"Chamisul Ex-factory Price, From January 1 Next Year 1247 Won → 1115 Won"

HiteJinro Decides Price Reduction Following Introduction of Standard Sales Ratio
Diluted Soju Down 10.6%, Fruit Liqueur Down 10.1%
Distilled Soju Including Ilpoom Jinro Also Reduced by 10.6%

HiteJinro announced on the 18th that it will lower the ex-factory prices of soju products shipped from January 1 next year in accordance with the government's introduction of the standard sales ratio.

Soju is displayed at the liquor section of a large supermarket in Seoul. [Image source=Yonhap News]

According to this decision, the ex-factory prices of diluted soju brands Chamisul and Jinro will be reduced by 10.6%. Specifically, the current ex-factory price of Chamisul, which is 1,247 won, will be lowered to 1,115 won starting January 1 next year. Additionally, fruit liqueurs will be reduced by 10.1%, and distilled soju such as Ilpum Jinro will be cut by 10.6% respectively.

Earlier, on the 14th, the National Tax Service held a Liquor Tax Standard Sales Ratio Deliberation Committee and set the standard sales ratio for domestic soju at 22.0%. The standard sales ratios for domestic whiskey, brandy, and general distilled spirits were finalized at 23.9%, 8.0%, and 19.7%, respectively. The standard sales ratio for liqueurs mixed with flavorings in distilled spirits was set at 20.9%.

The standard sales ratio is a kind of tax discount rate that reduces the taxable base used to calculate liquor tax. The higher the standard sales ratio, the smaller the taxable base, resulting in lower taxes. The National Tax Service had expected that with a 22.0% discount on the taxable base for domestic soju, the ex-factory price would decrease by about 10%.

The standard sales ratio system was introduced to address the limitations of the specific tax system, which imposes higher taxes on domestic liquor compared to imported liquor. Domestic liquor is taxed based on the ex-factory price, which includes manufacturing costs plus 'sales expenses and profit.' In contrast, imported liquor is taxed based on the import declaration price before adding 'sales expenses and profit,' leading to criticism that domestic liquor is discriminated against.

Meanwhile, Lotte Chilsung Beverage, which is reviewing price increases for soju products such as Chum Churum and Saero, officially stated that it will not raise prices within this year. The company said, "We plan to announce the specific timing and rate of the price increase soon."

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