Wine Bars Fading Away
By Kim Tong-hyung
Staff Reporter
Wine bars were sprouting like bamboo shoots and dotted hip streets and back alleys. Now, with the economy tanking, people tightening their purse strings and the won losing value, they are going under in droves or opting for other lines of business, unable to make ends meet.
Choi Yu-sun opened a wine bar near Sungshin Women's University two years ago in a buzzing street full of cafes, bars and restaurants. The 36-year-old is now wondering whether he can stretch things out for another year.
``This used to be a good business ― you get more from selling a decent bottle of wine than a dozen or more bottles of soju,'' said Choi, who says sales have dropped nearly 40 percent since the first half of last year.
``However, people are not buying good wine anymore and there are days when I don't even get five customers. I have to think about converting to selling beer, maybe even a grill joint for pork belly or baby octopus,'' he said.
The gloom is also evident in Cheongdam-dong, the affluent southern Seoul neighborhood known for its concentration of wine bars. However, many of them are now closed, either temporarily or permanently.
The most famous casualty is Privada, a popular wine-themed restaurant that was shut down earlier this year following the bankruptcy of its owner, AganeKorea, which had been a top-10 wine importer here.
``The number of wine bars on sales has increased by nearly 20 percent recently, but it's hard to see buyers who are interested,'' said an official from a Cheongdam-dong real estate agency.
According to the Korea International Trade Association (KITA), wine imports totaled at around $11.8 million in January, nearly halved from the $20 million-plus from the same month last year.
Wine imports in September and October last year were at $9.5 million and $9.9 million, respectively, marking the first time since February of 2007 that monthly wine imports slid below the $10 million mark.
The sliding import volumes have much to do with the fact that the Korean won continues to lose its value against the U.S dollar and euro, forcing importers to raise the price of bottles despite the ongoing contraction in demand.
Keumyang International, the country's biggest wine importer, has raised the prices of its bottles by 15 to 20 percent last year, meaning 1865 Vina San Pedro cabernet sauvignon, popular among Korean golf enthusiasts who construe the number for their hopeful``18 holes, 65 shots,'' is now sold for around 50,000 won, instead of 40,000 won, its going price last year.