Interview: Mr. Chua Choy-Soon, Managing Director, SEB Investment

The Swedish SEB Group offers a comprehensive range of global and local investment products and has more than 130 billion euro in assets under management worldwide. It's real estate arm, part of SEB Asset Management, is based in Frankfurt, and offers real estate and securities investments, specializing in total return strategies. The company's experience and expertise make it the SEB Group's global center of competence for real estate.
The company's real estate success story began in 1989 with the launch of SEB ImmoInvest. Its largest real estate mutual fund with a gross fund volume of approximately 8 billion euro grew as the Investmentgesetz (German Investment Act) developed, from a fund that invests in Germany and Europe to one that invests around the world.

As noted by Mr. Chua Choy-Soon, Managing Director, SEB Investment GmbH, as of today, the company manages 14 billion euros of real estate globally on behalf of both retail and institutional investors. This amount is split up among various funds, most are core funds which are income driven and some of total return funds which are less income driven.
The majority of the funds, about 70 percent are in office sector, with the remaining in retail, industrial space and residential. For that matter, it is only in Asia (total investment of 1.5 billion euro) that SEB has invested in the residential sector.
“We are the quality leader in the real estate fund market and are expanding our activities for our clients in three areas: SEB real estate and SEB securities investments under one roof; Growth and expansion of the real estate mutual fund business; and, Development of attractive products for institutional investors,he said.
The company believes that real estate, fixed income and multi- asset approaches are particularly well suited to total return strategies. Products based on these strategies are especially attractive to investors seeking a high probability that their income expectations will be met.
“To us, total return means generating a continuous positive target return independently of the market, and hence of a benchmark. This allows us to meet our clients need for types of investment that have visible income flows and that ideally deliver returns above the risk-free money market rate.
Total return means limiting risk, rather than eliminating it. The key parameters here are value at risk and maximum drawdown.
“This is a concern we hear repeatedly by both our institutional and our retail clients. That壮 why SEB Asset Managements performance profile systematically focuses on a total return philosophy. Our concepts are based on real estate, fixed income and multi-asset strategies,he said.
The combination of timely allocation changes to regional exposures and stringent underwriting standards has led to extremely stable performance over decades. For this reason, the recent financial turmoil did not affect the company's investments negatively.
Mr. Chua noted that the key factor determining the stability of a real estate funds performance is the investment strategy chosen by the funds management.
SEB Asset Management recently won an IPD European Property Investment Award 2010 in the specialist category for Germany for its SEB ImmoPortfolio Target Return Fund. The open-ended real estate fund already won IPD awards in 2008 and 2009 for the highest average total return relative to the appropriate sector benchmark over three years in Germany.
IPD defines a specialist fund as a portfolio of interests in real estate concentrated to at least 70% of its capital employed in a single main sector. Nine countries took part in this year's competition: Germany, France, Ireland, Italy, the Netherlands, Norway, Portugal, Switzerland and the United Kingdom.
“Over two decades, SEB Asset Management has shown how to turn real estate funds into solid total return investments. Our investment strategies focus on achieving a stable cash flow on the basis of a balanced risk/return ratio. We continually optimize the risk/return profile through strategically structured portfolio diversification particularly with regard to markets, the mix of locations and tenants, and property sizes,he said.
Be it a blockbuster or a smaller niche product, SEB Asset Management guarantees creative intelligence and technical brilliance throughout. SEB's investment process is based on a combined top-down / bottom-up approach. Firstly, the property markets are compared using a top-down approach based on a market scoring model. However, the success of a real estate investment depends not only on the correct selection of the target markets, but also on the selection of individual properties.
This is why the results of the market scoring model are also included in the property scoring system, which compares individual properties. Property scoring is used on both existing properties and prospective acquisitions. Finally, the effects of investments on the portfolio must also be taken into account. Clear portfolio-specific investment rules ensure that the target risk / return position for the overall portfolio is kept in mind during individual transactions.
The market scoring model filters and assesses the investment universe to identify the markets
in which an investment could be attractive in the near future (working universe). The filter
criteria serve to restrict the scope of the investment universe and are applied both at the country level and during analysis of the types of use. Both socio-economic factors and factors specific to individual real estate markets are used when assessing real estate markets and these, too, are analyzed at both country and sub-market level. The threshold values for the filter criteria and the weightings of the assessment factors differ depending on the target risk / return profile. In the case of core products, the focus is on generating cash flows that are as stable as possible rather than on potential appreciation of the net present value.
As a result, longer-term factors are given a higher weighting than is the case for more risk-oriented investment approaches. The description below focuses on the core approach.
After the ranking has been performed, the working universe is divided into a target list
and a monitoring list. The target list consists of the target markets for investments, while the monitoring list comprises markets that are under observation but where no investments are actively planned in the short term. In principle, real estate markets qualify as target markets if they fall within the top third of the overall ranking. In a second step, they are compared with the existing portfolio and the feasibility of new investments in terms of resources is established.
The company's three new real estate special funds thrive on our many years of SEB real estate experience on three continents: SEB Americas REI, SEB Asia REI and SEB Europe REI offer access to the world壮 key real estate markets, as total return funds in the conservative risk segment.
The company founded SEB Asian Property SICAV-FIS as a Luxembourg-registered special fund in 2007. This fund is the first vehicle in our product range that invests exclusively in Asia. Over the past three years, it has invested more than 1.5 billion euro in China, Japan, Malaysia and Singapore for all the funds.
Although the company has no investments in Korea, he noted that the company hopes to gain more momentum once the market opens further. Until recently, Korea has been tough for foreigners, but hopefully more opportunities will come in this cycle, he said.

