Voluntary Report - FAS internal use only

**Date:** 11/28/2006

**GAIN Report Number:** KS6121

KS6121

**Korea, Republic of**

**Trade Policy Monitoring**

**Agriculture Press for November 22-28, 2006**

**2006**

**Approved by:**

![](media/image1.wmf)Stan Phillips

U.S. Embassy

**Prepared by:**

Susan Phillips

**Report Highlights:**

Given the recent bone fragment finding in the first shipment of U.S.
beef and the HPAI outbreak in Korea, there were several editorials about
food safety. It was also noted that the recent violence at an anti-FTA
protest rally may actually turn public opinion. Attitudes toward the FTA
may be shifting, according to the Korean International Trade
Association, who stated that securing a support base among the public is
as important as the negotiations.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Seoul \[KS1\]

\[KS\]

Table of Contents

[AGRICULTURE FTA NEWS 3](#agriculture-fta-news)

[Food Imports Source of International Spats
3](#food-imports-source-of-international-spats)

[The Korea Times, November 28, 2006, By Ryu Jin (Edited English Posting)
3](#the-korea-times-november-28-2006-by-ryu-jin-edited-english-posting)

[GENERAL FTA NEWS 4](#general-fta-news)

[FTA With U.S. Will Upgrade Korean Economy
4](#fta-with-u.s.-will-upgrade-korean-economy)

[Korea Herald, November 23, 2006 By Lee Hee beom (Edited English
Posting)
4](#korea-herald-november-23-2006-by-lee-hee-beom-edited-english-posting)

[Police Chief Orders ban on Anti-FTA Protests
6](#police-chief-orders-ban-on-anti-fta-protests)

[The Korea Herald, November 24, 2006, By Shin Hae-in (Edited English
Posting)
6](#the-korea-herald-november-24-2006-by-shin-hae-in-edited-english-posting)

[BEEF 7](#beef)

[U.S. Advocates Raise Red Flags on 'Beefy Risks'
7](#u.s.-advocates-raise-red-flags-on-beefy-risks)

[The Korea Times, November 22, 2006, By Kim Yon-se (Edited English
Translation)
7](#the-korea-times-november-22-2006-by-kim-yon-se-edited-english-translation)

[S. Korean Inspectors Find Bone Fragment, Ban Sale Of U.S. Beef
7](#s.-korean-inspectors-find-bone-fragment-ban-sale-of-u.s.-beef)

[Yonhap News, November 24, 2006 (Edited English Translation)
7](#yonhap-news-november-24-2006-edited-english-translation)

[Bone Fragment Detected in Imported U.S. Beef
8](#bone-fragment-detected-in-imported-u.s.-beef)

[Ministry of Agriculture & Forestry Press Release, November 24, 2006
(FAS/Seoul Translation)
8](#ministry-of-agriculture-forestry-press-release-november-24-2006-fasseoul-translation)

[War on the Dining Table: Securing Food Safety
9](#war-on-the-dining-table-securing-food-safety)

[POULTRY 10](#poultry)

[Suspected AI Outbreak in Iksan, North Jolla Province
10](#suspected-ai-outbreak-in-iksan-north-jolla-province)

[Ministry of Agriculture & Forestry Press Release, November 23, 2006
(APHIS/Seoul Translation)
10](#ministry-of-agriculture-forestry-press-release-november-23-2006-aphisseoul-translation)

[The Case in Pyongtaek, Gyonggi Province Confirmed as Low Path
11](#the-case-in-pyongtaek-gyonggi-province-confirmed-as-low-path)

[Ministry of Agriculture & Forestry Press Release, November 24, 2006
(APHIS/Seoul Translation)
11](#ministry-of-agriculture-forestry-press-release-november-24-2006-aphisseoul-translation)

[S. Korea Scurries To Stem Spread Of Highly Virulent Bird Flu
11](#s.-korea-scurries-to-stem-spread-of-highly-virulent-bird-flu)

[Yonhap News, November 26, 2006 (English Posting)
11](#yonhap-news-november-26-2006-english-posting)

[Korea Battles Fresh Bird Flu Outbreak
12](#korea-battles-fresh-bird-flu-outbreak)

[The Chosun Ilbo, November 27, 2006 (Edited English Posting)
12](#the-chosun-ilbo-november-27-2006-edited-english-posting)

[Seoul Moves to Calm Bird Flu Fears
13](#seoul-moves-to-calm-bird-flu-fears)

[Korea Herald, November 27, 2006 By Kim Ji-hyun, (Edited nglish posting)
13](#korea-herald-november-27-2006-by-kim-ji-hyun-edited-nglish-posting)

[Second Confirmed Bird Flu Outbreak
14](#second-confirmed-bird-flu-outbreak)

[Korea Herald, November 28, 2006, By Yoo Soh-jung (Edited English
Posting)
14](#korea-herald-november-28-2006-by-yoo-soh-jung-edited-english-posting)

[BIOTECHNOLOGY 14](#biotechnology)

