Alcoholic Beverages Lead in Sales Volume, Cosmetics Top in Revenue
"Does This Align with Welfare Goals?"
Calls for Review of Operational Structure
It has been found 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 reported that, according to data submitted by the Ministry of National Defense to Assemblyman Yoo Yongwon of the National Defense Committee, alcoholic beverages accounted for all of the top four best-selling items at military marts from January to November this year.
By product, the breakdown was 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
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 price at convenience stores (approximately 2,250 won), and C soju was sold for 1,060 won, also significantly cheaper than the market price (about 1,800 won). This has led to the perception of PX alcoholic beverages as "value-for-money items," which is believed to be driving 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 under Ministry of National Defense regulations. Their prices are set by adding only value-added tax to the pre-tax unit price agreed upon between the Armed Forces Welfare Agency and suppliers. In addition, 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 ranked sergeant or above, military civilian employees, certain national merit recipients, enlisted soldiers, and cadets are allowed to purchase duty-free alcoholic beverages, and there are annual purchase limits. 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 sold only at PXs located inside military units, non-duty-free alcoholic beverages are also sold at military marts (off-base marts) located in military apartment complexes outside the bases, targeting military personnel and their families. Non-duty-free alcoholic beverages are relatively more expensive than duty-free alcoholic beverages, which are typically priced at less than half the retail price.
Meanwhile, although alcoholic beverages dominated in terms of sales volume, the top-selling product by sales revenue was cosmetics. E cosmetics sets 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 military marts for 38,930 won, showing 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, alcoholic beverages and high-priced cosmetics are effectively leading sales and revenue. The Ministry of National Defense needs to review and redefine standards to determine whether this operational approach aligns with the original purpose of military marts."
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