Today's Date:      Friday, April 06, 2012

1. BILATERAL/MULTILATERAL ISSUES

Prices of certain US, EU products unchanged despite FTAs [English, MGF, CSY]

http://english.donga.com/srv/service.php3?bicode=020000&biid=2012040650918

Summary: Prices of certain imports from Europe and the U.S. have remained the same despite tariff cuts from free trade agreements with both economic blocs, the Fair Trade Commission in Seoul said Thursday.   With American and EU companies raising export prices or domestic importers raking in profits from tariff cuts as distribution margins, Korean consumers are not fully benefitting from the accords.   The commission said it surveyed price trends of nine U.S. and nine European goods sold at Shinsegae Department Store and Kim`s Club in Seoul’s Gangnam district, and found that 11 of them saw no price fall. Commission chief Kim Dong-soo also joined the inspection team.

The situation is the same for alcoholic beverages and juice. The prices of the European whiskey brand Ballantine`s 17 Year Old and the American beer Miller have stayed the same, though the tariff for the whiskey fell 5 percentage points and that of Miller dropped 4.3 percentage points.   Grape and orange juice made by Welch`s of the U.S. sold at the same price before the free trade deals took effect despite not being subject to tariffs. Before the agreement with the U.S. took effect, their tariffs were 45 to 54 percent.   Nongshim, the importer of Welch`s juice, cut its factory prices 8 percent the same day after the announcement by the anti-trust watchdog.   Certain foods also saw their prices fell more sharply than tariff cuts. Tariffs on American oranges dropped 20 percentage points and their prices fell 25 percent.

Fair Trade Committee’s Market Survey Indicates that Price of American Juices Remain Unchanged after FTA [Korean, OSY]

http://news.donga.com/Economy/Market/3/0108/20120406/45328823/1

Summary: Fair Trade Committee (FTC) surveyed retail prices of American products sold in the leading retail outlets.  According to the survey result, much of the fruit juices imported from the U.S. were sold at the same price even after the implementation of the KORUS FTA.  Retailers explained that it would take a couple of months for the products to reflect the savings under the FTA in the retail price.  FTC plans to continue a price survey to pressure the retailers.

FTC Frets That Tariff Cuts Not Shown in Prices[English, MGF]

http://koreajoongangdaily.joinsmsn.com/news/article/article.aspx?aid=2951064

Summary: Prices of imported goods have either stayed the same or edged down slightly despite recent free trade agreements with major trading powers lifting tariffs on home appliances such as kitchenware and alcoholic beverages, the Fair Trade Commission said yesterday. In contrast, many imported agricultural items had benefited from the trade deals, with almonds and oranges from the U.S. immediately dropping 10 percent and 25 percent, respectively.

2. ECONOMIC ISSUES

Korea's Consumer Prices Rise 2% in March [English, CSY]

http://www.arirang.co.kr/News/News_View.asp?nseq=127644&code=Ne2&category=2

Full text: Korea's consumer prices rose two percent in March compared to the same month last year.  According to Ministry of Strategy and Finance Thursday, unstable crude oil prices and the high price of imported grains contributed to the rise and have added instability to the Korean economy.  The government says it will release a stockpile of 3-thousand tons of cabbage into the market in order to ease the burden on consumers.

3. MARKETING ISSUES

Mos Burger, the Second Largest Hamburger Restaurant Chain in Japan to Enter Korea [Korean, OSY]

http://www.newswire.co.kr/newsRead.php?no=614911&ected=

Summary: Mos Burger, the second largest hamburger restaurant chain in Japan opened its first store in Korea on April 4.  In its opening ceremony, the president of the company announced that it will open 5 stores in Korea within this year.

CJ Cheiljedang Launches ‘Tagatos’, Functional Natural Sweetener [Korean, OSY]

http://news.donga.com/Economy/Market/3/0108/20120404/45297318/1

Summary: CJ Cheiljedang, the leading table sugar processor in Korea, launched ‘Tagatos’ on April 4.  This is a natural sweetener processed from lactose.  It has 92 percent sweet taste of table sugar but has much lower glucose absorption rate, according to CJ.