South Korea: Spirit and beverage companies say they have no plans to raise prices

Several South Korean spirit and beverage companies announced that they have no plans to raise prices amid government scrutiny suggesting the industry could be targeted by anti-inflation measures, the Korea JoongAng Daily reported on February 28.

Hite Jinro, the liquor company with the largest market share, announced in a statement on February 27 that it has no plans to raise soju prices for the time being.

The announcement came almost immediately after the government began looking into the industry.

The National Tax Service reportedly had a closed meeting with executives of major soju and beer companies such as Hite Jinro, Lotte Chilsung Beverage and Oriental Brewery (OB) to ask about barriers to lowering production cost.

The Finance Ministry's tax office also began investigating the production and retail structure of spirit companies.

Finance Minister Choo Kyung-ho urged the industry to cooperate with government efforts to battle inflation during a parliamentary meeting on Feb. 22, adding that people enjoy consumer products such as soju.

"Factors for a price increase exist, but the measure to keep prices steady aims to lift the burden on consumers and the self-employed," said Hite Jinro in its statement.

A spokesperson for OB also said the company does not plan to raise beer prices despite the liquor tax increase scheduled for April.

Lotte Chilsung Beverage's spokesperson said there was no detailed review of price hikes.

Pulmuone, an organic food company, announced on February 27 that it will not increase the factory price of its mineral water, which was set to rise by 5 percent from March 1.

28 February, 2023