Craft brewery market is set to burgeon in South Korea upon easing in the liquor related regulations
The Ministry of Economy and Finance and National Tax Service announced a plan to revise the current liquor tax law. Some measures will go into effect in the third quarter and others will pass the National Assembly at the end of the year.
The revision will allow small-sized craft brewers to mass produce their products in a can by consigning manufacturing to large facilities. An official from Kabrew, a local craft beer maker, said that more than 100 small-scale breweries are welcoming the move as they can increase production in cooperation with bigger partners.
Local manufacturers only need to report changes in the recipe or alcohol degree instead of going through complicated procedures to receive approval, as long as the modification does not affect safety. Adding nitrogen to beer to create a smooth and silky texture can also be possible after the revision.
The time required to roll out new products will be cut in half from the current 30 days on average to 15 days, as businesses can undergo two procedures to get approval for manufacturing method and product quality simultaneously.
The government will also lift the rule that requires companies to transport their liquor products only with permitted vehicles to allow them to use ordinary delivery vehicles.
But some industry experts are worried that large foreign-based liquor companies could take advantage of the eased rules to eat into the local market. Large conglomerates could also enter the liquor business through OEM so additional measures are needed to protect small business owners, industry watchers said.
By Baek Sang-kyung, Shim Hee-jin and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]