'Soju 1 Bottle 6000 Won' Possible... Alcohol Prices to Rise Again This Year

[Asia Economy Reporter Kwak Minjae] The prices of soju and beer are expected to rise again this year following last year.

[Image source=Yonhap News]

According to the Ministry of Economy and Finance and the liquor industry on the 19th, the tax on beer will increase by 30.5 won per liter (ℓ) starting in April, reaching 885.7 won. This increase is expected to be larger than last year's 20.8 won per liter hike.

The increase in beer taxes typically leads to a rise in the wholesale price set by liquor companies. The continuous rise in costs for raw and subsidiary materials, logistics, and electricity also contributes to the increase in beer wholesale prices.

In the case of soju, although the liquor tax has not increased like beer, cost burdens are pressuring wholesale price hikes.

Soju is made by mixing ethanol with water and sweeteners. Daehan Jujeong Sales, which exclusively distributes ethanol supplied by 10 ethanol companies domestically, raised ethanol prices by 7.8% last year for the first time in 10 years. The price for soju bottles supplied by bottling companies increased by more than 20%, from 180 won to 220 won per bottle.

When liquor companies raise wholesale prices, the retail price consumers pay after distribution processes can become even more expensive. For soju, the wholesale price per bottle rose by about 85 won last year, while prices at marts and convenience stores increased by 100 to 150 won.

A survey conducted last year by the Food Service Industry Research Institute of 130 general restaurant owners found that 55.4% had raised or planned to raise soju retail prices due to the increase in wholesale prices. Those who had already raised prices reported increases of 500 to 1000 won per bottle.

If wholesale prices continue to rise similarly this year, it is expected that restaurants will display price tags reading "Soju 1 bottle 6000 won."

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