European whiskey costs 5.1 times more in Korea: survey

European whiskey in Korea is sold at 5.1 times their import prices including tariffs, and cost about 36 percent more than in other countries, the results of a survey released Sunday said.

Green Consumer Network in Korea, with support from the Fair Trade Commission, studied the prices of European whiskey including distribution phases, price differences in Korea versus other countries, and price trends before and after the effectuation of the Korea-EU free trade agreement.

The average retail price of 15 types of whiskey produced in Europe and imported in Korea was 13,501 won (11.50 U.S. dollars) per 100 millimeters, which translates into 5.1 times the import price of 2,664 won (2.27 dollars). This suggests that importers and distributors pocket 410 percent of the import price as profit, and that the price margin of whiskey is higher than those of electric irons (130 percent) and frying fans (190 percent) as announced earlier by the trade watchdog.

The consumer group said, “Even when logistics costs are considered, the distribution price margin of imported whiskey is very high,” adding, “This is because most importers hold exclusive distribution rights in Korea for overseas whiskey makers.”

The price of imported whiskey was also found to be higher in Korea than in other countries. A comparison of the average retail prices of 18 whiskey products sold in more than two countries among Korea, the U.K., the U.S. and Japan suggested that the average price of whiskey per 100 millimeters was 15,141 won (12.90 dollars) in Korea, or 36 percent higher than the average price in three countries of 11,131 won (9.48 dollars).

The price of whiskey was 45.8 percent higher in Korea than in the U.K. (10,386 won or 8.85 dollars) and 27 percent higher than in Japan (11,924 won or 10.16 dollars). Japan has a similar shipping distance to Korea`s.

By product, Glenfiddich 21 had the biggest price gap of 140 percent, going for 44,667 won (38.05 dollars) per 100 millimeters in Korea, while it costs 18,426 won (15.70 dollars) in the U.K. The price varied even for the same whiskey according to retailers.

The average price of whiskey in Korea was 15,130 won (12.9 dollars) per 100 millimeters at a department store, 14,555 won (12.40 dollars) at a liquor store, and 13,772 won (11.73 dollars) at a large discount outlet. The prices of Ballantine’s 17, Ballantine’s Finest, Ballantine’s Master, Windsor 21 and Kingdom Whiskey 12 were more than 20 percent higher at department stores than at large discount outlets and liquor stores.

Though tariffs on whiskey dropped from 20 percent to 15 percent thanks to the effectuation of the Korea-EU free trade accord in July last year, the import price increased 1.41 percent year-on-year in the first quarter this year due to a hike in the price of undiluted solution in Europe.

weappon@donga.com