"When you tip back a drink, relationships form, don't they? I want to link people to one another with good liquor."
On the 13th at 10 a.m. at the headquarters on Yeonggol-gil, Seo District, Daejeon, Chairman Cho Ung-rae (67) of Seonyang Soju, when asked why he acquired Seonyang Soju, answered, "I thought soju was in the same context as linking people through music via the '700-5425' service (coloring)," adding this. After acquiring regional liquor company Seonyang Brewery in 2004, Cho has led it for 22 years.
Born in Haman, South Gyeongsang, and a graduate of Kyungpook National University's electronic engineering department, Chairman Cho is a first-generation information technology (IT) venture founder. After starting his career at major corporations such as Samsung Electronics and LG Electronics, he introduced the telephone automatic music (sound) linking service '700-5425' in the early 1990s. The service was a hit as mobile phone adoption spread. Having achieved results by conveying emotions and linking people through music (sound), he jumped into the liquor industry, noting that alcohol also connects people.
Seonyang Soju is the representative soju company in the Chungcheong region. Its predecessor was "Geumgwan Brewery," formed in 1973 by 33 soju companies in Chungcheong. The following year, it changed its name to "Seonyang Brewery" and began full-scale production of regional soju. After Cho's acquisition, it changed its name to "Maeky's Company" in 2013, then to "Seonyang Soju" in 2023 to mark its 50th anniversary.
Recently, Seonyang Soju drew attention with "Good Soju 990," released at half the price of typical soju on the market. Cho said, "The more we sell Good Soju, the more we lose," but added, "We started the project with the Small Enterprise and Market Service to revive neighborhood commercial districts." Good Soju 990 is sold only at neighborhood supermarkets nationwide.
Cost cutting enabled 990-won soju. Seonyang Soju has Cho promote the product himself instead of hiring celebrity models. In addition to model fees, the company reduced costs through in-house video production and promotion via official social media (SNS) accounts. However, Cho said it is difficult to sustain this. He explained, "Internally, we tightened our belts and decided to try it temporarily for about three months."
This is not unrelated to the soju price structure, which adds liquor tax and distribution margins. Soju is taxed based on the ex-factory price (ad valorem tax) and is priced further as it goes through wholesale and retail distribution stages. There is a limit to lowering prices based on cost alone. If you add advertising and marketing expenses on top of that, price cuts become even harder. As Seonyang Soju also cut internal costs to hit the 990-won price, it is inevitably burdensome to continue it for a long time. The following is a Q&A.
—There is a strong perception of "K-soju = green bottle." Why did you choose a clear white bottle?
"When people think of 'K-soju,' they mainly picture it in a green bottle. It's that familiar. But since I consider liquor as food, I believe not only taste but also everything from sight to touch matters. With solo drinking becoming more common these days, a green bottle on the dining table gives off a hollow or lonely feeling. As a frontrunner of 'white-bottle K-soju,' I wanted to pursue the image of a liquor pleasing even in its aesthetics."
—But "Good Soju 990" was released in a green bottle.
"To lower the price, we have to use the existing empty-bottle system. Green bottles have an established collection and reuse structure, which cuts costs. White bottles, by contrast, don't yet have such a structure, making it hard to match the same price. We used green bottles to meet the price point, but white bottles are Seonyang Soju's identity."
—Why promote the product yourself instead of using celebrity models?
"It's the era of SNS. By showing my daily life—like marathons or restaurant tours—I was able to communicate more closely with consumers. Last year, accumulated views of our SNS content reached 250 million. It also helped broaden our contact points with younger consumers."
—What kind of soju does Seonyang Soju pursue?
"Liquor is also food. It must be delicious, period. But with soju, people often drink whatever a restaurant serves. That means consumers have had few chances to compare brands or tastes and choose. It also means it's a market where competing on 'taste' is hard. Still, because liquor is food, we must ultimately compete on taste. That's why Seonyang Soju researches and develops to find high-quality base spirits fermented and distilled from rice and barley. The reason Seonyang Oak gained broad support is ultimately taste, isn't it?"
—Then what is "delicious soju"?
"It goes down smoothly, you enjoy it with good people, and you wake up refreshed in the morning. To that end, we applied our 'oxygen aging method,' developed in-house in 2006 and patented, to soju to contain 26 ppm of oxygen. Marketed soju has around 8 ppm, so ours has about three times more. Many consumers say they feel refreshed in the morning no matter how much they drink. Along with good base spirit, a liquor without a hangover—that's delicious soju."
—Do you also invest in oak barrels for good base spirit?
"To make tasty, good liquor, high-quality base spirit is essential. After fermenting rice or barley and distilling it, the base spirit is aged in oak barrels or tanks. We source the barrels from Kentucky in the United States, famous for bourbon whiskey. Currently, about 1,000 oak barrels are stored at Seonyang Soju's headquarters and plant."
—You said you would export fruit soju to Australia first.
"Australia responded first. After encountering Seonyang Soju locally, there was a request to make fruit soju as well. So we expanded our lineup to include fruit soju. I understand the feedback has been positive, saying the taste is good and the packaging is pretty."
—Is fruit soju also a pillar of your overseas strategy?
"Yes. Remembering the past perception that fruit soju tasted artificially sweet and had a bad aftereffect, we focused on creating a natural sweetness and put a lot of effort into reducing hangovers."
—How is the response in overseas markets?
"Overseas, soju is still often consumed mainly by travelers or Korean residents. So the image of 'soju = green bottle' is strong. But local consumers don't have that bias. They judge only by taste. I hear they seek out our liquor the most because it pairs well with local food and is smooth (laughs). In that respect, I think white-bottle K-soju is fully competitive."
—Do you have plans for overseas production?
"We are building a factory in Myanmar. Once all equipment is in place, we plan to start producing soju immediately. Since the Southeast Asian market has great growth potential, it is important to secure a local production base. Exporting alone has limits, so we are also reviewing a strategy to handle everything locally from production to distribution."
—What are Seonyang Soju's mid- to long-term goals?
"For now, securing more distribution channels is important. No matter how good a product is, it is hard to sell if it doesn't get shelf space. We want to become the leading brand of white-bottle K-soju as the company that makes soju best."