1. BILATERAL/MULTILATERAL ISSUES

MIFAFF Minister states that FTA talks with China will not even begin unless rice, red pepper and beef are excluded from the discussions [Korean: BYK]

http://news.donga.com/3/all/20110712/38753664/1

Summary: Minister of Agriculture Kyu Yong Suh stated that the key point in holding FTA negotiations with China is to minimize the damage to the agricultural sector.  He made it very clear that the negotiations won’t start unless there is a precondition that sensitive products for both nations shall be established beforehand.  Some of the sensitive products for Korea are rice, red pepper, garlic, pork, beef, etc.  China is holding onto the position that we should begin the talks first and then discuss the sensitive items.  However, Korea is insisting that we select the sensitive items first and then exclude such items from the FTA talks.  

<7/9/2011> S. Korea and China resume preliminary FTA talks [English, CSY]

The secret talks have raised concerns for the agricultural industry, which stands to incur billions in losses per year

http://english.hani.co.kr/arti/english_edition/e_business/486611.html

Clinton urges passage of FTA with S. Korea [English, CSY]

http://english.yonhapnews.co.kr/business/2011/07/13/39/0502000000AEN20110713000300315F.HTML

Summary: U.S. Secretary of State Hillary Clinton called Tuesday for an end to partisan strife over free trade agreements (FTAs) with South Korea, Colombia and Panama.   "I know two things about trade. It is a polarizing political issue, but done right, it creates American jobs," she said in a speech at the U.S. Global Leadership Coalition Conference in Washington.  She pointed out the U.S.-South Korea FTA is projected to grow the U.S. economy by at least US$10 billion each year.   "Passing these deals is critical to our economic recovery, but the stakes are not just economic," she said. "These nations are three important partners in strategically vital areas."

Fruits stalls Korea-Colombia FTA [English, MJF]

http://www.koreatimes.co.kr/www/news/biz/2011/07/123_90713.html

Summary: Both Korea and Colombia agree in principle on the need for a fast free trade agreement (FTA) but they just cannot nail it because Korea is not ready to accommodate what Colombia wants ― better terms for its fruits and flowers than what Korea gives Peru and Chile.

2. ECONOMIC ISSUES

Inflation causes drop in Starbucks sales[English, MJF]

3. GRAIN & OILSEED ISSUES

Mandatory labeling requirement of rice grade on package will be effective on November 2011.  (Korean: CSC)

http://www.nongmin.com/article/ar_detail.htm?ar_id=189656&subMenu=articletotal

Summary: Mandatory labeling requirement of rice grade on package will be effective on November 2011.  Current labeling requirement has been on the basis of voluntary.  Korean government plans to implement of mandatorily labeling protein contents on the rice package from November 2012. 

4. LIVESTOCK ISSUES

Pork and Beef Imports Surge in First Half of 2011 [English, CSY]

http://www.arirang.co.kr/News/News_View.asp?nseq=118036&code=Ne2&category=2

Full Text: Imports of pork and beef spiked in Korea during the first half of 2011, due mainly to the outbreak of foot-and-mouth disease, which led to the culling of millions of livestock. According to the Animal, Plant and Fisheries Quarantine Inspection Agency on Tuesday, during the January to June period, pork imports surged 1-hundred-20 percent from the same period last year, to around 220-thousand tons.  Meanwhile, inbound shipments of beef increased 29 percent to about 190-thousand tons.  According to the agency, American importers were the biggest benefactors from the spread of the animal disease.  US pork imports jumped 2-hundred-23 percent to around 95-thousand tons,.. making up 43 percent of all imported pork coming into the country during that period.  68-thousand tons of US beef was imported in the first half, which is about 50 percent more than the same period last year.  Imports of Australian beef made up around 48 percent of the total share, while US beef accounted for about 36 percent.  Over three million pigs, which is around one third of all pigs in Korea, as well as thousands of cattle were culled in a bid to bring foot-and-mouth disease under control since it broke out at the tail end of last year.  Fortunately, no FMD cases have been reported in Korea since late May.

