Editorial, Hankook Daily Economic News, Nov. 2

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

Summary: It seems that additional talk between Korea and the U.S. on FTA is approaching to its final stage.  President Obama disclosed an opinion that pending issues on Korea-U.S. FTA should be closed before the G20 summit in Seoul.  Cliton U.S. secretary of state also confirmed the same goal last week.  President Lee replied that he would do his best to generate a result.  It is interpreted that the mid-term election in the U.S. and the scheduled implementation of Korea-E.U. FTA in July next year has caused U.S. to speed up the approach to the FTA issues.  It seems that the U.S. will maintain a strong position on beef issue until the last minute to gain leverage on automobile industry issue at the end.  It is true that the change in mode in Washington provides us with an opportunity to speed up the process and finalize the additional talk on FTA with the U.S.  However it is suggested that Korea should take enough thinking before coming to a final agreement with the U.S.  The U.S.’s demand on automobile industry issue should be discussed in details in particular as they relate to the FTA terms that we agreed with EU.  

Lee, Obama agree to settle FTA before Seoul G-20 [English, CSY]

http://english.yonhapnews.co.kr/national/2010/11/02/29/

Summary: South Korean President Lee Myung-bak and his U.S. counterpart Barack Obama agreed Tuesday to make joint efforts to complete work on their countries' pending free trade agreement (FTA) before a G-20 summit in Seoul next week, Lee's office Cheong Wa Dae said.  In their telephone talks, the leaders agreed that the FTA "should be forged to promote free trade in the world and upgrade the South Korea-U.S. alliance by a notch," Cheong Wa Dae spokeswoman Kim Hee-jung told reporters. They agreed to try to reach a compromise before the Seoul G-20 summit from Nov. 11-12, which Obama will attend, she added.

Korea, U.S. Close to Wrapping Up FTA Talks, Cheong Wa Dae Hints [English, CSY]

http://english.chosun.com/site/data/html_dir/2010/11/02/2010110200434.html

Summary: Korea and the U.S. seem to be close to breaking an impasse in additional talks about a free trade agreement the two sides signed in 2007, Presidential Chief of Staff Yim Tae-hee hinted Monday. "I heard that the U.S. has taken issue with automobile-related items that are not in the text of the original agreement," Yim told reporters at Cheong Wa Dae.  Trade ministers from the two countries met in San Francisco last Wednesday and plan a second round of meetings before the G20 Summit. Yim did not comment on U.S. demands for Korea to open up its market to American beef from cattle over 30 months old, which Seoul has said is a matter of health and safety regulations and has nothing to do with the FTA.  

Automobile and beef issue to be resolved prior to President Obama’s visit [Korean: BYK]

http://news.sbs.co.kr/section_news/news_read.jsp?news_id=N1000815128

Summary: A person from NSC stated that the United States and Korea would try to reach an agreement on the automobile and beef issue prior to President Obama’s arrival in Korea. President Obama arrives in Korea on November 10. 

MB-Obama “Will Make Efforts to Reach an Agreement on Korea-U.S. FTA Before G20 Summit” [Korean, OSY]

Dong-A Daily News, Nov. 3

http://news.donga.com/Politics/3/00/20101103/32310518/1

Summary: Korean president MB Lee and president Obama had a telephone conversation on Nov. 2.  In the talk, the two presidents agreed that both parties will make efforts to reach an agreement on Korea-U.S. FTA before the Seoul G20 summit meeting.  President Obama mentioned in the talk that he will seek to send a (FTA negotiation) delegation to Seoul, and he hopes that both countries will reach an agreement before the summit meeting.  He stressed that Korea-U.S. FTA means more than just an economic tie between the two countries.  President MB Lee replied, “Korea-U.S. FTA not only strengthen the tie between the two countries but also will send to the world a message of departure from protectionism in trade.  While it is expected that the Democratic Party will lose the mid-term elections, people thinks that president Obama’s push on Korea-U.S. FTA agenda has something to do with his initiative to revitalize the U.S. economy, which currently faces high unemployment rate and falling consumer confidence.  The White House has recently announced that Korea-U.S. FTA will bring $10 of new exports and 70,000 new jobs to the U.S. industry.  The clear timeline, ‘final agreement on FTA in November and ratification by congress/senate in January 2011’, outlined by president Obama suggests that he does not intend to allow the Republican Party, who is likely to dominate the national assembly after the mid-term elections, to enjoy the political fruits of the FTA.  Reaching an agreement on FTA in November also means a lot to president MB Lee, because it will help him promote the image of pro-international trade leader to the world.  The key pending issue in Korea-U.S. FTA is auto industry.  Although the U.S. is demanding new agreement on beef issue, it is believed that the beef issue is a strategic tool for the U.S. to gain leverage on the auto industry issue.  A person in the ruling party commented that Korea has little to loose in accepting the U.S.’s position on the auto industry issues, which makes people think that remaining part of the Korea-U.S. FTA talk is a matter of look and process, not the issues of talks.

