1. BILATERAL/MULTILATERAL ISSUES

Korea-EU FTA: No sudden windfall [English, CSY]

[SERI FOCUS] ‘Korea will enjoy first-mover advantage for at least three years.’

http://joongangdaily.joins.com/article/view.asp?aid=2937469

Summary: The Korea-European Union free trade agreement goes into effect on July 1, promising to remove nearly all tariffs within in five years, boost two-way trade and Korea’s profile in the EU and move the Korean economy a step closer to advanced status.   However, getting the maximum benefits will be challenging.  The FTA, the first free trade pact the EU has signed in Asia, will give Korean companies price competitiveness and first-mover advantage over Asian neighbors in the European market.

2. LIVESTOCK ISSUES

Customers protest in front of empty freezers that used to contain Korean beef at Nonghyup Hanaro Mart in Yangjae, southern Seoul, yesterday. To ease consumer prices, the government and Nonghyup joined forces to offer Korean beef at half the market price for one month starting Saturday at 28 Hanaro Marts in the Seoul metropolitan area. The popularity of Korean beef has led to shortages in supply.

<Column> Grading beef from A to E [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2937445

Summary: KAPE classifies Korean beef into five grades: A++, A+, A, B and C. Beef with an “A” grade actually refers to beef in the third tier of the rating system, which goes against consumer expectations that an “A” grade is the best.  Of the Korean beef sold on the market last month, A++ grade beef accounted for only 9.6 percent of the total, followed by A+ (23.3 percent), A (31.1 percent), B (25.1 percent) and C (10.3 percent), which indicates that beef over the A grade accounted for 65 percent of the total sold. The Korea Consumer Agency and other civic groups have long demanded that this sly practice be stopped while also advocating for a better grading system.   At long last, KAPE has come up with a solution that will be implemented next month. It will stamp all five grades on the label and a circle will be drawn around the grade of the meat for sale. But that also seems insufficient.

For poultry processor, a cachet of trust is an antidote for crisis [English, CSY]

[INTERVIEW] ‘As the company survived two crises, the sense of trust among employees was stronger than ever.’

http://joongangdaily.joins.com/article/view.asp?aid=2937389

Summary: Although the foot-and-mouth crisis that ravaged the peninsula since late last year was declared over in March, aftereffects continue to plague farmers and companies. Demand for domestic beef has flagged, while the price of pork continues to reach record highs.  Kim In-sik, the CEO of Korea’s third-largest poultry processor Cherrybro Co., knows something about disease outbreaks that threaten the existence of meat processing firms. Due to a similar circumstance in 2003 when there was an outbreak of avian influenza, Cherrybro was one of several poultry firms to file for court receivership.

3. MARKETING ISSUES

Government eyes cabbage price curbs [English, CSY]

Plan in response to recent cost volatility

http://joongangdaily.joins.com/article/view.asp?aid=2937533

Summary: The government intends to control the wholesale price of Napa cabbage, the staple ingredient for kimchi, to stabilize its price.   The Ministry for Food, Agriculture, Forestry and Fisheries said yesterday that it is considering a price band for the vegetable to curb cost volatility.  The ministry said it is drafting a related legislative bill and, if it passes the National Assembly, the change would take effect as early as next year.  If the law is enacted, it will be applied to traditional markets around the country such as the wholesale market in Garak-dong, southeastern Seoul. The ministry plans to hold hearings in late June before submitting the bill to the National Assembly in July or August.

Sales of imported beer jump 56 percent from Jan. to May [English, CSY]

http://english.donga.com/srv/service.php3?bicode=020000&biid=2011061479838

Summary: The sales growth of imported beer greatly surpassed that of domestic beer over the first five months of the year due to cheaper prices and rising popularity on the back of diversifying consumer tastes.   Imported beer has quickly gone from simply being seen at bars to going to display stands at large discount chain stores.   E-Mart, the country’s largest discount store chain, said Monday that sales of imported beer jumped 56 percent between January and May this year from the same period last year. Sales of domestic beer rose just 9 percent over the same period.   Shin Geun-jung, a liquor seller at E-mart, said “Demand for imported beer is fast rising among people in their 20s and 30s, who enjoy overseas travel. Sales of imported beer have shown the biggest increase in overall domestic liquor sales. Imported beer accounts for 20 percent of E-Mart’s combined beer sales.”

4. OTHER MISCELLANEOUS ISSUES

Lotte exports lots of makgeolli to Japan [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2937382

Summary: Lotte Liquor BG Co., a Korean liquor manufacturer, said yesterday that it has exported more than 1 million boxes of makgeolli, Korean rice beer, to Japan so far this year, exceeding its 2011 sales target in the neighboring country.   Lotte Liquor said in a statement that 1.48 million boxes of makgeolli were exported to Japan. One box contains 8.4 liters (2.2 gallons) of the milky brew with an alcohol content of 6 to 7 percent.   The company started exporting makgeolli to Japan in November and set a target of 600,000 boxes in sales in Japan for 2011.

Korea to host green growth summit [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2937378

Summary: Korea will host an international conference on green growth later this month to promote the environmentally friendly cause championed by President Lee Myung-bak and to boost cooperation among like-minded nations, the presidential office said yesterday.  The inaugural Global Green Growth Summit 2011, set for June 20-21 in Seoul, represents the latest in a series of projects that Korea has been pushing forward as part of a global campaign to seek economic growth through environmentally friendly technologies.   The conference, which is jointly organized by the Organization for Economic Cooperation and Development (OECD), will draw 91 high-level speakers from 25 countries and major international organizations.

University chief kills himself after scandal questions [English, CSY]

Ex-agriculture minister was probed in savings bank and canteen cases

http://joongangdaily.joins.com/article/view.asp?aid=2937548

Summary: Im Sang-gyu, 62, president of Sunchon National University and former agriculture minister, was found dead yesterday in his car, which was parked near a mountain in Suncheon, South Jeolla.   Im was under investigation for his alleged involvement in two current scandals: the Busan Savings Bank collapse and an influence-peddling scandal centered on bribes paid to politicians and police by the owner of a company that runs canteens on construction sites. The nation’s former head of police was indicted in the latter scandal.