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Interview: Mr. Choi Jong-man, Commissioner of Gwangyang Bay Area Free Economic Zone Authority

Designated a free economic zone in October 2003, the Gwangyang Bay Free Economic Zone has unlimited potential to become a global logistics hub with an unrivaled transportation network, a world-class industrial infrastructure, incomparable living conditions, and business friendly environment featuring a variety of attractive deregulation and support policies.
GFEZ is comprised of five districts, each with its own mission in the overall development. Each of the districts has its own development agenda, with the first phases well under way and ongoing through 2011. They comprise: Gwangyang District (Logistics), Yulchon District (Manufacturing), Sindeok District (Residential), Hwayang District (Tourism) and Hadong District (Multi-purpose). Since its establishment in 2003, the GFEZ Authority has been able to attract a total of 6.5104 trillion won worth of investments from approximately 80 companies (59 local, 31 foreign), creating 17,165 new jobs, which has given a tremendous boost to the growth of the regional economy.
In particular, the active participation of the 31 foreign investors (38% of total investment) has established a bridgehead for GFEZ to serve as international business hub. It has attracted total 2.5938 trillion won from 31 foreign investors, and commercial traffic in Gwangyang Bay Area has also grown from 1.19 billion to 1.81 million TEU (53% increase), which has played an important role in the economic growth of Jeollanam- do.
Despite its relatively short duration of operation, GFEZ has been acting as a center of the economy of Jeollanam- do, as well as activating the economy of the east side of Korea.
In an interview,Mr. Choi Jong-man, Commissioner of Gwangyang Bay Area Free Economic Zone Authority, talks about his strategies to attract more foreign investors.

