1. BILATERAL/MULTILATERAL ISSUES

Assistant Deputy Minister of MOTIE Predicts Discussion on TPP Will not Reach an Agreement within This Year [Korean, LSH]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=001&aid=0006553768

Summary: Assistant Deputy Minister of Trade Industry and Energy (MOTIE) announced on Wednesday that concluding discussions on TPP within this year would be a difficult task to accomplish.  He continued that because Korea has not been involved in the discussion directly, there is still a lot of information for Korea to catch up on and also controversial issues to solve.  He especially emphasized the issue on rice tariffication in Korea.  The rice tariffication delay period finally terminates as of December 31, 2014, which means that Korea should decide again on whether to open the rice market or to extend  the postponement.  Thus, there should be more close cooperation between the domestic entities involved before the TPP issue comes up to the surface.  He also added that just like the stance that Philippines took under WTO agenda, there are no alternatives besides promoting waiver negotiations in terms of rice tariffication postponement.

2. ECONOMIC ISSUES

Korean Retail Market Likely to See Only 1 Percent Growth This Year, Korea Chamber of Commerce [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013102228321

Summary: Korea Chamber of Commerce released its ‘Retail Market Yearbook 2013’ on October 22.  The yearbook pointed out that the retail market sales saw only 1-percent growth during the first 8 months this year largely because of the sluggish economy and reduced growth of large-scale retail industries such as hypermarkets and department stores.  On the other hand, convenience stores and on-line shopping saw 7.7 percent and 7.9 percent of sales growth.

Agriculture, Livestock and Fishery Products Import Price on Decrease [Korean, LSH]

http://news.kbs.co.kr/news/NewsView.do?SEARCH_NEWS_CODE=2742847&ref=S

Summary: According to Korea Customs Office (KCS), the import price of agricultural, livestock and fishery products are on a downturn for 4 consecutive months. Import price trends report shows that September’s import price index was 108.5, which was 4.9 percent lower than last month and 3.6 percent lower than the same month last year. The decreasing margin is estimated to increase month by month. Major items with decrease in price are refrigerated onion, corns for feed stock, wheat, pork and chicken.

3. LIVESTOCK ISSUES

Major Domestic Supermarkets Adopt Chicken Grading System [Korean, LSH]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=422&aid=0000031863

Summary: Major Supermarkets in Korea instituted chicken grading system for the first time.  Livestock Quality Panelists decides the grade everyday according to freshness and packing date.  Only the products that are graded as first-class are sold to the consumers.  Ever since the egg grading system was introduced in supermarkets, the sales profit increased by 5.8%.  The supermarket sector expects increased consumer interest in chickens as well through implementation of the system.

Korean Milk Creates another Hallyu in Chinese Market [Korean, LSH]
http://www.hankyung.com/news/app/newsview.php?aid=2013102194031

Summary: In Beijing, major shopping centers have filled the stands with Yonsei Ranch Milk and surprisingly, the product is selling so well that it is constantly out of stock.  Although the price of Korean imported milk, compared toChinese milk is three times the price, the consumer preference for Korean milk increases due to high food safety, guaranteed taste and quality.  In fact, it is estimated that this year’s amount of export reached 20 billion Korean won.   Korea Trade-Investment Promotion Agency (KOTRA) expects that once Korea–China FTA meets the agreement, Korean product will have competitiveness in Chinese market and bring about tremendous export sales.  Chinese market and consumer behavior is changing and Korean products are adequate for the changing societal trend.

