Soju, beer prices go up
By Park Jae-hyuk
The price of alcoholic beverages sold at convenience stores will rise this Friday, following the Ministry of Environment’s decision to raise refunds on empty glass bottles, which came into effect Jan. 1.
Korea’s top three convenience stores ― CU, GS25 and 7-Eleven ― decided to raise the prices of three major soju brands from 1,600 won to 1,700 won Friday. Joeunday soju produced by Muhak will see a price increase this Friday, while Lotte Liquor Chumchurum will go up in cost next Tuesday and HiteJinro’s Chamisul will increase in price next Friday.
They will also raise the price of Cass beer produced by Oriental Brewery (OB) from 1,850 won to 1,900 won next Tuesday, and that of Hite beer 1,800 won to 1,900 won next Friday.
Large discount chains such as E-mart and Lotte Mart are considering raising the prices of soju by 60 won a bottle and those of beer by 80 won.
The prices of glass-bottled beer rose about 70 won a bottle in November and December last year, but they will rise again over the next month or two.
Retailers claimed they had to raise consumer prices because manufacturers raised the wholesale prices after the implementation of a new policy allowing people to receive 100 won, up from 40 won, for a used soju bottle and 130 won, up from 50 won, for a beer bottle.
The environment ministry claimed manufacturers can save 80 won per bottle on average through recycling, but manufacturers of alcoholic beverages denied it.
“Manufacturers will pay more commission to sellers on their collecting empty bottles,” an alcoholic beverage industry source said. “Also, manufacturers will not profit if consumers do not actively participate in bottle recycling.”
The environment ministry criticized retailers and manufacturers for making unreasonable profits, saying the bottle deposit, which is tax-free and fully refundable, is unrelated to the price of each product.
However, a convenience store industry source claimed, “Unlike discount chains, convenience stores can’t easily raise prices by less than 100 won, as most customers still pay in cash rather than by credit card.”
The source also said most stores will suffer from a lack of storage space.
Some observers even doubt the effectiveness of the recent measure, as some convenience stores refuse to accept empty bottles.
A non-governmental consumer group’s research last year showed about 35 percent of convenience stores refused to refund used bottles.
The government vowed to promote the new policy and said refusal is punishable by a 3 million won fine.