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Tag: south korea

  • South Korea leads APeJ by IoT readiness

    South Korea leads APeJ by IoT readiness

    South Korea, Singapore, New Zealand and Australia are the most IoT prepared countries for the IoT, according to IDC.

    The research firm’s Asia Pacific (excluding Japan) IoT Readiness Index  ranked 13 APeJ nations (mix of developed and developing) across 13 critical parameters such as economic stability, technology spends, innovation potential, etc. as articulated in the global G20 study.

    While globally United States, South Korea and United Kingdom led this model, in the region the top three countries are South Korea, Singapore and New Zealand respectively. These have the most efficiencies for nationwide IoT adoption across all criteria.

    APeJ comprises a significant portion of spend in the IDC IoT Spending guide. The regional economies provide a rich diversity and quality of overall economic stature, business readiness, and technological preparedness along with different levels of efficiencies that loT solutions can create.

    “Countries are keen to demonstrate their relative digital competitiveness, and as such are looking to The Internet of Things as one of those initiatives,” IDC associate vice president for the IoT in APeJ Hugh Ujhazy said.

    “Knowing where a country stands in the IoT index will help global and local IT vendors know what opportunities lie ahead of them as they line up their strategies at federal, local, and enterprise levels.”

  • Franchise brands increase by 9%

    Franchise brands increase by 9%

    The number of franchise brands and companies has increased by roughly 9 percent compared to last year, with over 5,000 franchise brands owned by 4,000 franchise companies now operating in Korea.

    But while an average of 115 new franchise stores have opened up every day since 2015, 66 per day have also been forced to close, indicating how fierce the competition is.

    These figures were announced by the Korea Fair Trade Mediation Agency on Wednesday. The agency’s primary goal was to provide a better understanding of the status quo in Korea’s franchise market, especially as the intense competition is increasingly becoming a major social and economic concern.

    Although the agency has previously released individual information on different franchise industries, this is the first time that an overall assessment has been made.

    Last year there were 5,273 franchise brands, with 429 new brands introduced in just one year – an 8.9 percent increase. The majority of the newly created brands, 76.2 percent, were food and beverage franchises.

    Service franchises, which includes education related businesses such as cram schools, preschools and children’s indoor playgrounds as well as sports, PC repair shops, lodging, laundry, drugstores and moving companies accounted for 17.9 percent, or 944 brands. Wholesale and retail franchises, which include convenience stores, clothing brands, cosmetics and health related franchises accounted for 5.9 percent, or 312.

    Within food and beverage franchises, Korean food businesses accounted for 1,261 brands, followed by fried chicken with 392. Coffee shops came in fifth with 325 brands. The number of franchise companies grew to 4,268, a 9.2 percent increase.

    As of 2015, the total number of franchise stores in the country amounted to 218,997 shops, which is a 5.2 percent increase year-on-year. By number of stores, convenience stores topped the list with 30,846 shops followed by chicken restaurants with 24,678.

    Convenience stores also turned out to be the first choice for many self-starters, as they don’t require any specific skills to run. In 2015 alone, 5,755 convenient stores opened, followed by 4,552 Korean restaurants and 3,988 chicken restaurants.

    On average franchise stores lasted for four years and eight months. Food franchises generally closed quicker than wholesale and retail franchises or service franchises. Wholesale and retail franchises stayed in business for six years and three months on average, while service franchises lasted five years and 10 months, and restaurant franchises lasted four years and three months.

    The study by the fair trade mediation agency came at a time when franchise businesses have been under heavy government scrutiny over the unfair business practices that have led to the arrest of Jung Woo-hyun, founder and chairman of Mr. Pizza.

    With more baby boomers retiring and young people struggling to find jobs, franchise businesses have become a major alternative for those seeking a new livelihood. However, because of the intense competition with similar stores popping up in the same neighborhoods, many have struggled to have ends meet, and in some cases, franchisees have ended up losing their life savings after investing in an unsuccessful business.

