Written by 6:06 PM Economics

“Expansion of Liquor Licenses and Strengthening of Tax Benefits to Promote Traditional Liquor Startups”

▲ Minister Song Mi-ryeong visiting a traditional liquor manufacturing site

The government plans to expand small-scale brewing licenses to include distilled liquors to promote the startup of traditional liquor breweries.

Additionally, it has decided to strengthen tax reduction benefits for small-scale traditional liquor manufacturers.

The Ministry of Agriculture, Food and Rural Affairs announced the “Measures to Revitalize the Traditional Liquor Industry” during an economic ministers’ meeting.

To develop traditional liquor as a high-value product, the Ministry will improve related systems.

First, to encourage the startup of breweries, the scope of small-scale liquor manufacturing licenses will be expanded.

Previously, only fermented liquors like takju, yakju, cheongju, fruit wine, and beer were allowed under small-scale licenses, but now distilled liquors like soju, brandy, and whiskey will also be recognized.

The government will expand tax reduction benefits for small-scale traditional liquor manufacturers.

Up until now, only manufacturers producing up to 500 kiloliters of fermented liquor annually received a 50% tax reduction benefit. This will be eased to 1,000 kiloliters, and a new 30% tax reduction bracket will be added.

Alongside this, the regulation on procuring ingredients for local special traditional liquors will be eased.

Currently, the top three ingredients must use 100% local agricultural products. This will be redefined to require a certain percentage of the product’s weight to consist of local agricultural products.

Additionally, revisions to the Traditional Liquor Industry Act and the Liquor Tax Act will be considered to develop premium rice-distilled liquors and export strategy products.

The Ministry plans to improve the quality of traditional liquor by enhancing industry expertise and strengthening infrastructure.

They will expand brewing research using domestically registered microorganisms and build a traditional liquor quality database and evaluation metrics.

Newcomers to the industry will receive technical consulting and specialized funding for traditional liquor.

Furthermore, the Ministry announced plans to utilize traditional liquor as a regional tourism resource.

By refining existing support projects like the “K-Gourmet Traditional Liquor Belt Establishment” and “Visiting Brewery,” they aim to strengthen experiential tourism programs linking local traditional liquors and food.

To expand traditional liquor sales channels, they will collaborate with platforms like Naver and Kakao to operate dedicated planning sections for traditional liquors in online shopping malls, and support entry into large supermarkets and convenience stores.

Public institutions’ access to traditional liquor will be facilitated by expanding registrations in the Government Procurement Shopping Mall and improving guidelines to allow the purchase of traditional liquors as gifts using clean cards.

The Ministry, in collaboration with agencies like the Ministry of Foreign Affairs, will strengthen traditional liquor promotion using overseas missions.

Traditional liquors will be used as official toasting drinks at major diplomatic events, and cooking pairing education with traditional liquors and Korean cuisine will be provided to diplomats.

Efforts will be made to favor traditional liquors at airport duty-free shops, and a traditional liquor export council will run to support export marketing and tailor strategies for different countries.

A guidebook linking traditional liquors with Korean cuisine will also be produced and distributed to introduce traditional liquors to overseas buyers.

Minister Song Mi-ryeong of the Ministry of Agriculture, Food and Rural Affairs stated, “We will strengthen policy support to increase the recognition of traditional liquors in both domestic and international markets.”

(Photo provided by the Ministry of Agriculture, Food and Rural Affairs, Yonhap News)

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