Alcoholic Drinks in South Korea

ALCOHOLIC DRINKS IN SOUTH
KOREA
Euromonitor International
October 2014
ALCOHOLIC DRINKS IN SOUTH KOREA Passport I
LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1
Steady Total Volume Sales Growth .......................................................................................... 1
Health Concerns Impact the Industry........................................................................................ 1
Hite Jinro Co Ltd Continues To Lead Alcoholic Drinks ............................................................. 1
Hypermarkets and Convenience Stores Make Share Gains ..................................................... 1
Moderate Growth Expected Over the Forecast Period ............................................................. 2
Key Trends and Developments .................................................................................................... 2
Growing Health Concerns Have A Major Impact on Consumption ........................................... 2
Changing Ways To Socialise and Enjoy Leisure Impact Alcoholic Drinks Consumption .......... 3
Alcoholic Drinks Keep Being Diversified ................................................................................... 4
Key New Product Launches ..................................................................................................... 5
Summary 1 Key New Product Developments 2013-2014................................................ 6
Market Background .................................................................................................................... 11
Legislation .............................................................................................................................. 12
Table 1 Number of On-trade Establishments by Type 2008-2013 .......................... 13
Taxation and Duty Levies ........................................................................................................... 13
Table 2 Taxation and Duty Levies on Alcoholic Drinks 2013 .................................. 14
Table 3 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected
Categories 2013 ......................................................................................... 14
Table 4 Selling Margin of a Typical Beer Brand in Retail Channel that uses
Wholesalers 2013 ...................................................................................... 15
Table 5 Selling Margin of a Typical Beer Brand in Retail Channel that does
not use Wholesalers 2013 .......................................................................... 15
Table 6 Selling Margin of a Typical Wine Brand in Retail Channel that uses
Wholesalers 2013 ...................................................................................... 15
Table 7 Selling Margin of a Typical Wine Brand in Retail Channel that Does
Not Use Wholesalers 2013 ........................................................................ 16
Table 8 Selling Margin of a Typical Spirits Brand in Retail Channel that uses
Wholesalers 2013 ...................................................................................... 16
Table 9 Selling Margin of a Typical Spirits Brand in Retail Channel that does
not use Wholesalers 2013 .......................................................................... 16
Operating Environment............................................................................................................... 16
Contraband/parallel Trade ...................................................................................................... 17
Duty Free ................................................................................................................................ 17
Cross-border/private Imports .................................................................................................. 17
Market Indicators ........................................................................................................................ 17
Table 10 Retail Consumer Expenditure on Alcoholic Drinks 2008-2013 ................... 17
Market Data ................................................................................................................................ 17
Table 11 Sales of Alcoholic Drinks by Category: Total Volume 2008-2013 .............. 17
Table 12 Sales of Alcoholic Drinks by Category: Total Value 2008-2013 ................. 18
Table 13 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2008-
2013 ........................................................................................................... 18
Table 14 Sales of Alcoholic Drinks by Category: % Total Value Growth 2008-
2013 ........................................................................................................... 18
© Euromonitor International
ALCOHOLIC DRINKS IN SOUTH KOREA Passport II
Table 15 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade:

Volume 2013 .............................................................................................. 18
Table 16 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value
2013 ........................................................................................................... 19
Table 17 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: %
Volume 2013 .............................................................................................. 19
Table 18 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: %
Value 2013 ................................................................................................. 19
Table 19 GBO Company Shares of Alcoholic Drinks: % Total Volume 2009-
2013 ........................................................................................................... 20
Table 20 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2008-
2013 ........................................................................................................... 20
Table 21 Distribution of Alcoholic Drinks by Format and Category: % Off-trade
Volume 2013 .............................................................................................. 21
Table 22 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2013-
2018 ........................................................................................................... 21
Table 23 Forecast Sales of Alcoholic Drinks by Category: Total Value 2013-
2018 ........................................................................................................... 22
Table 24 Forecast Sales of Alcoholic Drinks by Category: % Total Volume
Growth 2013-2018 ..................................................................................... 22
Table 25 Forecast Sales of Alcoholic Drinks by Category: % Total Value
Growth 2013-2018 ..................................................................................... 22
Definitions................................................................................................................................... 22
Sources ...................................................................................................................................... 23
Summary 2 Research Sources ...................................................................................... 23
ALCOHOLIC DRINKS IN SOUTH KOREA Passport 1
ALCOHOLIC DRINKS IN SOUTH

KOREA
EXECUTIVE SUMMARY
Steady Total Volume Sales Growth

In 2013, alcoholic drinks continued to post total volume sales growth. The growth rate was
marginally slower compared with 2012 because of the sluggish economy. Moreover, the slower
growth of soju, which accounts for around one third of total volume sales of alcoholic drinks, had
an important impact on the overall performance. In 2013, imported lager, some Western spirits,
still light grape wine, and RTDs showed robust total volume sales growth. New products were
launched, especially in less matured categories. Total volume sales of whiskies continued to
decrease significantly in 2013. Traditional Korean alcoholic drinks, including yakju, cheongju
and bokbunjaju, also saw further decreases in total volume sales.
Health Concerns Impact the Industry

South Korean consumers are increasingly interested in health and wellbeing. People used to
consume alcoholic drinks mainly as a way to get drunk fast. However, concerns about the health
effects of binge drinking saw a preference for alcoholic drinks with lower alcohol content during
the review period. Moreover, as people avoid binge drinking, they tend to enjoy alcoholic drinks
for their taste. It is considered socially unacceptable to drink excessively at business meetings.
Some companies have a policy that discourages binge drinking. As the culture changes, sales
of whiskies, which were popular drinks during business meetings, have decreased in the review
period. The growing preference for a healthier lifestyle has increased the popularity of camping
in South Korea. For this reason, players have launched products that are especially targeted at
campers.
Hite Jinro Co Ltd Continues To Lead Alcoholic Drinks

In 2013, Hite Jinro Co Ltd leads total volume sales of alcoholic drinks. The company‟s
leadership can be attributed to its robust performance in beer and soju. By acquiring Jinro Co
Ltd in 2005, Hite Brewery Co Ltd gained a strong presence in soju in South Korea. Hite Brewery
Co Ltd and Jinro Co Ltd operated as separate entities between 2006 and 2010, following
guidelines imposed by the Fair Trade Commission. As Hite Jinro Co Ltd started to operate as a
single company in September 2011, it made an effort to consolidate the organisational structure.
Hypermarkets and Convenience Stores Make Share Gains

The significance of hypermarkets in sales of alcoholic drinks in South Korea has been
growing. When new products are launched, hypermarkets become important venues for testing
the market. Major hypermarkets develop their private label products, offering them at
competitive prices to the general public. The off-trade volume share of convenience stores has
grown over the review period. As the number of single-person households increases in South
Korea, convenience stores are introducing product assortments that cater to this consumer
group.
Moderate Growth Expected Over the Forecast Period

