Even 'Soju,' the Common People's Liquor, Sees Price Hike... The Era of '6000 Won' in Restaurants Approaches

HiteJinro to Raise Some Soju Prices from the 23rd
Main Cause: Increase in Alcohol and Other Costs
Soju Industry to Announce Price Hikes... Price Increase Inevitable in Restaurants

[Asia Economy Reporter Song Seung-yoon] Following the price hike of soju led by Hite Jinro, the number one company in the soju industry, it seems inevitable that other companies will also raise their prices. There are also forecasts that the price of soju sold in restaurants will rise to around 5,000 to 6,000 KRW per bottle.

According to the industry on the 19th, Hite Jinro plans to increase the factory shipment price of ‘Chamisul Fresh’ and ‘Chamisul Original’ by 7.9% starting from the 23rd. The price increase applies to 360ml bottles and some PET bottle products. The shipment price of the ‘Jinro’ product will also be raised by 7.9%. The premium line ‘Ilpum Jinro’ is excluded from this price increase.

This soju shipment price increase is the first in about three years. Earlier, Daehan Alcohol Sales, which sells ethanol to soju companies, raised the price of ethanol by an average of 7.8% from the 4th of this month for the first time in 10 years. Along with this, various costs involved in manufacturing products such as bottle caps have also increased one after another, ultimately leading to the rise in soju prices.

A Hite Jinro official explained, "Recently, prices of raw materials, logistics costs, handling fees for empty bottles, and manufacturing expenses have risen. Internally, we tried to absorb the initial increase through cost reduction and efficiency improvements. However, after thorough consideration, we decided on the rate of increase to minimize the burden on consumers."

After the ethanol price hike, the liquor industry has been cautious and engaged in a waiting game. However, with Hite Jinro opening the door, other companies such as Lotte Chilsung Beverage, Muhak, and Bohae Brewery are expected to join the price increase trend one after another. Although the price hike is considered a foregone conclusion, the timing and extent of the increase are still being carefully negotiated. A Lotte Chilsung Beverage official said, "It is true that there are factors for a price increase due to the rise in ethanol prices, but nothing has been finalized yet and it is still under review." Other companies are also withholding comments, saying no decisions have been made yet.

If the soju price increases continue, the price of soju sold in restaurants is also likely to rise accordingly. In 2019, the price of soju, which was around 3,000 to 4,000 KRW, rose to around 4,000 to 5,000 KRW due to the price increase by liquor companies. Many expect that after this increase, prices will reach the 5,000 to 6,000 KRW range.

Since soju is considered a representative liquor for the common people, citizens are responding that the price is burdensome. Kim Seong-han (43, pseudonym), who lives in Dongdaemun-gu, Seoul, said, "It is burdensome to have to buy soju at prices that used to be sold only in high-end restaurants. These days, nothing is exempt from price increases, but since soju has long represented the liquor of the common people, it feels bittersweet."

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