[S. Korea, Denmark Agree To Deepen Biotechnology Ties
14](#s.-korea-denmark-agree-to-deepen-biotechnology-ties)

[Yonhap News, November 23, 2007 (Edited English Posting)
14](#yonhap-news-november-23-2007-edited-english-posting)

[THIRD COUNTRY FTA NEWS 15](#third-country-fta-news)

[Successful Deal With EU To Help Create 300,000 Jobs
15](#successful-deal-with-eu-to-help-create-300000-jobs)

[Yonhap News, November 24, 2006 (Edited English Translation)
15](#yonhap-news-november-24-2006-edited-english-translation-1)

[Canada Seeks Wider Agricultural Access in FTA Talks
15](#canada-seeks-wider-agricultural-access-in-fta-talks)

[The Korea Herald, November 27, 2006 (Edited English Posting)
15](#the-korea-herald-november-27-2006-edited-english-posting)

### AGRICULTURE FTA NEWS

# 

# Food Imports Source of International Spats

## The Korea Times, November 28, 2006, By Ryu Jin (Edited English Posting)

The "War of Foods\'\' is intensifying across the world as farm products
freely cross borders, diseases spread and the security of food supply
emerges as a hot issue in this era of globalization.

As the leaders of the world\'s biggest economies are busy discussing
free trade in agricultural goods at the World Trade Organization (WTO),
consumers are also stepping up their resistance to protect their "food
sovereignty\'\' at the dining table.

Fears of human infection by mad cow disease, concentrated in Britain in
the past decade, have been the bone of contention in trade. Like South
Korea, Japan lifted its ban on U.S. beef late last year. But fears are
not fading away among consumers. Imports have stopped and started.

Genetically modified organisms (GMOs) are another source of trade
disputes between countries, especially between the EU and the United
States.

Lobbied by large manufacturers, economic powers such as the United
States can appear indifferent to warnings from scientists that people
who eat products infected with BSE can develop the incurable
degenerative neurological disorder known as Creutzfeldt-Jacob disease.

GMO producers in America are likely to seek ways to expand sales of
their crops to the Asian markets because the EU has prohibited the
import of all the genetically modified crops since late 1990s.

Experts said friction could increase among advanced countries and the
developing and underdeveloped countries as trade of agricultural and
marine products increase.

Food security is not only an international affair, but also a domestic
problem.

Last year, Chinese kimchi imported into South Korea came under fire
after it was found to contain parasite eggs. However, it was later found
that local kimchi also had parasite eggs.

Chinese fish also prompted jitters here, as some samples checked by the
inspectors were found to contain malachite green, a cancer-causing agent
used as a preservative. But it was also found that South Koreans raising
eels use the harmful material at home.

Last month, lawmakers from the ruling and opposition parties grilled
officials from the Korea Food & Drug Administration (KFDA), which
concealed a report that some 1.8 percent of the domestic farm products
contained more heavy metal than allowed.

According to the report, rice, beans, potatoes and spinach from not only
abandoned mine areas, but also from general farmland were contaminated
by harmful heavy metals, such as lead and cadmium.

The Citizens\' Coalition for Food Security, a nongovernmental
organization, said the safety of foodstuffs, domestic or imported
products, should be taken care of by specialists "from farm to table\'\'
in a consumer-oriented manner. "A scientific and consumer-oriented
management of food security should be introduced in earnest to protect
the food sovereignty of the people,\'\' said Chang Un-yong, a public
relations manager of the organization.

### GENERAL FTA NEWS

# FTA With U.S. Will Upgrade Korean Economy

## Korea Herald, November 23, 2006 By Lee Hee beom (Edited English Posting)

**KITA head stresses the importance of enhancing public awareness of
trade agreement**

This is the fourth in a series of articles on the ongoing Korea-U.S.
negotiations for a free trade agreement. - Ed.

Korea and the United States have completed their fourth round of FTA
negotiations, which began last June. Unlike the previous public attitude
towards the FTA talks, the public discussion is now centered on which is
a right direction in producing a favorable FTA to serve the best
interests of Korea. So the shift in the focus of the public discussion
can be viewed as desirable.

Extensive research has been conducted on the expected benefits of the
KORUS FTA. Although exact analyses of the possible effects of the FTA on
detailed items will be possible, we can\'t overemphasize the reason the
KORUS FTA should be concluded and the significance the FTA has for the
overall Korean economy.

Above all, Korea\'s FTA with the United States, one of its top three
trading partners, can be regarded as the heart of FTA promotion policies
which Korea has been actively pursuing. For Korea, the United States has
been traditionally its most important partner in terms of trade and
investment. Recently, the shares of the two countries have been
dwindling in bilateral trade and investment. In this sense, the KORUS
FTA is expected to provide an opportunity for the two nations to put
their bilateral trade and investment back on a recovery track by
reversing the current situation. We must not give up an opportunity to
secure stable access to the U.S. market, the world\'s biggest and most
advanced market, which is vital to achieving a sustainable growth of
trade considered as the backbone of the Korean economy.

