Minimum 15,000 Won to Drink 'Somaek'... Alcohol Prices Expected to Rise Following Chamisul Price Increase

HiteJinro Raises Soju Price by 6.95%
Restaurant Soju Price Expected to Approach 7,000 Won per Bottle
Government Begins Liquor Tax Reform Process

Prices of some alcoholic beverages produced by HiteJinro, including ‘Chamisul’ and ‘Terra,’ are set to rise. With alcohol consumption increasing toward the year-end, the price hike is expected to add to consumers' burdens. It is anticipated that the price of soju sold in restaurants and bars could reach up to 7,000 KRW per bottle due to this increase. As the price hike in alcoholic beverages intensifies inflationary pressures and triggers a domino effect among liquor companies, the government is accelerating efforts to reform liquor taxes to lower the prices of soju and whiskey.

On the 2nd, various soju bottles are displayed at Hanaro Mart Yangjae Branch in Seocho-gu, Seoul, where soju exports are significantly increasing riding the Korean Wave. Photo by Jinhyung Kang aymsdream@

According to HiteJinro on the 9th, the ex-factory prices of soju brands Chamisul Fresh and Chamisul Original will increase by 6.95% starting that day. The price hike applies to 360ml bottle products and PET products under 1.8 liters. Beers such as ‘Terra’ and ‘Kelly’ will also see an average price increase of 6.8% from the same day. Earlier, OB Beer raised the ex-factory prices of major beer products like Cass and Hanmac by an average of 6.9% last month.

With HiteJinro joining the price hike, consumers’ burdens are expected to grow further. As a result of this increase, the price of soju sold in restaurants and bars is expected to exceed 5,000 KRW per bottle, reaching between 6,000 and 7,000 KRW. Last year, the liquor industry raised ex-factory prices, pushing the price of a bottle of soju in restaurants from around 4,000?5,000 KRW to 5,000?6,000 KRW. Additionally, with recent beer prices rising to 7,000?8,000 KRW per bottle, the price of ‘Somaek’ (soju + beer) could reach between 13,000 and 15,000 KRW.

Previously, HiteJinro raised the ex-factory price of soju by 7.9% in February last year, increasing the price from 1,081 KRW to 1,166 KRW per bottle, an 85 KRW increase. Applying the current 6.95% increase to the existing price would raise it by 81 KRW per bottle, bringing the ex-factory price to 1,247 KRW. Generally, even if the ex-factory price of soju rises by less than 100 KRW, restaurant prices have increased by 1,000 KRW per bottle, so many companies are expected to implement 1,000 KRW unit price hikes this year as well.

Concerns are also emerging that other soju companies will follow suit with price hikes as OB Beer and HiteJinro raise their prices. Lotte Chilsung Beverage, which sells ‘Cheoeumcheoreom’ and ‘Saero,’ stated, "We are currently reviewing price increases for soju and beer," but added, "The timing and rate of increase have not yet been specifically decided."

The rise in soju prices is also giving momentum to the government’s liquor tax reform discussions. The Ministry of Economy and Finance and the National Tax Service are considering introducing a standard sales ratio to the tax base for domestic distilled liquors such as soju and whiskey. The standard sales ratio is a rate applied when calculating the individual consumption tax base. Since the tax base excludes the amount calculated by multiplying the factory shipment price by the standard sales ratio, this effectively lowers the prices of soju and whiskey. The standard sales ratio was previously introduced in July to improve tax fairness between domestic and imported cars.

The standard sales ratio system has been advocated as necessary to enhance fairness between imported and domestic alcoholic beverages. Imported liquors use import declaration prices as the tax base, while domestic liquors use the sum of manufacturing costs and selling and administrative expenses, resulting in a heavier tax burden on domestic liquors. Last month, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated at a parliamentary audit, “We will actively consider introducing the standard sales ratio system.” The Ministry of Economy and Finance and the National Tax Service are reportedly reviewing applying a standard sales ratio of up to 40%.

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