Abolition of Soju and Beer Usage Labels... Unified as 'For Home Use'

Ministry of Economy and Finance-National Tax Service Announce 'Liquor Regulation Improvement Plan'
Allow Contract Manufacturing of Liquor Using Other Manufacturers' Facilities
Liquor Producers and Importers Allowed to Use Courier Delivery for Sales
Abolish Mandatory Price Reporting for Beer and Takju... Relax Supermarket Area Standards

[Asia Economy Reporter Kwangho Lee] The government will abolish the usage-specific labeling for diluted soju and beer for home use and large retail stores. Additionally, it will allow the production of non-alcoholic products using liquor manufacturing facilities and improve the system to enable delivery transport for liquor sales by manufacturers and importers.

On the 19th, the Ministry of Economy and Finance and the National Tax Service announced the "Liquor Regulation Improvement Plan" containing these measures to strengthen the competitiveness of the liquor industry and enhance public convenience.

Im Jaehyun, Director of the Tax Policy Bureau at the Ministry of Economy and Finance, stated, "Although the domestic liquor market has stagnated recently, liquor imports are increasing, so it is necessary to enhance the competitiveness of the domestic liquor industry. The government plans to support the growth of the liquor industry through regulatory improvements across manufacturing, distribution, and sales following the reform of the liquor taxation system."

First, the labels attached to the bottles of soju and beer, which were previously distinguished by usage such as home use (supermarkets, convenience stores, liquor department stores, etc.) and large retail stores (large marts), will be unified under "home use." This aims to minimize costs related to inventory management.

Furthermore, the obligation to report liquor prices for beer and takju will be abolished. Currently, liquor manufacturers must report prices to the head of the National Tax Service when changing prices or releasing newly manufactured liquor, but since the price reporting system has shifted from an ad valorem tax to a specific tax, it was judged to have low practical benefit.

In addition, the tax payment certificates on containers of beer and takju, including type, brand name, specifications, and volume, will be simplified, and traditional liquors with annual shipments below a certain level will be exempt from the obligation to attach tax payment certificates. The floor area standard for large retail stores required to prepare liquor sales records will also be relaxed to 3000m², aligning with the Distribution Industry Development Act.

The criteria for "liquor delivery by restaurants" allowed for telecommunication sales will also be clarified. Currently, telecommunication sales delivering liquor "incidental to food" are permitted, but since the scope of incidental is unclear, going forward, only liquor delivered together with food where the liquor price is lower than the food price will be allowed.

Liquor distribution will also be reformed. Until now, only vehicles owned or leased with a "liquor transport vehicle inspection sticker" and delegated logistics company vehicles could transport liquor. Going forward, vehicles of logistics companies licensed under the Freight Transport Business Act will also be allowed to transport liquor.

Additionally, OEM manufacturing of liquor using manufacturing facilities of other manufacturers will be permitted. Minor manufacturing method changes or additions, such as alcohol content adjustments that do not affect product safety, will have simplified procedures. For manufacturing plants holding multiple manufacturing licenses, only the license for the liquor not produced for more than two brewing cycles will be canceled. The required period for new product launches will also be shortened from 30 days to 15 days. Liquor sold directly to foreign tourists visiting traditional liquor and small-scale liquor manufacturing plants will be exempt from liquor tax. Tasting events will also be allowed at traditional liquor promotion centers.

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