FAS/Seoul Monitoring of Media Reporting on Agricultural Issues

Today's Date: Tuesday September 30, 2014

For Coverage: September 20 ~ 30, 2014

1. BILATERAL/MULTILATERAL ISSUES

Canada becomes Korea’s 12th FTA Partnership [English, HYD]

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=2995220

President Park Geun-hye and Canadian Prime Minister Stephen Harper held a summit on Monday in Ottawa and issued a joint statement spelling out the future direction of their bilateral partnership.

Yoon Sang-jick, the Minister of Trade, Industry and Energy, and his Canadian counterpart Ed Fast signed a Korea-Canada free trade agreement that officially made Canada Korea’s 12th FTA partner and Korea Canada’s first Asian FTA partner.  Canadian beef, which is currently taxed at 40 percent in Korea, will be freed of tariffs by 2030. Pork, which currently has a 22.5 percent tariff, will also become tax exempt in 13 years. About 19 percent of Canadian-produced agricultural products, such as rice, cheese, tangerines and ginseng, will either be excluded from the FTA entirely or it will take 10 years before taxes are eliminated.

2. MARKETING ISSUES

Hypermarket Chains to Stage "Lobster War" Again This Fall [Korean, OSY]

http://news.donga.com/3/all/20140926/66725662/1

Summary: Leading hypermarket store chains are likely to compete for lobster sales promotions this fall once again.  Lotte Mart announced that it would start selling 150,000 lobsters air imported from the U.S. on October 1.  Lotte Mart added that these lobsters were purchased earlier this year from a partner supplier in Maine and had been kept in a sea aquaculture farm for the last three months before being shipped to Korea.  Lotte Mart pointed out that the advance purchase allowed to lower the retail price.  Other leading hypermarket store chains, E Mart and Home Plus, also plan to offer massive lobster sales promotions starting in October. 

Panda Express Opens Its First Store in Korea [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2014092486051

Summary: Lotte Department Store announced that Panda Express opened its first outlet in Korea on September 24 in Lotte Department Store Sogong branch.  Lotte added that it took three years bring Panda Express to the Korean market.

Seoul to See Sharp Increase of Hotels ... More Rooms are Needed to Accommodate Foreign Travelers [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2014092488081

Summary: It is reported that 23 new hotels have opened in Seoul this year through August, adding 2,090 guest rooms.  Additional 49 hotels (6,700 guest rooms) are planned to open by the end of this year.  The sharp increase of new hotels in the city is mainly due to strong demand for additional guest rooms for fast-increasing foreign travelers, particularly from China.  It is also notable that many of the new hotels are medium-priced "business hotels" as the foreign travelers are looking for more affordable place to stay.

E Mart Opens Its First Distribution Warehouse for On-Line Business Only ... Plans to Open 4 Additional Warehouses by 2020 [Korean, OSY]

http://news.donga.com/3/all/20140923/66663949/1

Photo: Automated product picking in E Mart 'On-line shopping' Distribution Warehouse

Milk Powder Inventory Hits 11 Year High ... Due to High Production of Milk under Good Weather [Korean, OSY]

http://news.donga.com/3/all/20140922/66606872/1

Summary: According to the Korea Dairy industry Association, the amount of milk powder inventory kept in the industry amounted to 14,896 metric tons at the end of July 2014, which was the record high since July 2003.  Industry analysts explained that the local weather pattern had been very favorable to milk production this year and had resulted in over supply of milk.  Unless the industry finds a new demand for fluid milk or powered milk in the coming months, the inventory level of milk powder is likely to remain high.