’s inspection has reportedly found that E Mart, the leading hypermarket store chain in Korea, has been illegally using 1,978 part-timers for jobs that only full-timers were allowed to do.  The Ministry ordered to transfer all the illegal part-timers to full-time employees.  Industry sources have commented that the transfer would increase the labor cost significantly.

Food Processors and Retailers to Lower Prices Under Gov’t Pressure [Korean, OSY]

http://news.donga.com/3/all/20130304/53459189/1

Summary: CJ Cheiljedang announced that it would lower the price of its table sugar by 4 to 6 percent from March 5.  Other sugar processors are reportedly planning for a price reduction soon.  Major hypermarket retailers have started deep price discount events since March 1.  CU, the leading convenience store chain, has launched a price discount promotion on instant noodles since March 1.  Marketers agree that these price reduction campaigns are to do with the pressure from the new president, Park Keun Hye.  Under the order of the new government, Fair Trade Committee has started an investigation on local retailers and processors for unfair price fixing practices.

Nongshim to Expand Its Production Plant in Los Angeles … “Seek to Become the Second Largest Supplier of Instant Noodle in the U.S. in 3 Years” [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013030421081

Summary: Nongshim, the leading instant noodle company in Korea announced on March 4 that it will expand the production capacity of its plant in Los Angeles, CA from annual 450 million packages to 550 million packages within this month.  The expansion project has started in September last year.  Nongshim added that the expansion will allow Nongshim to achieve a total of $200 million annual sales in the U.S. market, which will make Nongshim the second largest instant noodle company in the U.S.  Currently, Japanese companies are the top three suppliers of instant noodle in the U.S.

Hite-Jinro to Reduce Alcohol Content of Its Flagship Beer to Target More Consumers [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013030420721

Summary: Hite-Jinro announced on March 4 that alcohol content of its flagship beer, ‘Dry-Finish d’ will be lowered from 5 percent to 4.8 percent.  Hite-Jinro explained that lower alcohol content will allow the beer to target wider consumer groups.