    “The competition in the chicken, snack and fast food market is fierce while the unfair business practices by franchise headquarters might have had some influence,” said Chang Choon-jae, the vice head of the mediation agency.

    The franchise industry has become such a concern that Fair Trade Commission Chairman Kim Sang-jo announced that he would prioritize the protection of small neighborhood businesses and uphold fair competition – including implementing penalties against unfair business practices by franchise headquarters – as his top priority.

    The study also showed that the oldest franchise brand is Lims Chicken. The chicken franchise started its business in July 1977 at the Shinsegae Department Store. Lotteria came in second with 36 years, another chicken franchise Pelicana came in third with 35 years and the bakery franchise Shilla Myunggua lasted 33 years.

    The franchise company that had the largest number of brands under its belt was Theborn Korea, which was founded by Korea’s celebrity chef Paik Jong-won. The franchise company owns 20 brands including coffee shops, Korean beef, bibimbap and udong franchises.

    Nolboo, a franchise that specializes in Korean cuisine including its signature dish budae jjigae, a stew made with instant noodles and other items including sausage and ham as well as dumplings, took second place after Theborn Korea with 13 brands.

    The franchise company that took the third spot by number of brands, however, wasn’t in the restaurant business. Soft Play Korea took the No.3 spot with 13 brands. The company specializes in indoor preschools and children’s playgrounds.

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  • South Korea to raise subscription discount to 25%

    South Korea to raise subscription discount to 25%

    The South Korean government plans to increase the mandated monthly telecoms subscription fee discount to 25% from 20% as part of a plan to reduce total household expenses by 4.6 trillion won ($4.03 billion) annually.

    Customers signing up for one or two year subscriptions will be able to choose to apply the discount as either a monthly rte cut or a one-time discount on a new smartphone purchase.

    The market’s operators will also be required to provide an extra 11,000 won discount on monthly fees for elderly and low-income Koreans.

    A plan unveiled by the government will also involve the establishment of more Wi-Fi access points at schools, public buildings and public transport lines.

    But the plan has excluded an earlier proposal to abolish the 11,000 won basic mobile service fee to further reduce costs for consumers, due to strong opposition to the plan from the industry.

    According to the report, the economic committee of the nation’s State Affairs Planning Advisory Committee believes that increasing the discount rate for subscription services and low-income customers has the same effect as the proposed abolition of the fee.

    The mandated increased discount rate is expected be introduced in September, but could face legal and other challenges from operators.

    The government reportedly also intends to reduce mobile network lease rates for MVNOs and abolish the current cap on handset subsidies to make purchasing smartphones more affordable.

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  • Lotte Liquor launches Fitz, a lighter beer for summer

    Lotte Liquor launches Fitz, a lighter beer for summer

    Lotte Liquor will launch its second beer brand Fitz Super Clear on June 1, the company said. Fitz Super Clear is a lager containing a relatively low 4.5 percent alcohol content. The company said Fitz is designed to serve as a light but refreshing alcoholic drink for the summer.

    “Fitz was developed with a focus to resolve a reputation that Korean beer is tasteless and bland,” the company said. “We tried to eliminate the unnecessary taste that is generated when the temperature and ingredients aren’t kept stable during the brewing process.”

    The beer uses the same “original gravity” method as Kloud products, which don’t add water in the brewing process. It also used the self-developed Super Yeast and enhanced the fermentation rate to 90 percent for a cleaner taste.

    The company launched Kloud in 2014. Kloud has 5 percent alcohol content and has a flavour similar to imported beers from European countries. It’s sometimes criticised for not being suitable for Korea’s somaek drinking culture, which mixes soju with beer.

    Fitz’s target customers are in their 20s and 30s. Kloud is for those who enjoy drinking alcohol while Fitz is for general gatherings because it is lighter and contains less alcohol content.

