Korea key market for Chilean wines

Patricio Parragues, trade commission & agricultural affairs director at the Embassy of Chile, speaks at the the Curico & Maule Wine Tasting event at the Westin Chosun Seoul on June 1. / Courtesy of the Embassy of Chile

By Rachel Lee

Chile, the world’s fourth-largest wine exporter, has uncorked in Korea a collection of fine varieties produced in the central part of the South American country known to have the best grape-growing conditions.

At the Curico & Maule Wine Tasting, organized by Chilean government trade and export organization Prochile, representatives from 13 wineries from the Curico and Maule valleys met Korean importers and media at the Westin Chosun Seoul on June 1.

Seoul was the second leg of their trip that included Vietnam and Japan.

“We wanted to introduce the range from those regions, and at the same time we aim to increase wine consumption in Korea with our variety of quality products that sell at competitive prices,” Rodrigo Moisan Ubilla, a professor at Chile’s Talca University, said.

He said the wines from the regions have more tannin and intense color, produced under optimal weather conditions affected by the country’s coast and Andes foothills.

“Inter-mountain ranges benefit from high temperatures and thermal amplitude, which means more tannin extracted,” he said.

Sauvignon blanc and chardonnay are the main white varieties, and cabernet sauvignon, merlot and carmenere represent the reds in the regions.

He said Korea’s wine consumption is lower compared with other economically strong nations.

“Europeans drink about 30 liters of wine annually, Japanese 10 liters,” he said. “For Korea, it’s less than one liter, and I think it’s quite low considering that Korea is an economic powerhouse and a culturally developed nation.”

Alvaro Munoz Yanez, general manager at Loncomilla in Maule, said Korea was already an important market for Chilean wine producers, but he saw potential for expansion because Koreans’ taste for wines is growing over the last few years.

“The free trade agreement (FTA) between the two countries has given us advantages, making it easier to enter the Korean market,” Yanez said. “We are seeking more interest from local distributors this time.”

Korean wine imports have been increasing over the past seven years, surpassing imported hard liquor for the first time last year, thanks to a changing drinking culture.

According to the Korea International Trade Association, wine imports last year were $190 million ― a 24 percent market share. Imported liquors like whisky and brandy totaled $192 million (23.8 percent).

Chilean wines have built a bigger share of the market since 2004, when the FTA took effect. In 2003, Chilean wines accounted for 6.5 percent of the imported wine market. This rose sharply after the FTA and is now more than 20 percent.

Last year, Prochile brought premium Chilean producer Top Winemakers to Seoul for the “Seminary Chilean Wine Ambassador,” where company representatives introduced 14 premium carmenere variety wines and explained the history of Chile’s carmenere grapes.