The Republican Party to Take Over Powerful House … FTA Opposing Democrat Congressman Likely to Resign from Committee Chair

Dong-A Daily News, Nov. 3

http://news.donga.com/Inter/3/02/20101102/32309164/1

Summary: The Republican Party is expected to win the mid-term elections.  As a result, the Republican Party will get bigger voting power in the House, which plays a key role in the ratification of Korea-U.S. FTA.  In particular, Sander Levin (Democrat, Michigan), a strong opponent of the FTA, is likely to resign from the chair of the House Ways and Means Committee.

Democratic Party finalizes position on KORUS FTA renegotiations

The party remains divided over the best way to respond to additional concessions by the Lee administration [English, CSY]

http://english.hani.co.kr/arti/english_edition/e_business/446928.html

Summary: Debate has intensified a decision remains imminent for the Democratic Party’s official position on the South Korea-United States Free Trade Agreement (KORUS FTA). During its sixth meeting on Tuesday, the Democratic Party’s special FTA Committee worked to harmonize opinions on the content of its final report. This report reportedly includes a presentation of party opinions on the FTA, organized into arguments for rejecting negotiations for additional concessions and arguments for full renegotiation. Lawmakers have compared strengths and weaknesses of both strategies.

An official with the special committee said, “Because of benefits such as the ability to maintain consistency with the past party platform and the possibility of highlighting the administration and ruling party’s responsibility for additional concessions and linking that to a battle against the future ratification bill, the weight inevitably shifted in favor of the argument against renegotiation.”   On the arguments for full renegotiations, which has been espoused by Supreme Council members Chung Dong-young and Chun Jung-bae, among others, one benefit that was reportedly brought up was the possibility of emphasizing clarity as an opposition party and establishing a foothold for opposition solidarity. However, a number of committee members reportedly expressed concern that a change in party platform could lead to the burden of a loss of trust and generate criticisms of a “political offensive with an eye toward an FTA failure.”

Australia Hopes to Conclude FTA Talks with Korea by End of 2011 [English, CSY]

http://www.arirang.co.kr/News/News_View.asp?nseq=108659&code

Full text: The Australian government plans to conclude Free Trade Agreement negotiations with Korea by the end of next year.  The Financial Times reported in its online content on Wednesday that Australian Foreign Minister Kevin Rudd expects to see the next round of trade talks, slated for this month as a chance to overcome the final hurdles such as opposition from farmers.  While visiting Seoul ahead of the upcoming G20 summit next week Rudd said that as well as discussing the major issues such as natural resources and beef the fund management sector will be under consideration for inclusion in the trade deal.  He emphasized that as Australia's fund management industry is the fourth largest in the world it would play an important role in managing Korea's pension system when the FTA is launched.

Korea-U.S. FTA Final Working Group Negotiation Starts Today

Dong-A Daily Newspaper, Nov. 4

http://news.donga.com/Economy/3/01/20101104/32339205/1

Summary: High level officials of Korea and U.S. government start working group negotiation on FTA on November 4.  The Korean Ministry of Foreign Affairs & Trade announced on Nov. 3 that Suk-Young Choi, Korean representative of FTA Negotiation and Wendy Cutler USTR representative were scheduled to meet on Nov. 4 and 5 in Seoul.  The Ministry added that the talks could be extended for more days depending on the progress made in the negotiation.  It is expected that the U.S. will propose to Korea on key issues such as beef and autho industry.  A person in the Korean Ministry mentioned that since the U.S. is already aware of the Korean government’s positions on the issues, the U.S. is likely to focus on auto industry issues in Seoul meeting.  Since both parties have agreed to extend the meeting for two more days in case more time is needed, it is expected that a final agreement on the issues will be reached before the Korea-U.S. Summit meeting scheduled on Nov. 11.

Results of U.S. Mid-Term Elections Bring Korea-U.S. One Step Closer to FTA [Korean, OSY]

Hankook Economic Daily Newspaper, Nov. 4

http://kr.news.yahoo.com/service/news/shellview.htm?articleid

Summary: The Republican Party won the mid-term elections by a big margin over the Democratic Party.  The Democratic Party, which had bigger seats in both the House and the Senate before the elections, has opposed to the ratification of Korea-U.S. FTA with a claim that the FTA would reduce jobs in the U.S.  However, the Republican Party, which supports Korea-U.S. FTA, has become the leading party in the House.  In particular, both Nancy Pelosi, the Speaker of the House, and Sander Levin, the Chair of the House Ways and Means Committee, who have strongly opposed to the FTA, will resign from the positions as a result.  Once the FTA is ratified by the House, the Senate will do a fast track on the FTA bill, which requires 50 percent approval vote for ratification.  The only person who is likely to attack the FTA in the Senate is Max Vokers from Montana who has demanded additional beef market opening to Korea.

