Last year, imports of Japanese sake into Korea hit a record high. As sake, which once plunged due to a boycott, regains ground in the imported liquor market, the industry says sake is emerging as a new option in a market long dominated by wine and whisky.
According to export-import statistics from the Korea International Trade Association on the 26th, imports of Japanese sake totaled $27.84 million (about 40 billion won) last year, up 21.2% from a year earlier. Over the same period, import volume rose 11.8% to 5,417 tons (t). Both the import value and volume hit a record high.
Imports of Japanese sake took a direct hit from the so-called "No Japan" boycott in 2019. According to the Korea Customs Service, before the boycott in 2018, imports of Japanese sake were $22.51 million (about 32.4 billion won), but they fell to $15.79 million (about 22.7 billion won) in 2019, when the boycott took full effect, and to $11.74 million (about 16.9 billion won) in 2020. However, import values have increased every year since 2022. Last year's import scale surpassed pre-boycott levels.
◇ In a high inflation era, sake becomes an alternative to wine and whisky… the weak yen also plays a role
Industry officials point to a shift in alcohol consumption patterns as the backdrop for this trend. While soju and beer are familiar, more consumers are seeking something different, and in a high inflation era, the burden of prices for premium liquors such as wine and whisky has grown, naturally pushing sake forward as an alternative. They also note that its comparatively lower alcohol content and good pairing with food fit recent drinking culture.
An industry official said, "Among younger generations who have traveled to Japan frequently, the psychological distance from sake has narrowed," adding, "As omakase has trended, Japanese-style pubs (izakaya) and Japanese restaurants have also increased. That means more chances to encounter sake."
The weak yen trend is also cited as a reason for the increase in imports of Japanese sake. Over the past year, the won-yen exchange rate moved around about 920 won to about 1,000 won per 100 yen, and it is currently holding in the mid-930 won range per 100 yen. A distribution industry official said, "As the Japanese government maintained an ultra-low interest rate stance, the yen's value stayed low. Importers have faced less pressure on unit costs for Japanese liquor imports, securing price competitiveness."
◇ Sake business strategies are being reshaped… moderate growth expected for a while
The alcohol industry is also strategically expanding businesses related to Japanese sake. Hitejinro currently imports and distributes 42 types of sake from 18 breweries. Rather than relying on specific hit products, it is focusing on discovering brands that highlight regional and brewery-specific characteristics.
Wine importer and distributor NARA CELLAR is also actively pushing into the sake business. Recently, it introduced for the first time in Korea Meijo Shuzo's premium "Meijo Junmai Daiginjo Maru Warai," from a prestigious brewery in Hyogo Prefecture, Japan. It has also built out a range from futsushu to junmai, junmai ginjo, and junmai daiginjo, increasing the share of sake within an import structure once centered on wine to attract existing wine consumers.
Convenience store Seven-Eleven is focusing on popularizing sake. "Aki Green," a sake launched in collaboration with broadcaster and creator Choo Sung Hoon, a former mixed martial artist, generated buzz mainly on social media (SNS), and its initial 40,000-bottle shipment sold out. With comparatively low alcohol content, small-format packaging, and reasonable pricing, the strategy appears aimed at capturing the "sake entry-level" segment.
The alcohol industry expects the increase in sake imports to continue at a moderate pace rather than dropping sharply in the short term. An industry official said, "External variables such as exchange rates and shifts in consumer trends always exist, but sake offers a wide range of choices from entry-level to premium, giving it market responsiveness," adding, "Instead of immediately ramping up volume, the mood is to grow the market by letting consumers experience diverse products and expanding points of contact."
Myoung Wook, a professor in the Department of Barista and Sommelier Studies at Sejong Cyber University, said, "Even the highest-end sake usually does not exceed a retail price of 200,000 won in Korea. You can drink premium sake in the 40,000–50,000 won range, making it a rational choice in a high inflation era," adding, "It is a time when choosing 'one smart bottle' matters."