The National Tax Service, long seen only as a tax collector, is now casting itself as a salesman for Korean alcohol. It has stepped in to directly open overseas sales channels to promote our drinks in the global market. This time, it will even set up a "Republic of Korea K-alcohol pavilion" at Vinexpo Asia in Hong Kong, the largest liquor expo in Asia.
According to the retail industry on the 24th, the National Tax Service has recently moved aggressively to nurture our traditional liquor. At first glance, it may seem unusual for the National Tax Service to look after the traditional liquor industry. But because alcohol is subject to a liquor tax, the National Tax Service has long been the key agency overseeing manufacturing, distribution, and licensing of alcoholic beverages.
Behind the National Tax Service's recent push to support traditional liquor is a widening trade deficit in alcoholic beverages. As consumption of imported drinks such as wine, whisky, and sake increases, the deficit is growing quickly. According to the Korea Customs Service, the alcoholic beverage trade deficit came to 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 strengthen the competitiveness of domestic traditional liquor and grow exports as an industry in its own right. Commissioner Lim Gwang-hyeon of the National Tax Service has said it will "support the entry of our alcohol into the global market."
In fact, the National Tax Service has been pushing a "K-alcohol 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 Wine, Geumsan Insamju Susam 23, Chusa Apple Wine, Seonunsan Bokbunja Wine, and rice makgeolli, set out for export to the United States, China, New Zealand, and Hong Kong. By leveraging the global logistics and distribution infrastructure of large corporations, it opened the way for drinks from small breweries to meet overseas buyers.
This time, it is going a step further. The National Tax Service will set up a "Republic of Korea K-alcohol pavilion" at Vinexpo Asia, an international liquor expo to be held in Hong Kong on the 26th. The strategy is to go beyond simple display and plant an image among overseas buyers of "Korean alcohol you can trust to drink." Daeseon by Daesun Distilling, Saero by Lotte Chilsung Beverage, Bokbunja Wine by Bohae Brewery, Seonyang by Seonyang Soju, and Good Day Soju by Muhak will be featured. 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. To help breweries focus on product development and quality control, it will simplify liquor tax filing procedures and pursue easing tax burdens on certain alcoholic beverages. The agency that collected taxes is now stepping forward as a "K-alcohol export support corps."