Over the forecast period, alcoholic drinks in South Korea is expected to post moderate total
volume sales growth. Growth is mainly being driven by steady performances in major product
categories, such as beer and soju. Although these categories are predicted to register moderate
overall growth rates, less mature product types such as bitters, vodka, gin, rum, imported lager
and RTDs are expected to record strong growth over the forecast period.
KEY TRENDS AND DEVELOPMENTS
Growing Health Concerns Have A Major Impact on Consumption

As the wellbeing trend continues to grow in South Korea, people are more concerned about
their quality of life. In line with this trend, South Korean consumers are increasingly interested in
their health and take more care about the food and drink they consume. South Koreans are
known to be heavy drinkers. During social gatherings, people visit different on-trade outlets to
continue drinking. However, as heavy drinking can cause health problems, people are refraining
from binge drinking. Instead, they are looking for alcoholic drinks with lower alcohol content.
Moreover, people are moving towards drinking alcoholic beverages in order to enjoy their taste
and socialise rather than simply to get drunk.
Binge drinking has been pointed out as a social problem, and there has been a movement to
change this heavy drinking culture, especially in business settings. Some companies in South
Korea have created internal rules to prevent excessive drinking at business meetings. For
example, one conglomerate in South Korea encourages its employees to finish drinking at
business meetings by 21.00hrs. They may only consume one type of alcoholic drink and have to
finish drinking after one round (the so-called “911 campaign”).
Growing health concerns, in line with the wellbeing trend, have affected the consumption
pattern of alcoholic drinks in South Korea. Over the review period, total volume sales of whiskies
decreased significantly. This is because “other” blended Scotch whisky, which accounts for the
highest sales, was typically consumed at business meetings. Poktanju, a mixture of whisky and
beer, used to be a popular drink at business meetings in South Korea. However, the growing
concern about drinks with high alcohol content, Poktanju went out of fashion, leading to a
decrease in sales of whiskies.
Total volume sales of soju grew by 2% in 2013, slower than in 2011 and 2012. Although total
volume sales of soju slowed, Joeunday, manufactured by Muhak Co Ltd, recorded a strong 10%
increase in 2013, to account for an 11% share. Joeunday‟s strong performance can partly be
explained by its 16.9% abv, which is lower than the 18-20% of most soju brands.
Bitters posted strong total volume sales growth over the review period. However, in 2013,
growth slowed down significantly. This type of beverage has become popular in South Korea as
it was introduced as a mixer for energy drinks. “Jäger Bomb”, a mix of Jägermeister and energy
drinks such as Hot 6, was fashionable among young adults. However, the potentially negative
effect on health of drinking bitters with energy drinks has constantly been pointed out in the
media. As people are more interested in health issues, the way bitters are consumed has raised
concerns among consumers. This dampened the consumption of bitters with energy drinks in
2013.
As people increasingly consume alcohol in order to enjoy its taste and socialise, not simply to
get drunk, RTDs became popular during the review period. In 2012, RTDs recorded an 11%
increase in total volume sales, followed by a 7% rise in 2013. Lower alcohol content and various
flavours have appealed to the young generation, especially women who tended not to drink
alcohol. In 2013, Bohae Brewery Co Ltd launched May, a wine-based RTD with plum extract,
targeting over 20-year-old women. Other companies have made efforts to satisfy the tastes of
consumers by introducing new flavours. This is not limited to RTDs. In spirits, for example,
Diageo Korea Co Ltd launched coconut-flavoured vodka (Ciroc Coconut) in 2013.
Outlook
During the forecast period, consumer health concerns are expected to grow and more people
will take care over the drinks they consume. The preference for drinks with lower alcohol content
will continue; thus, manufacturers will diversify in order to meet this demand. As more people
drink alcohol in order to enjoy the taste and socialise, more products with new and varied tastes
and flavours are expected to be introduced.
The pace of total volume sales growth in bitters is projected to slow down during the forecast
period as consumers remain concerned about the potential negative effects of mixing with
energy drinks. In South Korea, bitters were mainly introduced as mixers for energy drinks. The
herbal content and medicinal benefits of drinking bitters were not properly communicated to
South Korean consumers. If players introduce alternative ways of drinking bitters, sales might
be positively affected.
Changing Ways To Socialise and Enjoy Leisure Impact Alcoholic Drinks

Consumption
Changing trends in terms of socialising and spending leisure time affected alcoholic drinks in
South Korea. Typically, when people got together for drinks in South Korea, they would visit
bars and clubs. This way of socialising is still common; however, in recent years it has become
popular to hold home parties with family and friends. Such parties are held in the home or
rented spaces. This type of socialising is popular among young people, especially young
women.
In addition to home parties, camping has grown in popularity in the review period. As South
Korean consumers became more interested in healthy lifestyles, camping is seen as a way to
enjoy nature and escape away from busy lifestyles. Compared with home parties, camping is
enjoyed by a wider range of social groups, including family units and young people in their 20s
and 30s, but also 40s. Some players launched alcoholic drinks targeting camping occasions.
For example, Lotte Chilsung Beverage Co Ltd launched one litre PET bottles for its
Choumchorum soju brand in 2013. This packaging is designed for outdoor activities. Previously,
Choumchorum was available in 640ml and 1.8 litre bottles only. The one litre PET bottle is
bigger than the 640ml offering and easier to carry than 1.8 litre bottles.
At home parties, drinks that used to be enjoyed in on-trade establishments are usually
consumed. As cocktails are in fashion among young people, the trend of mixing drinks remains
popular. Spirits such as vodka, gin, rum and liqueurs, which are used to make cocktails,
recorded robust volume sales growth in 2013. Players conducted marketing activities via SNS
channels to appeal to young people, introducing ways to make cocktails with alcoholic drinks.
Companies also launched products aimed at people who enjoy mixing drinks at home, such as
gin and tonic packaged together.
A higher volume of alcoholic drinks was purchased via the off-trade channel than the on-trade
channels over the review period. The availability of alcoholic drinks in off-trade outlets is
becoming greater, as grocery retailers such as hypermarkets and convenience stores become
increasingly important distribution channels for these products. It is easy to find a variety of
alcoholic drinks in hypermarkets and convenience stores, as people shop for products for home
parties and camping. Moreover, as the number of single-person households is growing in South
Korea, the share of volume sales of alcoholic drinks sold via convenience stores increased over
the review period.
Outlook
Over the forecast period, the lifestyles of South Korean consumers are expected become
more diversified, and the trend for home parties is predicted to continue. People‟s interest in
wellbeing and healthier lifestyles will continue to grow, and camping will remain popular. It is
anticipated that more alcoholic drinks will be launched aimed at people who enjoy camping.
Moreover, the importance of hypermarkets and convenience stores as distribution channels for
alcoholic drinks is set to become great. As the number of single households is projected to
increase over the forecast period, volume sales of alcoholic drinks via convenience stores are
expected to rise.
The popularity of mixing drinks among young people is expected to be constant over the
forecast period. Thus, Western spirits such as vodka, gin, rum and liqueurs are projected to post
healthy total volume sales growth. These products are aimed at people who enjoy cocktails at
home. Moreover, various bundles, such as gin and tonic, will continue to be launched.
Alcoholic Drinks Keep Being Diversified

