Today's Date:  Wednesday, June 13, 2012

1. BIOTECHNOLOGY ISSUES

ROK Daily: CJ Expanding Its Biotech Businesses Abroad:  [English, MGF]

http://koreajoongangdaily.joinsmsn.com/news/article/article.aspx?aid=2953865

From its origins as a sugar manufacturer to its biotech present, CJ CheilJedang is hungry to chart a new course for the green biotech sector.  More familiar to Koreans as a manufacturer of sugar and the seasoning Dashida, the company is looking to the green biotechnology sector for its future, which CJ Group Chairman Lee Jay-hyun believes will help make it a global corporation. Green biotechnology refers to biotechnology applied to agricultural processes. Lee has told his executives "To become the dominant player in global green biotechnology, CJ should continue investments in R&D to excel over all our competitors in quality and expertise."

2. MARKETING ISSUES

Retail Price of Imported Wine Dropped 22.4% on Average due to FTAs [Korean, OSY]

http://news.donga.com/Economy/New/3/01/20120612/46955374/1

Summary: According to a recent research by the Korea Wine & Spirits Importers Association (KWSIA), retail prices of top 50 imported wines sold in major retail stores (department stores, hypermarket stores, and specialty liquor stores) showed a 22.4 percent decline on average as of May 30, 2012 compared to pre-FTA prices (June 30, 2011 for EU and Chilean wines; March 14, 2012 for American wines).  Among the 28 EU wines surveyed, 25 products showed a 2.9 to 65.8 percent price decline.  Among the 6 American wines surveyed, 5 products showed a 20.3 to 34.9 percent decline.  Among the 16 Chilean wines surveyed, 13 products showed a 5.8 to 75.0 percent decline.

Rain Fall in May through June 12 was 35% Level of Regular Years … But the Impact on Local Agriculture Is Not Significant Yet, Ministry of Agriculture [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/06/13/0302000000AKR20120613055300002.HTML?template=5566

Summary: Ministry of Food, Agriculture, Forestry and Fishery (MIFAFF) reported on June 13 that the amount of rain fall in Korea was only 35 percent level of regular years, 54mm.  MIFAFF indicated that although local agriculture in general has not been damaged much from the drought yet, the drought could reduce summer harvest of cabbage and onion.

Allowing On-line Sales of Imported Wine Will Not Reduce the Retail Price, Wine & Spirits Importers Association Claims [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/06/12/0318000000AKR20120612056800003.HTML

Summary: The Korea Wine & Spirits Importers Association (KWSIA) claimed on June 12 that on-line sales of imported wine, which is in discussion among the government offices, will allow large-scale conglomerate companies to monopolize the wine market eventually.  In addition, on-line sales would drive small to medium liquor stores out of business, KWSIA also claimed.  KWSIA added that on-line sales has not become an influential retail channel in Japan, which currently allows on-line sales,  so it is likely that on-line sales would not reduce the wine price in Korea either.