Alcohol Leads in Sales Volume, Cosmetics Top in Revenue
"Does This Align with Welfare Goals?"... Calls to Review Operational Structure
It has been revealed that the best-selling products at military marts (PX) operated by the Armed Forces Welfare Agency are not daily necessities, but alcoholic beverages.
On December 21, Yonhap News Agency reported, citing data submitted by Assemblyman Yoo Yongwon of the People Power Party, a member of the National Defense Committee, that alcoholic beverages occupied all of the top four spots in terms of sales volume at military marts from January to November this year.
By item, the sales were as follows: ▲A canned beer (23.98 million units), ▲B canned beer (21.71 million units), ▲C soju (20.56 million units), and ▲D canned beer (14 million units). The combined sales volume of these top four items reached 80.25 million units.
Alcohol displayed at a large supermarket. Photo is not directly related to the content of this article. Photo by Yonhap News Agency
The total sales revenue from these alcoholic beverages amounted to 91,869,480,000 won. At military marts, A canned beer was sold for 1,000 won, less than half the convenience store price (about 2,250 won), and C soju was also significantly cheaper at 1,060 won compared to the market price (about 1,800 won). As a result, PX alcoholic beverages are perceived as "cost-effective items," which is seen as a driving force behind their high sales.
Alcohol sold at PXs is largely divided into duty-free and non-duty-free categories. Duty-free alcoholic beverages, commonly referred to as "military supply liquor," are exempt from liquor and education taxes according to Ministry of National Defense regulations. The price is set by adding only value-added tax to the pre-tax price agreed upon between the Armed Forces Welfare Agency and the supplier. Furthermore, duty-free alcoholic beverages are limited to products manufactured domestically.
There are also restrictions on eligible buyers and purchase quantities. Only active-duty military personnel with the rank of sergeant or above, military civilian employees, certain national merit recipients, enlisted soldiers, and cadets are allowed to purchase duty-free alcoholic beverages, and annual purchase limits are set. For example, diluted soju is limited to 20 bottles per officer per year, while premium liquors such as distilled soju or yakju are limited to one bottle per year.
Non-duty-free alcoholic beverages can be sold after a supply contract is signed with the Armed Forces Welfare Agency. Unlike duty-free alcoholic beverages, which are only sold at PXs located within military bases, non-duty-free alcoholic beverages are also available at military marts located outside bases, such as military apartment complexes, and are sold to military personnel and their families. Non-duty-free alcoholic beverages are relatively more expensive than duty-free products, which are typically priced at less than half the market price.
Meanwhile, although alcoholic beverages overwhelmingly led in sales volume, the top product in terms of sales revenue was a cosmetics item. E cosmetics set sold 830,000 units, generating 32,366,210,000 won in revenue. While the lowest online price for this product is around 290,000 won, it was sold at the military mart for 38,930 won, resulting in a significant price difference.
Assemblyman Yoo stated, "Although military marts are intended as welfare spaces to support the basic needs of service members, in reality, sales and revenue are dominated by alcoholic beverages and high-priced cosmetics. The Ministry of National Defense needs to review and redefine the standards to ensure that the operation of military marts aligns with their original purpose."
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