>>GFEZ has been designated as a Special Economic Zone, along with Busan and Incheon, by the Korean government. By offering special incentives for the foreign companies who invest, its strategy is to attract more investors and to contribute to the development and prosperity of the regional economy.
Gwangyang Port, thanks to the two-port system, has already been consolidated with industrial bases such as Gwangyang Steel Mill and Gwangyang Port Container Terminal even before the establishment of GFEZ. For this reason, with Gwangyang as a center, GFEZ was established aiming to become a global hub dealing with industry, leisure, education, and logistics.
Of course, attracting foreign investors and logistic companies is essential; however, it is also important to be accompanied with cooperation of Korea-based companies and activation of regional industry. GFEZ will focus on increasing container traffic as well as developing its strong manufacturing and high-tech industries.
>>All administrative procedures, ranging from investment advice to the start of the business will be handled by the GFEZ Authority, ensuring more convenient business start-up. A range of subsidies will also be provided once the company satisfies certain requirements, helping cutting costs and maximizing profits.
GFEZ offers far-reaching tax incentives and some areas may also enjoy the benefits of a free trade zone. For the foreign companies located inside the FEZ and free economic zone developers, 100 percent of tax exemption for national tax; tariffs, corporate tax, income tax, and local tax; acquisition tax, registration tax, property tax is offered.
Three years exemption of corporate tax, income tax, acquisition tax, registration tax, property tax, and comprehensive land tax for foreign companies that make a pre-qualified investment in manufacturing or logistics, and 50 percent reduction of all these taxes for an additional two years will be provided for foreign investors in Gwangyang Port Free Trade Zone (8.88).
Gwangyang Port Free Trade Zone also offers exceptionally low rental fee; 30 won/ per month for preferential rent and 200 won/ per month for basic rent. 28 companies including Samsung Tesco, SNNC, and Korea Express are the current tenants residing in the free trade zone.
>>GFEZ, mainly in Gwangyang and Yulchon District, is focusing on steel-making materials and non-ferrous metals, new and advanced high-tech materials, IT, compound and chemical product manufacturing, metal works related manufacturing.
In Hwayang District, it is aiming to develop as a great tourist destination to complement Korea’s southern coast tourism belt by attracting and building a unique place-golf-courses, spa resorts, shopping malls, and hotels- that combines beauty and the needs of tourists.
In Sindeok District, mainly Sindae Hinterland, is planning to develop a new residential, educational, and recreational town with international schools, marina facilities, hospitals, condominiums, townhouses, shopping centers, and top of the line amenities by 2011.
GFEZ expects 20 educational institutions and universities to be established within this zone. In this regard, Korea’s first fully foreign owned and accredited branch school, the Shipping & Transport College (STC-K) of the Netherlands, is already providing educational degrees to local and international students at their campus in Gwangyang Port.
In the matter of building medical facilities, foreigners or corporate bodies designed to provide medical services to foreigners under commercial law, and companies of which 50 percent or more is owned by foreign investors are allowed to establish medical centers and pharmacies within the district. Moreover, GFEZ offers the tenants of educational or medical institutions to use its land for free of charge.
>>First, GFEZ has the best geographical conditions and unrivaled transportation network to become a maritime transshipment cargo hub. It is located between China, Japan, and Russia and close to many major Northeast Asian ports including Shanghai, Hong Kong, Osaka, and Kaohsiung.
Domestically, there are four airports close to GFEZ: Yeosu, Gwangju, Muan, and Sacheon. Currently, three expressways, eight national roads, and eighteen regional roads are directly connected to GFEZ. Especially Jeonju-Gwangyang expressway is expected to be completed by 2010, which will cut driving time to Seoul to 3 hours. Besides, GFEZ is linked to two national railway lines; the Jeolla Line (North-South) and the Kyungjeon Line (East-West). Also, GFEZ has direct access to two industrial railways, the Gwangyang Line for steel transportation and the Yeocheon Line mostly for petrochemical products.
Second, GFEZ possesses the optimal infrastructure necessary for industrial activities. Nature gas for industrial production is planned to be supplied through pipelines across the GFEZ. Also, GFEZ has abundant water resources to fully meet its needs. Three rivers; the Seomjin, the Youngsan, and the Tamjin Rivers, as well as three dams; the Juam, the Suyeo, and the Tamjin Dams, are adjacent or within the area. Moreover, its stable electric power supply and environmental waste water supply make GFEZ as incomparable to the other free economic zones in Korea.
Lastly, combined with its abundant resources and geographical advantages, GFEZ makes it possible to secure the supply of materials, manufacture, and import at one-stop. This is a huge advantage compare to other free economic zones in Korea, considering convenience and cost-benefits.
>>Gwangyang Bay Free Economic Zone has excellent labor force and industrial infrastructure. While considering the advanced economic levels of Japan and China, they may seem to bring profits for short time, however, their high wages and expenses cannot be comparable to GFEZ in the long-term.
As the commissioner, I will continue to find better ways for GFEZ to become the best business-friendly Free Economic Zone in the world as well as in East Asia.
To do so, GFEZ will try to sign more MOUs with foreign investors by hosting a meeting with ambassadors, diplomats, and business leaders. Also, I strongly urge the potential investors to visit Gwangyang and experience its beautiful natural resources and attractive conditions.

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Interview: Mr. Chang Tae-pyong, Minister of Food, Agriculture, Forestry and Fisheries

The Ministry of Food, Agriculture, Forestry & Fisheries is taking efforts to make the food industry as the next growth engine, by encouraging foreign investors. The government has chosen “Profit-making Agriculture and Fisheries & Lively Rural Society” as one of its goals to pursue for the next five year term. In line with the government commitment, the Ministry for Food, Agriculture, Forestry and Fisheries aims to upgrade agriculture from primary production-based industry into advanced industry which encompasses processing and marketing so that our agriculture and fisheries can compete in a global arena.
Mr. Chang Tae-pyong, Minister of Food, Agriculture, Forestry and Fisheries tells us of his plans to promote Korea’s food industry as well as to attract more foreign investors in the national food cluster that is to be established in Iksan city.