Decreasing Seolleongtang Consumption Leads to Decrease in Beef Leg Bone and Tailbone Price [Korean, LSH]

http://www.ytn.co.kr/_ln/0102_201310211755258870

Summary: Seolleongtang is a traditional Korean beef bone soup that is said to have a lot of health benefits.  However, as young generation of consumers’ diet changed drastically, demand on Seolleongtang decreased and the price of its ingredients (beef leg bone and tail bone) declined as well.  This resulted in dragging down the price of beef by-product to a considerable amount.  Compared to 2005, the price of beef leg bone dropped by 80 percent and price of tailbone dropped by 60-70 percent as well.  The problem with this phenomenon is that when the price of by-products decrease, price of more popular parts such as tenderloin and sirloin is expected to increase.  This happens because when the price of by-products decreases, the producers shift the burdens for revenue to more popular parts of meat in order to maintainoverall profitability.

4. MARKETING ISSUES

Household Spending on Coffee Declines for the First Time in 6 Years [Korean, OSY]

http://news.donga.com/3/all/20131021/58369206/1

Summary: According to the National Statistics Office data, Korean household’s spending on coffee products declined 1.4 percent in the first quarter this year, which was the first decline recorded since 2008.

Consumption of Livestock Products Surges as Consumers Look for Alternatives for Seafood out of Radioactive Concerns [Korean, OSY]

http://news.donga.com/3/all/20131020/58344509/1

Summary: According to Lotte Mart, sales of livestock products showed strong growth in October.  Sales of beef increased 14 percent, pork 5 percent, chicken 18 percent and duck 12 percent.  Lotte explained that consumers switched to livestock products from seafood for safety concerns.  Sales of seafood dipped during the period: hair tail -33 percent, mackerel -25 percent, pollack -72 percent, and squid -25 percent.

Lotte Mart and Home Plus to Start ‘Lobster War’ [Korean, OSY]

http://news.donga.com/3/all/20131023/58395001/1

Summary: Lotte Mart starts a sales promotion on live American lobster from October 24 through 30.  The promotion offers live American lobster at 10,000 won (about $9) each.  Lotte Mart sold out 20,000 American lobsters during a similar, four-day sales promotion carried out earlier in the month.  Lotte plans to sell 120,000 lobsters, air-shipped from the U.S. this time.  Home Plus also schedules a sales promotion on live American lobsters from October 24 through 30.  Home Plus stresses that the 50,000 lobsters it will offer at lower price (9,900 won each) are bigger lobsters (600 gram) than Lotte’s (500 gram).

IAEA to Dispatch Inspectors to Hukusima in November to Evaluate the Radioactive Risk of Sea Water [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013102226441

Summary: Japanese press reported that IAEA inspectors will visit FUKUSHIMA area to evaluate the radioactive risk of sea water around the area.  Yomiuri newspaper reported that the IAEA’s visit is made by Japanese government’s request and will replace inspections suggested by neighbor countries, including Korea.  The press added that the IAEA inspection would be able to generate outcomes after January 2014.

Cranberry Juice Reports Strong Sales [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013102363151

Summary: Shinsegae Food reported that its imports of cranberry juice (Ocean Spray brand) amounted to 132 metric tons during the first 9 months this year, up 428 percent from the same period of 2012.  Shinsegae explained that increased use of cranberry juice for home cocktail making was the main driving force behind the import growth.

5. OTHER MISCELLANEOUS ISSUES

Reorganization of the Environmental Friendly Agricultural Product Certification in Urgent Need [Korean, LSH]

http://www.nongmin.com/article/ar_detail.htm?ar_id=223922&subMenu=articletotal

Summary: Farmers and agricultural producers are deeply worried about losing consumer trust after the incidence of false certification swept over Korean society.  According to the Prosecution Office, several political figures were under prosecutor's investigation in allegations of corruption.  They were caught giving false certifications to disguise non-environmental-friendly products to environmental-friendly products in 395 farmhouses in Jeonnam province.  Not only them but also several other cases were detected giving out false Green Building Certifications.  The experts say that the supervision of the system and punishment for the unlawful entities should be fortified as soon as possible.  Moreover, 78 private certification institutions currently in operation pose less effective overseeing impact than the government.  Thus it has become an even more important task for the government to take actions and impose more legal force.