E-Malt.com News article: South Korea: Brewer Hite Jinro changing its head for the first time in 14 years

Hite Jinro is recovering its performance by changing its head for the first time in 14 years while improving its constitution, Maeil Business Newspaper reported on March 23.

Hite Jinro has reorganized its leadership by appointing Vice President Jang In-seop as its CEO at the end of last year. CEO Jang, who joined Jinro in 1995, is an "orthodox Hite Jinro Man" who has worked in key management departments such as strategy, law, policy, logistics, external cooperation, and communication. As he is evaluated as a management expert who has overseen finance and strategy, he has the task of showing performance through organizational stability and profitability improvement.

According to the industry, Hite Jinro's sales last year were KRW 2.4986 trillion and operating profit was KRW 172.1 billion, down 3.9% and 17.3% from the previous year, respectively. Hite Jinro, the No. 1 liquor market in Korea, failed to avoid the impact of slowing business conditions. Last year, the soju market remained overwhelmingly No. 1 with 69%, but the shrinking market itself led to a decline in performance. It is analyzed that high prices and economic downturn have reduced alcohol consumption and weakened excessive drinking culture as in the past.

The size of the domestic liquor market is on the decline. According to the National Tax Service's state tax statistics, domestic liquor shipments fell 6.7% over five years from 3,376,714 ㎘ in 2019 before COVID-19 to 3,151,371 ㎘ in 2024. In particular, diluted soju fell 10.9% from 915,596 ㎘ to 815,712 ㎘ during the same period, while beer also fell 4.6% from 1,715,995 ㎘ to 1,637,210 ㎘.

In such a market environment, Hite Jinro is making expanding its overseas market a new growth axis. With the goal of achieving 500 billion won in overseas soju sales by 2030, the company is exporting "Chamisul," "JINRO," and fruit soju "Acele" series to more than 80 countries around the world, including Asia, the U.S., and Europe.

Actual export performance is also steadily increasing. HiteJinro soju exports increased from 65.5 billion won in 2021 to 153.4 billion won in 2024. As of 2024, exports account for about 10% of total sales of 1.4597 trillion won. In particular, fruit soju exports (88.4 billion won) exceeded regular soju (65 billion won) in 2024 as demand for fruit soju increased rapidly in overseas markets.

It is also seeking to establish an overseas production base. The plant in Vietnam, Hite Jinro's first overseas production base, will be completed by the end of this year. The plant, which will be built on about 25,000 pyeong of land, which is 11 times the size of a soccer field, will be operated as a smart factory and is expected to have an annual production capacity of up to 5 million boxes (about 150 million bottles) from next year. It plans to produce products centered on fruit soju targeting Southeast Asian markets such as Vietnam and Indonesia.

In the U.S. market, brand awareness is being raised through sports marketing. Hite Jinro has been collaborating since it signed a partnership with the Los Angeles Dodgers, the first major league club in Asia, in 2012. It is a strategy to expand contact with local fans through the operation of "HITEJINRO BAR" in Dodger Stadium and fruit soju tasting events.

Thanks to these activities, "JINRO" products sold at Dodger Stadium in 2024 increased by about 153% year-on-year, the highest growth rate among brands in the stadium. Sales of HiteJinro's U.S. subsidiary also increased 3.1% year-on-year to 65.2 billion won last year, and exports to the U.S. grew 34% annually from 2020 to 2024.


24 March, 2026