HiteJinro Approaching 100th Anniversary, CEO Kim Reappointed
Strengthening Soju Dominance with 'Chamisul' and 'Jinro'
Aiming to Regain Beer Leadership by Adding New Products to 'Terra'
HiteJinro, which is approaching its 100th anniversary next year, has reaffirmed CEO Kim In-gyu as its leader to achieve two goals: 'strengthening dominance in the soju market' and 'regaining the No. 1 position in the beer market.' With Kim’s resolve of "change and innovation mean survival, while stagnation or complacency means death" (變卽生 停卽死), his undertaking of this important role has drawn significant industry attention.
According to HiteJinro on the 27th, CEO Kim was reappointed as an inside director at the regular shareholders' meeting held on the 24th. Having served as CEO since 2011, Kim succeeded in his fourth term extension with this reappointment, extending his tenure until March 2026.
Born in 1962, Kim is a ‘one-club man’ who has been with HiteJinro for over 30 years since joining Hite Beer in 1989. Having held key internal positions in management planning, sales, human resources, and general affairs, he became president of Hite Beer in April 2011 and then took on the role of head of sales for HiteJinro after the merger of Hite Beer and Jinro in September of the same year.
After Park Moon-duk, an alumnus of Paejae High School, stepped down from the CEO position and retired from frontline management in 2013, Kim has effectively led HiteJinro as a professional manager since 2014. He is regarded as a figure who enjoys deep communication with the HiteJinro owners, having earned Park’s strong trust. Since 2017, he has also concurrently served as president and CEO of HiteJinro Holdings.
'Tera' and 'Jinro Is Back' Hit Consecutive Home Runs... Recovering from Early Slumps
Although Kim has held the CEO position for 13 years, his journey has not been without challenges. Until 2011, 'Hite' maintained the No. 1 spot in the beer market but fell to second place behind OB Beer’s ‘Cass’ starting in 2012. Continued market share decline led the beer business into losses in 2014, and the ‘All New Hite’ launched in 2016 failed to make a significant impact, resulting in over 100 billion KRW in operating losses over five years from 2014.
At a time when many expected Kim to step down due to poor performance, he turned to sparkling beer, which was unfamiliar to domestic consumers then, as a breakthrough. In April 2017, HiteJinro launched ‘Filite,’ the country’s first sparkling beer, which surpassed 100 million cans sold within six months of release. By November last year, cumulative sales reached 1.63 billion cans, maintaining the No. 1 position in the sparkling beer market.
Building on the turnaround with Filite, Kim launched a full-scale challenge to the beer market in 2019. ‘Tera,’ introduced in March that year with a clean lager concept, made waves primarily in the nightlife market, with cumulative sales reaching approximately 3.6 billion bottles by February this year. Notably, annual sales exceeded 1 billion bottles for the first time last year, achieving an average annual growth rate of 23% since launch and establishing itself as a mega brand.
Kim also pushed forward in the soju market. In 2019, HiteJinro launched ‘Jinro,’ a new retro-themed soju featuring a toad mascot and a transparent bottle. Known by the nickname ‘Is Back,’ Jinro has sold 1.4 billion bottles cumulatively through last year, playing a leading role in firmly maintaining the No. 1 position in the soju market. Marketing efforts leveraging pop-up stores like ‘Dukkeop Sanghoe’ and merchandise have been evaluated as highly effective among the MZ generation (Millennials + Generation Z).
Visible achievements have also been made in overseas markets. Declaring ‘globalization of soju’ in 2016, Kim directed the cultivation of strategic export countries, expansion of sales channels, and strengthening of country-specific promotions. Based on local market research in strategic countries, HiteJinro responded swiftly and proactively to market changes, resulting in soju export revenue reaching approximately 120 million USD last year, a 16.4% increase from the previous year. The average growth rate over the past five years is 17.1%. HiteJinro plans to continue expanding sales this year with differentiated strategies by country, focusing short-term on Southeast Asia and Greater China, and mid-to-long term on rapidly growing Western countries.
Clear Results Needed in Both Soju and Beer Markets Ahead of 100th Anniversary
HiteJinro, which traces its origins to Jincheon Brewing Company established in 1924 in Yonggang County, Pyeongannam-do, will celebrate its 100th anniversary next year. As a centennial company, CEO Kim is expected to deliver clear results in both the soju and beer business sectors. The industry anticipates that Kim will be actively working to achieve the two goals of ‘strengthening dominance in the soju market’ and ‘regaining the No. 1 position in the beer market.’
At this year’s shareholders’ meeting, Kim stated, “As a renowned soju maker, we will not neglect efforts to read market trends and meet the needs of the times and consumers,” adding, “We will further solidify market dominance through aggressive sales and marketing.” This is interpreted as a plan to strengthen the monopoly system in the soju market, where the two mega brands Jinro and Chamisul already hold over 65% market share, by adding distilled soju Jinro 1924 Heritage and others.
In the beer business, the plan is to enhance market competitiveness through various marketing activities centered on Tera, collaborations on limited edition products, and the development and utilization of merchandise such as ‘Spooner’ and ‘Somaek Tower.’ Additionally, a new product to support Tera will be launched. At the end of this month, a new all-malt (100% malt) beer brand is expected to be unveiled to replace ‘Max’ and begin sales.
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