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The South Korean whiskey market is showing signs of slowing down, leading to restructuring and changes after soaring for nearly three years. The domestic import volume of whiskey peaked at a record high of 35,886 tons last year but has since slowed. In January, the country imported 2,031 tons of whiskey, 27.4% less than the 2,801 tons imported in the same month of the previous year. The import value increased from $132.46 million in 2020 to $175.34 million in 2021 and $266.84 million in 2022 before dipping to $259.57 million last year, chosun.com reported on February 22.

As the once-expansive whiskey market stagnated, some liquor importers quickly began downsizing their whiskey-related businesses. Diageo Korea, the importer of brands such as Johnnie Walker, started offering voluntary retirement to employees who had been with the company for 10 years. Shinsegae L&B also temporarily halted its new whiskey manufacturing business.

For over three years since 2021, right after the coronavirus outbreak, whiskey has been selling rapidly in the domestic market. Until the first half of last year, Balvenie and Macallan were considered single malt whiskeys that maintain their prices even when put on the resale market due to their scarcity. Rumors of these products being released often led to the phenomenon of “open runs,” where consumers queue up before the store opens to purchase them.

As consumer interest in whiskey surged, companies scrambled to meet demand, with conglomerate subsidiaries like Shinsegae L&B and Lotte Chilsung Beverage ramping up imports and enhancing their specialty liquor outlets. Some went further by establishing task forces for new whiskey ventures.

New shifts in the market emerged since the start of this year, following a three-year golden era. High-priced whiskeys released for the Lunar New Year—the Dalmore 45 Year Old Scotch whiskey from the 7-Eleven convenience store priced at 48 million won and the Glenfiddich 60 Year Old in the 80 million won range from Hyundai Department Store—did not sell a single bottle. It contrasts starkly with last year, when both bottles of Glenlivet Gordon & MacPhail Generations 80 Year Old imported into South Korea were sold, despite each being priced over 200 million won.

Liquor expert Hong Jun-eui said, “With the popularity of whiskey slightly waning and resale prices dropping, domestic sales are now dominated by mid- to low-priced products,” adding that the normalization of overseas travel has somewhat impacted the slowdown in the popularity. “As the yen continues to weaken, more people are buying whiskey overseas than domestically,” Hong said. “The more expensive the product, the less domestic consumption there is.” The Korea Customs Service’s imported liquor statistics do not include sales of duty-free products or alcohol that consumers have directly purchased from abroad.

As the popularity of whiskey wanes, liquor companies are looking for alternatives. Shinsegae L&B has temporarily halted its new whiskey manufacturing business and is moving to expand the import and sales of non-whiskey products such as sparkling wine, gin, rum, and vodka. Lotte Chilsung Beverage has recently suspended its search for a new whiskey distillery site, citing the high cost of building distilleries and the long maturation time of the product as reasons for the whiskey business not being profitable.

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