Korea is now working toward achieving the goal of \$1 trillion in trade
and a per capita income of \$20,000. Up until now, Korea depended mainly
on quantitative inputs for its economic growth. From now on, however, it
is necessary for Korea to shift the quantitative growth to a qualitative
growth. To that end, it is required to strengthen the efficiency in each
sector of the Korean economy. Thus, FTAs with advanced countries like
the United States are expected to upgrade the Korean economy to a higher
level in quality by improving domestic systems and attracting more
investment into Korea.

What\'s more, if the KORUS FTA is concluded, Korea will be placed in a
more advantageous position in the negotiation tables with Japan, the
European Union, and China with which Korea has been currently discussing
FTAs. Furthermore, there will be noneconomic benefits. Through the KORUS
FTA, Korea and the United States will be able to elevate their security
alliance to a more comprehensive relationship to include bilateral
economies. In the meantime, the KORUS FTA will serve as an effective
instrument to bring stability to the East Asian region and the Korean
Peninsula, which are now in unstable situations due to the North Korean
nuclear issue and other issues.

**Future tasks**

In the remaining rounds of negotiations, the two sides will go through a
final phase of reaching an agreement on core issues that have been their
points of contention. In a situation where the U.S. Democratic Party
came to control both the Senate and the House as a result of the U.S.
congressional elections, it can be said that there will be a slim chance
of extending Trade Promotion Authority. Against this backdrop, the two
sides should reach an agreement on key issues of the negotiations by
early next year.

As not enough time is available, it is time for both sides to make
practical approaches to reach an agreement instead of maintaining their
own positions to promote their national interests. In particular, the
two sides must show forward-looking stances on areas such as textiles,
agriculture, automobiles, pharmaceutical products, and trade remedies to
produce a successful trade pact.

More than anything else, both nations are required to establish clear
and specific goals that they want to achieve through the KORUS FTA. If
the level of liberalization is raised, the effects of the FTA will be
maximized whereas domestic adjustment costs will be increased. On the
other hand, when the level of liberalization is lowered, domestic
resistance will be reduced and the effect of market opening will also
shrink. Therefore, it is important for the two sides to set up a
practically achievable and bearable level of liberalization, which can
maximize the effect of market integration.

Second, up to now, the two parties have demanded what they could get as
much as possible. From now on, however, they are required to sort out
what they must get and what they can give up. When one party wants to
take the whole, a negotiation can\'t be successful. Accordingly, if they
have to take only the half, they must decide what they must take away
with themselves. Furthermore, it is necessary for bilateral industries
to exchange opinions and conduct discussions at a private level to solve
issues, which could not be tackled at the government level negotiation.

The most important thing is public awareness and support for the need of
the KORUS FTA to conclude a successful free trade agreement along with
maintaining the balance between the interests of the two countries. In
particular, for Korea, which faces strong protests at home, enhancing
public awareness of the KORUS FTA and securing a support base are tasks
as important as carrying out negotiations. Regarding this effort, the
activities of the Presidential Committee on Facilitating KORUS FTA, the
Parliamentary Special Committee on KORUS FTA, and the KORUS FTA Industry
Alliance, a private group supporting the FTA, have contributed to
relieving ambiguous uneasiness of the general public. It is now
necessary for them to double their efforts to raise public awareness and
support for the KORUS FTA.

Lee Hee-beom is chairman of the Korea International Trade Association.
He served as minister of commerce, industry and energy under the Roh
Moo-hyun administration. The views expressed here are his own. He can be
reached at sam30@kita.net - Ed.

# 

#  

# Police Chief Orders ban on Anti-FTA Protests

## The Korea Herald, November 24, 2006, By Shin Hae-in (Edited English Posting)

The government launched a massive crackdown on protesters who wreaked
havoc in major cities Wednesday during rallies against a free trade deal
with the United States and proposed labor reforms. More than 73,000
farmers, workers and activists collided with riot police in 13 cities in
one of the most violent protests seen in recent years. More than 60
protesters and policemen were injured and 27 were detained, the police
said. In some cities, protesters attacked police with steel pipes and
bamboo canes and attempted to set fires to government offices.

\"No more violence will be tolerated,\" Justice Minister Kim Sung-ho
told lawmakers. \"The government will use all means possible including
criminal charges, indemnity for damages and disciplinary steps to punish
leaders and active participants.\" Police said it will not allow any
future rallies organized by the Korea Alliance Against the Korea-U.S.
FTA, which led to Wednesday\'s nationwide protests. The coalition of
about 300 civic groups plan more demonstrations in the coming weeks.

Protesters tried to force their way into city halls and municipal
government buildings in Chuncheon, Gwangju and Daejeon, armed with
stones, steel pipes and bamboo canes. Activists in Daejeon set walls on
fire while they tried to enter the city hall building.

In Chuncheon, the police had to use water canons and fire extinguishers
to push back some 150 protestors who attempted to force their way into
the Gangwon Provincial government compound.

A total of 154 bamboo sticks, 105 boxes of alcoholic drinks and 624
stones were collected from the rallies in Seoul and 12 other regional
cities, the police said. A total of 63 people were injured including 35
policemen, 21 protesters, one reporter and a Gwangju city official.

