[Sulsul Saeneun K-Juse]① "Still Saving on Flight Costs"… Twice the Price Difference, 'Whiskey Expedition Team' Willing to Make a Day Trip

Korean Tourists Drive Japanese Liquor Market
Tax Differences Lead to Attractive Prices
"Whiskey Quick-Turn Trips" on the Rise

The Nihonshu brand "Dassai (獺祭)" by Asahi Shuzo in Japan. It is also the sake brand most frequently purchased by domestic consumers during trips to Japan.

'Dassai (獺祭)'

Masaoaka Shiki (正岡子規), a poet from Japan's Meiji era, referred to himself as the owner of the Dassai study. The term Dassai originates from the image of otters (獺) lining up fish they caught by the water's edge, resembling a 'festival (祭)'. Like an otter, the poet would spread books all over his room and write, pioneering modern Japanese literature and becoming a representative author of his era. Asahi Shuzo, the producer of Dassai located in Yamaguchi Prefecture, named their sake Dassai with the dream of 'pioneering a new generation of Nihonshu.'

Asahi Shuzo's dream has increasingly become a reality year by year. Dassai gained public recognition as the sake served by former Japanese Prime Minister Shinzo Abe to former U.S. President Barack Obama, rising as a representative brand of Japanese sake. As Dassai became sought after not only by Japanese but also by Korean consumers, Asahi Shuzo has literally been hosting a festival. Whereas in the past, 'Masamune (正宗)' was recognized as the synonym and representative of Japanese sake in Korea, Dassai is now replacing that position.

Japanese liquor specialty store 'Imadeya' in Ginza, Chuo-gu, Tokyo, Japan

"If someone brings Dassai to the checkout counter, you can assume they are Korean."

Chuo-ku Ginza, one of Tokyo's premier upscale districts, is home to 'Imadeya,' a specialty Japanese liquor store. Store manager Masahiro Kataoka (片岡昌弘) smiled when asked about Korean customers. He said, "We sell over 800 bottles of Dassai per month, and it wouldn't be an exaggeration to say that Koreans buy almost all of them." He added, "Korean customers tend to purchase specific brands like Dassai and Kubota, and word of mouth among Koreans seems to be spreading a lot."

As Korean tourists sweep up specific products, their consumption significantly contributes to the store's sales. Kataoka said, "Our store's average spending per customer is about 7,000 yen (approximately 67,500 KRW), but Korean customers spend around 8,900 yen (about 86,000 KRW), exceeding the average. From the store's perspective, Korean customers are important for raising the average spending." Currently, domestic customers account for about 49% of sales at Imadeya Ginza Six, while Korean customers make up 15%.

Italian wine displayed at Enoteca, a wine specialty store in the Ginza area of Chuo-gu, Tokyo, Japan.
[Photo by Eunmo Koo]

Japan's Alcohol Prices Cheaper than Korea... From Liquor Shopping to Bar Hopping

Korean liquor shopping in Japan is not limited to sake. Daichi Shinohara (篠原大地), manager of the wine specialty store 'Enoteca' at Ginza Six, pointed out that Korean customers are meticulous about price comparisons. He said, "Korean customers tend to carefully search online and make many phone calls in the store, probably to find the best price. The frequency of actual purchases is also high, with 10 groups on weekdays and over 20 on weekends."

When asked about the most popular item among Korean tourists, he answered without hesitation: 'Sassicaia.' Sassicaia is a representative Super Tuscan wine produced in the Tuscany region of Italy, and depending on the vintage, it is a high-end wine that easily exceeds 500,000 KRW per bottle in Korea. Shinohara said, "Since it is an expensive wine, Japanese customers in their 20s rarely inquire or purchase Sassicaia, but I found it interesting that young Korean women, who appeared to be in their 20s, frequently look for Sassicaia." He added, "Personally, I wondered whether it is popular in Korea or if they are buying it as gifts for their parents."

Premium whiskey displayed at 'Shinanoya,' a liquor specialty store in Shibuya-ku, Tokyo, Japan
[Photo by Eunmo Koo]

Another liquor specialty store located in Shibuya-ku, Tokyo, 'Shinanoya,' also counts Korean tourists among its main customers. Shinya Kumagai (熊谷信哉), manager of Shinanoya Dokenzaka store, explained, "Among foreign customers, Koreans are by far the most numerous." He added, "As the number of Korean customers increased, we hired Korean staff to provide smooth customer service." Kumagai said, "Korean customers mainly purchase high-end products such as limited edition Japanese and Scottish whiskies or French Burgundy wines. They may not be familiar with Korean liquor market prices, but they find Japanese premium liquor prices attractive, which is why many Koreans seek them out."