>>MIFAFF will focus on creating an innovative agriculture and fisheries industry as the next growth industry for the next decade. We will stress importance to the following factors in order to take on the new innovative food policy:
-Reformation of the national agricultural cooperative federation and the national federation of fisheries cooperatives to be completed. Also, improvements in structure of agricultural and fisheries industry need to be made through stabilizing rural households’ income.
-Expand the new growth engines and promote high value-added branches such as innovative seed and bio-tech industry in order to set a new policy.
-Supply safe food through providing environment-friendly agricultural products, supply stabilization of agro-fishery products including rice, expansion and globalization of Korean food.
-Expand the rural farming and fishery business and revitalize the rural community in order to activate the regional economy
>>Despite the stagnation of agriculture in Korea, MIFAFF has been paying serious attention to sustainable growth of the food industry, and has selected it as a potential growing industry to create remarkable value.
In this context, MIFAFF decided to promote the national food cluster that will overcome the limits of low technology of the Korean food industry. We started by benchmarking the successful cases of Food Valley in Netherlands and Oresund Cluster in Denmark and Sweden.
Hence, the export-oriented national food cluster -Foodpolis- was announced to be formed in Iksan city by 2011 and it is our aim to become a hub of Northeast Asia’s food industry. Foodpolis (239ha) will set up an active manufacturing, processing and export system through a liaison with Saemangeum and Korea Food Research Institute (to be relocated in Jeollabuk-do). Inside the complex, about 150 research institutes and domestic/international companies will be attracted to promote traditional, functional and organically processed food. Also, about 6 government-supported facilities, such as cluster support centers and R&D centers, will support in developing special technologies, functional evaluation and boost competitiveness of the companies in residency.
>>The key goal of MIFAFF is to expand attraction of foreign direct investment into agro-food industry. In order to create the Foodpolis as a foodhold of FDI, MIFAFF will designate Foreign Investment Zone and grant various incentives such as supplying a low rent long term lease and support funds for agricultural policy and R&D.
MIFAFF will also give an impetus to attracting foreign investments by cooperating with professional investment agencies- EUCCK and Invest Korea. Moreover, we will constantly make efforts to seek ways to draw foreign investments in Fund of Funds for agro-food (KRW 100 billion) by 2011, high-tech glasshouse, and capital-intensive agri-business.
In early July, MIFAFF appointed a consultative committee comprising renowned food companies (Danone and Nestle), distributors (Homeplus) and quality-testing institutions (SGS). The committee will advise on foreign investment in the Foodpolis and will help to promote the national food cluster to related food companies. Also, the committee will participate in the workshop hosted by MIFAFF and visit the places like Foodpolis in Iksan and Saemangeum reclaimed shore, to discuss about  investment programs and improvement of the foreign investment conditions.
>>The European Union, with the world’s largest economy ($10 trillion), is the second partner to conclude FTA (official agreements to be signed in late 2010) with our country.
MIFAFF has been seeking ways to take measures for agriculture and fisheries houses to help from opening the market. In particular, the recent Korea-EU FTA is expected to threaten the livestock industry and we will try to come up with a radical reformation of the industry. For example, the market share of the domestic beef after resumption of U.S. beef is increased by implementing place-of-origin indication system and beef traceability: 44.2% (2004) → 47.6% (2008) → 49.8% (2009). Also, the planted areas for grapes after Korea-Chile FTA is rather increased by 12.1%: 1,641ha (2003) → 1,842ha (2006) → 1,840ha (2007).
Thus, FTA and DDA can be worked as a chance to increase agricultural trade with neighboring countries with huge market like China and India. China’s interest for health and well-being could impact on the country’s export for food companies as well as the whole agricultural sector.

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Interview: Ms. Jhon Eun-sook, Director General, Korea Food & Drug Administration

The Korea Food & Drug Administration is responsible for promoting the public health by ensuring the safety and efficacy of foods, pharmaceuticals, medical devices and cosmetics, and supporting the development of the food and pharmaceutical industries.
When the Korea Food and Drug Safety Headquarter was raised to the status of administration in February 1998, the Food Safety Bureau began with three divisions and 25 employees. As of June 2010, its organization and no. of personnel have increased to 11 divisions and 144 employees.
In an exclusive interview Ms. Jhon Eun-sook, Director General, Food Safety headquarters talks about the responsibilities of the department and the plans for the future:

The Food Safety Bureau is in charge of the Framework Act on Food Safety, Food Sanitation Act, Act on Health and Functional Food, and Special Act on Safety Management of Children's Dietary Life. It devises safety management policies on food (including health and functional food), food additives, and utensil and container packaging, and executes the policies.
Its key activities include 'preventive activities', 'quick response to food accidents', 'safety management in preparation for the future', 'improvement of the nation's reputation by advancing food safety', and 'promotion of food safety and nutrition policies that citizens identify with'.
To prevent food accidents
- Expand and operate the Hazard Analysis and Critical Control Points (HACCP).
Provide facility support to small- to mid-sized companies, field technology guidance, and customized training so that HACCP-applied products can account for at least 95% of total food production by 2012.
- System where consumers request for sanitary inspection
If there are 20 or more consumers who suffered the same damage, a sanitary inspection is carried out by food sanitation inspectors, including HACCP inspectors and the food poisoning cause assessment team. The results of the inspection are notified to consumers and disclosed on KFDA's Website.
- Strengthen imported food safety management
A field inspection is carried out for companies and countries from which food is imported in large quantities, that have a high number of cases of unsuitability, or whose products have been detected to have carcinogenic substances. This is how imports of harmful food are prevented and relevant products are managed with focus.
For voluntary sanitation management by importers, various systems are in operation, such as the 'prior confirmation and registration system for imported food', 'Good Importer Practice system', and 'system of carrying out field sanitary inspections on manufacturers of OEM food products that are imported'.
KFDA is moving forward with adopting a system that assigns inspection responsibilities to importers, such as strengthening responsibilities of importers of inappropriate food and issuing an order to inspect imported food products for which there is concern over their harmfulness.
- Focused prevention of food poisoning
A food poisoning response council, consisting of private and government officials, is operated to carry out food poisoning prevention activities at the national level.
To especially prevent food poisoning caused by norovirus infection which occurs irrespective of the season, KFDA is engaging in concentrated management, providing guidance, and inspecting facilities that use underground water, such as schools and teenager training centers.
To quickly respond to food accidents
- Automatically stop sales of harmful food products and provide subtitles on television on the recall of such products
Automatically stop sales of harmful food products through stores of key distributors, including Lotte Mart, Emart, Hyundai Department Store, Family Mart, and GS Retail.
When harmful food products that contain such dangerous substances as melamine are discovered, provide television subtitles on product information in real time through four television channels, including KBS.
- Operate a quick harmful food recall system
Quick countermeasures are taken against harmful food products by operating the ?food management status report system?, which allows comprehensive identification of the nationwide monitoring status.
Expand SMS services on harmful food information that are provided to citizens and food sellers across the nation, including supermarkets, and expand the traceability system for quick recall of harmful food products.
- Build a safety management network in the distribution and sales phase
Inspect agricultural, livestock, and marine products as well as processed food products available in the market with focus on harmful substances, including heavy metals and pesticide residues, and engage in concentrated monitoring of food products with a history of unsuitability and food products for which there is concern of harmfulness.
Food safety management in preparation for the future, including climate change
- The climate change-countering food safety management research? project team was launched to draw up food safety strategies.
A total of 12.5 billion won will be invested for five years, starting from 2010, to engage in food safety management research aimed at taking preemptive measures against climate change.
Carry out four key programs - ? Make food safety forecasts and impact assessments in relation to climate change; ? Analyze the influence of harmful factors and research how to manage them through climate change simulations; ? Develop food safety technologies and build a food safety management system in response to climate change; ? Raise citizens' awareness of the safety of climate change adaptation food products and build a relevant information system - and 23 sub-programs
- Develop and supply manufacturing technologies that prevent the waste of resources by minimizing the generation of harmful substances. This includes supplying manuals on manufacturing methods that reduce harmful substances (benzopyrene, MCPD, etc.) in the manufacturing phase of cooking oil, soy sauce, etc.
Improve the nation's reputation by advancing food safety
- Strengthen the nation's criteria to reach the level of advanced countries and international organizations, such as the European Union and Codex, with regards to pollutants and new types of harmful substances in food.
- Overhaul food additive ingredient standards and usage criteria so that they reach the level of advanced countries.
Create new standards and strengthen existing standards on harmful heavy metals, such as lead and cadmium, solvent residues, and microorganisms for 258 different food additives.
- Move forward with interfacing information systems that would allow real-time sharing of food safety information with countries that signed a food safety and sanitation agreement (MOU) with Korea, such as China and Vietnam.
Promote food safety and nutrition policies that citizens identify with
- Develop and disseminate an *individual nutrition management program ("Calorie Codi that is based on mobile phones.
