The National Tax Service, long seen only as a tax collector, now calls itself a salesman for Korean liquor. It has stepped in directly to pioneer overseas sales channels to promote our liquor in the global market.
According to the retail industry on the 24th, the National Tax Service has recently moved aggressively to nurture our liquor. At first glance, it may seem a bit unexpected that the National Tax Service is looking after the traditional liquor industry. But because liquor carries a liquor tax, the National Tax Service has always been the key agency overseeing manufacturing, distribution and licensing of alcoholic beverages.
Driving the National Tax Service's recent acceleration in supporting traditional liquor is a widening trade deficit in alcoholic beverages. As consumption of imported liquor such as wine, whisky and sake rises, the deficit has swelled quickly. According to the Korea Customs Service, the alcoholic beverage trade deficit was 1.324 trillion won in 2022, 1.2231 trillion won in 2023 and 1.1344 trillion won in 2024, topping 1 trillion won for three straight years.
The National Tax Service's calculus is clear. Rather than stopping at short-term tax cuts, it aims to boost the competitiveness of domestic traditional liquor and grow exports as an industry in their own right. Commissioner Lim Gwang-hyeon of the National Tax Service has said, "We will support our liquor's entry into the global market."
In fact, the National Tax Service has already been pushing a "K-liquor project" for several years. In 2023, it supported exports by linking the overseas distribution networks of major liquor companies such as Hitejinro, Oriental Brewery, Kooksoondang Brewery and Lotte Chilsung Beverage with traditional liquor producers.
As a result, 19 products from nine companies, including Jangsu Omija Liquor, Geumsan Ginseng Liquor Suseam 23, Chusa Apple Wine, Seonunsan Bokbunja Liquor and rice makgeolli, set out for markets such as the United States, China, New Zealand and Hong Kong. By leveraging conglomerates' global logistics and distribution infrastructure, the initiative opened doors for small breweries' liquors to meet overseas buyers.
This time, it is going a step further. The National Tax Service will soon support Korean companies at an international liquor expo in Asia. The strategy is to instill in overseas buyers the image of "trustworthy Korean liquor." Daesun from Daesun Distilling, Saero from Lotte Chilsung Beverage, bokbunja liquor from Bohae Brewery, Sunyang from Sunyang Soju, and Good Day Soju from Muhak, among others. Traditional liquor companies such as Baesangmyun Brewery and Eau de Lune will attend the event.
The National Tax Service plans to expand support for traditional liquor businesses going forward. It will simplify liquor tax filing procedures so breweries can focus on product development and quality control, and will also push to ease the tax burden on some alcoholic beverages. The agency that once collected taxes is now stepping up directly as a "K-liquor export support corps."