Date: February 1, 2011
Source: Yonhap News
Korea had the second highest rise in food prices among the Organization for Economic Cooperation and Development (OECD) members in December.
Food prices in Korea jumped 10.6 percent in December from a year earlier, higher than the OECD average of 2.6 percent, according to the data from the OECD. Among the 33 surveyed countries, Estonia topped the list at 12.2 percent.
It was followed by Korea and then Hungary and Turkey with 7.6 percent and 7 percent, respectively. The overall consumer inflation rate in December came to 3.5 percent in Korea, Asia’s fourth-largest economy, higher than the OECD average of 2.1 percent.
Seoul has been stepping up efforts to fight mounting inflationary pressure. In January, the Bank of Korea (BOK) raised the key interest rate by 0.25 percentage point to 2.75 percent, the third rate hike since July.
Before then the central bank kept the rate loose as the nation was focused on economic recovery. However, recent inflationary pressure has been putting pressure on the central bank to raise the rate. All eyes are now on the central bank whose monetary policy committee will be meeting on Feb. 11 to decide whether to raise the key rate or keep it at the current level. Korea’s consumer inflation is forecast to reach 3.5 percent in 2011.
Date: February 3, 2011
Source: Hankyung Economy
Imports of U.S. beef rose sharply last year as Korea continues a three-month-long battle to contain foot-and-mouth disease (FMD), according to the U.S. Meat Export Federation. Korea imported 84,822 tons of U.S. beef in 2010, up 42.6 percent from a year earlier.
The figure was higher than the overall increase in beef imports, indicating the revived popularity of the American beef, which lost ground in 2008 amid public opposition against U.S. beef imports because of FMD fears.
Overall beef imports rose 16.2 percent last year from 2009, according to the group. U.S. beef accounted for 32.5 percent of Korea’s imported beef market last year, up 6 percentage points from 2009, it said.
American beef also narrowed its gap with Australian beef, which claimed 53 percent of the market. As for pork, U.S. imports were the most popular. Korea purchased 75,362 tons of U.S. pork in 2010, accounting for 26.1 percent of the nation’s imported pork consumption. Canadian pork was the runner-up with an 18.9 percent share.
Market watchers attributed the rising popularity of U.S. meat in Korea to the spread of animal diseases that forced the nation to cull over 3 million livestock in the last three months, due to the most severe FMD outbreak in the country’s history.
In December, imports of U.S. beef to Korea spiked to nearly 2,500 tons a week, according to the federation.
The Korean government estimates that FMD has resulted in more than 2 trillion won ($1.8 billion) of damage since the outbreak of the disease was reported in November.
After conventional quarantine methods and culling animals failed, the farm ministry has been vaccinating livestock. There are some 3 million heads of cattle and 10 million pigs in the country.
“As local meat supplies decline and public concerns rise about the disease, Korea is expected to increase their dependence on imported meat,” an industry official said.
- Economic growth and a favorable trade balance will boost the currency
Date: February 7, 2011
Source: JoongAng Daily
The average exchange rate of the Korean won is expected to hover at 1,093 won to the U.S. dollar this year, a report by the Korea Development Institute (KDI) said.
The report said that the local currency should gain in value against the dollar on the strength of such developments as steady economic growth and a favorable trade balance.
In 2010, the Korean won traded at an average 1,157 won to the dollar, with the KDI expecting the won to appreciate in the coming years.
The think tank’s estimate, based on findings released by Global Insight, also said the foreign exchange rate of the won will reach an average of 1,023 won to the dollar next year and reach 980 won to the dollar in 2014.
The latest findings predicted that Korea’s short-term three-month interest rate will stand at an average of 2.7 percent, with the long-term 10-year rate to reach 4.8 percent for the whole year.
Global Insight said economic growth of newly emerging economies such as Taiwan, Hong Kong and Singapore will be between 4.2 percent and 4.7 percent this year.
This is lower than Seoul’s growth target set at five percent. The estimate by the international market forecaster showed many developing economies may experience inflationary pressure in 2011 and pose serious economic challenges.
