November 16, 2007

South Korea government to diversify grain import sources
 

The South Korean government said Thursday (November 15, 2007) that it will widen its source of grain imports to Southeast Asia and South America from the US and Australia to cope with rises in international grain prices.

The government will also support joint and long-term purchase contracts as well as spot and futures deals, the Ministry of Finance and Economy said in a statement.

The government said that it may have to lower its 2008 gross domestic product growth forecast of 5 percent due to surge in international oil and grain prices.

For this year, the government said the recent surging in global grain prices would not have an immediate effect as grain imports account for only 1 percent of the country's total imports and the required amount for the year has already been purchased.