By Kim Tong-hyung
Staff Reporter

Korea is quickly earning its stripes as a wine nation, but Koreans have also been griping about the country's complicated retail structure that has them paying a premium for cheap Chilean wine. However, department stores and other major retailers are apparently coming to the rescue by considering more ways to make bottles more affordable amid the economic slump.

Shinsegae Department Store, which established its own import arm, Shinsegae L&B, last December for direct wine imports has decided to keep prices lower.

The department store began selling wines imported through Shinsegae L&B earlier this month, which includes 260 different wines from 51 wineries in France, German, Australia, the United States, South Africa and other wine-making nations.

Some popular bottles, such Chateau Talbot 2006, are available at prices nearly 40 percent cheaper than those at other outlets, Shinsegae officials said. The same goes for premium bottles, such as the Chateau Mouton Rothschild 2001, which is sold at 690,000 won (about $548) at Shinsegae outlets and 1 million won-plus at elsewhere.

About 20 percent of the wines imported by Shinsegae L&B were already available here through independent importers at higher prices, they said.

``Our wines are about 20 to 40 percent cheaper,'' said an employee from Shinsegae's Hoehyun outlet.

``By purchasing directly from wineries with large-scale orders we reduce transportation costs; also we are minimizing our margins.''

Lotte Department Store is currently consulting with wine importers over ways to lower prices at its outlets.

One of the ideas is to introduce a ``green price'' policy to lower the cost of some popular brands by around 20 to 30 percent. The store plans to secure more bottles and expand direct imports through affiliate, Lotte Asahi.

Hyundai Department Store is moving to make more bottles available through preorders, which would allow consumers to buy them at more affordable prices.

``We can't sell the same wines at more expensive prices than at Shinsegae outlets,'' said a Hyundai Department Store official.

Wine lovers are welcoming the idea of getting better bottles at better prices, but the price war is expected to drive out small and mid-sized importers.

Only a dozen or more wine importers have the size to survive direct competition with major retailers.

``Before the current economic dip, our sales were rising, but our earnings have been regressing, so we and many other companies have been reducing the variety of wines available and concentrating on proven products, which helps reduce logistic costs,'' said a manager at a mid-sized wine importer.

thkim@koreatimes.co.kr