In 2013, alcoholic drinks in South Korea continued to be diversified. It was noticeable that a
variety of imported brands, especially in beer and wine, was introduced in 2013, mainly due to
FTAs (free trade agreements) and hypermarkets. As South Korean consumers are increasingly
exposed to a variety of alcoholic drinks through international travel and study abroad, there was
a demand for a wider range of alcoholic drinks. Beer in South Korea has been dominated by
domestic lager, which accounts for most total volume sales. Despite this consensus, beer
drinkers in South Korea wanted to taste a wider variety of beer.
Hypermarkets played an important role in introducing an array of imported brands to local
consumers in 2013. Major hypermarkets often launched promotions of imported lager, such as
selling four cans for Won10,000. Some hypermarkets expanded their beer sections in order to
create more space for the growing variety of imported beer in 2013. Total volume sales of
imported lager are small compared with domestic lager. However, in 2013, total volume sales of
imported lager registered a 10% increase, compared with a 3% rise for domestic lager.
More and more sparkling wine and still light grape wine brands were imported during 2013. In
still light grape wine, the impact of free trade agreements has been great. Due to free trade
agreements, the US, Chile and the EU were exempt from the tariffs imposed on imported wine.
Moreover, as importers of wine were allowed to sell directly to customers without having to go
through distributors from January 2012, the distribution process became simplified and costs
were saved. Hypermarkets such as Homeplus and E-Mart offer private label brands of still light
grape wine at very competitive prices. Still light grape wine registered robust growth of 4% in
total volume sales in 2013.
Outlook
Over the forecast period, the selection of imported beer and wine is expected to grow.
Imported lager is projected to post an 8% total volume CAGR. With the free trade agreements
with the US and the EU, customs imposed on imported beer from these markets are being
gradually reduced, and will be removed by July 2014. This development, and consumers
continuing to long for diverse beer tastes, will see more beer brands imported to South Korea in
the forecast period. As the general public becomes more familiar with still light grape wine,
demand is predicted to grow. A wider variety of wine is likely to be imported in the forecast
period. The availability of low-priced wine is set to grow as hypermarkets introduce cheap
brands, including private labels.
Key New Product Launches

During 2013, new products were launched across alcoholic drinks in South Korea. In beer,
especially, imported premium lager witnessed active new product launches over the review
period. As South Korean beer consumers crave diverse tastes, retailers introduced products by
small import companies and major beer manufacturers. In terms of major companies, Oriental
Brewery Co Ltd launched Stella Artois while Hite Jinro Co Ltd introduced Kirin Frozen Nama.
Imported premium lager registered the highest total volume sales growth in beer in 2013, partly
because of new product launches.
Although dominated by lager, other types of beer are being introduced. In ale, which has
small total volume sales, Hite Jinro Co Ltd launched Queen‟s Ale in September 2013, supported
by aggressive promotional activities. Apart from local products, imported ale is also being
continuously introduced in South Korea.
As “other” blended Scotch whisky continued to see a decrease in total volume sales over the
review period, major players diversified their product portfolios. Diageo Korea Co Ltd launched
Windsor Black in 2013 and tried to give it a young image via advertisements featuring actors
from a popular TV drama. Since the negative performance of “other” blended Scotch whisky
was mainly driven by 12 YO whiskies, Pernod Ricard Korea Ltd launched Ballantine's 17 YO
Glentauchers Edition in 2013. Meanwhile, William Grant & Sons Korea Co Ltd launched a new
rum product, Sailor Jerry Spiced Rum, in August 2013, in an attempt to diversify its portfolio
outside of whiskies.
Most Western spirits, however, registered positive total volume sales growth in 2013. Along
with the growing popularity of cocktails among young adults, Western spirits benefited from new
products launches over the review period. Vodka recorded double-digit total volume sales
growth as various new products were released in 2013. For example, Diageo Korea Co Ltd
launched Ciroc Coconut while Lotte Chilsung Beverage Co Ltd introduced Svedka.
As cocktails became popular, RTDs recorded positive total volume sales growth in 2013. New
products were launched in the market. In RTDs, the popularity of mojito flavours is notable. This
was reflected in the release of mojito-flavoured RTDs in 2013. For example, Diageo Korea Co
Ltd launched Mojito by Smirnoff and Bacardi Korea Co Ltd introduced Bacardi Mojito Classic
Cocktails. While RTDs is dominated by imported brands, local players made an effort to enter
the fray. Bohae Brewery Co Ltd, a local brewery mainly known for its soju products, launched
May, a wine-based RTD with plum extract. Aimed at women in their 20s and 30s, May contains
Korean plum extract based on white wine.
Soju is mature in South Korea and total volume sales growth slowed in 2013. Major players in
soju tried to diversify to keep-up with consumer trends. Reflecting the popularity of camping in
South Korea, Lotte Chilsung Beverage Co Ltd launched one litre PET bottles of its existing
brand, Choumchorum. For outdoor activities, one litre bottles are easier to carry than traditional
1.8 litre bottles, while providing greater volume than 640ml bottles. Kumbokju Co Ltd launched
The Soonhan Cham in April 2013, which has a lower abv (16.9%) than most soju brands and is
low in calories.
While takju has stagnated in total volume sales terms, Kooksoondang Brewery Co Ltd
launched a new takju brand, Daebak, in April 2013. The new brand was supported by
promotional activities featuring a Korean celebrity. Other than Daebak, takju did not see other
major new products launches in 2013.
Cider/perry is not a developed category in South Korea. Only recently have some major
hypermarkets started to introduce new cider/perry products. For example, Monteith‟s Crushed
Summer Berries Cider was launched in South Korea in January 2013.
Outlook
It is anticipated that a variety of new products will be introduced in alcoholic drinks in South
Korea over the forecast period, and the industry will become increasingly diversified. The
changing lifestyles of local consumers will continue to impact alcoholic drinks consumption. For
example, health consciousness will continue to see people prefer drinks with lower abv, while
the growing popularity of outdoor activities will influence the types of new products being
launched in the market.
Beer is expected to enjoy constant new product launches over the forecast period As Lotte
Chilsung Brewery Co Ltd, which is set to enter beer in 2014, will introduce new products and
boost the category. The popularity of imported premium lager is likely to continue, and a variety
of imported products will be introduced in the short to medium term. As beer in South Korea has
been dominated by domestic lager, consumers will continue to demand a wider variety of tastes,
including non-lager types. Thus, a range of new products will be introduced across beer, not
only lager.
In terms of Western spirits, the consumption of less mature types such as vodka, rum, tequila,
gin and bitters is expected to grow. Companies will continue to develop the market by
introducing new products in Western spirits. As “other” blended Scotch whisky is projected to
post further decreases in total volume sales over the forecast period, there will be fewer new
launches of this type compared with less mature spirits. Within whiskies, a less developed type
in South Korea, single malt Scotch whisky, is set to post positive total volume sales growth over
the forecast period; thus the launch of new products is anticipated.
Free trade agreements will lead to the introduction of more still light grape wine products in
South Korea. Private label still light grape wine brands will continue to boost the category over
the forecast period.
Summary 1 Key New Product Developments 2013-2014

