Today's Date:   Wednesday,  March  13, 2013

1. ECONOMIC ISSUES

S. Korea's tariff revenue shrinks 10.7 pct in 2012

http://english.yonhapnews.co.kr/news/2013/03/12/0200000000AEN20130312002000320.HTML

South Korea's tariff revenue dropped 10.7 percent on-year in 2012 as free trade deals with the Unite States and other countries resulted in lowering the overall tax rates on trade, data showed Tuesday.  According to the data provided by the finance ministry, the country's customs agency collected 9.82 trillion won (US$8.98 billion) in tariffs last year, compared with 10.99 trillion won tallied a year earlier.

Korea’s Ag Exports to the U.S. Increased 12% during March – December 2012 under KORUS FTA … U.S. Ag Exports to Korea Decreased 17.4% [Korean, OSY]

http://news.donga.com/3/all/20130311/53600051/1

Summary: Korea’s exports of agricultural products to the United States amounted to $352 million during March 2012 through the end of 2012, up 12 percent compared to the same period of the previous year.  On the other hand, Korea’s imports of agricultural products from the United States amounted to $3.8 billion, down 17.4%.  The result of ag trade between the two countries during the first year of KORUS FTA indicates that KORUS FTA might not be as unfavorable to the Korean agriculture as expected in the past.  However, the decline of U.S. imports to Korea was largely due to reduced corn harvest from drought so it might be too early to draw any conclusion on the trade pattern between the two countries under KORUS FTA.

2. MARKETING ISSUES

Bottled Coffee Beverages and Instant Coffee Mixes to be Mandated for Country of Origin Labeling from the Second Half 2013 [Korean, OSY]

http://news.donga.com/3/all/20130312/53652301/1

Summary: Ministry of Agriculture, Forestry, Fishery and Food (MAFFF) announced that mandatory country of origin labeling will be expanded to processed coffee products, including bottled coffee beverages and instant coffee mixes, from the second half 2013.

Ottoogi to Launch ‘Nature Made’, a Leading Health Nutritional Product Brand in the U.S. [Korean, OSY]

http://www.newscj.com/news/articleView.html?idxno=175253

Summary: Ottoogi, a leading food processor in Korea, announced on March 11 that it had signed an exclusive distribution partnership with Pharmavite USA for vitamins and other nutritional products under ‘Nature Made’ brand.  Pharmavite is a leading supplier of health & nutritional products in the U.S.  Launching of the products is scheduled in May.

Seoul City Gov’t Seeks to Restrict Sales of Fresh Vegetables, Tofu, Seafood in Large-Scale Retail Stores [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013030862261

Summary: Seoul City Gov’t has announced on March 8 a list of 51 products that it intends to restrict sales in large-scale retail stores.  The list includes tobacco, soju, cabbage, bean sprouts, tofu, eggs, mackerel, hairtail, beef bones, Miyuk seaweed, and waste bags.  The list is a recommendation so it has no legal obligation.  However, retail chains have shown strong opposition to the announcement.  According to the industry, the list means W2.2 trillion of annual sales.