[Report] "Who Will Soothe the Common People's Sorrows?" Sighs Over Soju Price Increase of 'Seomin Sul'

'Seominsul' Soju Prices 'Rising One After Another'... Beer Price Increase Also Expected
"Should We Raise Prices?" Small Business Owners Debate
"Salaries Stay the Same... Price Burden" Common People Express Regret

A food alley in Euljiro, Jung-gu, Seoul. Photo by Seunggon Han hsg@asiae.co.kr

[Asia Economy reporters Seunggon Han and intern Jungwan Kim] "It's a shame because for ordinary people, having a glass of soju is a small pleasure."

Kim, a taxi driver in his 50s, smiled and said about the soju price hike, "Now I guess I'll just have to eat samgyeopsal." He said, "Drinking soju after work is a joy for ordinary people, but now it's too burdensome to afford." He also lamented, "I've heard that people around me are even stockpiling soju."

According to the food and liquor industry on the 25th, HiteJinro raised the retail price of 'Chamisul Fresh' and 'Chamisul Original' from 1,280 won to 1,380 won per bottle, and Jinro raised its price from 1,190 won to 1,290 won per bottle by 100 won starting at midnight on the 23rd. Following that, Muhak plans to increase the wholesale price of soju brands 'Joeundei' and 'White' by an average of 8.84% to 1,163.4 won starting next month on the 1st. Bohae Brewery also decided to raise the wholesale price of soju such as 'Ipsaeju' by an average of 14.6% starting March 2.

As a result of the soju price hike, convenience stores and large supermarkets are also raising their sales prices one after another. CU, GS25, 7-Eleven, and Emart24 raised the consumer price of Chamisul Fresh and Original from 1,800 won to 1,950 won, and Jinro from 1,660?1,700 won to 1,800 won. Self-employed business owners are also reportedly struggling over whether to raise soju prices at their restaurants.

Ordinary people cannot hide their bitterness. On the 24th, 20-something customers met at a hof (pub) near Nakwon Arcade in Jongno-gu, Seoul, said, "We can tolerate about a 1,000 won increase," but added, "Our salaries remain the same, and it feels awkward not to drink, so it's frustrating." They also said, "I wish prices would stop rising."

A street near Jongno, Seoul. On the 24th, citizens met in this area expressed discomfort regarding the increase in soju prices. Photo by Seunggon Han hsg@asiae.co.kr

Self-employed business owners are debating whether they should raise soju prices. With the economy struggling due to COVID-19 and fewer customers visiting, some say that raising soju prices would be a double burden.

Park, a self-employed person in his 40s, said, "Other office workers might feel the same, but as a self-employed person with fluctuating income, the fatigue from rising prices hits me directly," adding, "We need to have gatherings with employees, but although the soju price increase isn't huge, it will eventually be a burden," he sighed.

Park emphasized that the soju price hike could make the already struggling food service industry due to COVID-19 even more painful. He said, "Restaurants are already suffering because people don't go out much due to COVID, so if soju prices go up too, it will be tough."

In fact, the soju price hike could be a case of adding insult to injury for self-employed people struggling with COVID-19. Currently, some restaurants in the Gangnam area of Seoul already sell a bottle of soju for 5,000 won. This price reflects the 6.45% wholesale price increase in 2019. Meanwhile, some restaurants have raised prices further, selling a bottle of soju for 6,000 won.

One self-employed person lamented, "Are they raising soju prices again?" and said, "Prices for everything are going up, so if soju prices rise too, customers will inevitably feel burdened," adding, "We need to consider the situation of nearby stores."

Meanwhile, starting in April, under the revised Liquor Tax Act, beer taxes will increase by 20.8 won per liter to 855.2 won. Along with rising raw material costs, beer prices are also expected to rise. If beer prices increase, the current price of 5,000 won per bottle at restaurants could reach 6,000 won.