1. MARKETING ISSUES

Hite to Launch Singha Beer Imported from Thailand [Korean, OSY]

http://www.fnnews.com/view?ra=Sent1001m_View&corp=fnnews&arcid=201312020100011150000436&cDateYear=

Summary: Hite Co., the leading brewery in Korea announced on December 2 that it had signed a partnership agreement with Shingha beer, Thailand to start importing and distributing the beer in Korea from January 2014.

COSTCO Korea Faces Tougher Competition as Local Retailers Expand in Membership Warehouse Discount Retail Segment [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013120207421

Summary: According to a fiscal report by COSTCO Korea submitted to the National Office of Financial Supervisory Service, COSTCO Korea’s total sales in fiscal year 2012/2013  amounted to 2.54 trillion won, up 10.8 percent from the previous fiscal year.  Marketers point out that COSTCO Korea’s sales growth in 2012/2013 period was much lower than past years.  For example, COSTCO Korea’s sales growth was 29.7 percent in 2009/2010, 32.1 percent in 2010/2011, and 9.8 percent in 2011/2012.  Considering the fact that COSTCO Korea added two new stores in 2012 (making the total number of stores in Korea to nine), the 10.8 percent growth in 2012/2013 period is considered worse than the 9.8 percent growth in 2011/2012 period.  The profit picture also indicates that COSTCO Korea’s performance is on a decline.  COSTCO Korea’s profit grew only 0.4 percent in 2012/2013 period, down sharply from 4.4 percent in the previous period.  The key reason behind COSTCO Korea’s declining performance is rapid expansion of Korean retail companies into the membership discount warehouse business which had been monopolized by COSTCO Korea in the past.  Traders by E Mart, Inc. (launched in 2010) and Big Market by Lotte Shopping Co. (launched in 2012) have so far opened 7 and 4 stores respectively.

Production & Sales of Ready-to-Cook Products by Korean Companies Doubles in Three Years … Increase of Small Families Generate Bigger Demand on Quick Meal Solutions [Korean, OSY]

http://news.donga.com/Main/3/all/20131201/59264373/1

Summary: According to a report released by the Ministry of Agriculture, Food and Rural Affairs (MAFRA) on December 1, 2013, production of ready-to-cook processed foods in Korea amounted to 364 billion won in 2011, up twice from 193 billion won in 2008.  MAFRA commented in the report that production and sales of ready-to-cook products would continue a strong growth in the coming year mainly due to a rapid increase of single and dual-income families.  Lotte Mart, a leading grocery chain retailer in Korea, also reported that sales of ready-to-cook products in its stores increased 60 percent during January through June this year compared to the same period last year.

Lotte Mart Launches Another Sales Promotion on American Live Lobsters … Offers 100,000 Lobsters Air Shipped from the U.S. [Korean, OSY]

http://www.lottemart.com/index.do?AFFILIATE_ID=00150001&CHANNEL_CD=00001

Sumary: Lotte Mart announced on November 29 that it started to offer 100,000 live lobsters  imported directly from American suppliers.  Each lobster was offered at 11,500 won and consumers were allowed to buy up to three lobsters each.  Lotte Mart hosted similar sales promotions on live American lobsters earlier in April and October earlier this year.

Companies Forecast Stronger Korean Won in 2014 … Leading Korean Business Groups Set Next Year’s Average Exchange Rate at $1=1,050 Won [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013112817381&meun=&nid=realtime

Summary: Samsung Group and Hyundai Motor Group have reportedly completed the business plan for next year recently based on $1=1,050 won exchange rate reflecting the forecast of stronger Korean won against international currencies.  The exchange rage that these leading Korean business groups used for  planning the upcoming year (2013) was $1=1,080 won.