1. BILATERAL/MULTILATERAL ISSUES

Clash looms in parliament over FTA with U.S. [English, CSY]

http://english.yonhapnews.co.kr/national/2011/09/01/38/0301000000AEN20110901002600315F.HTML

Summary: The ruling Grand National Party (GNP) is set to once again attempt to bring Korea's free trade agreement with the United States into a parliamentary committee Thursday, the first step toward ratification, amid strong objections from opposition parties.  The trade pact, first signed in 2007 and modified last year, is one of the most contentious issues in parliament. The governing party is calling for an early ratification, while the main opposition Democratic Party (DP) claims the deal favors the U.S. and should be renegotiated.    The GNP had planned to put the bill before the parliamentary foreign affairs and trade committee on Wednesday, but held off for a day after the DP and the progressive opposition Democratic Labor Party put up strong objections to the move.   On Thursday morning, Rep. Nam Kyung-pil, the GNP-affiliated chairman of the committee, said that he cannot but invoke his right as chair to bring the bill into the committee if efforts to find a compromise with the opposition parties fail.

Opposition parties have hinted at the possibility of using force to block the planned tabling of the bill, raising concern that the clash could descend into a melee. In late 2008, lawmakers' fighting over the trade accord even featured a sledgehammer and chain saw.   The main opposition DP has put forward what it calls a "10 plus two" proposal, which calls for revising 10 items in the trade pact through renegotiations with the U.S. and two measures aimed at minimizing the deal's effect on the local industries.

Parties Agreed to Present the KORUS FTA Bill to the National Assembly in Synch with the Progress in the U.S. Congress [Korean, OSY]

http://www.yonhapnews.co.kr/politics/2011/09/01/0502000000AKR20110901109100001.HTML?template=2088

Summary: Political parties reached an agreement on September 1 that they would not present the Korea-U.S. FTA Bill to the national assembly until the U.S. congress starts the ratification process.  K.P. Nam, the head of the Foreign Affairs & Trade Committee in the national assembly commented that the U.S. congress was likely to start discussion on the bill around September 20.

2. ECONOMIC ISSUES

S. Korea's consumer prices grow fastest in 3 yrs in Aug. [English, CSY]

http://english.yonhapnews.co.kr/business/2011/09/01/81/0502000000AEN20110901003700320F.HTML

Summary: South Korea's consumer prices grew at the fastest pace in three years in August, raising concerns that inflationary pressure is building up despite the government's anti-inflation efforts, a report showed Thursday.     According to the report by Statistics Korea, the country's consumer price index rose 5.3 percent last month from a year earlier, quickening from the previous month's 4.7 percent gain.  The figure is the largest growth since August of 2008 when prices rose 5.6 percent. It is also the eighth straight month that the consumer price hike has surpassed the government's annual inflation target of 4 percent for this year.  Core inflation, which excludes volatile oil and food costs, also jumped 4 percent from a year earlier, the largest gain in 28 months. It was up from 3.8 percent tallied for July, the report showed.

3. MARKETING ISSUES

Tesco Withdraws from Japan [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/08/31/0318000000AKR20110831200400009.HTML

Tesco announced on August 31 that it had decided to withdraw from Japan to focus on more important markets in Asia.  Tesco has 129 stores in Japan and it will be offered for acquisition to other Japanese retailers.  Tesco has a total of over 1,400 stores in several countries in Asia.

4. OTHER MISCELLANEOUS ISSUES

Korea’s success gives managers food for thought [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2940876