It said consumer prices for China and Indonesia this year may rise by 3.8 percent and 5.8 percent, respectively, with the inflation rate in India and Russia jumping by more than seven percent. Korea said it wants to control inflation at three percent for the year, although consumer prices gained 4.1 percent in January, mainly due to a surge in prices for fresh food and energy.
This exceeds the government’s target of under 4 percent.
Date: February 8, 2011
Source: Hankyung Economy
The launch of the Galaxy Player signifies two notable developments.
One is that Samsung and Google have formed a closer, stronger partnership that has moved beyond the realm of smartphones, as the Galaxy Player is the world’s first MP3 player based on Google’s Android operating system.
Another is that the Galaxy lineup is now complete, consisting of a smartphone (Galaxy S), a tablet PC (the Galaxy Tab) and an MP3 player. At first glance, the Galaxy Player appears similar to the company’s smartphone.
The two certainly look identical, and the MP3 player more or less is a version of the Galaxy S, minus the phone capabilities. But there’s more to this new device than initially meets the eye.
One key difference between the Galaxy Player and the Galaxy S lies in the display.
While each is roughly the same size, the Galaxy Player features a Super Clear LCD touch-screen rather than the popular Super Amoled (active-matrix organic light-emitting diode) technology found on the Galaxy S.
Such a choice was unavoidable given the ongoing shortage of Amoled panels due to rising demand from handset makers. But it wasn’t such a bad one since the Super Clear LCD is just as crisp and beautiful as the Super Amoled screen.
Perhaps the biggest strength of the Galaxy Player is how well it performs its key task: playing music.
The device is equipped with SoundAlive, Samsung’s own audio enhancing technology, which allows users to enjoy the best sound quality depending on the genre of music and the atmosphere they are seeking to create.
So why buy the Galaxy Player when you could instead get a smartphone like the Galaxy S that plays music and allows you to make phone calls? Well, if you love music and insist on good sound quality, the Galaxy Player is the way to go. Market observers are not only comparing the Galaxy Player to the Galaxy S, but also to Apple’s iPod Touch 4G.
It’s appropriate to note that the Galaxy Player comes with terrestrial digital multimedia broadcasting (DMB) capability. For soap opera junkies - or those who have long commutes - that could be a decisive factor when debating whether to buy the Galaxy Player or the iPod Touch. Still, the Galaxy Player is not without some downsides. The biggest disappointment is that it only offers Wi-Fi connectivity rather than 3G connectivity.
Although Wi-Fi zones are increasing, people are becoming spoiled by unlimited 3G data packages these days. Other weak points include a relatively low battery life - 4.5 hours for video viewing and 36 hours for listening to music - and a not-so-cheap price of 399,000 won ($360.34) for an 8-gigabyte model and 459,000 for a 16-gigabyte model.
Date: February 9, 2010
Source: YONHAP News
In the business world, the pursuit of profits sometimes makes for strange bedfellows. And in the race to be first in the local mobile payment market, credit card firms, telecommunications companies and mobile phone makers are forging unlikely alliances. With the country’s “cashless” payment culture and the ubiquitous presence of mobile phones creating a whole new way to pay for goods and services - via mobile devices - companies in some industries are looking to set the standards for the new business and get in on the first train.
Yesterday, for instance, sources confirmed that officials from Samsung Electronics, LG Electronics and Pantech met with representatives of BC Card and the Korea Financial Telecommunications & Clearings Institute on Jan. 31 to discuss the standardization of local mobile payments. “Although it’s too early to say, the meeting could be the foundation for a committee for mobile payment standardization,” said an official who was present at the gathering. This was just the latest among several alliances by Korean firms hoping to “get in early” on the mobile contactless payment market.
Another alliance that started last year includes Shinhan Card - the largest credit card firm in Korea - Samsung Card, MasterCard and telecommunication rivals SK Telecom and KT. Industry No. 2 KB Card, to be spun off from Kookmin Bank next month, reportedly joined the alliance earlier this year.
The credit card industry, which could become a secondary player in the new business, originally formed its own alliance.
In May of last year, trade group Credit Finance Association (Crefia) and 10 credit card firms including Shinhan, KB, Hyundai, Samsung, Lotte, Hana SK, BC and NH started a group to set a standard for mobile payment without being swayed by telecommunications giants or foreign card firms. However, that group has stalled after three meetings because of its weakness in technology issues.
