As the drinks industry showed a move to raise the price of soju, the government launched a fact-finding survey of the industry, including factors and trends in the increase in soju prices. In fact, it seems to be putting the brakes on soju price hikes.
According to government authorities on the 26th, the Ministry of Strategy and Finance and the National Tax Service launched a fact-finding investigation into the increase in soju prices in the spirits industry. Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho is said to have ordered countermeasures as soon as he received a report on the soju price increase.
Following an increase in the price of tapioca, the raw material of soju, the energy required for the alcohol manufacturing process, and the price of a bottle, there has been a move to raise the price of soju in the spirits industry. Considering that restaurants usually raise the price of alcoholic beverages by 1,000 won, if the price of soju rises again this time, the price of soju in restaurants is expected to rise to 6,000 won per bottle.
At a recent plenary meeting of the National Assembly’s Planning and Finance Committee, Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho also agreed with the question of Democratic Party lawmaker Ki-dae Yang, who said, “The price of Mae soju is 6,000 earned significantly disrupts the psychology of ordinary people and office workers.” Deputy Prime Minister Chu said, “I ask for active cooperation from the industry regarding (price increases) of items that people enjoy close to them , like soju.”
The Ministry of Strategy and Finance checks whether variables such as raw materials for soju, energy required for the production process, and increasing bottle prices can be justified to lead to an increase in soju prices, while also monitoring the earnings situation of companies spirits. The structure of competition in the spirits industry, such as monopolies, will also be reviewed. The aim is to check whether the monopoly structure formed in the process of production, distribution and sale of alcoholic beverages makes it easy to increase the price of alcoholic beverages. The intention is to stimulate price competition by encouraging more competitors to enter the market if a competition problem is identified.
The National Tax Service is meeting with the drinks industry in person and asking for their cooperation to refrain from raising the prices of soju. It is said that the National Tax Service has already held a closed door meeting to share views with the industry. It is known that it was reported at the meeting that it was believed that efforts should be made to raise the price of soju, an alcoholic drink for the common people, in difficult economic conditions.
The purpose of the meeting is to strengthen communication with the spirits industry, but analyzes say that the spirits companies would have been under significant pressure in reality.