Working Level Talks on KORUS FTA Begins – Auto and beef are key issues [Korean: BYK]

http://www.asiatoday.co.kr/news/view.asp?seq=413494

Summary: The high level working level talks to discuss the key issues on KORUS FTA has begun on November 4^th and will continue onto November 5^th.  The high level talks are being held in Seoul between Suk Young Choi, Head of the FTA Negotiations and Assistant USTR Wendy Cutler.  After the high level working level talks, the Trade Minister and USTR will meet again next week.

David Camp states Korea needs to further open up its auto and beef market to get the KORUS FTA ratified  [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1

Summary: Congressman Dave Camp stated that Korea needs to open its market further for U.S. autos and beef if it wants to see the KORUS FTA get ratified.  Congressman Camp is from Michigan which is the center of the U.S. auto industry and where the unemployment is 13 percent, the second highest unemployment rate in the United States.  Although Camp is a republican, which is more supportive of FTAs, but Camp’s statement shows that the local sentiment is more important.   

National Assemblyman Cheong Bae CHUN states that he is worried that the Administration will end up giving away on autos and beef [Korean: BYK]

http://www.joseilbo.com/news/htmls/2010/11/20101104106570.html

Summary: In an interview with a local radio station, Chun from the Democratic Party stated that he was concerned that the reason why the administration is being so hush-hush about the bilateral talks to discuss the KORUS FTA was because it was a negotiation to give up on beef and automobiles.  He said that if it was a negotiation to gain something from the United States, the Korean government would not be so quiet about it.  He mentioned that the Democratic Party will come out with strong protests against such negotiations next week.

Korea and U.S. begin negotiations on FTA issues [Korean: BYK]

http://www.munhwa.com/news/view.html?no=2010110401070224033002

Summary: Korea and the United States have begun high level talks to discuss the KORUS FTA issues.  During the talks, rather than focusing on the beef issue which is facing a strong opposition from Korea, the United States will focus on the auto issue.  The talks are scheduled for two days beginning today but could be extended.

Republican victory in U.S. could speed along FTA

http://joongangdaily.joins.com/article/view.asp?aid=2927944

The Republicans’ victory in the U.S. midterm elections yesterday will be good for the long-stymied ratification of the Korea-U.S. free trade agreement, according to analysts at home and abroad.

Korea will have to open its auto and beef market further if it wants the KORUS FTA to be ratified [Korean: BYK]

http://news.khan.co.kr/kh_news/khan_art_view.html?artid=20101105

Summary:  It has become known that the United States has asked for more concession at the high level working level talks than what was predicted.  The United States has asked for further market opening of the auto and beef market.  The reason why the pressure from the United States is higher than predicted is because the Republican party that won the mid term election is saying that Korea needs to concede more in order for the KORUS FTA to be ratified.  

Final Agreement on KORUS FTA to be made during the Trade Ministers’ Talk on Nov., 8 – 9 [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=

Summary: The Ministry of Foreign Affairs and Trade announced on November 5^th that the Trade Ministers from Korea and the United States will hold meetings in Seoul for two days from November 7 to November 8 to discuss the FTA issues.  As this meeting is being held a couple of days prior to the summit meeting on November 11^th, it is expected that this will be the meeting for coming up with a final agreement.  However, as the United States is aggressively demanding revisions and corrections to the agreement whereas Korea is on the defensive mode, a strong controversy is anticipated regardless of what the agreement may be.  Although both countries are trying to narrow the differences prior to the Trade Ministers’ talk next week, due to the severe differences, the talks could be extended into the weekend.  The United States is asking Korea to expand the market for U.S. beef which is currently limited to only under 30 months but Korea is maintaining the position that it is difficult to accommodate such request at the current stage.

Down to the wire on FTA talks ahead of the G-20 [English, CSY]

Differences remain just days before Obama is scheduled to meet with Lee

http://joongangdaily.joins.com/article/view.asp?aid=2928084

Summary: Korea and the United States held working-level talks in Seoul yesterday over outstanding issues in the free trade agreement the two countries signed in 2007, according to the Ministry of Foreign Affairs and Trade.  The deal, which still must be legally ratified by both countries, has been on hold for the last three years, with U.S. lawmakers criticizing provisions in the treaty concerning autos and beef.