Brand NBO Product type USP Launch year
Reyka William Grant & Vodka Vodka in South 2014
Sons Korea Co Korea is growing
Ltd in popularity,
targeting people
in their 20s and
30s who are
familiar with bar
and club culture.
Reyka is a
premium vodka
brand.
Singha Hite Jinro Co Ltd Imported Singha is made 2014
Premium Lager from 100% all-
malt beer, and it
has high brand
awareness in
South Korea.
With people in
20s and 30s as
the target
audience,
imported
premium lager is
growing in South
Korea. In order
to satisfy local
consumers‟
craving for
diverse tastes in
beer, new
products are
being introduced
in imported
premium lager.
Bacardi Black Bacardi Korea Dark Rum Sales of rum in 2013
Co Ltd South Korea are
increasing
because 'mixing
spirits' such as
vodka and rum
is becoming
popular among
people in their
20s and 30s.
Bacardi Black
has a lower abv
(37.5%) than
vodka or tequila,
and a
continuous
sweet finish.
Casillero del Ayoung FBC Co Still Red Wine As wine 2013
Diablo Malbec Ltd becomes
2012 popular in
Korea, cheap
wines are being
introduced
mainly through
hypermarkets
and convenience
stores. This
product targets
people in their
20s and 30s,
and is low-
priced.
Ciroc Coconut Diageo Korea Vodka Vodka in South 2013
Co Ltd Korea is
increasingly
demanded;
players target
people in their
20s and 30s who
are familiar with
bar and club
culture. Here,
Ciroc adds
coconut flavour
to premium
vodka made of
French grapes.
Daebak Kooksoondang Non-Grape Wine The demand for 2013
Brewery Co Ltd Option 1 Takju (non-
grape wine
option 1) is
stagnating.
Takju‟s main
consumer group
is people over
50; as this
population group
is not increasing
it is hard to
attract new
drinkers. Daebak
is made from
100% locally
grown rice; it
uses yeast
specially
developed for
takju, unlike
many of the
takju brands that
are fermented
using bread. In
April 2013, the
retail selling
price was
Won1,100
(700ml bottles).
Monteith‟s Zexim Ltd Cider/Perry Cider/perry in 2013
Crushed South Korea is
Summer Berries undeveloped.
Cider Major
hypermarkets
started to
introduce
imported
products in
2012. The target
audience is
people in their
20s and 30s who
casually enjoy
low abv alcoholic
drinks.
Olmeca Pernod Ricard Tequila (and Tequila is more 2013
Korea Ltd Mezcal) available to local
consumers since
major
hypermarkets
are introducing
such products.
Target
consumers are
people in their
20s and 30s who
are familiar with
bar and club
culture. Olmeca
is produced in
the traditional
(Mexican)
Tahona way,
using blue agave
aged over 7
years.
Queen‟s Ale Hite Jinro Co Ltd Ale Ale is not very 2013
developed in
South Korea.
Queen‟s Ale is
interesting
because it is the
first ale brand
produced by a
major local
manufacturer.
Sailor Jerry William Grant & Dark Rum Sales of rum in 2013
Spiced Rum Sons Korea Co Korea are
Ltd increasing
because 'mixing
spirits' such as
vodka and rum
is becoming
popular among
people in their
20s and 30s.
This product was
designed to
commemorate
Norman „Sailor
Jerry' Collins. It
was produced
using a selection
of Caribbean
rums.
Stella Artois Oriental Brewery Imported With people in 2013
Co Ltd Premium Lager their 20s and
30s as target
consumers,
imported
premium lager is
growing in South
Korea. In order
to satisfy local
consumers'
craving for
diverse tastes in
beer, new
products are
being introduced
in imported
premium lager.
In August 2013,
the retail selling
price was
Won3,700
(500ml cans);
330ml and
500ml cans are
available.
Draught beer
was launched in
September
2013.
Kirin Frozen Hite Jinro Co Ltd Imported Imported 2013
Nama Premium Lager premium lager
Kirin Ichiban
Shibori is topped
with frozen beer
foam. Known as
“Ice cream
beer", it is sold
at selected
locations in
South Korea.
With people in
their 20s and
30s as target
consumers,
imported
premium lager is
growing in South
Korea. In order
to satisfy local
consumers'
demand for
diverse tastes in
beer, new
imported
premium lagers
are being
released.
Svedka Lotte Chilsung Vodka Vodka in South 2013
Beverage Co Ltd Korea is
developing,
seeking to
appeal to people
in their 20s and
30s who are
familiar with bar
and club culture.
Svedka comes
in three types:
Svedka Vodka
(non-scented),
Svedka Citron
and Svedka
Clementine.
Contains 5-10-
times more
concentration of
fruit scents.
Tui Zexim Ltd Ale Tui is from New 2013
Zealand. Along
with Tui ale
(India Pale Ale),
Tui blonde lager
and Tui dark
lager were
introduced in
South Korea. Ale

is not developed
in South Korea.
A limited number
of ale brands are
available, which
creates growth
potential.
Victoria Bitter Miller Korea Co Imported Well-known in 2013
Ltd Premium Lager Australia,
Victoria Bitter is
claimed to be
suitable for the
South Korean
market, where
clean hop
bitterness is
preferred. With
people in their
20s and 30s as
target
consumers,
imported
premium lager is
burgeoning in
South Korea. In
order to satisfy
local consumers'
thirst for diverse
tastes in beer,
new products
are being
introduced in
imported
premium lager.
Whispering Keumyang Still Rosé Wine As wine 2013
Angel International Co becomes
Ltd popular in South
Korea,
consumers are
diversify their
taste to try rosé
and white wines.
Considering its
price,
Whispering
Angel is aimed
at upper middle-
class Koreans
who enjoy wine.
Source: Euromonitor International
MARKET BACKGROUND
Legislation
Legal purchasing age and legal drinking age

