Welcome to the Agricultural Trade Office (ATO) of the U.S. Embassy in Seoul, Korea.

Market Information > 한국 농식품 시장뉴스

한국 농식품 시장뉴스

March 23, 2011

2011.03.23

FAS/Seoul Monitoring of Media Reporting on Agricultural Issues

Today's Date: March Wednesday 23, 2011

For Coverage: March 22 - 23, 2011

1. BILATERAL/MULTILATERAL ISSUES

Korea gains eighth FTA with signing of Peru pact [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2933761

Summary: The official signing of the free trade agreement between Korea and Peru took place yesterday at the Ministry of Foreign Affairs and Trade between Korean Trade Minister Kim Jong-hoon and Trade and Tourism Minister of Peru Eduardo Ferryros. It is the eighth FTA for Korea and its second in Latin America, following Chile. Korea and Peru concluded negotiations in August 2009 and signed a provisional agreement in November 2009.

Australia-Korea FTA on the way [English, CSY]

[Foreign Biz Groups: 4th in a multipart series] Korea provides important products to Australia including motor vehicles and refined petroleum products

http://joongangdaily.joins.com/article/view.asp?aid=2933687

Summary: Q. How would the Korea-U.S. FTA have an impact on the Korea-Australia FTA?

A. Australia is seeking the same terms as the U.S. in terms of beef. Korea and the U.S. have agreed to eliminate 40 percent tariffs on beef over 15 years. Approval, however, by the U.S. Congress is the tough part because there is one senator in the U.S. who wants beef tariffs to be zero from day one, which is a serious issue that probably cannot be resolved. Since Australia is seeking the same terms on beef as the U.S., once the Korea-U.S. FTA is approved, it will be much easier for the Korea-Australia FTA to get through. In the meantime, Australia and Korea have engaged in five rounds of FTA negotiations and four intercessional meetings since 2009. Most of the text of the FTA is agreed and detailed reviews are currently ongoing. It is encouraging to note that negotiations on trade in services, investment, financial services, telecommunications and the movement of natural persons are near completion.

2. ECONOMIC ISSUES

Local food independence last in OECD [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2933802

Summary: Korea needs to boost its agriculture sector as the country’s heavy reliance on imports threatens its food security amid soaring grain prices, a report said yesterday. The report produced by the LG Economic Research Institute said Korea’s food self-sufficiency level is the lowest among the Organization for Economic Cooperation and Development member countries and the country heavily relies on imports of grain. Global grain prices are rising rapidly, which could spark inflation across the world and undermine Korea’s food security if major grain exporters reduce or stop exports, it said. The country’s grain self-sufficiency level has hovered below 30 percent since 2005 but the OECD member countries’ average self-sufficiency level stood at 110 percent in 2005, according to the report.

3. GRAIN & OILSEED ISSUES

Domestic rice has recently shown a bullish trend. [Korean, CSC]

http://www.hankyung.com/news/app/newsview.php?aid=2011032202841

Summary: (Korea Economic Daily) The national wholesale average price released by the aT on March 21, 2011 reached KRW 37,800 per 20Kg bag, up 5.3 percent from a month earlier, which is higher 11.8 percent than a year earlier.

4. LIVESTOCK ISSUES

Pork belly price stymies purchases [English, CSY]

Consumers are now seeking alternatives to one of the most popular dining items

http://joongangdaily.joins.com/article/view.asp?aid=2933762

Summary: As the price of pork rises, Koreans are giving up their beloved pork belly to seek alternative cuts and sources of protein. Koreans’ preference for pork belly, as opposed to any other cut of pork, is legendary with it being a staple at restaurants as well as in homes. According to E-Mart, Korea’s largest discount store chain, more than 40 percent of their total pork sales usually come from a pork belly. According to the latest numbers from the Korea Swine Association, pork belly accounts for 48 percent of all store-bought pork in Korea. This is a mirror opposite from Western nations, where the loin and ham (hind leg) cuts are often the most expensive and prized among pork. Even in neighboring Japan, loin and ham together compose more than 60 percent of consumption, while pork belly accounts for only 15 percent. Pork belly is also the undisputed staple of local company dinners and outings. According to a survey of 893 professionals, by job search portal JobKorea last December, 75.7 percent said pork belly was the most frequent menu at their end-of-the-year gatherings.

5. OTHER MISCELLANEOUS ISSUES

Gov’t screening all food from Japan [English, CSY]

Even products that are transshipped will be checked for radiation levels

http://joongangdaily.joins.com/article/view.asp?aid=2933837

Summary: Korea will screen all food products originating from or shipped through Japan, as the crisis at the Fukushima Daiichi nuclear power plant continues. The Korea Food and Drug Administration said yesterday that it would expand its screening process to cover imported food products that pass through Japan on their way to Korea, in addition to Japanese-made products. The KFDA said screening would be done on dried, chilled or frozen agricultural products, processed foods, food additives and health products. Radiation testing began on March 14 for fresh produce from Japan. The KFDA initially said it would be screening for cesium 134 and cesium 137, but added iodine 131 to the list on Monday. All radioactive isotopes can affect human cells and cause health problems in the case of prolonged exposure.

Japanese fisheries imports in Korea plunge 70 pct. [English, CSY]

http://english.donga.com/srv/service.php3?bicode=020000&biid=2011032347388

Summary: With trade between Korea and Japan plummeting following the massive earthquake in northeastern Japan, imports of Japanese agro-fisheries products have plummeted in the wake of the radiation scare due to Japan`s nuclear crisis. News began spreading last weekend that radioactive materials beyond permissible levels were found in agricultural produce from areas near the Fukushima nuclear power plant. The Korea Customs Service said Tuesday that imports of Japanese agro-fisheries products are plunging as large discount stores have suspended their sales given rising fears over radioactive contamination of Japanese foodstuffs. After the quake hit Japan on March 11, the daily import of Japanese fisheries products from March 12 to Sunday reached 233,046 dollars in value on average, plunging nearly 70 percent from the average of 773,795 dollars posted before the earthquake. The import volume of Alaska pollock and live sea breams fell 30.2 percent and 30.5 percent, respectively, from the time before the quake, while that of Japanese cutlass fish also declined 19.8 percent.

The information in this report was compiled by the Agricultural Trade Office (ATO) at the U.S. Embassy in Seoul, South Korea. The press summaries contained herein do NOT reflect USDA, the U.S. Embassy, or other U.S. government agency official policy or view point. U.S. food exporters can learn more about market opportunities in South Korea by reviewing ATO Seoul’s Exporter Guide and other reports available at www.fas.usda.gov by clicking on “attaché reports”.

View List >