Members of livestock-related interest groups stage a protest ..[English, MJF]

5. MARKETING ISSUES

Heavy rains, China inflation fuel surging prices in Korea [English, CSY]

http://english.donga.com/srv/service.php3?bicode=020000&biid=2011071352198

Summary: Torrential rains are pushing up the prices of farm products, burdening government attempts to control inflation.   The price of gas will soon pass 2,000 won (1.87 U.S. dollars) per liter with oil companies ending their discount of 100 won (90 cents) per liter. Growing inflation risks also stem from China`s raising of raw material and food prices.   According to the Korea Agro-Fisheries Trade Corp. Tuesday, the national average price of cabbage was 1,790 won (1.67 dollars) per head, up 21.9 percent from a week earlier. Lettuce went for 1,060 won (99 cents) per 100 grams, up 67.6 percent week-on-week.   The price of spinach was up 40.1 percent to 5,370 won (5.02 dollars) per kilogram, and that of green pumpkin jumped 18.2 percent to 1,170 won (1.09 dollars).   Additional heavy rains will hamper the freshness of vegetables and lower sugar content in fruit, resulting in a decline of harvest and supply. The government will supply 20 percent more cabbage through contract farming, but this is considered insufficient to immediately lower vegetable prices.

CJ plans to diversify into biotech and new markets [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2938783

Summary: CJ Cheiljedang, the nation’s biggest food manufacturer, said it will diversify its business into biotechnology as well as expanding its overseas markets for its food products.  “Biotechnology, new materials and globalizing Korean food will be the major backbone businesses to transform the company into a global corporation,” said Kim Chul-ha, chief executive officer of CJ Cheiljedang, at a press conference yesterday.

36,000 New Hotel Rooms will be Added to Seoul Metropolitan Area by 2015, Korean Government [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/07/13/0301000000AKR20110713099900005.HTML?template=2089

Summary: The Ministry of Tourism announced on July 13 that it will help local hotel industry develop a total of 36,000 new hotel rooms in the Seoul metropolitan area by 2015.  The Ministry added that 22,000 of the rooms will be developed in the city of Seoul.  According to the Ministry, existing hotel rooms in the area are far short to meet the rapidly increasing foreign tourists, particularly from China.  

CJ Cheil Jedang aims to more than double sales [English, MJF]

http://www.koreatimes.co.kr/www/news/biz/2011/07/258_90733.html

Summary: CJ Cheil Jedang, a giant in the Korean food industry, is striving to more than double its sales in five years, from 6 trillion won (about $5.6 billion) in 2010 to 15 trillion won by 2015, based on strong performances in global markets.
The Seoul-based outfit looks to nurture three major pillars to underpin the ambitious goal of bioscience, new materials and globalization of Korean food or ``hansik.’’

6. OTHER MISCELLANEOUS ISSUES

Gov’t sets 2020 greenhouse targets [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2938782

Summary: The government for the first time set a timetable for reducing greenhouse gas emissions through 2020 by industry and sector, the Ministry of Knowledge Economy said in a release yesterday.  Among the nation’s industries, manufacturers of flat-panel displays will be required to reduce greenhouse gas emissions the most, 39.5 percent, by 2020.  The timetable was jointly announced by various government offices including the Ministry of Environment, the Ministry of Land, Transport and Maritime Affairs and the Ministry for Food, Agriculture, Forestry and Fisheries.

The government also plans to release mandatory timetables for the country’s 471 biggest energy-consuming companies in September for implementation next year. Companies that fail to abide by the schedule will first be given a warning and penalties thereafter.  By 2020, Korea plans to reduce greenhouse gas emissions by 30 percent, or 243.9 million tons of carbon dioxide, compared to the projected amount on business-as-usual (BAU) estimates. The 30-percent reduction schedule is in line with the protocol agreed at the UN Framework Convention on Climate Change in Copenhagen, in December 2009.

Biz bodies gripe at greenhouse gas reduction plan [English, CSY]

http://english.yonhapnews.co.kr/business/2011/07/12/44/0501000000AEN20110712008800320F.HTML

Summary: South Korea's business community on Tuesday expressed concerns about a government plan to cut greenhouse gas emissions, saying it can hurt the country's economic growth.  The plan, approved by the Cabinet earlier in the day, calls for reducing the country's greenhouse gas emission levels by 30 percent from its 2020 business-as-usual (BAU) level, a follow-up on Seoul's 2009 pledge to voluntarily cut its carbon emissions to help stem global warming.  The country's major business lobbies claimed the move to set reduction targets for 471 companies, including top car maker Hyundai Motor Co., could raise costs and affect global competitiveness.   The Federation of Korean Industries (FKI), a lobby for large businesses, said it supports the overall goal of controlling global warming, but argued that imposing caps will hurt local companies.

Best sommelier in Korea:[English, MJF]

Number of Smart Phone Users Reaches 15 Million in Korea [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/07/12/0303000000AKR20110712191700017.HTML?template=2089

Summary: According to the telecommunication industry, total number of smart phone users in Korea amounted to 15.3 million as of July 11.  According to the industry, the number of smart phone users has increased sharply over the last three months since reaching 10 million in March this year.