 In South Korea, the Youth Protection Law specifies the legal purchasing and drinking age as
19. Therefore, 19-year-old-or-older consumers are permitted to buy alcoholic drinks. For bars
and clubs where alcoholic drinks are sold, only 19-year-old-or-older consumers are allowed to
enter the premises. For this purpose, the Youth Protection Law requires business owners to
check the age of customers when selling alcoholic drinks or letting people enter their
premises in the case of bars and clubs.
 When business owners are caught selling alcoholic drinks to people under the legal
purchasing/drinking age or letting them enter nightclubs or bars, they are subject to a fine of
up to Won10 million or a prison sentence of up to two years. There may be additional
penalties such as business suspension for a given period. Since such penalties seriously
affect business, most owners/operators ask to see identification when they suspect a person
under the legal purchasing/drinking age is trying to buy alcoholic drinks or enter nightclubs or
bars.
Drink driving
 In South Korea, where the drinking of alcohol often happens in social settings, drink driving
occurs. When a person is caught drink driving, he/she may receive a prison sentence of up to
three years or a fine of up to Won10 million, depending on the blood alcohol level of the
offender.
 In some cases, the offender‟s driver‟s licence can be suspended or cancelled. For example,
when a person is caught drink driving with a blood alcohol level of over 0.05-0.1%, 100
penalty points are imposed, equivalent to the suspension of the driver‟s licence for 100 days.
The driver‟s licence is cancelled when he/she injures another person while drink driving or is
caught drink driving with a blood alcohol level exceeding 0.1%. When a person is caught drink
driving for a third time, his/her driver‟s license is cancelled.
Advertising
 In South Korea, the advertising of alcoholic drinks is regulated due to its potential harmful
effects. The advertising of alcoholic drinks with an abv over 17% is prohibited. The advertising
of alcoholic drinks on TV is prohibited from 07.00-22.00hrs. On radio, the advertising of
alcoholic drinks is prohibited from 17.00-08.00hrs. From 08.00-16.59hrs, the advertising of
alcoholic drinks before or after radio programmes is prohibited if the main listening audience
consists of people under the legal drinking age. Violation can lead to a fine of up to Won1
million.
 During 2013, there was movement to strengthen the restrictions on the advertising of
alcoholic drinks. In August 2013, an amendment to the Public Health Enhancement Law was
proposed: to prohibit the advertising of alcoholic drinks in cinemas before and after all films
except for movies for over 19 years old.
Smoking ban
 According to the National Health Promotion Law, some public spaces are designated non-
smoking areas in order to prevent the effects of passive smoking and stop young people from
being attracted to smoking. Public places such as hospitals, government offices, law offices
and youth training centres are non-smoking areas. However, in such spaces, designated
smoking rooms can be installed.
 In December 2012, the smoking ban was extended to public business spaces over 150 sq m,
such as cafés and restaurants. It will be expanded again in 2014 to be applied to business
venues over 100 sq m. By 2015, the smoking ban will be expanded to apply to all business
venues. If the ban is violated, a fine of Won1.7 million is imposed on the business owner for a
first offence, rising to Won3.3 million for a second offence and Won5 million for a third
offence. When customers are caught smoking in a non-smoking area, they are liable to a fine
of Won100,000.
 However, some small business owners argued that the smoking ban negatively affected their
business as it caused them to lose customers. For this reason, in December 2013, an
amendment to the National Health Promotion Law was proposed, stating that business
owners can choose whether they want to designate their business venues as non-smoking
areas.
Opening hours
 Establishments that sell alcoholic drinks and are regulated by specific opening hours are bars,
room-salons and clubs with hostesses. These outlets are required to close from 09.00-
17.00hrs. Hypermarkets are obliged to close from 24.00-08.00hrs.
On-trade establishments
 On-trade establishments that sell alcoholic drinks and are regulated by specific opening hours
are bars, room-salons and clubs with hostesses.
Table 1 Number of On-trade Establishments by Type 2008-2013
2008 2009 2010 2011 2012 2013
Consumer foodservice by 585,124 581,946 586,532 592,426 602,884 613,326

type
100% home delivery/ 13,936 13,932 14,020 14,101 14,523 15,428
takeaway
Bars/pubs 131,966 132,981 132,546 132,431 130,801 125,126
Cafés 16,723 17,225 17,793 17,259 16,828 16,323
Full-service restaurants 350,991 343,234 342,260 343,778 351,050 363,700
Fast food 44,872 48,084 51,752 55,414 59,967 61,674
Self-service cafeterias 612 601 602 605 613 610
Street stalls/kiosks 21,371 20,671 20,421 20,262 19,443 18,997
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
TAXATION AND DUTY LEVIES

 In South Korea, liquor tax rates differ by type, not by abv as in some other countries.
 The taxation imposed on alcoholic drinks in South Korea is comprised of liquor tax, education
tax and value-added tax (VAT). Liquor tax is calculated as a set percentage of tax bases.
Education tax is then calculated as a percentage of the liquor tax amount.
 An amendment to liquor tax legislation was proposed in 2013, and became effective in April
2014. The amendment aims to boost the competition in domestic beer in South Korea, which
has been dominated by a few major manufacturers. The amended regulation eases the entry
of new beer manufacturers into the market. Prior to the amendment, an operator required at
least 50,000 litres of fermenting facility and 100,000 litres of storage capacity in order to
qualify for a beer manufacturing licence. The amendment halved the capacity requirement to
25,000 litres of fermenting facility and 50,000 litres of storage capacity.
 The amendment contains other regulations that aim to boost microbreweries. It allows
microbreweries to sell their beer outside of their business premises. Before the amendment,
microbreweries were only allowed to sell their beer on their business premises. The tax base
rate was reduced for microbreweries from 80% to 60%, in cases where annual production
volume is less than 300,000 litres. The tax base is calculated as the rate of manufacturing
costs. The lowering of the tax base rate for microbreweries means a reduction in the liquor tax
imposed on microbreweries.
Table 2 Taxation and Duty Levies on Alcoholic Drinks 2013
% value
Beer Wine Takju Yakju Cognac Brandy
Excise tax - - - - - -
Liquor tax 72.0 30.0 5.0 30.0 72.0 72.0
Education tax 30.0 10.0 - 10.0 30.0 30.0
Import tax 30.0 30.0 30.0 30.0 30.0 30.0
Import from Chile (FTA) 0.0 0.0 0.0 0.0 0.0 0.0
Import from ASEAN (FTA) 30.0 0.0 0.0 0.0 15.0 20.0
Import from Singapore 8.2 4.1 4.1 4.1 - 5.5
(FTA)
Import from India (FTA) - 11.3 12.2 11.3 12.2 15.0
Import from EFTA (FTA - 8.1 0.0 11.3 - 11.3 5.4
Europe)
Value-added tax (VAT) 10.0 10.0 10.0 10.0 10.0 10.0
Soju
Excise tax -
Liquor tax 72.0
Education tax 30.0
Import tax 30.0
Import from Chile (FTA) 0.0
Import from ASEAN (FTA) 0.0
Import from Singapore -
(FTA)
Import from India (FTA) -
Import from EFTA (FTA - 8.1
Europe)
Value-added tax (VAT) 10.0
Source: Euromonitor International from official statistics (Korea Customs Service, Korea National Tax Law
Information System), trade associations (Korea wines & spirits importers association)
Table 3 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Categories

