South Korea & Japan: South Korea reduces imports of Japanese beer by 97% in August
South Korean imports of beer from Japan plunged 97% in August from a year earlier, amid a popular backlash against Japanese products that has spread as relations between the two countries sour, Bloomberg reported on September 3 citing a report by a local newspaper.
South Korea imported just $223,000 worth of Japanese beer in the month, down from $7.57 million a year earlier, the Maeil Business Newspaper said, citing preliminary data from Korea Customs Service. Japan has held the largest share of South Korean beer imports every year since 2010, with sales surging more than sixfold by 2018 to $78.3 million.
Japan’s largest publicly traded brewers such as Asahi Group Holdings Ltd., Kirin Holdings Co. and Sapporo Holdings Ltd. all export beer to South Korea, and had in previous years cited growth in that market as promising.
The boycott of Japanese goods has spread since Tokyo first imposed export restrictions on key chip materials in July, and worsened as the spat grew to include South Korea’s preferential trade status and an intelligence-sharing agreement.
Consumer-facing brands have been hit particularly hard, with consumers boycotting clothing from Fast Retailing Co.’s Uniqlo, and sales of Japanese cars also falling. Tourism to Japan, a key economic driver of Prime Minister Shinzo Abe’s government, has also been impacted as Korean tourists cancel travel plans and airlines scale back flights.
The trade dispute may not be without its winners, however - shares in South Korean brewer Hite Jinro Co. have risen to the highest level in more than a year amid swift sales of its new beer.
South Korea & Japan: South Korea reduces imports of Japanese beer by 97% in August
South Korean imports of beer from Japan plunged 97% in August from a year earlier, amid a popular backlash against Japanese products that has spread as relations between the two countries sour, Bloomberg reported on September 3 citing a report by a local newspaper.
South Korea imported just $223,000 worth of Japanese beer in the month, down from $7.57 million a year earlier, the Maeil Business Newspaper said, citing preliminary data from Korea Customs Service. Japan has held the largest share of South Korean beer imports every year since 2010, with sales surging more than sixfold by 2018 to $78.3 million.
Japan’s largest publicly traded brewers such as Asahi Group Holdings Ltd., Kirin Holdings Co. and Sapporo Holdings Ltd. all export beer to South Korea, and had in previous years cited growth in that market as promising.
The boycott of Japanese goods has spread since Tokyo first imposed export restrictions on key chip materials in July, and worsened as the spat grew to include South Korea’s preferential trade status and an intelligence-sharing agreement.
Consumer-facing brands have been hit particularly hard, with consumers boycotting clothing from Fast Retailing Co.’s Uniqlo, and sales of Japanese cars also falling. Tourism to Japan, a key economic driver of Prime Minister Shinzo Abe’s government, has also been impacted as Korean tourists cancel travel plans and airlines scale back flights.
The trade dispute may not be without its winners, however - shares in South Korean brewer Hite Jinro Co. have risen to the highest level in more than a year amid swift sales of its new beer.
03 September, 2019
