
Home craft beers are on cabinets at a CU retailer in Seoul on this March 2022 picture. Home craft beer breweries, which depend on offline shops and pubs for distribution, are one of many liquor producers that may profit from lifting the ban on on-line gross sales of soju and beer. Newsis
Korea’s soju and beer firms declare the ban on on-line liquor gross sales is hurting their market competitiveness, as imported liquors have grown their pies available in the market.
Supporters of the ban argue that public well being and potential moral points outweigh market considerations. The federal government acknowledges that the difficulty has been debated for years and can’t be resolved shortly.
The liquor firms complain that the ban doesn’t apply to imported liquors like wine, whisky and sake. They’re obtainable on-line as soon as consumers confirm they’re at the very least 19, Korea’s authorized consuming age.
Distributors then place the ordered liquors at designated pickup factors — often alcohol retailers — the place customers can gather them in individual.
Liquors registered as conventional merchandise in Korea, similar to „makgeolli“ (rice wine) and Andong soju, are exempt from the web gross sales ban, permitting them to be delivered on to customers‘ doorsteps.
In distinction, home soju and beer merchandise are solely accessible by way of offline shops and eating places. Main native producers argue that lifting the ban would broaden their distribution channels and enhance market competitiveness.
Korea and Poland are the one member states of the Organisation for Financial Co-operation and Growth, or OECD, the place an internet liquor gross sales ban stays in impact.
“If the web gross sales had been allowed, it might imply extra space for us to distribute and promote our merchandise, which is actually good for us,” an trade official mentioned. “That will permit us to additional diversify our enterprise methods.”
The state of affairs significantly pressures smaller craft beer breweries. In comparison with main firms like Oriental Brewery, HiteJinro and Lotte Chilsung Beverage, they’ve smaller distribution channels, being restricted to native beer pubs or fewer cabinets at comfort shops or supermarkets.
Even the most well-liked craft beer breweries in Korea, like Jeju Beer Firm, are chasing the tails of heavyweight rivals attributable to their restricted choices for retail distribution.
To such firms, on-line channels may help increase their gross sales. Contemplating that the nation’s liquor market has downsized and diversified for the reason that COVID-19 pandemic, with new traits that includes highballs and whiskies rising, on-line gross sales can successfully broaden the patron base for these smaller breweries.

Fashions pose with wine and whisky merchandise at an Emart retailer in Yongsan District, Seoul, Jan. 6. Yonhap
“If on-line gross sales of our merchandise grew to become a actuality, our merchandise may attain customers extra simply,” a Jeju Beer Firm official mentioned. “Though our nonalcohol liquor or these with an alcohol proportion of 1 or under are presently obtainable on-line, our signature manufacturers are nonetheless presently off-limits on-line.”
Nevertheless, there are additionally considerations that the web gross sales ban shouldn’t be lifted with out a thorough authorized framework to make sure security. Central to those considerations are moral points, significantly the chance of underage consumption.
Such concern is even shared by liquor firms right here. They consider that if the web gross sales of soju and beer turns into authorized and the liquors one way or the other attain the fingers of underage customers, they are going to be held accountable for the issues.
“Ingesting issues involving underage customers will virtually actually boomerang on liquor producers like us,” a HiteJinro official mentioned. “Moreover, if the web gross sales turns into a actuality, small-size retailers of soju and beer that depend on offline prospects will get instantly hit. It additionally includes tax issues. So many issues are intertwined right here.”
The company tax bureau underneath the Nationwide Tax Service (NTS), which handles the nation’s liquor-related insurance policies, mentioned that whether or not to raise the web gross sales ban on soju and beer is a “mighty equivocal matter” that requires cautious consideration. An official mentioned that the difficulty has continued for many years as a result of supporters and opponents of the ban have been debating with out reaching an settlement thus far.
The NTS mentioned the federal government launched the web liquor sale ban in accordance with the nation’s Juvenile Safety Act. The authority cited a clause underneath the legislation that states the sale of liquors right here must be transacted in individual to confirm consumers‘ identification and age. The authority added that it’s now partially permitting on-line gross sales of liquors by way of „sensible order,“ by way of which customers order liquors on-line and declare them at a chosen offline pickup level.
„If all liquor merchandise grew to become obtainable on-line, it might usher in optimistic market impacts similar to enhancing customers‘ comfort and boosting e-commerce for liquor merchandise,“ mentioned Jung Hee-jin, chief of the consumption tax division underneath the bureau. „Alternatively, that can even generate detrimental impacts when it comes to public well being, youth safety and leveling the enjoying discipline for the nation’s liquor trade.“
„We should always take note of each security in liquor trades and securing tax income by way of the nation’s Liquor Tax Act,“ she added. „The mission additionally requires joint efforts with a number of authorities authorities together with the ministries of well being, household, commerce and meals.“