Daesun Joozo's "bitter" message:
Regional soju industry faces extinction crisis
Warning against the Seoul metropolitan area's dominance
Is this really an advertisement poster from a liquor company?
Regional soju brands have started to voice unfamiliar(?) messages. Their tone is closer to a cry than a call. They are highlighting the social crisis of regional extinction by emphasizing the "bitterness" of soju.
Daesun Joozo, headquartered in Busan, recently unveiled a striking poster that is the complete opposite of its previous advertising images. There are no beautiful models. Instead, the poster features direct phrases warning about regional population decline and extinction. It goes beyond simple product promotion, powerfully illustrating that even local companies can no longer withstand the negative effects of the Seoul metropolitan area’s dominance.
According to Daesun Joozo’s stated campaign intent, the concentration of population and resources in the Seoul metropolitan area, as well as low birth rates and an aging population, are shaking the very foundations of regional economies. In regions where the consumer base is disappearing, both companies and small business owners are now forced to worry about their very survival.
According to the monthly business outlook survey by the Busan-Ulsan branch of the Korea Federation of SMEs, regional companies’ business sentiment has remained in a prolonged downturn. The Bank of Korea also reported in 2023 that about 80% of youth outflow occurred outside the Seoul metropolitan area. From 2015 to 2021, 78.5% of the population growth in the metropolitan area was due to the influx of young people.
The sense of crisis in the regional liquor industry is even more acute. According to the Korea Agro-Fisheries & Food Trade Corporation, Hite Jinro and Lotte Chilsung Beverage together account for nearly 80% of the domestic retail market. Including the nightlife sector, some estimate that the market dominance of these metropolitan conglomerates reaches 90%.
Regional liquor companies such as Daesun Joozo (Busan), Hallasan (Jeju), Muhak (Changwon), Bohae Brewery (Jeonnam), Geumbokju (Daegu), and Seonyang (Daejeon) have long been local brands intertwined with the lives of regional residents. However, they now face an existential crisis, squeezed out by the overwhelming capital of central conglomerates.
The gap in advertising expenditures is enormous. According to 2024 disclosures, Hite Jinro spent 184 billion KRW annually on advertising, while Lotte Chilsung Beverage spent 126.5 billion KRW. This is more than nine times the annual sales of some regional liquor companies. As the prices of raw materials such as alcohol, bottles, and caps rise, and logistics costs add further burden, regional companies are struggling to endure without being able to raise prices.
Population outflow is also intensifying the crisis. According to Statistics Korea’s "2024 Domestic Population Movement Results," Busan’s net population outflow last year was 13,657, the largest in three years. Among the 14 non-metropolitan cities and provinces, Busan had the highest number of people moving to the metropolitan area.
Companies like Daesun Joozo, which have long been part of their regions, are suffering a double hardship: they must maintain their regional identity while quickly adapting to fast-changing consumption trends and creating new demand.
A representative from the regional soju industry said, "We have managed to survive so far thanks to the support of local residents, but as regional extinction accelerates, it has become nearly impossible to keep going. Liquor manufacturers are not just production plants but part of the local community. Policy measures to curb monopolies are urgently needed."
There have long been voices warning that the concentration in the metropolitan area leads not only to economic disparity but also to the collapse of regional communities. The downfall of local companies that embody regional culture and sentiment is not just a business loss, but the disappearance of people’s very livelihoods.
Daesun Joozo expressed hope that "the government and local authorities will prepare bold and effective measures for regional companies standing at the crossroads of survival." The company also earnestly appealed to consumers to "breathe life into the regional economy by showing interest and affection for local brands."
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