U.S. trade negotiators - led by Wendy Cutler, the assistant United States trade representative for Korea, Japan and APEC affairs - met with a team of their Korean counterparts led by Korean Deputy Minister for Trade Choi Seok-young on Friday for what was scheduled to be a two-day meeting. The talks were extended to yesterday in an obvious sign that the two sides had still failed to reach an agreement.  The U.S. is calling on Korea to ease standards on fuel mileage and emissions. Washington is also demanding that Korea scrap or limit the so-called duty drawback, which allows refunds for tariffs levied on imported parts used by auto manufacturers. The Korea-EU FTA, set to go into effect next July, limits the duty drawback to five percent, starting five years after the agreement goes into effect.  The U.S. is also calling on Korea to open its beef market. Korea imports U.S. beef only from cattle less than 30 months old over fears of mad cow disease.

FTA dealing goes down to wire [English, CSY]

Working-level talks on, top envoys to meet on Monday

http://joongangdaily.joins.com/article/view.asp?aid=2928050

Summary: On the eve of last-ditch talks on the Korea-U.S. free trade agreement, Minister of Foreign Affairs and Trade Kim Sung-hwan said there is “room for negotiation” over the sensitive issue of automobiles. In an interview with KBS Radio yesterday morning, Kim addressed a broad range of diplomatic and trade issues, including Seoul and Washington’s latest efforts to settle outstanding issues on the free trade deal.

The two countries signed the FTA in 2007, but neither of the countries’ legislatures has ratified the agreement because of contentious issues, including autos and beef.  At the order of President Lee Myung-bak and U.S. President Barack Obama to resolve remaining obstacles by the time of the G-20 Summit in Seoul next week, the two governments began talks recently to discuss the thorniest issues. While Korea will not completely open its beef market to the United States, there is a room for negotiation on the auto issue, Kim said.

S. Korea, U.S. seek final compromise on remaining issues in FTA [English, CSY]

http://english.yonhapnews.co.kr/business/2010/11/08/7/0502000000AEN

South Korea -- South Korean Trade Minister Kim Jong-hoon (third from L) talks with his U.S. counterpart, Ron Kirk (second from R), in a final round of talks for the ratification of the free trade agreement between the two countries at the Foreign Ministry in Seoul on Nov. 8. The talks covered outstanding issues, including automobile and beef regulations. (Yonhap)

The countries wrapped up their four-day technical talks in Seoul on Sunday, but failed to narrow differences on some issues in their free trade accord, according to the officials.    Seoul and Washington signed the accord back in 2007, but the pact failed to win parliamentary approval from both sides as the U.S. demanded that South Korea further open its auto and beef markets.  The issues mostly concern U.S. auto industry complaints about South Korean tax and regulatory policies that it blames for low American car sales in that market, and remaining restrictions on imports of U.S. beef.

No progress on FTA talks, but ministers still meeting [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2928131

Summary: Korea and the United States made little progress in their last-minute talks yesterday to resolve outstanding issues that have stalled the ratification of their three-year-old free trade agreement (FTA), Seoul’s top trade official said.  Korean Trade Minister Kim Jong-hoon met his U.S. counterpart Ron Kirk earlier in the day to clinch a final compromise deal before their presidents meet on the sidelines of the G-20 Summit in Seoul on Thursday.

The issues mostly concern U.S. auto industry complaints about Korean tax and regulatory policies that it blames for low American car sales here, as well as remaining restrictions on imports of U.S. beef.  The Korean trade minister said the two sides are not discussing beef trade at the moment, as it is a separate issue from the FTA.  Korea imports U.S. beef only from cattle less than 30 months old due to fears of mad cow disease.

‘Refuse to ratify’ may be opposition’s answer to additional KORUS FTA concessions

Since the agreement in 2007, the Lee administration has been criticized for making too many concessions to U.S. demands [English, CSY]

http://english.hani.co.kr/arti/english_edition/e_business/447831.html

Summary: According to documents submitted to Democratic Party Lawmaker Park Joo-sun by the Ministry of Trade, South Korea is the only country to sign an FTA with the United States that does not have a separate visa quota. The Ministry of Trade said that after the United States adopted the visa quota in its FTA with Singapore in 2003, the U.S. Congress has strongly demanded the executive branch not discuss the issue in the future, since immigration law remains under Congressional jurisdiction. Accordingly, visa quotas have not been included in FTAs signed by the United States since then. This means that ultimately, not only is there no quota for professional visas in the KORUS FTA, but the U.S. administration’s promise was meaningless from the beginning. Suspicions have since followed that Kim, a negotiations expert, would have known this when he made his claims at the time.