- Adopt a consumer sanitation inspection system to encourage direct participation by consumers in food safety policies.
- Move forward with "reducing the consumption of sodium", making children's food products "zero trans fat", and reducing consumption of sugar and sodium.
KFDA has been continually carrying out R&D activities on safety management, such as that for food products, since 1998, when the Korea Food and Drug Safety Headquarter was raised to the status of administration. The program's objectives are to "build a preventive safety management system by setting scientific standards and engaging in safety assessments on hazardous substances in food and nutrition components that may be harmful in order to promote citizens' health and engage in food safety management at the level of advanced countries".
There are six key research areas (as of 2009).
1. Food safety management research: Conduct risk assessments to create new standards on harmful substances in food, establish a foundation to strengthen risk assessments, and develop testing methods.
Example) Research on safety evaluation of illegal, harmful substances in food, development of testing methods on pharmaceuticals for animals for which new standards need to be established, and research on developing a model that is suitable for Korea for conducting risk assessments on pesticide residues in food.
2. Safety management of nutritional, functional food: Research on genetically modified food inspection methods, research on food allergen indication and inspection methods, and establishment of standards on harmful substances in health and functional food products.
Example) Safety verification testing on genetically modified food, improvements to and establishment of methods used to analyze food additives in food products, and research on safety management for side effects of healthy, functional food.
3. Safety management of national antibiotic resistance: Assess the current status of antibiotic resistance (non-clinical), and hold a special committee on antibiotic resistance of Codex and engage in international cooperation-based research to come up with safety management measures.
Example) Research on the characteristics of harmfulness of Methicillin-Resistant Staphylococcus Aureus (MRSA), a survey to ascertain consumer awareness of appropriate usage of antibiotics
4. Safety management of children's food products: Establishment of an integrated management network for children's food products and measures to ensure safety of children's food products.
Example) Research on reducing nutrition components in food that have the possibility of causing harm, research on setting the maximum vitamin and mineral content in health and functional food products for children, and research on establishing a dietary life environment that prevents obesity in children.
5. National monitoring system: Engage in prior monitoring activities to enact and amend standards and criteria, check if standards and criteria are observed, and conduct monitoring activities to reassess standards.
Example) Monitor heavy metals in vegetables, assess the existence of dioxins and PCBs in food, monitor PAHs in marine products, and research test methods on organo arsenics and inorganic arsenics in agricultural products and assess the current status.
6. Food safety management in relation to climate change: Research is carried out to device measures against an increase in harmful marine products resulting from a change in the marine ecosystem, owing to a rise in the sea surface temperature, and a rise in new types of food poisoning bacteria, including germs and viruses.
Example) Evaluate costs of social and economic losses in the area of food safety caused by climate change, and analyze what impact climate change has on food poisoning and research the relevant management system.
Achievements from research projects in 2009 include the following: ? Implementation of institutional improvements and enactment/amendment of standards and criteria: 80 cases; ? development of test methods: 88 cases; ? monitoring projects and establishment of an informatization foundation: 43 cases; ? education and PR activities on research results and spread of/support for technologies: 164 cases; ? development of guidelines, manuals, and handbooks: 37 cases.
Research project costs for the last three years: 13,930 million won (2008); 17,340 million won (2009); 17,510 million won (2010)
In Korea, consumers are highly interested in food safety and citizens' health. For this reason, there is high demand for satisfaction of consumers' right to know such as through food labeling. Accordingly, there have been frequent changes to labeling standards. Some have said that this causes inconveniences.
To make improvements:
- First, KFDA will implement a 'system of an integrated enforcement date for food labeling standards'. Irrespective of the number of times or timing of amendment to food labeling standards, a grace period of at least one year will be provided before enforcement of labeling standards, and there will be one integrated enforcement date a year. This system will address current inconveniences of sellers where they need to change the label on product packaging whenever labeling standards are changed and reduce their financial burden in this regard. In addition, relevant parties will know beforehand of the implementation of such administrative measures to result in a higher level of observance of regulations and resolution of civil complaints.
- Second, KFDA will thoroughly review whether amendments to food labeling standards have the possibility of triggering trade conflicts. It will also make notifications to the WTO and make efforts to actively incorporate opinions submitted by foreign countries.
- Third, KFDA will create an English version of the food labeling standards and provide it on KFDA's Website. It will do so in order to help exporting countries understand Korean labeling standards and to promote smooth trade activities. Considering that a full amendment will be made to food labeling standards this year, an English version will be provided after next year.

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