2013
%
Beer C/p RTDs Wine Wh BC
Wholesaler 10.0 0.0 17.0 15.0 19.0 20.0

Retailer 24.0 0.0 29.0 23.0 17.0 23.0
WS Rum T L OS
Wholesaler 18.0 15.0 17.0 18.0 8.0
Retailer 20.0 16.0 19.0 20.0 17.0
Source: Euromonitor International from company research

Key: C/p=Cider/perry; Wh=Whiskies; BC=Brandy and Cognac; RTDs=RTDs/high-strength premixes;
WS=White spirits; T=Tequila (and mezcal); L=Other liqueurs; OS=Other spirits
Table 4 Selling Margin of a Typical Beer Brand in Retail Channel that uses
Wholesalers 2013
% retail value rsp

2013
VAT 9.1
Retailer 15.8
Wholesaler 5.6
Education tax 16.0
Liquor tax 22.4
Import tax 7.2
Manufacturer 23.9
TOTAL 100.0
Source: Euromonitor International from official statistics, trade associations, store checks
Notes: Based on Asahi Super Dry, Won2,880, 350ml at supermarkets/hypermarkets and 5.5% abv
Table 5 Selling Margin of a Typical Beer Brand in Retail Channel that does not use
Wholesalers 2013
% retail value rsp

2013
VAT 9.1
Retailer 17.6
Education tax 16.9
Liquor tax 23.6
Import tax 7.6
Manufacturer 25.2
TOTAL 100.0
Notes: Based on Asahi Super Dry, Won2,880, 350ml at supermarkets/hypermarkets and 5.5% abv
Table 6 Selling Margin of a Typical Wine Brand in Retail Channel that uses
Wholesalers 2013
% retail value rsp

2013
VAT 9.1
Retailer 17.0
Wholesaler 9.6
Education tax 5.8
Liquor tax 13.5
Import tax 10.4
Manufacturer 34.6
TOTAL 100.0
Notes: Based on Vina San Pedro, Won14,500, 750ml at supermarkets/hypermarkets
Table 7 Selling Margin of a Typical Wine Brand in Retail Channel that Does Not Use
Wholesalers 2013
% retail value rsp

2013
VAT 9.1
Retailer 17.0
Education tax 6.7
Liquor tax 15.5
Import tax 11.9
Manufacturer 39.8
TOTAL 100.0
Notes: Based on Vina San Pedro, Won14,500, 750ml at supermarkets/hypermarkets
Table 8 Selling Margin of a Typical Spirits Brand in Retail Channel that uses
Wholesalers 2013
% retail value rsp

2013
VAT 9.1
Retailer 13.2
Wholesaler 12.4
Education tax 15.1
Liquor tax 21.0
Import tax 6.7
Manufacturer 22.5
TOTAL 100.0
Notes: Based on Imperial Classic 12 YO, Won44,100, 700ml at supermarkets/hypermarkets, 40.0% abv
Table 9 Selling Margin of a Typical Spirits Brand in Retail Channel that does not use
Wholesalers 2013
% retail value rsp

2013
VAT 9.1
Retailer 13.2
Education tax 18.0
Liquor tax 25.0
Import tax 8.0
Manufacturer 26.7
TOTAL 100.0
Notes: Based on Imperial Classic 12 YO, Won44,100, 700ml at supermarkets/hypermarkets, 40.0% abv
OPERATING ENVIRONMENT
Contraband/parallel Trade
Contraband products are estimated to make up a significant portion of alcoholic drinks in
South Korea. This is especially the case for imported brands in high price bands, because of the
significant liquor tax and customs tax applied to imported alcoholic drinks. Industry players,
especially Western spirits manufacturers, attempted to fight the trade in against contraband and
fake goods. Some whisky manufacturers, for example, devised a protection gadget to be
attached to their packages.
Duty Free
Duty free alcoholic drinks are sold to people who travel in or out of South Korea. Duty free
goods can be purchased from registered duty free shops located in airports or city centres. Duty
free goods can also be purchased on international flights travelling to and from South Korea.
Duty free purchases of alcoholic drinks are limited to a one litre bottle per person, with a value of
up to US$400 per traveller.
While duty free shopping is mainly available to international travellers, Jeju Island offers duty
free shopping to visitors. The purchase of alcoholic drinks on Jeju Island is limited to one item,
with a value of up to Won400,000, at a time, up to 6-times per year. In addition, Post Exchanges
(PXs) at military bases offer duty free goods.
Cross-border/private Imports
Alcoholic drinks through private imports have to pass the Customs Office when entering
South Korea. If a person exceeds the limit on alcoholic drinks, which is one litre per person, the
excess volume is retained at the Customs Office and can be retrieved upon the payment of the
required tax rate.
MARKET INDICATORS
Table 10 Retail Consumer Expenditure on Alcoholic Drinks 2008-2013
KRW bn
2008 2009 2010 2011 2012 2013
Total 6,102.1 5,769.4 5,950.8 6,140.0 6,241.9 7,033.0

Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: 2013 data is forecast
MARKET DATA
Table 11 Sales of Alcoholic Drinks by Category: Total Volume 2008-2013
Million litres
2008 2009 2010 2011 2012 2013
Beer 1,918.0 1,822.0 1,857.7 1,887.5 1,961.1 2,027.5

Cider/Perry - - - - - -
RTDs/High-Strength 4.4 4.1 3.8 3.7 4.1 4.3
Premixes
Spirits 1,283.5 1,202.9 1,204.7 1,244.5 1,269.5 1,291.1
Wine 259.7 297.8 417.3 486.4 477.4 478.4

Alcoholic Drinks 3,465.6 3,326.8 3,483.5 3,622.1 3,712.0 3,801.4
Table 12 Sales of Alcoholic Drinks by Category: Total Value 2008-2013
KRW billion
2008 2009 2010 2011 2012 2013
Beer 11,499.4 11,278.2 11,787.4 12,362.9 13,276.1 13,932.1

Premixes
Spirits 11,213.3 11,082.2 11,085.1 11,450.2 11,567.8 11,880.2
Wine 2,387.3 2,269.2 2,469.0 2,620.4 2,593.3 2,600.4
Table 13 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2008-2013
% total volume growth

2012/13 2008-13 CAGR 2008/13 Total
Beer 3.4 1.1 5.7

Cider/Perry - - -
RTDs/High-Strength Premixes 6.6 -0.1 -0.6
Spirits 1.7 0.1 0.6
Wine 0.2 13.0 84.2
Alcoholic Drinks 2.4 1.9 9.7
Table 14 Sales of Alcoholic Drinks by Category: % Total Value Growth 2008-2013
% local currency, current value growth
2012/13 2008-13 CAGR 2008/13 Total
Beer 4.9 3.9 21.2

