Korean Soju, Makgeolli and the 전통주 Boom — 2026-10-15
South Korea's domestic liquor market faces a structural shift as tax revenue hits a six-year low, prompting major retailers like GS Retail to partner with state agencies to expand traditional liquor (전통주) distribution. Simultaneously, brands are pivoting to overseas markets and novel product formats, with Lotte Chilsung’s "Sael" soju hitting 1.1 billion bottles sold and 7-Eleven launching a tomato-flavored makgeolli.
Korean Soju, Makgeolli and the 전통주 Boom — 2026-10-15
Top developments
Liquor Tax Revenue Falls to Six-Year Low
Domestic liquor tax revenue in South Korea dropped to 2.4352 trillion won last year, marking a six-year low. This decline reflects changing consumption habits among younger adults who are drinking less frequently, alongside a shrinking number of bars in Seoul. The data underscores the pressure on domestic producers to seek growth through exports and innovative product diversification rather than relying on traditional on-premise sales volume.

GS Retail and aT Partner to Expand Traditional Liquor Access
On October 13, GS Retail signed an agreement with the Korea Agro-Fisheries & Food Trade Corporation (aT) to boost the distribution of premium traditional liquors. The partnership leverages GS Retail’s "Wine25Plus" smart-order service and its extensive network of GS25 convenience stores. Consumers can now order state-recommended traditional liquors via mobile apps and pick them up at nearby stores, significantly improving accessibility for regional breweries that previously lacked large-scale retail channels.

Lotte Chilsung’s "Sael" Soju Surpasses 1.1 Billion Bottles
Lotte Chilsung Beverage announced on October 14 that its zero-sugar soju brand "Sael" has surpassed 1.1 billion cumulative bottles sold since its launch four years ago. Despite the overall contraction of the domestic soju market, "Sael" continues to gain market share by appealing to health-conscious consumers with its zero-sugar profile and fruit-flavored variations. The brand is intensifying experiential marketing campaigns featuring character collaborations to maintain momentum in a competitive landscape.

7-Eleven Launches Tomato Makgeolli "Jeultomak"
Convenience store chain 7-Eleven is launching a new makgeolli product named "Jeultomak" on October 15. The drink is crafted using tomatoes grown in Yeongwol, Gangwon Province, and domestic rice, targeting the 20-30 demographic with a unique seasonal flavor profile. This launch follows the recent sell-out of "Yoon Nam-no Bokdamju," another convenience-store-exclusive traditional liquor, highlighting the sector's reliance on limited-edition, locally sourced products to drive traffic.

Local view
Local media outlets such as The Asia Business Daily and Seoul Economic Daily are focusing heavily on the dichotomy between domestic stagnation and export-driven growth. Reports highlight that while domestic consumption wanes, major players like Hite Jinro are aggressively expanding into over 90 countries, leveraging Vietnam as a production hub to mitigate domestic market saturation.
Context & numbers
- Domestic Liquor Tax: 2.4352 trillion won (lowest in 6 years).
- "Sael" Soju Sales: 1.1 billion bottles cumulative (since 2022).
- Hite Jinro Reach: Exports to ~90 countries.
On the radar
- Oriental Brewery's Soju Entry: AB InBev’s Korean unit, Oriental Brewery, is continuing its rollout of "Chalrang," a zero-sugar soju, testing its ability to diversify beyond its dominant beer portfolio.
- Singer Sung Si-kyung’s High-Proof Soju: The singer’s brand "Gyeong Soju" is expanding with a new 51° high-proof rice soju, catering to the niche gourmet and aged-soju segment.
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