Additional information has also stated that South Korea made additional concessions in key sectors such as automobiles ahead of the G-20 Summit on Thursday, pushing the opposition to oppose ratification of the agreement. This is due to the judgment that pressuring the government to get the original deal or completely renegotiate would lack political effectiveness. It appears highly probably the Democratic Party, which has fluctuated between calling for a complete renegotiation and demanding no additional negotiations take place, will adopt “refuse to ratify” as its official party position during a plenary session of the National Assembly this week. 

The minor opposition Democratic Labor Party’s lawmakers and Supreme Council members have begun a sit-down strike in front of Seoul’s Jonggak. They will hold a press conference in front of the U.S. Embassy in Gwanghwamun on Tuesday to voice opposition to the renegotiations, and will hold a candlelight vigil demonstration every evening at 6 p.m. in front of Gwanghwamun.

US wants to link beef exports to FTA [English, CSY]

http://www.koreatimes.co.kr/www/news/biz/2010/11/123_75958.html

Summary: Despite general expectations, the United States is seemingly trying to put the beef issue on the table during talks with Korea in Seoul on their yet-to-be-ratified free trade agreement (FTA) inked in 2007.   After having a last-ditch meeting with his U.S. counterpart Ron Kirk to find a happy medium for approval of the bilateral pact, Korea’s Trade Minister Kim Jong-hoon said Monday that the U.S. Trade Representative raised the beef issue.

GNP, “Beef should not be dealt during the KORUS FTA talks”[Korean: BYK]

http://imnews.imbc.com/replay/nw1200/article/2735212_5786.html

Summary: Mr. Moo Song Kim, Floor Leader for the Grand national Party (GNP) stated during the GNP party meeting that he had told the Prime Minister during their gathering the day before yesterday that it was the party’s policy that beef should not be dealt during this round of discussion, even if it meant that the KORUS FTA might not be ratified.

National Assemblymen, Sun Young Park states, “This is the same as the KORUS FTA Talks and beef talks in 2008.” [Korean: BYK]

http://news.chosun.com/site/data/html_dir/2010/11/09/2010110900855.html

Summary: national Assemblyman, Sun Young Park of the Liberal Advanced Party stated that this round of discussion is not a negotiation where each side gives and takes but merely a one-sided talk to discuss what Korea can concede.  She said that it is without impropriety that we should delink the beef issue with the KORUS FTA, as we already had made a mistake in 2008 by linking the two issues together.

Trade Minister states that beef issue has not come up yet. [Korean: BYK]

http://imnews.imbc.com/fullmovie/fullmovie02/2735150_6447.html

Summary: In a briefing on November 8^th after meeting with Ambassador Ron Kirk, the Trade Minister explained that “It is the basic policy of Korea that beef is not related to the KORUS FTA.  Under such circumstances, he explained that beef has not been discussed up to now.”

Beef issue which was stated as having not being discussed becomes a surprise rival  [Korean: BYK]

http://news.joinsmsn.com/article/aid/2010/11/09/4219551.html?cloc

Summary: The Trade Ministers from both countries had over 6 hours of meeting beginning at 11:00 a.m. on November 8^th.  The beef issue was put on the table for the first time.  Although, the Trade Minister had explained earlier that beef was not being discussed, the government convened an emergency Cabinet meeting among relevant Ministries, including the Ministry of Agriculture at 9:00 p.m. on November 8^th.  The Trade Minister explained what had been discussed up to now and also it is thought that the beef issue was thoroughly discussed during this meeting.

No deal on Korea-U.S. trade pact [English, CSY]

Presidents fail to reach agreement but say negotiations will continue on

http://joongangdaily.joins.com/article/view.asp?aid=2928299

Summary: The leaders of Korea and the United States failed yesterday to clinch a free trade deal before a self-imposed deadline, even after a meeting that went on for more than twice as long as scheduled.  But the two leaders vowed to continue with negotiations over the next few weeks.  Lee also hosted Obama and his team for lunch, serving American beef, a diplomatic irony considering that the main sticking points in the negotiations are U.S. demands for fewer restrictions on Korea’s imports of American beef and automobiles.

FTA faces rocky road even if deal is reached [English, CSY]

[NEWS ANALYSIS] Legislatures in U.S. and Korea could pose final obstacle to the trade pact

http://joongangdaily.joins.com/article/view.asp?aid=2928280

Summary: The failure of Korea and the United States to reach a final agreement on their long-stalled free trade agreement represents an embarrassing setback. But more trouble could lie ahead even if the two sides conclude a deal in the next several weeks as promised by U.S. President Barack Obama yesterday. Plans to revive the FTA, signed in 2007, in the time for the G-20 Summit foundered on the key issues of U.S. exports of autos and beef to Korea, with U.S. lawmakers demanding concessions if the trade pact is to be ratified by the U.S. Congress. 

