"The Korea FTA's ratification is essential for the U.S. to maintain its presence and credibility in the Korean Peninsula and other Northeast Asian nations whose economies continue to merge," Lee Jae-oh, South Korean minister in charge of political affairs, said in a speech to the National Press Club here. "The Korea FTA will also increase human exchanges both in quality and quantity and understanding of each other's culture."

The Obama administration has yet to present the deal to Congress as some congressmen have threatened to block ratification unless similar deals with Colombia and Panama are sent together.

Kirk confident Congress will give strong support to Korea FTA [English, OYS]

http://english.yonhapnews.co.kr/news/2011/03/30/0200000000AEN20110330000200315.HTML
Summary: WASHINGTON, March 29 (Yonhap) -- The chief U.S. trade negotiator said Tuesday that he is confident that the trade deal with South Korea will get strong backing when it is submitted to Congress for approval.

"Korea has more broad-based support than any free-trade agreement we have done in recent years," U.S. Trade Representative Ron Kirk told Bloomberg Television. "We are confident it should get very strong support when Congress moves that forward."

Kirk stopped short of saying when the Korea FTA, signed in 2007 under the previous Bush administration, will be presented to Congress. Some congressmen are threatening to derail the deal unless the Obama administration submits it together with similar agreements with Colombia and Panama.

2. ECONOMIC ISSUES

Korea’s dangerous import dependence [English, OYS]

[SERI FOCUS] Only a few regions provide the bulk of the country’s commodities

http://joongangdaily.joins.com/article/view.asp?aid=2934000

Summary: Soaring international commodity prices due to shortages are increasing the overall price tag on Korea’s imports and exacerbating inflationary pressure. The rise in international commodity prices has contributed to 70 percent of the rise in import price in recent months. Moreover, the upward trend is not easing. In February, the contribution rate of agriculture, fishery and forestry products to the rise in import prices nearly doubled, rising to 9.4 percent from 4.8 percent in 2009.

S. Korean economy grows 6.2 pct in 2010 [English, OYS]

http://english.yonhapnews.co.kr/business/2011/03/30/4/0503000000AEN20110330000800320F.HTML
Summary: SEOUL, March 30 (Yonhap) -- The South Korean economy grew 6.2 percent last year, the fastest expansion in eight years, on the back of robust exports and improved domestic demand, the central bank said Wednesday.

The country's gross domestic product (GDP), the broadest measure of economic performance, was revised up from an earlier estimate of 6.1 percent for last year, according to the Bank of Korea (BOK). It marked the fastest growth since Asia's fourth-largest economy expanded 7.2 percent in 2002.

The bank also raised economic growth in 2009 to 0.3 percent from its earlier projection of 0.2 percent.

S. Korea ranks 2nd in consumer prices hike in Feb. [English, OYS]

http://english.yonhapnews.co.kr/news/2011/03/30/0200000000AEN20110330001700320.HTML

Summary: SEOUL, March 30 (Yonhap) -- South Korea's consumer prices grew at the second-fastest pace among member countries of the Organization for Economic Cooperation and Development (OECD) in February, data showed Wednesday.

According to the data offered by the OECD, South Korea's consumer prices jumped 4.5 percent last month from a year earlier, the second steepest hike among its 34 member nations. Estonia ranked first with 5.7 percent.

3. GRAIN & OILSEED ISSUES

S. Korean Gov’t to Curtail Rice Yields, but Increase Other Grains [English, CSY]

http://news.mk.co.kr/english/

Full text: The South Korean government will curtail rice-producing areas by 16% and increase areas for cultivation of wheat, beans and corns significantly by 2015. The government made the decision on grounds that Korea is far short of domestic production of the three grains, while rice yields are in surplus throughout the country. The government decided to provide three million won ($2,673) in subsidy per hectare for farmers who raise alternatives to rice.   The Ministry for Food, Agriculture, Forestry and Fisheries (MIFAFF) said on Thursday it plans to renew its strategy for grain cultivation, coordinate with related government agencies and announce the new strategy next week at the earliest.   Considering the current domestic demand for rice, the appropriate rice yields for Korea are 3.7 million tons. However, the government estimates that recent rice yields have reached as much as 4.45 million tons in the recent three years.

However, the situation is totally different with other types of grains. Korea imports 14 million tons of pricey wheat, beans and corns from other countries every year, because of the country’s low sufficiency rates for the grains.  To tackle the dilemma, the government plans to cut the area of rice paddies from 890,000 to 700,000 hectares, a level that is regarded as appropriate, by 2015 through providing subsidies.  Of the 190,000 hectares that will be turned into areas for other grains, 60,000 hectares will be saved for wheat, beans or corns, as farmers are likely to switch to the alternatives voluntarily. For a total of 40,000 hectares out of the rest 130,000 hectares, farmers will be encouraged to produce alternatives to rice in return for three million won per hectare in annual subsidy. The remaining 90,000 hectares will be used for raising specialty rice for processing and crops for cattle feed under the government’s intention.

4. LIVESTOCK ISSUES

The toxin in pork that China bans, Korea permits [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2934131

Summary: China is cracking down on two chemical additives used illegally on pig farms - and threatening to execute farmers who break the law banning their use.  But one of the dangerous chemicals is legal in Korea and fed to some domestic pigs. The chemical, ractopamine, can cause respiratory problems or kidney malfunctions in humans, even if only small amounts are ingested.   More than 150 countries prohibit the use of ractopamine, including Taiwan, Malaysia and the European Union, although 20 countries allow it, including the United States, Australia, and Brazil.   “Because many countries currently prohibit the use of ractopamine, the Korean government should reconsider [the chemical’s] safety,” said Lee Mun-han, a professor at Seoul National University’s College of Veterinary Medicine.

Infectious germ found in Japanese baby formula [English,CSY]

http://english.donga.com/srv/service.php3?bicode=020000&biid=2011033062138

Summary: E-coli has been detected in baby formula from Japan, making parents with young babies and toddlers increasingly nervous.   Infectious germs have been discovered in Japanese baby formula after staphylococcus aures was detected in baby formula early this month from Korea’s Maeil Dairy.   The National Veterinary Research and Quarantine Service said Tuesday that enterobacter sakazakii, a type of E-coli, was detected in Japanese baby formula. If the bacteria is consumed by newborns with poor immune systems and low birth-weight infants, it can cause meningitis or enteritis.   The product in question is Wakodo Gungun produced by Japan’s Wakodo. A combined 3,851 kilograms of the product was imported to Korea on six occasions last year, and 2,954 kilograms have been imported on two occasions this year.

Massive water pollution detected near livestock burial sites[English, OYS]

http://english.yonhapnews.co.kr/Subscription/index.html