Muhak is showing strong performance. This is interpreted as being influenced by the prospect that soju prices may also rise alongside ethanol prices, which have surged at the largest rate in 20 years.
As of 11 a.m. on the 20th, Muhak is trading at 5,970 KRW, up 2.58% compared to the previous day.
According to the liquor industry on the previous day, Daehan Ethanol Sales increased ethanol prices by an average of 9.8% starting from the day before. Following last year's 7.8% average increase in ethanol prices for the first time in 10 years, this marks the second consecutive year of price hikes and the largest increase in 20 years since 2002.
Daehan Ethanol Sales is the company that exclusively distributes ethanol produced by domestic ethanol companies within Korea. Since diluted soju is made by mixing ethanol with water and sweeteners, the ethanol price increase affects all companies equally.
As ethanol prices rise, concerns about soju price increases are naturally growing. The liquor industry has so far resolved cost pressure by raising soju wholesale prices when ethanol prices increase. In fact, when ethanol prices rose last year, soju companies simultaneously announced price hikes.
Meanwhile, Muhak is a company that mainly manufactures and sells diluted soju. Its main products include Kkalkkeumhan Joheun Day, Ddak Joheun Day, Cheongchun, Joheun Day, White, Joheun Day Colorju, and Joheun Day Calamansi.
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