July 12, 2007

 

US beef to find its way on South Korean discount store

 

 

South Korea, for the first time in more than three years, will put US beef on a popular discount outlet and sold at a half price from that of the local beef.

 

Lotte Mart, South Korea's third-largest supermarket chain and the discount business of Lotte Shopping Co., will sell 40 tonnes of US beef from meat packer Swift & Co. this week in its 53 outlets around the country, the company said on Wednesday (July 11).

 

The volume will be the largest for the South Korean supermarket chain since the country accepted the first shipment in April this year since its ban in 2003 due to mad cow disease fears.

 

In a statement, Lotte Mart officials said they have verified the safety of meat coming from Swift.

 

The price of US fillet will be around 1,550 won (US$1.69) per 100 gram, which is half the price of South Korean beef and 20 percent cheaper than Australian meat, which has dominated the market for some time in the absence of US beef.

 

Lotte Mart store manager Hong Won-sik said cheaper US beef is sure to attract South Korean consumers. 

 

Other discount chains are expected to follow Lotte's path.

An official at major discounter Eland said they will start selling US beef in August after some special events for customers.

 

It remains to be seen whether US beef will regain its former popularity in South Korea, where consumers now pay some of the highest beef prices in the world.

 

As of July 12

US$1 = 920.20 Korean won