However, Korean officials suggested that concessions had been made on auto standards, but the U.S. was demanding an end to the ban on beef from cattle more than 30 months old. Korea fears older cattle is susceptible to mad cow disease, which was the reason the ban was imposed.  Korea will have difficulty lifting the ban because of public opposition. Huge street demonstrations in 2008 forced the government to limit U.S. beef shipments to younger cows.  But U.S. lawmakers from western cattle-raising states have threatened to block the FTA if the beef issue is not addressed.  Even if a compromise can be reached soon and a revised trade pact is signed, the FTA could still face tough obstacles in the legislatures of both countries.

Irregular KORUS FTA concessions draw criticism [English, CSY]

Some say irregular renegotiations point to the Lee administration’s unilateral push for ratification

http://english.hani.co.kr/arti/english_edition/e_business/448035.html

Summary: Top trade officials from South Korea and the United States met again Wednesday to fine-tune the details on auto provisions and other pending issues of the South Korea-U.S. Free Trade Agreement (KORUS FTA). South Korean Trade Minister Kim Jong-hoon and his U.S. counterpart Ron Kirk reportedly reached an agreement on major issues during the two-day renegotiation that was initially scheduled to end on Tuesday. Both are scheduled to finalize the talks on Wednesday.

Observers of the ongoing renegotiations, however, have voiced concerns that as in 2007, negotiations have become misguided. They have pointed to missteps of South Korea’s renegotiations in June 2007 in accordance with demands by the U.S. Congress following the conclusion of the KORUS FTA on April 2 of that year, and the Lee Myung-bak administration’s decision to permit full-scale import of U.S. beef in April 2008, the latter causing nationwide candlelight vigil demonstrations. In this case, observers say the Lee administration has concluded renegotiations with the United States by unilaterally accepting a plan full of concessions without getting the opinions of those whose interests are at stake.

S. Korea, U.S. in talks to schedule further negotiations on FTA [English, CSY]

http://english.yonhapnews.co.kr/business/2010/11/12/77/0502000000

Summary: South Korea and the U.S. are working to arrange a schedule for further talks aimed at resolving pending issues such as auto and beef trade in their free trade accord that has remained unratified by their parliaments, officials said Friday.

Seoul and Washington had been struggling to clinch an agreement on pending issues since last week before their presidents met on the sidelines of the Group of 20 summit, but little progress was made in the week-long talks due to differences on beef trade although they have reportedly struck a deal on auto trade-related issues.

South Korean President Lee Myung-bak and U.S. President Barack Obama had earlier set a deadline for resolving the remaining issues by the G-20 summit.

South Korea reportedly agreed to ease automobile safety and other standards on American-made cars. The U.S., however, is consistently asking South Korea to further open its beef market, one of the key issues that has blocked the parliamentary approvals of the accord in both countries that was signed in 2007. South Korea reiterated that the beef trade is not related to their bilateral trade deal.

South Korea imports beef only from cattle less than 30 months old due to fear of mad cow disease. The U.S. reported three cases of the disease between 2003 and 2006. In response, Seoul banned imports of U.S. beef in 2003 before resuming them in late 2008, which led to months of street rallies.

FTA Talks Jolted by US Demand on Beef Imports [English, CSY]

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

Summary: Korea and the U.S. were expected to announce Thursday a compromise on contentious issues in their free trade agreement, but an unexpected twist appeared in the negotiations.  In a meeting of trade ministers Wednesday, both sides nearly saw the negotiations collapse over a renewed U.S. demand for expanding U.S. beef imports in Korea. This latest round of talks seems to show that a successful conclusion of the negotiations is not guaranteed.

Washington suddenly demanded the expansion of U.S. beef imports in Korea, something which worried Seoul on the final day of the negotiations. In response, Korea expressed a stern stance suggesting that it cannot continue negotiations if the U.S. remains “hard-headed.”

Gov’t Considers New Strategy as the U.S. Demands Changes to Korea-U.S. FTA Agreement [Korean, OSY]

http://news.donga.com/Economy/3/01/20101117/32649470/1

Summary: JongHoon Kim, Korean representative for the FTA negotiation with the U.S., reported that the U.S. demanded changes to Korea-U.S. FTA Agreement during the Seoul meeting last week, including extension of tariff phase out period and insertion of safe guard on Korean car exports to the U.S.  As a result, the Seoul meeting failed to reach an agreement.  Korean government is reportedly considering new strategy in light of the new demand from the U.S.  It is likely that Korea may accept part of the new positions of the U.S., in particular on the automobile issues, while asking for additional U.S. market openings on pharmaceutical and agricultural issues in return.

