June 4, 2009

Poor US beef sales has forced South Korean beef importer Philbong Prime Entertainment into filing for bankruptcy.

Philbong, a subsidiary of agri company E-Net, had non-payment of invoices worth KRW200 million (US$161,218). The company had reportedly sold all its shares and would be taken over by Well Made Investment.

Philbong had been importing large volumes of US beef since July 2008. After focusing its efforts on US product, the subsequent lack of US beef sales, falling wholesales prices and expensive stock led to Philbong filing for bankruptcy.

South Korea imported 16,887 tonnes swt of US beef from January to April this year. Although US beef was initially received with great interest by Korean traders last July, imports of US product have gradually declined since the beginning of 2009.