    Lotte Liquor invested 700 billion won (US$622.6 million) for a second beer manufacturing plant, which is scheduled to open in July. Once it opens, it will be able to produce up to 200,000 kiloliters (55.8 million gallons) of Fitz per year.

    The company aims to generate 90 billion won in sales for Kloud and 70 billion won for Fitz this year.

    The beer costs 1,147 won for a 500-millileter bottle.

  • Lotte refashions outlet to target families and kids

    Lotte refashions outlet to target families and kids

    The renovated branch of Lotte Premium Outlets in this suburban city about 30 miles south of Seoul looks more like an amusement park than a shopping mall for bargain hunting.

    At its Incheon outlet location, Lotte has opened a three-story complex catering to families with children. There are cafes with ball pits and slides, job experience zones where kids can pretend to be doctors and firefighters, and a large Toys ”R” Us store that anchors it all. The Incheon branch is not just for shopping but also for outdoor activities for families.

    Since opening the location in 2013, Lotte found that 75 percent of visitors were in their 30s and 40s. That’s 6 percentage points higher than the share of people who visit other outlet branches outside Seoul. The company figured that more shops and facilities for family visitors, especially kids, be better for customers.

    Another factor was the growing popularity of children’s products in Korea. Between 2012 and 2016, the industry’s revenue expanded from 27 trillion won (US$24 billion) to 39 trillion won. A good portion of the outlet’s new building is dedicated to play. On the third floor, a job experience zone lets kids experience diverse occupations, from veterinarian to firefighter and even urban planner. There is a fee – 22,000 won for kids between 5 and 13 and an extra 4,000 won for an accompanying adult – but there is no limit on time.

    In another play space, called Doctor Balance, children can test their physical strength, including muscle endurance and responsiveness, on playground sets that resemble gym equipment. Next to the job experience zone is a Toys “R” Us. Lotte is the Korean operator of the U.S.-based toy store, but so far, it’s only installed stores in its supermarket chain Lotte Mart.

    The location in the Incheon outlet is the first time Lotte is running a Toys “R” Us outside the mart. An outlet spokesman said the toy store will have about 6,000 products. The building’s second floor has more shopping areas, but even they’re dedicated to kids. Outdoor brands Nepa and Blackyak, for instance, are selling swimsuits and backpacks for children. Out of 47 brands in the new space, 32 are specifically kids’ brands.

    There’s something for the parents, too. Various fast fashion brands, including Uniqlo and Topten, have set up shop, and automaker BMW has opened one of its Motorrad cafes where car aficionados can enjoy coffee while browsing BMW-themed apparel.

    Lotte Premium Outlets’ Incheon location holds the title of biggest outlet in Asia with a floor space of 53,000 square meters (570,000 square feet). An average 15,000 people visit daily, and it has generated 1.2 trillion won in revenue since opening. The company expects the new Fashion & Kids Mall building to boost the number of visitors by 20 percent.

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  • South Korea’s Kia invests in Indian factory after China troubles hit profit

    South Korea’s Kia invests in Indian factory after China troubles hit profit

    South Korean carmaker Kia Motors Corp signed a deal on Thursday to invest about $1.1 billion to build its first factory in India, aiming to tap a fast growing market at a time when its China sales are sagging.

    The Hyundai Motor Co affiliate posted a 19 percent slump in first-quarter net profit as anti-Korean sentiment and a conflict with dealers hit its China sales, sending its shares down 2.2 percent in a flat market.

    Production at the factory in Anantapur district, Andhra Pradesh state, would begin in the second half of 2019, the company said.

    Kia is expected to leverage Hyundai’s supply chain network built around its factories in the neighboring state of Tamil Nadu to gain a foothold in the Indian market, tipped to become the world’s third-largest by 2020. Hyundai is India’s No.2 automaker by sales.

    The plant, which will have production capacity of 300,000 vehicles a year, will produce a compact sedan and a sport utility vehicle tailored for the Indian market, Kia said in a statement.