The anti-FTA alliance is calling for halt to the FTA talks between Seoul
and Washington, asserting that the deal will severely damage the
livelihoods of farmers by enabling a flood of cheap U.S. farm products.

Despite the government\'s intensifying restraint, the alliance said that
it will push for two more major demonstrations on Nov. 29 and Dec. 6, as
the two countries are set to open the fifth round of formal FTA talks
next month.

**S.Korea Says \'Zero Tolerance\' For Violent Protests**\
Reuters, November 24, 2006 (Edited English Posting)

South Korean authorities will clamp down on violent protests after
buildings were damaged and police injured during rallies this week by
unions and farm activists against a free trade deal, officials said on
Friday. \"There will no longer be any tolerance of illegal and violent
protests,\" five cabinet officials, including the justice and
agriculture ministers, said in a joint statement.

Tens of thousands of union workers and activists staged a nationwide
strike on Wednesday. Although most of their rallies ended without
incident, a few were marred by protesters hurling fire bombs and
smashing windows at government buildings.

But public support for large-scale rallies and strikes has waned in
South Korea, with many seeing them as causing harm to the economy
through decreased productivity and hurting the country\'s image
overseas.

### BEEF

# U.S. Advocates Raise Red Flags on 'Beefy Risks'

## The Korea Times, November 22, 2006, By Kim Yon-se (Edited English Translation) 

United States consumer advocates are sounding the alarm over potential
risks of consuming U.S. beef. Their criticism is on the alleged laxness
of the U.S. Department of Agriculture (USDA) in screening cattle at the
risk of being infected with bovine spongiform encephalopathy (BSE) or
mad cow disease. They come at a time when Korea is resuming the import
of U.S. beef after a three-year-hiatus following a reported case of mad
cow disease in the U.S.

The USDA was supposed to test the highest risk animals. However it is
plain from a report by the Office of the Inspector General that many
animals tested were not those with the highest risk,'' said the New
York-based Consumers Union. It claimed that USDA's test program is
missing significant numbers of additional cases of BSE that could exist
in the country.

"Critics question whether the agency (the USDA) is more interested in
selling beef abroad than in protecting the public health at home,'' the
Houston Chronicle recently reported.

The newspaper cited an example in which USDA inspectors, dispatched to a
plant in San Angelo, TX, held a round of discussions with plant
officials if a group of suspect cows were displaying symptoms of a
central nervous system problem or wheat poisoning.

"Investigators found examples of cattle displaying symptoms of a central
nervous system disorder ... The animal (one of them) was destroyed
without further examination,'' the paper noted.

The Center for Food Safety in Washington, D.C. raised suspicions about
the relationship between the USDA and beef producers, saying, "When we
are dealing with mad cow disease, the public health is taking a back
seat to the interest of industry.''

According to some U.S. media, more and more American ranchers are
burying cattle suspected of mad cow disease without notifying
regulators, including the USDA.

Another Washington-based NGO, Public Citizen, has found, via requests to
the USDA, that at least 131 slaughterhouses in 34 U.S. states have
violated the rules on the removal of specified risk material (SRM)
between 2004 and 2005.

"A common situation described in these noncompliance (violation of
regulations) records is when over-30 month and under-30 month cattle are
processed simultaneously, without adequate rinsing or sanitation of
equipment,'' it said.

# S. Korean Inspectors Find Bone Fragment, Ban Sale Of U.S. Beef 

## Yonhap News, November 24, 2006 (Edited English Translation) 

South Korea decided Friday not to allow the first shipment of U.S. beef
to be sold in the country after discovering a bone fragment in a
package, the government said Friday. The discovery is expected to fuel
health concerns about the safety of U.S. beef.\
\
After a nearly three-year ban due to the discovery of mad cow disease in
the United States, South Korea resumed imports of American beef from
cows under 30 months old in early September. The first shipment of 8.9
tons of beef in about 720 separate packages arrived on Oct. 30.\
\
\"The bone fragment was discovered in a package containing chuck flap
tail meat,\" said Kang Mun-il, chief of the National Veterinary Research
and Quarantine Service. He said the fragment was not attached to meat
and may have gotten into the package by mistake. U.S. meat processing
centers use machine tools to separate bones from meat, raising the
possibility of some bone fragments getting into packages.\
\
\"A detailed examination has revealed that the bone does not pose any
health risks to humans,\" he said, but since the fragment was found,
Seoul has decided to adhere to the agreement with the U.S. and not allow
the beef in the first shipment to be sold. He added that the U.S. meat
processing center that shipped the beef will be barred from exporting
meat to South Korea. The ban only applies to this shipment, and 35 other
meat processing centers are allowed to send products to South Korea.\
\
\"The entire shipment will either be sent back or destroyed,\" Kang
said. He said Seoul will ask the U.S. government to take measures to
prevent bones and other risk materials from being shipped by mistake.\
\
South Korea had agreed to resume imports of U.S. beef, but banned bone
parts and specified risk materials such as brains, spinal cord marrow,
backbones, and certain internal organs that could spread mad cow disease
to humans. Mad cow disease, or bovine spongiform encephalopathy, spreads
when cattle are fed recycled meat and bones. The disease can cause
Creutzfeldt-Jakob disease in humans.

