HiteJinro Dominates South Korea’s Soju Market

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Oriental Brewery Co (OB), a unit of the world’s largest beer company AB InBev, has agreed to buy Jeju Soju from Shinsegae L&B Co. in its foray into the traditional Korean distilled spirits market.

OB is targeting the growing soju export market as the vodka-like rice liquor gains popularity in overseas markets with the rise of K-pop and Korean food.

According to a 2023 survey conducted by the Korea Food Promotion Organization, soju is the most popular Korean alcoholic beverage among foreigners.

Under the agreement, OB will take over the Jeju Soju production facility, the plant’s land, and the right to use groundwater, as well as absorb the spirits maker, which was founded in 2011.

Jeju Soju, based on its namesake island, has struggled to turn a profit under E-Mart, accumulating losses of 43.4 billion won over the past four years.

In the domestic soju market, HiteJinro controls 59.8% under its flagship brand Chamisul, followed by Lotte Chilsung Beverage Co with an 18% share, according to Korea Agro-Fisheries & Food Trade Corp.

Soju exports exceeded $100 million in 2023, marking the largest overseas shipment of the alcoholic beverage in a decade.

Shinsegae L&B has sought to restructure its business, which is being hit by the sluggish wine business, by selling off Jeju Soju.