Mobile contactless payments, as opposed to card-based payments, are burgeoning, presenting new opportunities for firms, experts said. According to the latest data from Crefia, a whopping 56.1 percent of retail purchases in Korea were made using cards between the first and third quarters of 2010.
At the same time, the mobile phone penetration rate reached 101 percent last year, with the number of operating mobile phones exceeding the population.
A shot of Hana SK Card’s mobile payment system. With mobile payments poised for growth, firms are forming alliances to set the industry standard and get the first seats on the bandwagon. [YONHAP]
- Introduction of new vehicles and promotional efforts fuel spike
Date: February 10, 2010
Source: Yonhap News
Foreign vehicle brands in Korea saw a large boost in sales last month, putting them on pace to sell over 100,000 cars in the local market for the first time, a local trade association said yesterday.
A total of 8,659 imported vehicles were sold here in January, up 35.8 percent from the same period last year, according to the Korea Automobile Importers and Distributors Association (Kaida).
The figure also marks a 4.4 percent increase from December when 8,294 foreign vehicles were sold in the country.
There are 23 foreign automakers with official dealers in Korea, and they enjoyed a record in 2010 as their combined sales here jumped 48.5 percent on-year to 90,562 units.
A Kaida official attributed last month’s sales increase to aggressive marketing by the auto brands.
“Sales in January increased on the introduction of new vehicles and active market promotion by different brands,” Yoon Dae-sung, a Kaida official, said.
Mercedes-Benz recuperated to take the position of top-selling brand in Korea with 1,750 vehicles sold in January, accounting for a little over 20 percent of entire sales by all foreign brands, according to Kaida.
BMW was second with 1,517 units sold, followed by Volkswagen with 1,243 units and Audi’s 863.
The data released by Kaida also showed that Korean customers are apparently growing more diverse in their tastes, as sales of compact cars and high-end luxury vehicles rose while those of mid-size sedans dropped.
Sales of vehicles with a 2.0-liter or smaller engine rose 73.7 percent on-year to 3,178 units last month while those of cars with an engine displacement between 2.0 and 3.0 liters dropped 1.3 percent to 2,745 units. Sales of vehicles with an engine displacement between 3.0 liters and 4.0 liters rose 61 percent to 2,193 units.
Date: February 11, 2011
Source: JoongAng Daily
The won appreciated against the U.S. dollar for the third consecutive trading days as it edged close to the 1,100 won mark. Analysts say it’s only a matter of time before the won breaks the 1,100 won barrier because of the bullish Seoul stock market and the fundamentally strong growth of the Korean economy.
The Korean won has remained above the 1,100 won mark for nearly two and half years. The last time it fell below 1,100 won was on Sept. 10, 2008, when the won closed at 1,095.50 won against the U.S. dollar.
The won yesterday closed at 1,140.70 won, 2.80 won lower than Monday. However, during the day it strengthened to 1,102.50 won. “The won for an extensive period has been hovering around 1,120 won against the dollar but it could appreciate to 1,100 won this month,” said Lee Jin-woo, head of the NH Investment and Futures research center, in a report released yesterday.
Lee said further appreciation of the won is likely,as there is still room for the stock market to go up, triggered by the clear recovery in the U.S.. including an improvement in the job market and the better than expected earnings results of U.S. companies.
Although the appreciation of the won would stabilize rising consumer price, there are growing concerns that it might harm exports, which has been the driving force behind Korea’s recent rapid economic growth.
More than 85 percent of export income is paid in U.S. dollars. The second largest foreign currency is the euro, which accounts for around 6 percent.
“When the won appreciates over 1,100 won against the dollar, the psychological burden may affect exporters while the same situation will come as an opportunity for importers,” said Kim Jung-hoon, analyst at Korea Investment and Securities.
In a survey by the Korea Trade Insurance Corp., 51.3 percent of Korean exporters said they were exposed to foreign exchange risks, particularly among small and medium-sized companies. But as conglomerates such as Samsung and Hyundai Motor are relocating plants overseas, they will be less affected by a strong won in the future, analysts said.
