Today's Date:   Monday, December 10, 2012

1. LIVESTOCK ISSUES

Court states that MBC’s punishment on its PD for reporting the BSE case in 2008 is illegal [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=102&oid=001&aid=0005976585

Summary: The court judged that the punishment placed by MBC on the producers of the PD report that reported the BSE case in 2008 is illegal and that MBC should retract such punishments.

2. MARKETING ISSUES

Table Sugar Policy Fails … Over Half of Table Sugar Imported Earlier This Year Is Still Sitting in Warehouse [Korean, OSY]

http://news.donga.com/3/all/20121206/51380090/1

Summary: Korea Agro-Fishery Marketing Corporation (aT) under the Ministry of Agriculture imported 5,000 tons of table sugar from Malaysia earlier this year.  Korean government intended to stabilize the price of table sugar in Korea by offering the direct imported sugar at 20 percent cheaper price than local sugar processor’s product directly to local food manufacturers and retailers.  It seemed that the policy made a success because all the 5,000 tons of sugar was sold by the end of November, 4,700 tons to food manufacturers and 300 tons to retail chains.  However, interviews with the companies that bought aT sugar reveal that the policy has failed to achieve the goal.  Over half of the sugar went to retail store chains is still sitting in the warehouse.  Retailers commented that aT sugar was in too large quantity bags, 25 kg, to be sold to regular consumers.  Food manufacturers commented that the price of aT sugar was only 10 percent cheaper than local sugar as there was a hidden shipping cost that the buyer was required to pick up.  At the same time, food manufacturers were pressured by the government to lower the price of final products more than the small, 0.4 – 0.7 percent of overall cost saving in the final product contributed by aT sugar.  Local sugar processors argue that Korean government should help protect local sugar industry just like EU does by setting two separate price policy, high regular price for local consumption and low price for export (EU exports what is left after local consumption at below market price).

Hypermarket Stores Expand ‘Direct Import’ Business … Lower Price Attracts Consumers [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2012120945251

Summary: Sales of coffee beans that E-Mart imports directly from Columbia was over 15,000 bags during the first month since launching in November.  The strong sales was largely for the low price realized by elimination of middlemen distributor in the supply chain.  E-Mart’s direct import coffee bean was 40 percent cheaper than other coffee beans sold in the store.  Total sales of products that E-Mart imported directly amounted to 650 billion won this year through November, up 20 percent from the same period of last year.  Other leading hypermarket store chains are reportedly expanding direct import business as well.  Lotte Mart’s direct import business rose 7 percent this year.  Home Plus’s direct import business rose 11 percent this year.

‘Value’ and ‘Small Packaging’ Lead Sales in Convenience Stores [Korean, OSY]

private label brand (PB) products

Summary: According to sales reports by leading convenience store chains, ‘value’ and ‘small packaging’ were the key words behind many top selling products this year.  For example, top ten best selling products of GS25, a leading convenience store chain, included two private label brand (PB) products.  Sales of single and two serving take-out meals rose 44 percent this year in CU, another leading chain.

3. OTHER MISCELLANEOUS ISSUES

700 MT of Kimchi being recalled due to norovirus [Korean: BYK]

http://www.kbmaeil.com/news/articleView.html?idxno=272821

Summary: KFDA instructed a famous kimchi manufacturer called Poongsan Kimchi to recall 700 MT of kimchi that the company had produced.  KFDA found norovirus in the underground water that this company had been using.