“Additional FTA Negotiations with the U.S. Will Cover Very Limited Areas Only”, S.Y. Choi Korean FTA Negotiation Representative [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2010/11/18/0301000000AKR

Summary: S.Y. Choi, the Korean representative for FTA negotiations under the Ministry of Foreign Affairs & Trade mentioned in a press interview on November 18 that additional negotiations with the U.S. on FTA will cover very limited areas only.  He said that, although Korea has not wanted to make any change to the existing agreements with the U.S. on FTA, new demands from the U.S. now require the Korean government to have additional negotiations with the U.S., which should allow Korea and the U.S. barter some deals.  He added that additional negotiations will be limited to a small number of critical issues.

Korea, U.S. to Resume Additional Negotiations on FTA … Beef is Not an Agenda [Korean, OSY]

http://imnews.imbc.com/replay/nwtoday/article/2748116_5782.html

Summary: Ministry of Foreign Affairs announced that Korea and the U.S. will have talks on FTA from Nov. 30 through Dec. 1 in Columbia, Maryland.  It is expected that the talks will mainly focus on auto industry issues, which is hinted by the fact that the Korean delegation lacks participants from the Ministry of Ag.

None

3. Economic Issues

4. Grain & Oilseed Issues

Wholesale price of domestic rice has rebounded to 34,000 Korean Won per 20kg, up 5.9 percent from the monthly average price of last month, due to a lower rice crop production than normal caused by unfavorable weather and reduced acreage.    (Korean: CSC)

http://www.hankyung.com/news/app/newsview.php?aid=2010110213611

Bakeries woo wheat farmers[English : OYS]

http://joongangdaily.joins.com/article/view.asp?aid=2924443

With the price of wheat hitting record highs in recent weeks, local farmers are seeing demand soar as the gap between the prices of domestic and foreign grain equalizes.

Farmers Stage Demonstrations for Declining Rice Price [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2010/11/23/0302000000AKR

Where’s the beef? [English, CSY]

Infant Formula was the Most Expensive in Korea, A Consumer Group Price Survey [Korean, OSY]

http://economy.donga.com/Top_Feed/3/0113/20101102/32283217/3&top=1

Summary: A price survey by a non-profit consumer organization in Korea indicated that Korean is one of the most expensive country to buy many key consumer products, including food.  According to the survey result disclosed on Nov. 1, Korea was the most expensive country among 24 countries surveyed for Similac infant formula.  Korean also surveyed as one of the most expensive countries for wine (2^nd, Montes Alpha red wine), beef (4^th, Australian loin), and olive oil (5^th, Italian olive oil).

Korean beef prices one of the highest in the world. [Korean: BYK]

http://news.kukinews.com/article/view.asp?page=1&gCode=kmi&arcid

Summary: According to a survey by an NGO called the Alliance for the Protection of Korean Consumers, Korean beef prices (Hanwoo) was the second highest in the world, ext to Japan.  Imported Australian beef prices was also the 4^th highest among the 25 countries that were surveyed.  Countries where the Australian beef prices were higher than Korea were PRC, Japan and Taiwan.

(Opinion) [Letters] Made in the USA versus raised in the USA [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2928098

Summary: Two years ago, the Korea JoongAng Daily ran a photo of at least 100,000 South Korean citizens protesting on the streets over the opening of U.S. beef imports. International commentary ranged from confusion to derision over how Koreans’ mistrust of American beef could be so intense as to merit nearly toppling their own government.  The perception of American products was not always like this. One of my earliest purchases as a child was a stapler made in the USA. I used it for about 20 years. Since then, having bought a range of other American products, the label “Made in the USA” has remained the symbol of quality for me and many other Koreans, ranging from Hollywood movies to autos and computers.

But what about “Raised in the USA?” The South Korean beef market was closed to U.S. imports for several years after U.S. beef tested positive for mad cow disease. In 2008, the Korean government suddenly agreed to reopen the beef market to U.S. imports without age restrictions that would minimize mad cow risk, catching Korean citizens off guard and leading to a hundred days of protests. South Korea then re-negotiated and reached an agreement to import only American beef younger than 30 months. This dissipated much of the political fervor without alleviating the mistrust that extended well beyond those who took to the streets.  Recently, top U.S. and Korean officials met in Seoul to open the South Korean beef market once again to American beef older than 30 months. From my perspective, I’d recommend against this. If American beef older than 30 months is imported, Koreans will conclude once again, rightly or wrongly, that all American beef is unsafe.

Gov’t to Feed Local Livestock Industry 2 Trillion Won of Subsidy Over the Next 10 Years as a Countermeasure for Korea-EU FTA [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2010/11/17/0301000000AKR

Summary: Gov’t announced in a “FTA Local Industry Support Committee” meeting on Nov. 17 that a total of 2 trillion won of subsidy funds was approved to support local livestock industry over the next 10 years under Korea-EU FTA.