- Operating system developed by Google is dominating local smartphone war
Date: February 11, 2011
Source: Yonhap News
A year ago today, all eyes in the Korean tech world were focused on the long-awaited debut of the Motoroi smartphone.
The new product, made by Motorola, ranked as the first smartphone featuring Android - a free, open-source operating system - to hit store shelves in Korea. Just three months earlier, Apple’s iPhone, which runs on the company’s exclusive iOS operating system, arrived in the country to much fanfare.
Demand soared through the roof, with sales topping 200,000 units in just 33 days.
So observers were curious as to how the first Android-based phone would fare in a country where Apple had already taken a commanding lead. Fast-forward 12 months, and the landscape has changed significantly.
Android is now the best-selling smartphone platform in Korea, with Apple ranking a distant second. Of the 8.97 million smartphones sold in the country to date, 6.03 million - or 67.2 percent - run on the Android operating system, according to industry data.
Apple phones, on the other hand, account for 2.07 million, or 23 percent, of the sales figure. Android has also made impressive gains globally, overtaking Nokia’s Symbian for the No. 1 spot in the fourth quarter of last year. Android now controls 33 percent of the total global market, up from just 9 percent a year earlier. Symbian, meanwhile, has 30.2 percent of the market, and Apple ranks third with a 16 percent share.
Andy Rubin, Google’s vice president for engineering and the founder of the Android operating system, said in a recent interview with the Financial Times that the Asian market - and in particular Korea - is driving up sales of the company’s operating system.
“After the U.S., we saw Asia go crazy,” he said, adding that sales in Korea have been going “berserk” over the past several months.
So what’s the secret to Android’s rapid growth? The platform’s biggest strength lies in its openness, which allows other companies and even amateurs to develop applications that can be used by all.
Observers and users also point to a diverse lineup of handset models, a wide array of mobile carriers offering service for Android phones and a wealth of software applications.
Google joined forces with various handset makers including Samsung Electronics, LG Electronics, Pantech and Motorola to release some 30 different smartphone models last year alone.
Furthermore, the phones are also available through all three Korean mobile carriers - SK Telecom, KT and LG U+. Apple, on the other hand, has only released three iPhone models in Korea since November 2009, and they’re only available through KT. “The best part of Android phones is the variety of applications available at its own store [Android Market] as well as application markets run separately by mobile carriers and handset makers,” said a user of Samsung Electronics’ Galaxy S who wished to remain anonymous.
But Android is not without weaknesses. One major downside is its high vulnerability to security threats, which is tied to the fact that it’s an open-source technology.
Some users are also frustrated by the frequent release of new versions of Android, saying they feel like they have to keep upgrading.
Nonetheless, many observers are convinced that the Android will retain its market dominance for the foreseeable future. According to market researcher Strategy Analytics, an estimated 60.1 percent of smartphones in Korea will be based on the Android operating system in 2015, while 18.9 percent will run on Apple and 13.6 percent on Windows.
Date: February 11, 2011
Source: Maeil Business Newspaper
At a milk distribution center in Hanam, Gyeonggi yesterday, some empty, straggling cardboard boxes were all that was left in an expansive warehouse that should have been filled with shipments of dairy products. In one corner, a lone box of imported whipped cream was the only dairy product.
Because of a growing milk shortage, the dairy company doesn’t have the supply needed to meet normal demand.
“It will be an even bigger problem [when school starts in March] because we have to meet students’ needs,” said Kim Hyo-young, who runs the distribution center.
“We have planned [measures] such as substituting soy milk for milk.” Early fears about the effects of foot-and-mouth disease (FMD) have become reality as a milk shortage is hitting the dairy industry.
And the shortage comes with irony: local diary farms are being forced to throw away several hundred tons of milk a day as dairy processors suspend production due to a shortage of raw milk.
As the worst outbreak of FMD sweeps the country, dairy farms are the first to struggle.
According to the Korea Dairy Committee, some 30,121 dairy cows were culled before the Lunar New Year holidays.
But dairy farms within a 500 meter (1,640 feet) radius of an FMD outbreak are also obligated to throw away all their milk, which could possibly be tainted. Because dairy cows get sick if not milked, farms cannot just stop production.
