Collecting Like Luxury Bags... 'Rare Whiskey' Investment with 428% Value Increase

Premium Whiskey Gains Spotlight as Investment
High Returns from Collectible Value and Rarity
Millions Won Prices, Immediate Sales... Even Empty Bottles Traded
Popular Whiskey Shortages... Open Runs Too

[Asia Economy Reporter Song Seung-yoon] Oh Jeong-ho (38, male), an office worker living in Gangdong-gu, Seoul, recently developed an interest in whiskey investment. This came after seeing a special edition product of a Japanese whiskey brand that a friend had been collecting for about 10 years increase in value by nearly 400%. Although Oh usually does not enjoy drinking, he started buying rare whiskeys as collectibles. To gather purchasing information, he joined whiskey-related communities and open chat rooms and is studying the market. Oh said, "It's fun to learn about various famous brands and select whiskeys that will increase in price," adding, "I feel proud every time my display cabinet fills up with whiskey."

The More You Collect, the More Value Increases... Whiskey Gains Attention as a Financial Asset

Whiskey is gaining attention as a financial asset. This is due to its relatively small price decline and the characteristic that its value increases the longer it is held. In Korea, 'open runs' continue mainly for popular whiskeys, and even empty whiskey bottles are becoming investment targets.

According to the industry on the 13th, despite the recent economic downturn, whiskey investment is attracting global attention. According to the UK real estate consulting firm Knight Frank's Q4 2022 "Luxury Investment Index," among various luxury goods such as cars, wine, and watches, the value of rare whiskey has risen 428% over the past 10 years, recording the highest return. The popularity is due to its long-term storability and increasing rarity over time, which raises its value. For limited editions, the longer they are held, the higher the investment returns.

The same applies domestically. In 2019, at Korea's first official whiskey auction, a "Macallan 72-Year Genesis Decanter" was sold for 155 million KRW, and in October last year, 25 bottles of "Balvenie DCS Compendium" were sold for 500 million KRW. In October, Ayang FBC received fewer than five bottles each of Gordon & MacPhail’s 72-year-old single malt whiskey ‘Milton 1949’ and ‘Platinum Jubilee,’ produced to commemorate Queen Elizabeth’s 70th year on the throne; despite prices reaching 100 million KRW and 80 million KRW respectively, buyers appeared. Even on fractional investment platforms focused on luxury goods or artworks, rare whiskeys are fully subscribed within minutes once offered.

Balvenie DCS Compendium. Photo by William Grant & Sons Korea

Whiskey Imports Reach 209.1 Billion KRW, Up 33.9% YoY... Highest Since 2015

As the whiskey market gradually expands, this trend is expected to continue for the time being. According to customs export-import trade statistics, whiskey imports last year amounted to 209.1 billion KRW, a 33.9% increase compared to the previous year, marking the highest level since 2015. In the first half of this year, imports reached 162 billion KRW, about 62% higher than the same period last year. The rise is mainly attributed to the influence of home drinking and changes in alcohol consumption trends. The global whiskey market is also gradually growing, expected to expand from 80.9 billion USD this year to 550.3 billion USD by 2032, with an average annual growth rate of 12.4%.

Since COVID-19, logistics difficulties have continued to cause whiskey shortages. Some popular whiskeys have become increasingly scarce, leading to open run phenomena similar to buying luxury bags, and it has become common for popular whiskeys to sell out immediately upon arrival. Even empty whiskey bottles are becoming investment targets. Depending on the brand and age, bottle prices can range from 10,000 KRW to several hundred thousand KRW.

An industry insider said, "Whiskey takes considerable time to produce, and because there is no risk of spoilage and its aroma deepens over time, its value increases," adding, "In Korea as well, demand for premium whiskey is gradually expanding, and the value of collecting is growing."