1. BILATERAL/MULTILATERAL ISSUES

Push for Colombia’s FTA [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2938732

Summary: Chief trade officials from Korea and Colombia agreed to closely cooperate for an early conclusion of their free trade negotiations, Seoul’s trade ministry said yesterday.   During a meeting earlier in the day, Korean Trade Minister Kim Jong-hoon and his Colombian counterpart, Sergio Diaz-Granados, shared the view that a bilateral free trade pact will serve as an important tool to boost bilateral relations, according to the ministry.

S. Korea, Indonesia aim to declare start of free trade talks in Nov. [English, CSY]

http://english.yonhapnews.co.kr/business/2011/07/11/0502000000AEN20110711004400320.HTML

Summary: South Korea and Indonesia have agreed to make efforts to declare the launch of their free trade deal in November, Seoul's trade ministry said Monday.  The two countries held the first round of feasibility study talks on their so-called comprehensive economic partnership agreement (CEPA), similar to a free trade deal, in Jakarta last week.

GNP: Ruling party seeks to ratify US FTA in August [English, CSY]

http://www.koreatimes.co.kr/www/news/nation/2011/07/113_90656.html

Summary: Senior lawmakers of the ruling party reiterated Monday that they would push for the ratification of the Korea-U.S. free trade agreement (KORUS FTA) during the August session of the National Assembly.   “We are aiming to pass the FTA bill by the end of next month,” Rep. Hwang Woo-yeo, floor leader of the Grand National Party (GNP), said.  The four-term lawmaker dispelled growing concerns that the conservative party may use its majority status to ram through the contentious bill without proper deliberations with the opposition.   The GNP, which controls 169 seats in the 299-member unicameral legislature, has unilaterally endorsed a number of major bills after physical clashes with rival parties, including budget proposals and an FTA with the European Union.

2. GRAIN & OILSEED ISSUES

Rice shortages become clear, present danger [English, CSY]

http://www.koreatimes.co.kr/www/news/biz/2011/07/123_90667.html

Summary: Just a few months ago, the Korean government agonized over how to deal with surplus rice. Now, concerns are springing up that the country might face shortages of its staple food later this year.  The Ministry for Food, Agriculture, Forestry and Fisheries (MIFFAF) said on Monday that its rice reserve is expected to reduce to 880,000 tons this October from 1.5 million tons at the same time last year.  The fear is already taking grip because the agriculture minister has released more than 200,000 tons of rice from 2009 this year. It is the first time in the 21st century that the nation is supplying ``old rice,’’ or that harvested two years ago, to the market in volume.

3. LIVESTOCK ISSUES

Korea Tightens Controls Over Foot-and-Mouth, Bird Flu [English, CSY]

http://english.chosun.com/site/data/html_dir/2011/07/11/2011071101108.html

Full text: Visitors who have been to farmhouses or livestock markets in countries with currently known or previous cases of foot-and-mouth disease or bird flu will have to report to immigration from July 25. The National Veterinary Research and Quarantine Service also says Korean nationals working in the livestock industry must report before visiting a country on the watch list for the two diseases.  Those who fail to comply with the new regulations will be fined W 5 million (US$1=W 1,058). There are 68 countries on the Foot-and-mouth watch list and 17 on the bird flu watch list.

Beef and pork imports surge in first half of 2011 – U.S. accounts for half of total imports [Korean: BYK]

http://www.ytn.co.kr/_ln/0102_201107120757288524

Summary: In the midst of increased imports of beef and pork due to the aftermath of FMD, it turned out that the U.S. meat was the one that had benefited the most.  Total pork imports during the first half of 2011 marked 219,681 MT.  Among this total pork import, U.S. pork accounted for 43.4%, marking 95,380 MT.  Korea imported a total of 187,874 MT of beef during the first half of 2011, which is an increase of 29% over the same period in 2010.  U.S. beef import was 68,000 MT, an increase of 54.6% over the same period in 2010.  (Embassy comment:  This is based on the amount that cleared quarantine inspection and does not necessarily match with the actual amount that cleared Customs.  Also, according to ROKG data, the amount of beef that cleared quarantine inspection during the first half of 2011 was 153,795 MT and not 187,874 MT.  Import from the United States was 57,922 MT and not 68,000 MT.  U.S. beef market share was 37.7% during this period.)

4. OTHER MISCELLANEOUS ISSUES

Government-driven ‘Globalization of Korean Cuisine’ Project Looses Momentum after 2 Years of Launching [Korean, OSY]

http://news.donga.com/Politics/New/3/00/20110712/38728396/1

Summary: ‘Globalization of Korean Cuisine’ project that the Korean government under leadership of the first lady launched two years ago is loosing momentum as there has been no significant achievement made so far.  Industry experts are showing concerns that most of the goals set by the project are not likely to be realized anytime soon.  For example, the project has failed to open any flagship Korean cuisine restaurant in target foreign cities.  Few of the local chefs who went through the ‘Korean star chef’ program run by the project have earned jobs in foreign markets. 

Government to Enforce RFID Tags on A Half of the Pharmaceutical Products in the Market by 2015 … Pharmaceutical Companies Welcome but Distributors Oppose [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011071192211&sid=010404&nid=004&ltype=1

Summary: Pharmaceutical manufacturers and distributors are divided on the issue of RFID tag regulation, which the Korean government plans to enforce on a half of the products in the market by 2015.  Manufacturers in general are welcoming the policy plan, which they believe will help better monitor/control the flow of the product in the market.  For example, Hanmi Pharmaceutical Co. has voluntarily adopted RFID tags on its all 470 category of products since September last year.  Six other local pharmaceutical companies have also adopted RFID tags recently.  However, distributors are strongly against the plan.  Distributors have been reportedly diverting products designated for hospital use (which they bought at discounted price from the pharmaceutical companies) to pharmacies for higher profits.  Introduction of RFID tag will prevent the distributors from diverting products.  Another issue is the cost of RFID system.  It is estimated that it will cost about 50 to 60 won to attach RFID tag on each packaging unit.  Some of the large distributors have warned that they may drop those products that have RFID tags.  The Ministry of Knowledge and Economy maintains a strong position on the plan with an explanation that the regulation has been successfully adopted by the whiskey industry.  The Ministry says RFID will also help the pharmaceutical industry prevent fake products and black markets.

Recent heavy rains have surged up consumer prices of agricultural products with lettuce and spinach prices doubled or tripled.    Total inundated agricultural area has reached to 35,000 HA in the southern part of peninsular by the rains started off on July 8.  Weatherman forecasted the rains to continue by this weekend.  (Korean: CSC)

http://www.hankyung.com/news/app/newsview.php?aid=2011071194791&sid=01012014&nid=000&ltype=1

http://www.hankyung.com/news/app/newsview.php?aid=2011071195171&intype=1