1. BILATERAL/MULTILATERAL ISSUES

Free trade pact with Peru takes effect today [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2939616

Summary: The free trade agreement between Korea and Peru goes into effect today.  Peru is the second Latin American nation (after Chile) and the seventh world economy to implement an FTA with Korea.  The agreement, signed in March, is expected to benefit Korea, as Peru’s average tariffs, at 11 percent, were relatively high. Peru will immediately eliminate tariffs for 5,001 Korean products, including televisions, automobile parts, tires and large vehicles, which account for 68.6 percent of the total amount of products, agreed upon. Rice, which was a sensitive issue on the Korean side, was not included in the pact. Korea’s automobiles, electronics and pharmaceutical exports are expected to benefit the most. Korea has exported automobiles, TVs and capital goods, while Peru has exported minerals, natural gas and food products such as cuttlefish and coffee.

Korea – Peru FTA Goes into Effect [Korean: BYK]

http://www.eto.co.kr/news/outview.asp?Code=20110801083339753&ts=92430

Summary: FTA between Korea and Peru went into effect as of today.  This is the 44^th country that Korea has implemented an FTA with.  The industry that is forecasted to benefit the most from the FTA with Peru is the automobiles and electronic industry, as the current duty that is being imposed on automobiles in Peru is 9% and up to 17% for electronic goods.

GNP Floor Leader Hwang states that there will not be any enforcement to ratify the KORUS FTA in August [Korean: BYK]

http://www.ajnews.co.kr/view_v2.jsp?newsId=20110801000128

Summary: GNP Floor Leader, Yeo Woo Hwang stated in an interview with a radio program that there will not be any enforcement to get the KORUS FTA ratified during the temporarily National Assembly session in August.  He explained that the KORUS FTA should be fully reviewed from the perspective of national interest and be prepared for any problems and come up with supplementary measures. 

2. ECONOMIC ISSUES

Gov’t watches for post-rain inflation [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2939545

Summary: Korea will ramp up its efforts to stabilize prices amid growing concerns that the recent heavy rains could make agricultural products more expensive by causing supply disruptions, the Ministry of Strategy and Finance said yesterday.  Korea has been pounded by heavy rains, with Seoul and its surrounding areas bearing the brunt. Some farming regions in the central part of the peninsula were also hit by the worst rainfall in decades, spawning concerns of price spikes in vegetables and agricultural items.

“The government is now considering discussing possible supply disruptions of farming goods during the price stabilization meeting to be held next week,” a finance ministry official said. The meeting, scheduled for Thursday, comes as Korea’s inflation has remained stubbornly high over the past months, mostly driven by rising oil and commodity prices. Surging food prices also play a role in driving up inflation.

3. LIVESTOCK ISSUES

High Pork Price Leads Consumers to Seek Out Alternatives [English, CSY]

http://english.chosun.com/site/data/html_dir/2011/07/29/2011072900919.html

Full text: The recent outbreak of foot-and-mouth disease has been driving up prices of pork, and local consumers are now opting for other kinds of meat.  The Korea Rural Economic Institute announced in its survey of 750 consumers this month that over 80 percent had started buying other kinds of meat because domestic pork has become too expensive.  Chicken topped the list of replacements with 36 percent of respondents switching to this popular poultry, followed by domestic beef, duck and imported beef and pork.  The going price of 100 g of pork now stands at around W2,400, up more than 30 percent from last year (US$1=W1,052).

Korea to restore White Hanwoo [Korean: BYK]

http://joongang.joinsmsn.com/article/aid/2011/08/01/5530673.html?cloc=olink|article|default

Summary: The Rural Development Administration announced that it was moving forward with the plant to restore the ‘white Hanwoo’ that is an indigenous Hanwoo possessing a rare genetic trait.  According to the old historical publication from the Chosun dynasty, Korea raised Hanwoo that had various color hairs such as white, black, brown, red, yellow, etc.  However, all other color Hanwoo disappeared during the Japanese colonial period and now only the yellow hair Hanwoo exists.