MB “ There will be no Rediscussion of Beef” [Korean, OYS]

Joongang Ilbo Nov.23, Tues, 2010

It must be considered the benefits for two countries, Korea-U.S…..

Discussion won’t take long”

Produce, fish prices jumped 49% in October [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2927838

Summary: The skyrocketing cost of cabbage, radishes, green onions, tomatoes and garlic led to the fastest year-on increase in Korea’s consumer price index in 20 months in October, raising concerns of inflationary pressure.  Overall prices of fresh produce and fish jumped 49.4 percent from a year before, the biggest rise since 1990 when the government started compiling the data, a government report said yesterday.

To deal with inflationary pressure, the government said yesterday that it intends to expand agricultural supplies by allowing a higher volume of imported goods, including garlic, chili peppers and radishes. The price of gas for cooking and heating was lowered yesterday and liquefied petroleum gas prices will also be reduced. According to Statistics Korea, the consumer price index shot up 4.1 percent last month from a year before. This is the fastest increase since February 2009 when the index rose by the same figure. The index went up 0.2 percent from September.

Coffee outlets become marketing battlefield [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2927719

Summary: According to Trend Monitor, a local survey research firm, the number of daily visitors to coffee shops in Seoul is estimated at 350,000. Twenty-four percent of adults aged between 19 and 44 were found to be visiting coffee shops two to three times a week, while another 23 percent visit once a week. Kia Motors has partnered with Caffe Bene to promote its newly released Forte GDI. The walls of Caffe Bene’s branches at Galleria, Sogong-dong and Nowon District are covered with large illustrations of the new models.

German Sea Freight Company Gifts Korean Ship Builder 28,800 Bottles of Chilean Wine [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2010110173661&sid

Samsung Heavy Industries, a leading ship building company in Korea, recently received 28,800 bottles of Chilean wine from a German sea freight company who had ordered 8 new container ships to Samsung.  The wine was a gift to all 28,800 employees of Samsung, asking for extra efforts in accomplishing the order.  The Chilean winery who produced the wine is owned by the German sea freight company.

Acreage of Locally Developed Kiwi Varieties in Jeju Island Increases Four Times in Two Years [Korean, OSY]

www.donga.com

Summary: There was a Kiwi farm visit event hosted by the Rural Development Agency (RDA) on Nov. 2 in Jeju island.  In the event, RDA featured to 200 local Kiwi farmers ‘Hanra Gold’ and Jesi Gold, local Kiwi varieties developed by RDA and grown in Jeju.  Hanra Gold can be harvested 1 month earlier than Jesfri Gold, a New Zealand variety also grown in Jeju.  Because Hanra Gold was developed by RDA, farmers do not need to pay the royalty, which is 15 percent of the total sales, to Jesfri, NZ.  The total acreage of these two local Kiwi varieties in Jeju has increased four time in the last two years from 13 ha in 2008 to 60 ha this year.

Fresh Cabbage Price Plunges Down to 990 Won per Head [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2010/11/17/0302000000AKR2010111

Summary: Fresh cabbage price in major hypermarket chain stores has plunged down to as low as 990 won per head as of November 16.  Retail price of fresh cabbage went up as high as 15,000 won per head only two months ago due to short supply.  Arrival of new harvests and hypermarket retailers’ aggressive sales promotion on fresh cabbage, targeting the Kimch making season, are the reason for the sharp decline in the price.

Surging International Price of Raw Sugar Worries Korean Table Sugar Processors [Korean, OSY]

http://economy.donga.com/Economy_RealTime/3/01/20101119/32707760/3&top=1

Summary: Price of raw sugar in NY futures market marked 33.11 cent per pound on Nov. 9, a record high in 20 years.  The surging price of raw sugar has caused a sharp decline in the operation profit of major table sugar processors in Korea.  CJ Jeiljedang reported that its operation profit declined by 31 percent in the third quarter compared to last year.  Due to the government control on table sugar price, Korean processors are not able to adjust their ex-factory price in a flexible way. 

Kimchi Makers Cited for Unsanitary Conditions[English, OYS]

http://english.chosun.com/site/data/html_dir/2010/11/22/2010112200855.html

  With kimchi-making season to prepare for the coming winter right around the corner, the government is cracking down on kimchi producers that violate sanitary regulations.
The Korea Food and Drug Administration announced on Friday that it conducted joint inspections with local governments on kimchi and ingredient makers over a two-week period earlier this month.
Of more than 1,000 companies inspected, 140 were cited for having poor sanitary conditions or failing to conduct quality checks before selling the food products

Mak-Gul-Lee (Rice Wine) “Nouveau” Reports Outstanding Sales This Year [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2010/11/23/0318000000AKR