    It will break ground in the fourth quarter of this year.

    “Our new India plant will enable us to sell cars in the world’s fifth-largest market, while providing greater flexibility for our global business,” Kia Motors President Park Han-woo said in a statement.

    Reuters reported in February that Kia was close to finalizing Andhra Pradesh as the site for its first Indian factory..

    The announcement came after Kia and Hyundai Motor suffered a March sales slump in China, their biggest market, and sharply cut production in the wake of Seoul’s decision to deploy a U.S. anti-missile system, which angered China.

    “The fall in consumer sentiment in China is stemming from a political issue, a situation which is beyond the control of an individual firm and is difficult to be resolved within the short term,” Han Chun-soo, Kia’s chief financial officer, said during an earnings conference call.

    Kia would adjust its China production to reduce inventories, cut costs and launch new models including a small crossover to minimize the impact of the political row, he said.

    Kia also said its first-quarter profit was hurt by a cost of 160 billion won ($141.53 million) to recall vehicles over an engine issue in North America and South Korea.

  • Diageo rolls out small Johnnie Walker Black Label

    Diageo rolls out small Johnnie Walker Black Label

    Diageo has launched a 20cl bottle of its Johnnie Walker Black Label as it looks to make whisky more accessible to consumers in South Korea.

    The new pack, which rolled out yesterday, follows a launch for a 20cl Johnnie Walker Red Label last October, the firm said. The 20cl bottle comes with lemon syrup and a recipe for a ‘Johnnie Lemon’ cocktail.

    “Diageo Korea has worked to promote a new drinking culture that makes whisky more accessible to local consumers in various ways,” said Diageo Korea CEO Cho Kilsoo. “Following a small format of Johnnie Walker Red launched last year, the new Johnnie Walker Black Label 20cl is expected to contribute to building a new whisky culture that enables people to enjoy whisky more casually.”

    The new product will be available through convenience stores and hypermarkets, nation-wide. Diageo said the packs will be priced at about KRW16,000 (US$13.99). Red Label packs retail at around KRW8,500.

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  • Bolloré Logistics Korea Installs an Urban Farm in the Center of Seoul

    Bolloré Logistics Korea Installs an Urban Farm in the Center of Seoul

    Bolloré Logistics Korea recently installed an urban farm on its office rooftop building in Seoul, South Korea, as part of the Group’s initiative to promoting “Green Projects” and protecting biodiversity.

    Urban farming is a practice of growing your own food in the city, with limited space. Bolloré Logistics Korea has transformed the available rooftop space of its 6-floor office building into an urban farm, optimizing current available space resources. This urban farm is split into four parcels and covers a total space of 264 sqm.

    Bolloré Logistics Korea signed an agreement with Pajeori*, a non-profitable organization, to maintain the farm with volunteers from the nearby neighborhood in order to cultivate each a small parcel of the Urban Garden, therefore making it a community base project as well.

    The urban farm is growing organic fruits and vegetables as only natural fertilizers mostly made from rice bran are and will be used. Bolloré Logistics Korea also plans to grow traditional Korean fruits and vegetables which are not always found anymore in big retail stores, as they are difficult to grow and conserve since they require a wide range of unique resources for food and agriculture.

    Some honey plants will also be planted in order to attract pollinators. Back in 2016, Bolloré Logistics Korea sponsored a wooden beehive structure (“Honey Factory”) to create awareness of the vital role of bees in our lives as they are a crucial component of food production and are responsible for a third of the food that we eat.

    Bolloré Logistics Korea looks forward to harvesting the very first crops in the upcoming months.