Korean tourists' liquor consumption in Japan goes beyond purchasing. Many also visit whiskey or wine bars to experience various premium liquors at affordable prices locally. 'Mizunara Cask,' a whiskey bar in Roppongi, Minato-ku, Tokyo, famous for its water oak interior, is one such place popular among Korean tourists. Here, customers can experience various Japanese whiskies by aging year, and the establishment estimates Korean customers make up 5% to as much as 10% of their clientele.

Store manager Shun Oba (大場峻) said, "Since the end of COVID-19 and the return of tourists, the number of Korean customers has continued to increase." He added, "We hear directly from customers that drinking in Japan is cheaper than in Korea." Oba evaluated, "Korean customers tend to seek Yamazaki the most, and overall, they prefer highly aged and high-year products." He also said, "I feel proud as an industry worker that the status and popularity of Japanese whisky have risen considerably in Korea."

Oba Shun, manager of the whisky bar 'Mizunara Cask' in Roppongi, Minato-ku, Tokyo, is talking about the alcohol consumption of Korean tourists.
[Photo by Koo Eun-mo]

Price Difference Twice as Much... Overseas Purchases Hard to Ignore

The main reason Korean tourists put great effort into purchasing liquor during trips to Japan is undoubtedly the price. Even for the same product, buying it locally in Japan is much cheaper than in Korea. The price difference between the two countries stems from differences in their tax systems, including liquor taxes. Korea's Liquor Tax Act basically adopts an ad valorem tax system. This system taxes based on the shipment price, meaning higher-priced liquors incur higher taxes.

First, looking at fermented liquors like cheongju and wine, a 750ml bottle of wine with a shipment price of 100,000 KRW in Korea is first taxed 30% liquor tax, raising the price to 130,000 KRW. Then, an education tax of 10% on the liquor tax is added, making it 133,000 KRW, and finally, a 10% value-added tax is applied, resulting in a final price of 146,300 KRW.

In contrast, Japan adopts a specific tax system based on volume and alcohol content. For the same wine with a shipment price of 10,000 yen, a liquor tax of 100 yen per liter is applied. Therefore, for 750ml, a liquor tax of 75 yen is added. Without an education tax but with a 10% consumption tax, the final price becomes 11,083 yen. Applying an exchange rate of 100 yen to 1,000 KRW, this equals 110,830 KRW, which is 35,470 KRW cheaper than the Korean price.

This is the shipment price. Applying the same margins for importers (30%), suppliers (15%), and wholesalers/retailers (35%) in both countries, the final price is 295,270 KRW in Korea and 22,367 yen (223,670 KRW) in Japan, widening the gap to 71,600 KRW.

The price gap widens further for distilled liquors like whiskey. Comparing a 700ml bottle of whiskey with 40% alcohol content and a shipment price of 100,000 KRW, the domestic tax base of 100,000 KRW is taxed 72% liquor tax, raising the price to 172,000 KRW. Adding an education tax of 30% on the liquor tax (21,600 KRW) and a 10% value-added tax results in a final price of 212,960 KRW.

In Japan, a liquor tax of 400 yen per liter is applied for 40% alcohol content, so 280 yen is charged for 700ml. Adding a 10% consumption tax results in a price of 11,308 yen (113,080 KRW). The price difference with Korea is about 100,000 KRW. After adding distribution margins, the final purchase price is 429,807 KRW in Korea and 22,822 yen (228,220 KRW) in Japan, creating a price gap exceeding 200,000 KRW.

For example, the representative product of Dassai, 'Dassai Junmai Daiginjo 23' 720ml, was priced at 5,830 yen (approximately 55,590 KRW) at the time of the reporter's visit. In contrast, the recommended retail price in Korea is 230,000 KRW, with actual retail prices ranging from 130,000 KRW to 210,000 KRW, and an average selling price around 150,000 KRW.

This price difference widens as the shipment price increases, leading domestic consumers to become so-called high-end 'whiskey parcel traders.' Especially, 'whiskey quick-turn trips' to nearby Japan have become a trend. 'Quick Turn' refers to airline crew schedules where they return immediately after a flight, and in this context, it means short trips to places like Fukuoka or Tsushima for the purpose of purchasing whiskey or wine.

They purchase products at local duty-free liquor stores with tax exemption (tax refund) benefits, buying at nearly half the price in Korea, making the round-trip airfare or ferry fare a worthwhile 'profitable business.' The higher the product price, the greater the profit margin.

Tourists are browsing alcoholic beverage products at the Ginza Six shopping mall in Chuo-gu, Tokyo, Japan.
[Photo by Eunmo Koo]