[Yang Nak-gyu's Defence Club] Impact of Liquor Price Hikes... 'Alcohol' Tops Sales at Military PX

Prices 20-50% Lower Compared to Regular Marts
Soju and Beer Rank 1st, 2nd, and 4th in Sales

[Asia Economy Yang Nak-gyu, Military Specialist Reporter] Last year, the best-selling item at military marts was alcoholic beverages. This year, with the expected price increase of alcoholic products, sales volume is likely to surpass that of cosmetics, which had previously ranked high in sales.

According to the military on the 22nd, military marts are divided into on-base marts (1,922 locations) and off-base marts (122). On-base marts are used by active-duty soldiers and military personnel, while off-base marts are used by military families, reservists with over 10 years of service, and national merit recipients.

[Image source=Yonhap News]

Off-base marts offer prices 20-50% cheaper than regular marts. Especially for alcoholic beverages, since taxes are not imposed, the price difference is significant. For example, a 6-pack of Terra 355ml costs 4,200 won at military marts, whereas it sells for about 8,000 won at regular marts. Soju is sold at around 900-1,000 won per bottle at military marts, compared to 1,400-1,900 won at regular marts.

Due to this large price gap, alcoholic beverages have overtaken cosmetics, which had been the top sellers at off-base marts. From 2018 to 2020, the top-selling items at off-base marts were cosmetics such as Dr.G Black Snail Cream and Mediheal Callus Multi Gold Lifting Cream. However, in 2021, Chamisul soju rose to first place, and last year, alcoholic beverages dominated the top five with Chamisul (1st), Terra cans (2nd), and Cass cans (4th). The volume of alcoholic beverages sold at military marts last year reached 83,147,000 bottles, amounting to 113.273 billion won. Although the Ministry of Strategy and Finance reduces the duty-free alcohol quota annually, the quantity and amount exceed the limits every year. Last year, the duty-free alcohol quota was 30,046,000 bottles, with a limit of 18.059 billion won.

The popularity of alcoholic beverages is expected to continue for the time being. Following the simultaneous price increase of soju and beer last year, alcoholic product prices are projected to rise again this year. From April this year, the liquor tax on beer will increase by 30.5 won to 885.7 won per liter, a larger hike than the 20.8 won increase per liter last year. There are even forecasts that the price of soju sold in restaurants could approach 6,000 won per bottle.

The military is determined to strictly prevent general public sales at off-base marts. The Jaundae Shopping Town located in Daejeon stopped sales to Daejeon citizens from July last year. Although the opening was expanded to improve convenience for local residents, controversies over infringement on local small and medium-sized marts and complaints from soldiers and military families led to the closure within three months. The ‘Black Snail Cream’ by Gounsaeng Cosmetic’s Dr.G, known as ‘Snail Cream’ due to its 20% snail mucin filtrate content, was also withdrawn from military marts last year due to excessive discount rates.