    Fully in line with the biodiversity action plan put into effect within the Group, Bolloré Logistics’ biodiversity strategy has three fundamental pillars based on the ARC concept (Avoid / Reduce / Compensate):

    • Embracing biodiversity as one of the company’s environmental concerns;
    • Working with customers and suppliers on biodiversity issues and the impact of our activities;
    • Make our sites models for biodiversity, all over the world.
  • Apple has ordered 70 million OLED panels from rival Samsung for upcoming iPhone 8

    Apple has ordered 70 million OLED panels from rival Samsung for upcoming iPhone 8

    Shares of Samsung Electronics got a boost on Tuesday after the report that archrival Apple had ordered 70 million display panels that the South Korean giant specializes in for the upcoming iPhone. Samsung’s stock closed at 2.1 million Korean won, posting a rise of 1.54 percent.

    Citing a supply chain source, Nikkei reported that Apple has placed orders for bendable organic light-emitting diode panels for use in 70 million handsets for the year. OLED offers brighter displays and better power efficiency over liquid crystal displays currently in use.

    Samsung’s OLED displays are used on its own flagship Galaxy devices, and the company is a market leader in the area. Apple is expected to launch three new iPhones later this year, with the anniversary edition iPhone 8 believed to have a slightly curved 5.2-inch OLED screen. This will be the most expensive model. The two other iPhones will have LCD displays. It would be the first time Apple has used OLED displays on its flagship device.

    Quoted IHS Markit analyst David Hsieh as saying that the order for 70 million units of OLED panels is in line with his expectations. He added that Samsung is expecting to produce as many as 95 million units for Apple in 2017, in case demand exceeds expectations. Hsieh also said Samsung is likely to be the sole supplier.

    “It is also possible that some of these 70 million handsets will not be shipped to customers this year and be carried over to next year depending on demand,” Hsieh told.

    The 70 million unit figure gives a sense of the kind of bullish demand Apple is expecting for the anniversary model, which some analysts are suggesting could cost $900 to $1,000.

    But some analysts have said it’s not likely Apple will sell all 70 million OLED iPhones this year looking at previous performance. In the fiscal first quarter, which ended Dec. 31, Apple sold 78.2 million iPhones — latest iPhone 7 and 7 Plus models and older versions.

    Neil Shah, research director of devices and ecosystems at Counterpoint Research, said he expects Apple to be able to sell around 70 million iPhones in total in the final quarter of this year when it releases the new device. But again, not all 70 million will be the OLED devices.

    “Seventy-million units of the OLED iPhone is too high for me at this point,” Shah told.

    The likelihood is Apple will sell some of the OLED phones next year, and at least have some ready in case it sees a pop in demand.

    Leaks and reports suggest that the iPhone 8 could be the most advanced yet with new features such as a front-facing camera with 3-D sensor. Analysts are expecting this to kick of a “supercycle” of iPhone sales.

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  • AirAsia X in talks with South Korea’s Jeju over Kuala Lumpur service

    AirAsia X in talks with South Korea’s Jeju over Kuala Lumpur service

    AirAsia X is in talks with Jeju’s provincial government about direct flights between Kuala Lumpur and the South Korean resort island.

    Jeju officials said discussions were held last week in Kuala Lumpur about frequencies in the absence presently of direct flights. “We hope that we will have flights by the end of this year,” said Seo Hye-jin, a provincial official. “We have been marketing in Southeast Asia since last year.” She declined to speculate on possible frequencies while discussions are ongoing.

    China accounted for almost 96% of the island’s inbound flights in March, according to Jeju tourism officials. There were over 5,000 arrivals from Malaysia in January, making it the second largest source market after China with over 184,000.

    Observers expect Malaysia’s presence in Jeju to increase after the curtailing of Chinese arrivals in the wake of deployment of a new U.S. missile defense system in South Korea.

    China opposes the Terminal High Altitude Area Defense system because of concern about related U.S. surveillance. Seoul and Washington maintain that their sole purpose is to defend against North Korean missile strikes.

    According to travel agencies in China, tours to South Korea were curtailed from Mar. 15 under official pressure, posing a serious threat to the industry there.

    AirAsia X is an AirAsia subsidiary offering long-haul services to 23 destinations in Asia-Pacific, the Middle East, and Africa.

