HiteJinro Establishes Philippine Subsidiary... Full-Scale Entry into Local Market

Promoting Soju Localization and Globalization through Corporate Establishment

[Asia Economy Reporter Lee Seon-ae] HiteJinro announced on the 6th that it has established its overseas subsidiary HiteJinro Philippines in Manila, the capital of the Philippines, and has begun targeting the local market.

HiteJinro Philippines obtained its business license at the end of July last year and started operations after receiving import approval in October. Last month, it made its initial export of about 13,000 boxes (1 box = 30 bottles of 360mℓ each) including Strawberry Isul, an overseas-exclusive product popular throughout Southeast Asia, as well as Chamisul. The Philippine subsidiary is the sixth overseas subsidiary following those in Japan, the United States, China, Russia, and Vietnam, established three years after the Vietnam subsidiary was founded in 2016.

The Philippines, with a population of about 100 million ranking 13th worldwide, maintains a stable domestic market, showing a GDP growth of 6.8% in 2018. The alcoholic beverage market is also showing slight growth based on this domestic market, with the spirits (distilled liquor) market estimated to reach 60 million boxes annually.

HiteJinro declared the "globalization of soju" in 2016 and has been focusing on Southeast Asian countries within the Indochina belt, such as Vietnam, considering various factors including economic growth, population base, and the status of the alcoholic beverage market. The Philippines began local market penetration through local partners since 2016, before the establishment of the subsidiary, and has carried out various marketing activities such as club parties for brand building. In April 2018, it also launched a locally tailored product, "Jinro Light," to target the low-alcohol distilled liquor market in the Philippines. Through these efforts, sales more than doubled in 2018 compared to 2015, showing rapid growth, with an average annual growth rate of 27.2% over the past three years.

Hwang Jeong-ho, Executive Director of Overseas Business Headquarters, said, "Since declaring the globalization of soju, we have been leading localization in the Southeast Asian market," adding, "Through the establishment of the Philippine subsidiary, we will implement market-tailored strategies and promotions suited to regional characteristics to enhance the status of Korean alcoholic beverages."

This content was produced with the assistance of AI translation services.