So local farmers milk the cows and then throw it away to the tune of 200 tons a day in February, according to the Ministry for Food, Agriculture, Forestry and Fisheries.
That’s the equivalent of a million 200 milliliter cartons of milk. Medically speaking, eating a diseased cow’s meat or drinking its milk won’t hurt you, but modern consumers wouldn’t put up with the idea.
Even throwing away milk is a major problem for farmers because pouring it down drains isn’t allowed. The putrefying smell is another factor.
“Milk sours easily, and the smell of milk gone bad is worse than you think,” said an official in charge of livestock at the Gyeonggi Provincial Government.
In the end, the Agricultural Ministry sent out a notice to regional governments on Feb. 2 to set aside state-owned land as places to discard milk.
Further up the industrial chain, dairy processors are battling a 10 percent drop in raw milk supply compared to usual.
Local industry leader Seoul Milk has stopped production of two products used by restaurants and other businesses, which made up 5 percent of the company’s daily output, or 50 tons.
“It’s a measure to adjust the amount of supply in a way that minimizes damage done to regular consumers,” said a Seoul Milk official. Smaller milk companies such as KangSungWon Milk in Anseong, Geyonggi, have stopped shipments to retailers altogether, and have even abandoned home delivery in some areas.
Major milk manufacturers have stopped running milk ads: Seoul Milk let an advertisement contract with soccer star Cha Du-ri run its course, and Maeil Dairies has delayed running a new ad featuring figure skating superstar Kim Yu-na.
Bakeries, confectionery manufacturers, retailers, restaurants and cafes are all feeling the milk crunch. “Should the situation continue, we are preparing measures to use substitute products for milk, such as powered milk, and diversify our milk dealerships,” said a representative of bakery chain Tous Les Jours.
There are calls for the raw milk being thrown away to be used. The Gyeonggi Provincial Government suggested early this month that companies pasteurize milk at higher temperatures.
However, dairy industry trade groups are opposed. “It’s true that foot-and-mouth disease is harmless to humans, but if we use the milk to make baby products or other processed foods, dairy products as a whole will be shunned by the consumer,” said a Korea Dairy Committee official.
Date: February 11, 2011
Source: Newsis
The government announced yesterday a range of measures to stabilize the supply of milk, as foot-and-mouth disease and a colder-than-normal winter are causing decreased milk production.
Seoul said that in an effort to boost production, it would scrap a policy it established in 2002 that aimed at reducing milk surpluses. The Ministry of Food, Agriculture, Forestry and Fisheries said it would reduce tariffs on imported powdered milk, eliminate milk production quotas after production rights are transferred between farmers and consider the import of dairy cattle.
In the short term, the ministry plans to eliminate tariffs on 9,000 tons of powdered milk through June. It also plans to discontinue a reduction in milk production quota for the next two years, after introducing the quota system in 2002. If the foot-and-mouth disease epidemic continues, the ministry said it would consider importing dairy cows from mad-cow-disease free nations including New Zealand and Australia.
Under existing rules, 1,067 dairy cattle can be imported tax free annually under a minimum market access arrangement.
This year is expected to see a shortage of 234,000 tons of milk because of the culling of 34,000 dairy cows and unusually cold temperatures.
The dairy cows slaughtered made up 7.9 percent of 430,000 population as of last December.
Inventoried powdered milk has fallen to just 1,000 tons from the usual 5,000 to 6,000 tons, causing prices to rise.
While the ministry said the supply of fresh milk for consumers is not in jeopardy, which accounts for 74 percent of annual milk consumption, milk to make bread and biscuits is expected to be in short supply.
"The consumption of fresh milk people drink is declining, but the use of milk in daily products like yogurt as well as manufactured goods such as canned milk coffee [has been rising]," said Lee Seong-ju, deputy director of the livestock department at the ministry.
Milk production is expected to decline 8 percent from 2.07 million tons last year to 1.91 million tons this year, falling short of the estimated 1.94 million tons in milk overall consumption for the year.
Office of Commercial Affairs, Royal Thai Embassy in Korea
Source : http://www.depthai.go.th