From July, Small-Scale Production of Distilled Soju and Whisky Permitted ... "Expanded Market Entry for Young Entrepreneurs"

Starting next month, small-scale liquor manufacturing licenses will be permitted for distilled soju, whisky, and brandy, allowing entrepreneurs to start businesses with minimal capital. The government expects this change will expand market entry opportunities, especially for young entrepreneurs.

The National Tax Service announced on June 30 that the relevant notifications and amendments to the Liquor Tax Administrative Regulations, which were pre-announced to ease market entry conditions for new liquor business operators, reduce tax compliance costs for liquor manufacturers, and support exports, will take effect from July 1.

An official from the National Tax Service stated, "By expanding the types of small-scale liquor manufacturing licenses that can be obtained with minimal capital, we have created an environment where various companies can enter the market at any time, fostering a system of free competition." The official added, "In addition, the system for designating tax-stamped bottle cap manufacturers?previously based on the National Tax Service's review and notification of facility requirements?has been converted to a registration system. Now, as long as certain facility requirements are met, companies can enter the market, lowering the entry barriers for new businesses."

First, the National Tax Service revised the Liquor Tax Administrative Regulations to allow for the assignment and management of new liquor license numbers, anticipating that the relaxation of facility standards for whisky, brandy, and distilled soju small-scale manufacturing licenses will lead to increased market entry by young entrepreneurs and others. Furthermore, with the conversion of the tax-stamped bottle cap manufacturer designation system to a registration system, the related notification was amended to clearly specify registration requirements, procedures, and grounds for cancellation, ensuring stable supply and quality improvement of tax-stamped bottle caps and smooth implementation of the system.

Reflecting the realities of alcohol consumption culture, regulations related to liquor shipment have also been relaxed to reduce production and management costs for liquor manufacturers. The obligation to distinguish "household use" for soju and beer in paper pack and PET bottle containers, which are mainly consumed at home, has been abolished, reducing tax compliance costs for liquor manufacturers. In addition, the obligation to attach radio frequency identification (RFID) tags to whisky and similar products has been revised to apply only to whisky and similar products with an alcohol content of 17% or higher, thereby streamlining administrative procedures for low-alcohol beverages such as highballs, which have become popular due to changing consumption trends.

To further support liquor industry exports, a new system has been introduced that allows the storage and aging period of export-oriented Korean whisky and brandy in wooden barrels to be verified by the head of the relevant tax office, along with technical inspection by the National Tax Service Liquor License Support Center, in response to overseas buyers' demands. In addition, as more breweries are combining manufacturing, experience programs, education, and sales, the regulations have been clarified to include educational and sales facilities as those that could affect the hygiene of alcoholic beverages, and to specify clear separation standards between manufacturing spaces and these facilities, ensuring a safe manufacturing environment.

An official from the National Tax Service stated, "We will continue to actively support the revitalization of the domestic liquor market and the overseas expansion of Korean liquor by maintaining ongoing communication with the field and cooperating with relevant ministries, thereby supporting the growth of the liquor industry."