S. Korea needs to prepare for FTA with China: PM [English, CSY]

http://english.yonhapnews.co.kr/national/2011/04/19/16/0301000000AEN20110419003200315F.HTML

Full text: South Korea needs to make "creative" preparations for a free trade agreement (FTA) with China by thoroughly studying the deal's possible impact on the local economy, especially on agricultural and other vulnerable fields, the prime minister said Tuesday.    "China is aggressively raising the need to sign a free trade agreement with South Korea," Prime Minister Kim Hwang-sik said during a Cabinet meeting.     "We need to make meticulous and creative preparations concerning the deal's impact on agriculture and other vulnerable fields as well as overall local industries."     Kim returned from an official visit to China last week. During talks in Beijing, Chinese Premier Wen Jiabao asked for Seoul's early declaration of a plan to start negotiations for the FTA, Kim said in a meeting of Korean correspondents there last Thursday.    The two governments have already completed a joint feasibility study of the FTA but have yet to kick off the negotiating process due to differences over sensitive issues.    "It is regrettable that our society suffers from various internal feuds although it should reinforce its national competitiveness in a situation where state influences of China and other major countries are being readjusted in the international community," Kim said.     He emphasized that the Cabinet ministries should muster forces to produce a tangible outcome in the latter half of the state administration.

2. GRAIN & OILSEED ISSUES

S.Korea buys 30,000 T non-GM soybeans for June-July [English, CSY]

http://www.reuters.com/article/2011/04/19/soybean-korea-idUSL3E7FJ10J20110419

Full text: South Korea has bought 30,000 tonnes of non-genetically modified (non-GM) yellow soybeans for arrival in June and July this year via tenders, Korea Agro-Fisheries said on Tuesday.   According to the procurement agency's website ( www.at.or.kr ), results of the tenders closed on Monday are as follows: TONNE SUPPLIER PRICE(C&F/T) ARRIVAL DATE/PORT 25,000 Daewoo Int. $685.51 June 30/Incheon 2,500 *Jeongdong Int. $684.50 June 20/Busan or Incheon 2,500 Jeongdong Int. $684.50 July 10/Busan or Incehon Note: Jeongdong International, a local grain trading agency, declined to identify its grain supplier.

3. LIVESTOCK ISSUES

<4/18/2011>Foot and Mouth Disease Recurs; Even vaccines were not effective [English, CSY]

http://english.khan.co.kr/khan_art_view.html?artid=201104181736367&code=710100

Full text: Foot and mouth disease recurred in 51 days. The disease occurred even while the disinfection authorities were applying preventative vaccines on a national basis, thus putting the authorities on severe alert.  Livestock farming houses were thrust into a disarray saying that they cannot even trust the preventative vaccines.  The Ministry of Farming, Forestry, Fisheries, and Food announced, "Upon precision examination of pig-growing farming houses at Keumho-ub, Youngcheon, Kyungbuk, from which relevant reports were received, positive results were discovered."  This recurrence happened just in five days in which the Ministry lowered the crisis level from 'warning' to 'attention' on April 12, and in 27 days in which the last mass culling of livestock was carried out.  One Ministry official said, "The FMD can occur again if farmers did not observe the vaccination area and quantity, or immunity of the animal has declined after the vaccination even after the antibody has formed, or the animal is infected with much virus."

Korea's beef ban seen likely lifted by June [English, CSY]

http://www.grainews.ca/issues/story.aspx?aid=1000408148

Summary: South Korea is likely to lift an eight-year ban on Canadian beef imports by end June and plans sweeping changes in its grain growing and import policies in the face of rising global food prices, the country's farm minister said.   Rising global food prices have prompted the country to eye participation in grain operations abroad and move to encourage farmers to grow more corn and wheat while easing rice import policies, said Yoo Jeong-bok, South Korea's food, agriculture, forestry and fisheries minister.  The country is working with Canada to solve a dispute on beef imports banned over mad cow disease concerns in 2003, he said, as South Korea recovers from an outbreak of foot and mouth disease that cost the country nearly three trillion won (US$2.76 billion).

4. MARKETING ISSUES

<4/18/2011> Wine market in protracted slump [English, CSY]

http://www.koreatimes.co.kr/www/news/biz/2011/04/123_85447.html

Summary: Korea was just beginning to earn its stripes as a wine-drinking nation when the recession hit and decimated the herds of glass raisers. The country has since been pulling away from the economic turmoil, but regaining its love affair for fermented grape juice is proving to be difficult.  According to recent figures by the Korea International Trade Association (KITA), the country’s wine imports last year were valued at $112.89 million, just a 0.4 percent increase from a dismal 2009, when imports annually declined by a staggering 32.5 percent from the $166.51 million in 2008.

The wine boom has been turning to gloom as credit-crunched wine lovers began reining in their spending. And wine is no longer the fad in drinking when everyone appears to be inventing excuses to gulp down ``makgeolli,’’ the cloudy Korean rice wine that is now being touted as a food-and-beverage treasure on a level with kimchi.  Wine imports in January and February this year increased 4.7 percent year-on-year due to increased demand generated by the Lunar New Year’s holidays, as wine remains a popular gift item, KITA said.

5. OTHER MISCELLANEOUS ISSUES

Gov't to pay for radiation checkups on farm exports [English, CSY]

http://english.yonhapnews.co.kr/business/2011/04/19/92/0501000000AEN20110419008400320F.HTML

Summary: The government will pay the cost for carrying out radioactive contamination checkups on overseas shipments of farm and fishery products to help reduce the burden on local exporters, the farm ministry said Tuesday.  The decision comes as overseas buyers from such countries as the Netherlands, Hong Kong, Thailand and Jordan have asked local suppliers to include radiation-free certificates with shipments, the Ministry for Food, Agriculture, Forestry and Fisheries said.

<4/17/2011> Malaysian palm oil’s big future in Korea [English, CSY]

http://www.koreaherald.com/national/Detail.jsp?newsMLId=20110417000291

Summary: Malaysian Plantation Industries and Commodities minister opened the inaugural Malaysia-Korea Palm Oil Trade Fair and Seminar last week.   “Korea has demonstrated a wide acceptance for palm oil with 21 percent of the country’s oil and fats industry accounted by palm oil,” said Minister Tan Sri Bernard Dompok.  He also noted that there is room for growth as the Korean biodiesel mandate stipulates a 2 percent blend in 2012.  The event focused on synergizing and strengthening the existing partnership between the business communities of both countries.

<4/18/2011> S. Korea to help franchise chains' overseas expansion [English, CSY]

http://english.yonhapnews.co.kr/business/2011/04/18/56/0502000000AEN20110418001200320F.HTML

Full text: South Korea will support 10 local franchise chains in their overseas market expansion plans as part of its efforts to create new business opportunities in the service sector, the government said Monday.   The selected companies, including Kyochon Chicken, Mr. Pizza, Caffe Bene, Kraze Burgers and BBQ Chickens, will receive coupons worth 10 million won (US$9,190) from the Korea Trade-Investment Promotion Agency (KOTRA), the Ministry of Knowledge Economy said.   The coupons, which can be used like money, are valid for one year and can be used to help companies set up stores in overseas cities. The coupons can be used to conduct market research, receive administrative and legal services needed to set up new shops, find local business partners, hire workers and place advertisements.   Seoul started giving assistance to local franchises in 2010 by picking 13 to receive support in that year.  Of the franchises selected, six said they wanted to set up overseas operations in Chinese cities while others were eying such countries as Australia, the United States, Thailand, Vietnam and India.  The ministry said the support can help fuel exports of construction materials, machinery equipment and food while leading to more jobs being created.