Cider/Perry - - -
RTDs/High-Strength Premixes 6.4 0.1 0.3
Spirits 2.7 1.2 5.9
Wine 0.3 1.7 8.9
Table 15 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Volume 2013
Off-trade On-trade TOTAL
Beer (million litres) 988.1 1,039.4 2,027.5

Cider/Perry ('000 litres) - - -
RTDs/High-Strength Premixes ('000 2,796.6 1,539.1 4,335.8
litres)
Spirits ('000 litres) 649,513.7 641,577.9 1,291,091.7
Wine (million litres) 331.2 147.2 478.4
Alcoholic Drinks (million litres) 1,971.7 1,829.7 3,801.4
Table 16 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value 2013
KRW billion
Off-trade On-trade TOTAL
Beer 3,920.7 10,011.4 13,932.1

Cider/Perry - - -
Spirits 2,174.0 9,706.2 11,880.2
Wine 1,296.5 1,303.9 2,600.4
Alcoholic Drinks 7,410.2 21,044.9 28,455.1
Table 17 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Volume

2013
% volume analysis
Off-trade On-trade Total
Beer 48.7 51.3 100.0

Cider/Perry - - -
Spirits 50.3 49.7 100.0
Wine 69.2 30.8 100.0
Table 18 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Value 2013
% value analysis
Off-trade On-trade Total
Beer 28.1 71.9 100.0

Cider/Perry - - -
Spirits 18.3 81.7 100.0
Wine 49.9 50.1 100.0
Table 19 GBO Company Shares of Alcoholic Drinks: % Total Volume 2009-2013
% total volume
Company 2009 2010 2011 2012 2013
Hite Jinro Co Ltd - - - 39.0 39.2

Oriental Brewery Co Ltd 22.3 21.3 23.9 27.0 27.3
Lotte Chilsung Beverage 6.1 6.2 6.3 5.9 5.6
Co Ltd
Muhak Co Ltd 3.0 3.1 3.2 3.3 3.6
Seoul Takju Association 2.2 2.3 3.3 3.1 3.1
Kumbokju Co Ltd 3.1 2.9 2.8 2.6 2.6
Kooksoondang Brewery Co 1.2 2.0 2.5 2.3 2.3
Ltd
Bohae Brewery Co Ltd 2.4 2.1 2.0 1.9 1.9
Daesun Distilling Co Ltd 2.5 1.9 1.7 1.2 1.1
Anheuser-Busch InBev NV 0.8 0.8 0.8 0.8 1.0
Others 56.4 57.4 53.6 12.7 12.4
Total 100.0 100.0 100.0 100.0 100.0
Table 20 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2008-2013
% off-trade
2008 2009 2010 2011 2012 2013
Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0

- Grocery Retailers 100.0 100.0 100.0 100.0 100.0 100.0
-- Discounters - - - - - -
-- Food/drink/tobacco 2.3 2.2 2.2 2.1 2.0 1.9
specialists
-- Hypermarkets 35.2 36.0 37.0 38.6 39.2 39.6
-- Small Grocery 45.8 45.9 45.4 44.4 44.1 44.4
Retailers
--- Convenience Stores 14.7 15.1 15.3 15.5 15.5 15.8
--- Forecourt Retailers 0.1 0.1 0.1 0.1 0.1 0.1
--- Independent Small 31.0 30.7 30.0 28.8 28.5 28.5
Grocers
-- Supermarkets 16.7 15.9 15.4 14.9 14.7 14.1
-- Other Grocery - - - - - -
Retailers
- Non-Grocery Retailers - - - - - -
-- Parapharmacies/ - - - - - -
Drugstores
-- Mixed Retailers - - - - - -
--- Department Stores - - - - - -
--- Mass Merchandisers - - - - - -
--- Variety Stores - - - - - -
--- Warehouse Clubs - - - - - -
-- Other Non-Grocery - - - - - -
Alcoholic Drinks
Retailers
Non-Store Retailing - - - - - -
- Direct Selling - - - - - -
- Homeshopping - - - - - -
- Internet Retailing - - - - - -
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 21 Distribution of Alcoholic Drinks by Format and Category: % Off-trade Volume

2013
% off-trade
Beer Cider/Perry RTDs/High- Spirits Wine
Strength
Premixes
Store-Based Retailing 100.0 0.0 100.0 100.0 100.0

Grocery Retailers 100.0 0.0 100.0 100.0 100.0
Discounters 0.0 0.0 0.0 0.0 0.0
Food/drink/tobacco 0.1 0.0 0.2 0.2 10.1
specialists
Hypermarkets 40.0 0.0 38.0 51.0 53.0
Small Grocery Retailers 47.6 0.0 47.8 29.8 20.2
Convenience Stores 16.6 0.0 27.0 14.0 8.0
Forecourt Retailers 0.0 0.0 0.0 0.0 0.0
Independent Small Grocers 31.0 0.0 20.8 15.8 12.2
Supermarkets 12.3 0.0 14.0 19.0 16.7
Other Grocery Retailers 0.0 0.0 0.0 0.0 0.0
Non-Grocery Retailers 0.0 0.0 0.0 0.0 0.0
Parapharmacies/Drugstores 0.0 0.0 0.0 0.0 0.0
Mixed Retailers 0.0 0.0 0.0 0.0 0.0
Department Stores 0.0 0.0 0.0 0.0 0.0
Mass Merchandisers 0.0 0.0 0.0 0.0 0.0
Variety Stores 0.0 0.0 0.0 0.0 0.0
Warehouse Clubs 0.0 0.0 0.0 0.0 0.0
Other Non-Grocery 0.0 0.0 0.0 0.0 0.0
Alcoholic Drinks
Retailers
Non-Store Retailing 0.0 0.0 0.0 0.0 0.0
Direct Selling 0.0 0.0 0.0 0.0 0.0
Homeshopping 0.0 0.0 0.0 0.0 0.0
Internet Retailing 0.0 0.0 0.0 0.0 0.0
Vending 0.0 0.0 0.0 0.0 0.0
Total 100.0 0.0 100.0 100.0 100.0
Table 22 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2013-2018
Million litres
2013 2014 2015 2016 2017 2018
Beer 2,027.5 2,092.1 2,155.0 2,211.8 2,263.7 2,311.8

Premixes
Spirits 1,291.1 1,311.2 1,329.3 1,345.6 1,359.6 1,371.3
Wine 478.4 481.4 485.6 490.5 496.0 500.7
trade sources
Table 23 Forecast Sales of Alcoholic Drinks by Category: Total Value 2013-2018
KRW billion
2013 2014 2015 2016 2017 2018
Beer 13,932.1 14,320.4 14,676.2 14,967.1 15,220.0 15,436.0

