South Korea: Brewers concerned about stricter advertising regulations

South Korea’s brewers are expressing concerns over a government move to more strictly regulate alcohol advertising, company officials said on November 14.

The stricter rules are feared to adversely affect their bottom lines at a time when they're suffering from falling profits due to the growing popularity of imported beer, they said.

According to the Ministry of Health and Welfare, liquor makers will be banned from showing celebrity endorsers drinking alcoholic beverages or making "ahh" sounds in their ads.

Starting from 2020 at the earliest, songs offering alcoholic beverages will be prohibited from ads as well.

Also, alcohol advertising will not be broadcast before and after TV programs for minors.

Digital multimedia broadcasting (DMB) and internet protocol television (IPTV) operators will be subject to a regulation that bans alcohol advertising from 7 a.m. to 10 p.m., as radio and television broadcasters currently are.

As for print ads, brewers and distillers will be unable to put their ads up at subways, sea ports and airports.

The stricter regulations are expected to deal a severe blow to domestic beer makers, which have tried to appeal to young consumers with ads that show K-pop idols and celebrities enjoying their products, amid the intensifying competition with beer importers.

For example, Hite Jinro hired Kang Daniel to promote the Hite Extra Cold beer to attract his fans worldwide.

In the company's TV commercial, the K-pop star drenched in sweat empties a glass of beer and makes an "ahh" sound, after beating drums enthusiastically.

Data compiled by Statistics Korea showed spending on alcohol advertising increased to 285.4 billion won ($252 million) in 2017 from 76.7 billion won in 2000.

"We have already faced various regulations regarding alcohol advertising, so we have aired a limited amount of ads to comply with the rules," said a liquor industry official, who declined to be named.

"The stricter regulations will weigh more on local breweries which have struggled to win in the competition with beer importers amid tax discrimination."

Another industry insider expressed concerns about possible difficulties in finding alternative ways to promote new products, although she added liquor makers will wait and see whether lawmakers really pass the revised bill within the next two years.

In Korea, attempts to regulate alcohol advertising have ended in failure in recent years.

When figure skater Kim Yuna appeared in a HiteJinro beer ad in July 2012, then lawmaker Lee Ailesa of Saenuri Party proposed a bill prohibiting celebrities under the age of 24 from advertising alcohol.

The controversial bill was also dubbed the "IU law," because the popular female singer-songwriter, who had an endorsement deal with Hite Jinro's Chamisul soju, could have been banned from ads for alcohol, if lawmakers had passed the bill.

Back then, lawmakers pointed out the bill was unconstitutional as it infringed on freedom of occupation.

14 November, 2018