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  • Indonesia Mulls Hosting Coffee Exhibition in South Korea Next Month

    Indonesia Mulls Hosting Coffee Exhibition in South Korea Next Month

    The Ministry of Commerce assesses that there is a significant opportunity for exporting coffee commodity to South Korea. To achieve this, the Ministry of Commerce plans to hold an exhibition in South Korea.

    Arlinda Director General of Export Development at the Ministry of Commerce, said that coffee has become a trend in South Korea, especially among young people. Therefore, this trend can be utilized  by Indonesian coffee businesses.

    “There is a significant opportunity for coffee in South Korea. We plan on conducting coffee exhibition there next month, and we must use that trend to engage the South Korean markets,” she said in Jakarta on Tuesday (04/04/2017).

    According to Arlinda, the youth market in South Korea will be easier to engage in because of their penchant to drink coffee. Therefore, Indonesia must provide the highest quality coffee, including  Arabica coffee that is a mainstay product in Indonesia.

    “The trend in young people there is coffee and tea. A seminar on food and beverage can provide us with information on local youths’ tastes. Our specialty is coffee Arabica, and we actually have 32 kinds. We are working with coffee exporters to increase their exports,” she said.

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  • Metail signs partnership with South Korean tech giant

    Metail signs partnership with South Korean tech giant

    British fashion technology start-up Metail has signed a partnership agreement with Benit, the technology arm of South Korea’s fourth largest conglomerate Kolon.

    The deal means Metail’s technology, which allows consumers discover, shop and “try on” clothes online, will significantly increase its reach in the Asian market.

    The Kolon conglomerate has a presence throughout Asia and interests spanning multiple sectors, ranging from manufacturing to construction, trade, life sciences research, environment, retail and fashion. It is now setting its sights on the fast growing South-Korean fashion e-commerce market through its technology arm Benit.

    South Korea is the world’s 7th largest fashion market and APAC’s 3rd largest e-commerce market with 77% of all Koreans purchasing clothing items online in 2016. The South Korean fashion industry is expected to exceed $6.9bn this year and by 2021 it is predicted to hit $32bn. Benit’s clients alone account for $2.5bn of the market.

    Tom Adeyoola who founded London and Cambridge-based Metail said the deal would help the business achieve its mission “to digitise all of the world’s garments and people“. The Metail technology allows shoppers to create a bespoke 3D model of themselves, a Memodel, which they can use while shopping online to try on garments virtually. It rose to prominence in 2014 when it teamed up with Henry Holland’s House of Holland label to allow consumers to shop direct from the catwalk.

    “Following going viral in Korea with our mobile House of Holland offering for London Fashion Week in 2014 we’ve been looking for the right strategic partner to take advantage of what is clearly the most mobile-focused, tech-savvy and fashion-conscious market in the world,” Adeyoola said.

    “The Kolon group with their scale, fantastic stable of brands and market leading fashion focused IT services arm, Benit, quickly became the obvious choice. We’ve already placed a customer director on the ground and have built a strong working relationship with the consummate partner to help us perfect our offering for the Korean market and rapidly scale,” he said.

    Deputy general manager of Benit’s mobile convergence team Jaehoon Kang said it has been looking for “innovative and useful solutions to develop the South Korean market “and Metail’s solutions is the most valuable. We cannot try on clothes when buying clothes online. So often there are difficulties in sizing and styling; limitations which Metail help to overcome,” he said.

    “Through this agreement, fashion and distribution companies in the Korean market will be able to provide a useful and wonderful experience to customers. Benit is very excited to be adding such a great solution to its fashion-specific business portfolio,” he added.

    Metail was founded in 2008 and has gone on to develop an international customer base including House of Holland and Little Mistress in the UK as well as Abof in India and Princess Polly in Australia to name a few

    Yesterday luxury fashion etailer Mytheresa.com revealed a dedicated Korean language site for the South Korean market.