Premixes
Spirits 11,880.2 11,896.1 11,903.3 11,869.7 11,782.1 11,689.9
Wine 2,600.4 2,586.1 2,583.2 2,586.5 2,595.0 2,605.1
trade sources
Table 24 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth

2013-2018
% total volume growth

2017/18 2013-18 CAGR 2013/18 Total
Beer 2.1 2.7 14.0

Cider/Perry - - -
Spirits 0.9 1.2 6.2
Wine 0.9 0.9 4.7
trade sources
Table 25 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2013-
2018
% local currency, constant value growth
2013-18 CAGR 2013/18 TOTAL
Beer 2.1 10.8

Cider/Perry - -
RTDs/High-Strength Premixes 3.3 17.5
Spirits -0.3 -1.6
Wine 0.0 0.2
Alcoholic Drinks 0.9 4.7
trade sources
DEFINITIONS
Explanations of words and/or terminology used in this report are as follows:
 GBO refers to Global Brand Owner, which is the ultimate owner of a brand.
 NBO refers to National Brand Owner, which is the company licensed to distribute a brand on
behalf of a GBO. The NBO may be a subsidiary of a GBO or it may be a completely separate
company. Share tables at both GBO and at NBO level are provided in the report. Reference
to shares in the report analysis is at NBO level.
SOURCES
Sources used during the research included the following:
Summary 2 Research Sources

Official Sources Korea Customs Service
Korea Food & Drug Administration
Korea National Statistical Board
National Statistical Office
National Tax Service
Statistics Korea
United States Department of Agriculture
(USDA) Foreign Agricultural Service (FAS)
Trade Associations Bureau National Interprofessionnel du Cognac
(BNIC)
Cámara Nacional de la Industria Tequilera
Comité Interprofessionnel du Vin de
Champagne (CIVC)
Kore Wines & Spirits Importers Association
Korea Alcohol & Liquor Industry Association
Korea International Trade Association
Korea Wine & Spirits Importers Association
Office International de la Vigne et du Vin
Scotch Whisky Association
Seoul Alcohol & Liquor Distribution
Association
Trade Press Asia Economy Newspaper
Beer-Economy 21
Beverage World
BeverAsia
Biz Focus Economic
Biznet Times
Chosun Ilbo
Dong-a Ilbo
Drinks International
E Daily
EBN
Economist
Economy 21
Economy Insight
Financial News
Food & Beverage News
Food & Environment News
Food Drink News
Food Journal
Food News
Hankook Daily News
Hankook Economy Daily
Hankook Economy Newspaper
Hankook Ilbo
Hankyorae Newspaper
Hankyoreh21
Hankyung
Hankyung Business
Herald Biz
Impact
Jeil Economy Daily
Joongang Daily News
JoongAng Ilbo
Jose Ilbo
Kookmin Ilbo
Korea Economy Daily
Korea Food Economy News
Korea Times
Kyunghyang Daily News
Liquor Journal
Maeil Buinsess Newspaper
Maeil Business Newspaper
Maekyung Economy Newspaper
MK Economy
Money Today
Munhwa Daily News
Munhwa Ilbo
News1
Newsmaker
NSP
Prime Business Journal

Reuters
Segye Daily News
Segye Ilbo
Seoul Economy Newspaper
Seoul Newspaper
Sports Seoul
Tax Times
Weekly Chosun
Weekly Donga
Weekly Hankook
Wine & Spirits International
Wine Review
World Drink Trends
Yonhap News
Source: Euromonitor International

Alcoholic Drinks in South Korea

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Alcoholic Drinks in South Korea

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ALCOHOLIC DRINKS IN SOUTH

LIST OF CONTENTS AND TABLES

Table 15 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade:

ALCOHOLIC DRINKS IN SOUTH

Steady Total Volume Sales Growth

Health Concerns Impact the Industry

Hite Jinro Co Ltd Continues To Lead Alcoholic Drinks

Hypermarkets and Convenience Stores Make Share Gains

Moderate Growth Expected Over the Forecast Period

KEY TRENDS AND DEVELOPMENTS

Growing Health Concerns Have A Major Impact on Consumption

Changing Ways To Socialise and Enjoy Leisure Impact Alcoholic Drinks

Alcoholic Drinks Keep Being Diversified

Key New Product Launches

Summary 1 Key New Product Developments 2013-2014

South Korea. Ale

Legal purchasing age and legal drinking age

Table 1 Number of On-trade Establishments by Type 2008-2013

2008 2009 2010 2011 2012 2013

Consumer foodservice by 585,124 581,946 586,532 592,426 602,884 613,326

TAXATION AND DUTY LEVIES

Table 2 Taxation and Duty Levies on Alcoholic Drinks 2013

Table 3 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Categories

Wholesaler 10.0 0.0 17.0 15.0 19.0 20.0

Source: Euromonitor International from company research

% retail value rsp

% retail value rsp

% retail value rsp

% retail value rsp

% retail value rsp

% retail value rsp

Total 6,102.1 5,769.4 5,950.8 6,140.0 6,241.9 7,033.0

Beer 1,918.0 1,822.0 1,857.7 1,887.5 1,961.1 2,027.5

Wine 259.7 297.8 417.3 486.4 477.4 478.4

Table 12 Sales of Alcoholic Drinks by Category: Total Value 2008-2013

Beer 11,499.4 11,278.2 11,787.4 12,362.9 13,276.1 13,932.1

Table 13 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2008-2013

% total volume growth

Beer 3.4 1.1 5.7

Table 14 Sales of Alcoholic Drinks by Category: % Total Value Growth 2008-2013

% local currency, current value growth

2012/13 2008-13 CAGR 2008/13 Total

Beer 4.9 3.9 21.2

Table 15 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Volume 2013

Off-trade On-trade TOTAL

Beer (million litres) 988.1 1,039.4 2,027.5

Table 16 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value 2013

Beer 3,920.7 10,011.4 13,932.1

Table 17 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Volume

Beer 48.7 51.3 100.0

Table 18 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Value 2013

Beer 28.1 71.9 100.0

Table 19 GBO Company Shares of Alcoholic Drinks: % Total Volume 2009-2013

Hite Jinro Co Ltd - - - 39.0 39.2

Table 20 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2008-2013

Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0

Table 21 Distribution of Alcoholic Drinks by Format and Category: % Off-trade Volume

Store-Based Retailing 100.0 0.0 100.0 100.0 100.0

Table 22 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2013-2018

Beer 2,027.5 2,092.1 2,155.0 2,211.8 2,263.7 2,311.8

Table 23 Forecast Sales of Alcoholic Drinks by Category: Total Value 2013-2018

Beer 13,932.1 14,320.4 14,676.2 14,967.1 15,220.0 15,436.0

Table 24 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth