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| Bottles of Kloud, a flagship beer brand of Lotte Chilsung brewery, are displayed at a market in Seoul in this 2022 file photo. Korea Times file |
By Yi Whan-woo
Prices of beer and soju may go up again following last year's hike, which would add to the people's woes in the midst of economic uncertainties.
Beer and soju have been possibly the two most-sought-after drinks among consumers at times of economic difficulty as they are cheap compared to other alcoholic beverages.
Under the circumstances, the Ministry of Economy and Finance said the tax levied on beer will increase by 30.5 won per liter to 885.7 won beginning in April, following a 20.8 won increase per liter in 2022.
The planned tax hike is worrisome as it comes amid increases in costs of raw materials, shipping, labor, electricity and other production-related processes.
For instance, brewing company HiteJinro ticked up the warehouse price of its two flagship beer brands ― Terra and Hite ― by 7.7 percent in 2022.
Another brewing company, Lotte Chilsung, increased the warehouse price of its Kloud beer by 8.2 percent during the same year.
No soju tax hike is planned. But the price of ethanol, the key raw ingredient of soju, is expected to rise considering the persistently high inflation, according to industry sources.
The sources noted the price of ethanol went up by 7.8 percent in February 2022 and that a hike of 85 won per bottle in the warehouse price of soju pushed up retail prices by a range of 100 won to 150 won.
"The upward pressure on the price of soju means it could be sold for 6,000 won per bottle at restaurants," a source said, noting it is currently sold at 5,000 won per bottle. The sources said the prices for makgeolli and other types of takju, or drinks made from unfiltered, fermented rice, can also be raised following a 1.5 won increase to 44.4 won in 2022.
"The government should talk with manufacturers in advance concerning tax hikes, to minimize adverse impacts on their business," another industry source said.
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