# Bone Fragment Detected in Imported U.S. Beef

## Ministry of Agriculture & Forestry Press Release, November 24, 2006 (FAS/Seoul Translation)

□ The National Veterinary Research & Quarantine Service (NVRQS, Director
General Mun Il Kang) of the Ministry of Agriculture & Forestry announced
on November 24 that it had detected a bone fragment during the
quarantine inspection of 8.9 MT of beef that had been imported from the
United States on October 30, 2006.

○ NVRQS announced that it had found one (1) bone fragment (4 mm X 6 mm X
10 mm) in a box of chuck tail flap during the full inspection process
using the X-ray machine for detecting foreign materials.

○ Considering where the chuck tail flap cut (separated from the chuck
roll) comes from, rather than the bone fragment coming from the
de-boning process, it is presumed that it is a bone fragment that came
from cutting other cuts, such as ribs.

○ Accordingly, although it is judged as not being a Specific Risk
Material (SRM), NVRQS explained that it was rejecting the shipment as it
had violated the Health Requirement for Importation of U.S. Beef agreed
upon between the two countries, which calls for allowing only muscle
meat.

□ NVRQS explained that it would suspend the loading of beef for export
from that export plant according to the Health Requirement for
Importation of U.S. Beef agreed upon between the two countries. As for
the rejected shipment, it would be either shipped back or destroyed as
indicated in the import health requirement.

□ Also, it has become known that NVRQS was going to request the U.S.
government to strictly observe the Health Requirement for Importation of
U.S. Beef agreed upon between the two countries and express its concerns
about the safety of U.S. beef as a bone fragment has been detected.

# War on the Dining Table: Securing Food Safety

The Korea Times, November 27, 2006, Editorial (Edited English Posting)

Two incidents that occurred last week rekindled debates over the safety
of food traded across borders every day. Both the discovery of a bone
fragment in imported U.S. beef and the outbreak of avian influenza show
the risks of mad cow disease and bird flu have not dwindled a bit
despite a relative lull over the past three years. The quarantine
officials' early detection and swift countermeasures were commendable.
That is a small comfort, however, compared with the potentially huge
fallout.

It is regrettable that the first batch of U.S. beef imported after a
34-month suspension contained a bone fragment, albeit a small one. But
Seoul will be unlikely to renew the ban on products from the other 35
American slaughterhouses because bones do not belong to the so-called
specified risky material (SRM), as agreed with Washington. The U.S.
government even seeks to eliminate Korea\'s import regulations by age
and parts, which are limited to red meat from cattle aged 30 months or
less. However, we think this is dangerous.\
\
Some scientists maintain not just SRMs such as brains, bowels and bone
marrows but boneless meat can also cause mad cow disease, or bovine
spongiform encephalopathy (BSE). There were also cases of BSE hitting
even 20-month-old cattle, a criterion to which Japan set its import
restriction. Moreover, the slaughterhouse in question, located in
Kansas, is one of the most hygienic. Reports say only 0.1 percent of 37
million cattle heads slaughtered a year in America are checked for BSE.\
\
No less scary is the recurrence of bird flu after three years about 250
km south of Seoul, caused by virulent H5N1 virus. That the virus has
proved highly pathogenic means the disease can mutate and affect humans.
Unlike BSE, however, the bird flu does not spread to consumers, who are
not directly in contact with infected poultry, as long as people eat
chickens or ducks after cooking them at 75 degrees centigrade or higher.
So we think Japan overreacted when it banned all Korean chicken imports
last week.\
\
The importance of preventing pandemics can never be overemphasized. The
anti-epidemic authorities should take all means possible to keep bird
flu from infecting poultry farmers and other residents in the area, by
culling all the animals suspected of being hit by the disease. The
financial damage of \$160 million from killing as many as 5 million
chickens and ducks in 2003 should not necessarily be repeated, though.
Exaggerated reports and groundless scares ought not to overly shrivel
the industry, too.\
\
Countries throughout the world are now going all out to protect their
people's health and welfare through strict food safety administration.
Discrimination against foreign products may not be fair, but Seoul
should keep in mind nothing \-- neither economics nor diplomacy \--
should be placed ahead of the public\'s safety.

### POULTRY

# Suspected AI Outbreak in Iksan, North Jolla Province

## Ministry of Agriculture & Forestry Press Release, November 23, 2006 (APHIS/Seoul Translation)

-   On November 23, the Ministry of Agriculture and Forestry (MAF)
    announced that chickens suspected to be infected with avian
    influenza (AI) were detected as a result of the test conducted on a
    breeder chicken farm located in Iksan, North Jolla Province, by the
    National Veterinary Research and Quarantine Service (NVRQS).

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-   Approximately 13,000 breeder chickens for human consumption were
    raised at the outbreak farm. Between November 19 and 22, around
    6,000 chickens died at this farm, and a request for testing was made
    to the NVRQS at about 11 AM on November 22. As a result, it was
    initially decided as suspected AI case at 11 PM the same day.

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-   Consequently, in preparation for the confirmation of highly
    pathogenic AI, MAF instructed North Jolla Province to restrict the
    movement of chickens and eggs, etc. from the suspected AI farm, and
    to close down 2 hatcheries located in Iksan where eggs from the
    outbreak farm were being hatched, , in accordance with the "AI
    Control Implementation Outline" and the "SOP".

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-   Moreover, it was decided to destroy and bury the 6,000 some chickens
    still alive in the outbreak farm in order to prevent the spread of
    the disease, and an epidemiological investigation, including
    surveillance on the farms located within 10km radius of the outbreak
    farm, has begun.

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-   According to an NVRQS expert, it is highly likely that this case of
    suspected AI is highly pathogenic, considering epidemiological
    factors such as the death of the chickens, and he explained that the
    exact diagnosis would be made on or about November 25.

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-   Highly pathogenic AI (HPAI) occurred in South East Asia including
    Thailand and Vietnam in 2003, and it also occurred until recently in
    Europe and Africa in 43 countries in total. Among these countries,
    it is still continuously occurring in 28 countries.

-   In Korea, it occurred in 19 farms in 10 cities/counties between
    December 2003 and March 2004, and resulted in direct damage of 150,
    000, 000,000 Korean Won (approx. \$150,000,000) from destroying
    about 5, 300,000 chickens/ducks, etc.

> \* HPAI is a disease found in birds such as chickens and ducks, and if
> not controlled properly, it can be transmitted to humans that have
> been in contact with the infected birds. It is known to be spread by
> migratory birds or smuggling of animal products.

-   Meanwhile, the Korea Center for Disease Control and Prevention
    (KCDC) of the Ministry of Human Health (MHW) immediately supplied
    Tamiflu, the antivirals, (for 50 people), and influenza vaccines
    (for 300 people) to the outbreak area to prevent the human infection
    at the source, and decided to supply protection equipment such as
    special glasses and masks, etc. (for 50 people) for the personnel
    mobilized for the destruction of he birds.

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-   KCDC also decided to strengthen the monitoring activities for
    suspected human cases centering around the outbreak area.

# The Case in Pyongtaek, Gyonggi Province Confirmed as Low Path

## Ministry of Agriculture & Forestry Press Release, November 24, 2006 (APHIS/Seoul Translation)

-   The Ministry of Agriculture an Forestry (MAF) announced that the
    case of chickens in a farm located in Pyongtaek, Gyonggi Province,
    reported as suspected to be infected with AI on November 23 was
    diagnosed as low pathogenic AI (LPAI) on November 24, as a result of
    the test conducted by the National Veterinary Research and
    Quarantine Service (NVRQS).

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```
-   LPAI is a disease that is recovered without much damage, unlike the
    highly pathogenic AI (HPAI), which is a high risk for poultry and
    chickens, and Korea experiences about 20 cases of LPAI yearly as
    well.

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```
-   Consequently, MAF and Gyonggi Province decided to apply control
    measures such as movement restriction and disinfection, limited to
    the outbreak farm until the infected chickens recover from the
    disease.

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```
-   A MAF official explained that, internationallyl, measures such as
    destruction or control of adjacent farms are not taken nor
    restrictions are placed on the international trade of animal
    products for LPAI, unlike the HPAI, which is suspected to be the
    case for Iksan, because the mortality rate for the LPAI is not high
    and its ability to spread is weak.

# S. Korea Scurries To Stem Spread Of Highly Virulent Bird Flu 

## Yonhap News, November 26, 2006 (English Posting)

South Korea on Sunday began the slaughter of hundreds of thousands of
poultry at six farms in the southwestern part of the country a day after
test results confirmed the outbreak of the highly virulent type of bird
flu, agriculture officials said.\
\
Agriculture Minister Park Hong-soo held an emergency breakfast meeting
with senior ministry officials to discuss countermeasures to prevent the
spread of the avian influenza virus, they said.\
\
In accordance with the manual approved by the National Security Council,
the government began culling 236,000 chickens and ducks at six farms
within a 500-meter radius of the initially-infected farm in Iksan, about
250 kilometers south of Seoul. The quarantine will also include
slaughtering 300 pigs and 577 dogs within the area.\
\
Authorities also expanded the boundary of the quarantine defense to a
10-kilometer radius of the outbreak site, and they are planning to give
orders to conduct extra culling based on test results on livestock with
a 3-kilometer radius.\
\
On Saturday, the agriculture ministry announced test results confirming
the outbreak was caused by a \"highly pathogenic\" form of the H5N1
virus. Last week, the outbreak caused the deaths of some 6,500 chickens
at the farm.\
\
Kim Dal-joong, an assistant agriculture minister, was dispatched to the
scene to spearhead efforts to quarantine the area and keep the spread of
bird flu at bay, the officials said.\
\
Authorities have banned the movement of all chickens, birds and eggs
within a 10-kilometer radius of the outbreak site. At present no one has
shown symptoms of having contracted the flu, the ministry said.\
\
The ministry also plans to step up a publicity campaign to raise public
awareness that bird flu does not affect humans if poultry is cooked well
enough.\
\
To that end, Prime Minister Han Myeong-sook will visit the ministry
headquarters in Gwacheon, south of Seoul, and have chicken soup with
agriculture officials at a nearby restaurant, according to the
officials.\
\
According to Halim Co., a local chicken processor, the outbreak of the
highly pathogenic bird flu is expected to cost the Iksan-based company
up to 15 billion won (US\$16 million).\
\
Almost 7 billion won was lost by culling 340,000 chickens and closing
two hatcheries. Lost sales of up to 30 percent next month would cost
another 7.5 billion won, the company said Sunday.\
\
In 2003 and 2004, South Korea destroyed 5.3 million poultry at a cost of
about 1.5 billion won to prevent the spread of the disease. No South
Korean citizen has ever fallen ill from bird flu.

# Korea Battles Fresh Bird Flu Outbreak

## The Chosun Ilbo, November 27, 2006 (Edited English Posting)

The Ministry of Agriculture and Forestry on Saturday confirmed that a
bird flu outbreak in Iksan, North Jeolla Province is of a highly
virulent form of the H5N1 virus that could spread to humans. The
Ministry said tests by the National Veterinary Research and Quarantine
Service revealed that the virus found at a poultry farm in Iksan last
Wednesday "is a highly pathogenic type of H5N1 which is highly fatal and
could affect humans as well."

◆ The cull\
\
The announcement will lead to the cull of 236,000 chickens and ducks at
five poultry farms within a 500 m radius of the initially affected farm
in Iksan, plus the destruction of 6 million eggs in a 3 km radius. The
ministry is also to ban any movement of chickens and ducks in a 10 km
radius of the affected area, where 221 farms are raising 5 million head
of fowl.\
\
People have been banned from entering the village where the outbreak
occurred. At a nearby chicken farm, one of the four within a 500 m
radius, 75,000 chickens were culled on Sunday afternoon. A provincial
official said some 30 quarantine officials, public officials and staff
with chicken meat processing firm Halim, for which the farm is a
supplier, in protective clothing herded the chickens into a corner,
covered them in a tarpaulin and suffocated them with carbon dioxide
before burying them in a 3-m deep hole.

◆ Quarantine\
\
All 6,300 chickens that survived the virus at the farm where it broke
out were culled the previous day, and some 111,000 chickens at the other
three farms will be destroyed by Tuesday. Some 300 pigs, 677 cats and
dogs and mice in the area are quarantined since they could transmit the
virus. All movement of livestock, eggs, feed and fertilizer is banned in
a 3 km radius, and observation and disinfection of poultry within a 10
km radius will be improved. North Jeolla Province also decided to have
116 residents in the village and public officials who worked there
vaccinated. A test of a dozen people including the owners of the farm
showed they were not infected.

◆ Public fears\
\
Poultry farmers in the affected area say their worst fears have come
true. \"We had such a hard time due to bird flu three years ago and will
see sales of our chickens and eggs come to a complete stop once again,\"
Kim Dong-jin (53) said. \"The press needs to raise awareness that cooked
poultry meat is safe instead of fueling a panic." Provincial and local
authorities will launch campaigns to encourage people to eat chicken for
lunch in cafeterias on Monday and buy chicken to prevent poultry meat
sales from plummeting. The local authorities are calling on the central
government to provide W17.1 billion (US\$18.3 million) in compensation
and declare the affected area a special disaster zone.

◆ Poultry sales\
\
Some superstores and other retailers report a slight drop in chicken
meat sales due to the bird flu outbreak, but nothing alarming. An
employee with E-mart said sales have not changed much. A Samsung Tesco
HomePlus official said, \"Our chicken meat sales dropped 30 percent from
a year ago between Oct. 23 and 24, and sales of eggs also fell." Halim
says it suffered a 20 percent drop in orders for its products but adds
the situation is different from the first outbreak in 2003. \"Consumers
are well aware of the fact that they cannot contract the disease if they
cook chicken meat well, and we don't expect the situation to get any
worse."

# Seoul Moves to Calm Bird Flu Fears

## Korea Herald, November 27, 2006 By Kim Ji-hyun, (Edited nglish posting)

The government yesterday moved to quell increasing concerns over the
latest outbreak of avian influenza, a virulent virus hosted by birds.
\"South Korea has not yet experienced any human casualties from the
virus and infection can be easily prevented by cooking the meat properly
before consumption,\" the Agriculture Ministry said.

No South Koreans have died from the influenza, although four people were
infected in 2003 when the virus first broke out in Asia. The government
assures that a pandemic is unlikely because human infection is possible
only through direct contact with the infected animals.

It also said chicken being sold is safe for consumption since infected
poultry die immediately, leaving no chance of them reaching store
shelves. The virus can be reportedly eliminated by cooking the meat at a
heat of 75 degrees Celsius or above for five minutes or more.

Despite the quarantine, fears are spreading about a nationwide infection
because the infected farm is located in a densely populated farming
region raising livestock that may be susceptible to the virus.
Provincial governments are therefore stepping up preventive measures by
forming emergency panels to regularly keep watch over the livestock in
their area.

The Agriculture Ministry will be in a state of \"high-alert\" until late
February. This latest case marks the second outbreak of avian influenza
in less than three years in South Korea.

# Second Confirmed Bird Flu Outbreak

## Korea Herald, November 28, 2006, By Yoo Soh-jung (Edited English Posting)

A second outbreak of bird flu has been detected in Seosan, about 140
kilometers north of Iksan where the fatal H5N1 led to a massive culling
of poultry and other animals.

Provincial officials said the sick chickens were hatched from eggs
distributed in mid-November from a breeding farm in Iksan, North Jeolla
Province. But the authorities have not yet confirmed whether the Seosan
chickens were infected with the highly virulent strain.

\"Preliminary tests indicate the virus of being a harmless strain,\" the
Ministry of Agriculture and Forestry said in a statement.

Seosan officials said they are waiting for the preliminary test results
of chickens from eight farms in the area. They said measures have been
put in place to contain the transfer of livestock. Five of the farms
have bought livestock from breeding farms in Iksan, the authorities
said.

The latest bird flu case in Seosan is expected to unnerve
poultry-related industries. Since news of the first outbreak on Nov. 22
major retailers have been seeing chicken sales decline.

Lotte Mart said sales dropped 15 percent between Friday and Sunday
compared to a year ago. Samsung Tesco\'s Homeplus says sales have
dropped 20 percent during the same period.

Demand for poultry at E-Mart, the nation\'s largest discount store
chain, has also been declining compared to a year ago, however, at a
slower pace.

\"Sales have climbed 55 percent from Thursday to Saturday compared to a
year ago, but the growth rate is slowing down,\" said Park Soo-beom, a
spokesman for Shinsegae Co.\'s E-Mart. \"We expect sales to slow further
if there continues to be reports of the bird flu spreading because
consumers would feel more uneasy,\" he added.

Hallim Co., the nation\'s No. 1 supplier of chicken and poultry
products, suffered a 30 percent drop in sales from Thursday to Monday.
Hallim commands about 25 percent of the nation\'s chicken manufacturing
market.

\"The sales decline is slower compared to the first scare the nation
experienced in 2003,\" said Kim Dae-sik, the spokesman for Hallim. \"But
we attribute this slower pace to consumers\' wider awareness of the
avian influenza and how consuming chicken, if well cooked, is not
harmful to humans.\"

### BIOTECHNOLOGY

# S. Korea, Denmark Agree To Deepen Biotechnology Ties

## Yonhap News, November 23, 2007 (Edited English Posting) 

South Korean President Roh Moo-hyun and Prime Minister of Denmark Anders
Fogh Rasmussen held a summit in Seoul Thursday and agreed to further
expand bilateral relations in the fields of information technology,
biotechnology, energy and education.

### THIRD COUNTRY FTA NEWS

# 

# Successful Deal With EU To Help Create 300,000 Jobs 

## Yonhap News, November 24, 2006 (Edited English Translation) 

South Korea, Asia\'s fourth-largest economy, and the EU have engaged in
studies for the possible launching of free trade negotiations.
Preliminary talks were held earlier this year in Brussels.\
\
\"If both sides sign a free trade agreement, it will help South Korea
create as many as 300,000 jobs in the short term and 590,000 jobs in the
long term,\" Kim Heung-jong, a senior researcher at the Korea Institute
for International Economic Policy, said in a report.\
\
\"In addition, a successful trade deal with the EU is expected to allow
South Korea to expand its gross domestic product by 2.02 percent in the
short term,\" Kim said. The report was presented at a public hearing on
the same day to discuss the possible free trade talks with the 25-nation
economic bloc.\
\
On Nov. 2, South Korean President Roh Moo-hyun said he wants to start
free trade talks with the EU next year.\
\
In August, Commerce, Industry and Energy Minister Chung Se-kyun hinted
that the government may allow the EU to beat the United States to seal a
deal.

# Canada Seeks Wider Agricultural Access in FTA Talks

## The Korea Herald, November 27, 2006 (Edited English Posting)

Canada has pushed for wider access to Korea's agriculture market during
the eighth round of talks for a bilateral free trade agreement last
week, the government said yesterday.

Canadian negotiators asked Seoul to revise its proposals for beef and
pork, saying that an FTA would have to benefit the Canadian livestock
industry, Seoul's Agriculture Ministry said.

But it stressed that Korean negotiators explained their difficulty in
changing the country's position on agricultural goods, citing the
politically sensitive nature of the farming industry and the difficulty
faced by local farmers. The eighth round of FTA negotiations took place
from Nov. 20 to 23 in Seoul. The ninth will be held in Canada during the
fourth week of January next year.