68% of Consumers Say "Online Alcohol Sales... OK If Underage Purchase Issues Are Resolved"

'National Assembly Forum for Discussing the Activation of Alcoholic Beverage Online Sales' to be Held at the National Assembly on the 10th

Amid concerns that allowing the purchase and delivery of alcoholic beverages online could make it easier for minors to buy alcohol, a survey found that 7 out of 10 consumers support online alcohol sales if sufficient measures are in place, such as warning messages about excessive quantity orders and strengthened age verification at all purchase stages. The industry believes that strengthening age verification at every stage before purchase can resolve this issue.

The "National Assembly Forum for the Activation of Liquor Online Sales" was held on the 10th at the National Assembly Library in Yeouido, Seoul. (Front row from left) Hwang Seongpil, Legislative Research Officer of the Fiscal and Economic Team at the National Assembly Legislative Research Office; Kim Seokgyun, Executive Director of Embrain; Klaas Schaberg, Director of the Asia-Pacific International Spirits Alliance; Wilson Del Socorro, Director of the Asia-Pacific International Spirits Alliance; Choi Seungjae, Member of the People Power Party; Olivia Biden, Director of the Asia-Pacific International Spirits Alliance; Mark Kent, Chairman of the Scotch Whisky Association; Kim Minwook, CEO of Daily Shot. (Back row from left) Kim Seongsu, Professor at Hanyang University School of International Studies; Shim Jaesik, Head of Market Structure Improvement Policy Division at the Korea Fair Trade Commission; Jo Sunghyun, Secretary General of the Korea Online Shopping Association; Lee Wanhui, Secretary of the Consumption Tax Division at the National Tax Service; Do Jeonghan, CEO of Three Societies. [Photo by Asia-Pacific International Spirits Alliance]

According to a survey conducted by market research firm Embrain on 1,000 men and women nationwide, presented at the ‘National Assembly Forum for the Activation of Alcoholic Beverage Telecommunication Sales’ held at the National Assembly Library in Yeouido, Seoul on the 10th, 77% of respondents expressed the greatest concern about the ‘possibility of increased alcohol purchases by minors’ if online alcohol purchase and delivery are permitted. Fewer respondents cited concerns such as ‘increased drinking frequency due to ease of purchase (8%)’ and ‘weakened competitiveness of small business owners compared to large online sales channels (5%)’.

This survey result highlights that the key issue in allowing online alcohol sales is how to block and manage the possibility of purchases by minors. While 51% of all respondents said that deregulation of alcohol telecommunication sales is necessary, the proportion of those who support allowing alcohol telecommunication sales increased to 68% if sufficient measures to prevent minors’ purchases are ensured.

Regarding this, Mark Kent, Chairman of the Scotch Whisky Association (SWA), who delivered a presentation that day, emphasized the importance of establishing a responsible distribution and consumption system. Chairman Kent explained, “Currently, in the UK, age verification is conducted at every stage?from distilleries and e-commerce platforms selling alcohol to delivery companies until the product is delivered. Measures are applied to restrict delivery to minors as well as consumers prohibited from alcohol consumption, such as those who are intoxicated or have alcohol dependence.”

He added, “We strive to establish a safe market by analyzing and evaluating potentially harmful purchasing patterns or abnormal delivery addresses, conducting education to raise awareness among businesses, delivery personnel, and consumers. Through these efforts, alcohol consumption among minors aged 11 to 15 has steadily decreased over the past decade.”

Kim Min-wook, CEO of DailyShot, representing domestic online alcohol platform operators, also expressed that there are no technical issues in implementing adult verification upon alcohol delivery receipt. CEO Kim said, “With technological advancements, there are many ways to verify identity, such as fingerprint or facial recognition. When receiving delivered items, customers can be asked for biometric authentication through an app to resolve adult verification issues.” He added, “Considering that ID checks are not always perfectly conducted when purchasing alcohol at offline stores, this could actually be a more accurate way to regulate underage alcohol purchases.”

Meanwhile, concerns have also been raised that allowing telecommunication sales of alcohol could negatively impact current wholesalers and retailers handling alcoholic beverages. Currently, alcohol is distributed through the route of manufacturer/importer → wholesaler → retailer → consumer, but if online sales allow direct distribution from manufacturers/importers to consumers, small wholesalers and retailers may see a decline in sales. Additionally, there are claims that large distribution companies, leveraging advantages in capital and logistics costs, could dominate the alcohol telecommunication sales market and encroach on small local businesses.

Lee Choong-hwan, Chairman of the Gyeonggi-do Merchants Association, pointed out, “If online sales are allowed, who will go out to buy and drink alcohol? Small wholesalers and retailers will suffer huge damage, and ultimately, all offline alcohol sellers will have to change their business types. This must be fully recognized.”