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  • Liaoning SG Auto cancels new energy car components JV with South Korea’s Samsung SDI

    Liaoning SG Auto cancels new energy car components JV with South Korea’s Samsung SDI

    Liaoning SG Automotive Group Co Ltd Says it will not set up new energy car components JV with partners including South Korea’s Samsung SDI.

    Says it will dissolve a Tianjin-based financial leasing JV, which was set up in 2014.

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  • South Korea Invests in Infrastructure, Electricity Projects

    South Korea Invests in Infrastructure, Electricity Projects

    The Investment Coordinating Board (BKPM) said that South Korean investors will invest in numerous sectors in Indonesia. BKPM chief Thomas Trikasih Lembong said in this week alone, several project agreements will be signed.

    “I’m expecting for several infrastructure and electricity projects to be signed this week. The value is about US$200 million (approx. Rp2.6 trillion),” Thomas said during the sidelines of the Indonesia-Korea Business Summit at the Shangri La Hotel in Jakarta, Tuesday, March 14, 2017.

    According to Thomas, many South Korean factories have opened in Indonesia, such as textile and footwear factories. The factories’ operation has employed more than 500,000 people.

    At the Indonesia-Korea Business Summit, the BKPM and the Korea Trade Investment Agency (KOTRA) signed a MoU as a way to promote investments between the two nations.

    “We hope this will help both Indonesian and South Korean companies in developing their business,” Thomas said.

    Thomas said that most of the country’s investments are in the manufacturing sector, accounting for 71 percent of their investment value from 2012 to 2016.

    The investments are aimed at both countries’ leading sector, and will cover areas including information exchange, documentation, publication, and others.

    South Korea is Indonesia’s third-biggest investor today after Singapore and Japan. From 2012 to 2016, South Korean companies invested a total of US$7.5 billion for 7,607 projects in Indonesia.

  • Sout Korea Costco stores’ move to all US beef a positive for exporters

    Sout Korea Costco stores’ move to all US beef a positive for exporters

    On the heels of two Costco stores in South Korea beginning the transition to sourcing chilled beef from US sources, with the remaining 11 to make a similar shift from Australian beef to US imports, officials from the Iowa Beef Industry Council (IBIC) were part of a trade mission to get a closer look at the supply chain in South Korea. The US Meat Export Federation’s (USMEF’s) Spring Seminar drew more than 200 representatives to make the Feb. 11-18 trip, which also included members of the Iowa Pork Producers Association and representatives from the beef-processing segment and pork exporting officials from the US.

    USMEF officials coordinated tours of the processing plant and cold storage facility at Haesung Provision and Kyunwoo Foods, followed by a visit to a Costco warehouse in Kwangmyung. The recent resumption of red meat exports to South Korea was a windfall for USMEF and its members and the decision by Costco, the region’s largest importer, to convert the remaining 11 stores to selling US beef exclusively signals more positive trade relations moving forward.

    “The retail market is vital for US beef. Costco’s announcement to move from 17 percent to 100 percent US beef in their stores is exciting for cattle producers,” said Dave Rueber, an IBIC member and Iowa beef producer who was part of the mission. “USMEF has been working on this for 13 years. This will result in a 15,000 metric ton increase in beef purchases this year.”

    Expectations of record exports of chilled beef to South Korea are based on the momentum realized in 2016, when beef exports jumped 31 percent in value (to $1.059 billion) and 42 percent in weight (to 179,280 metric tons).

    Knowing South Korea is one of the most social media-savvy cultures in the world, USMEF invited well-known bloggers and foodservice professionals to network with attendees in addition to hosting a cookbook launch, which focuses on US meats.

    “As beef producers, we cannot become complacent, we must continue to focus on building long-term beef demand and being aware of future opportunities,” said Daryl Strohbehn, another Iowa beef producer who made the trip. “As an industry, we have to continue listening to what our consumers want, including our overseas customers.”

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