HiteJinro to raise its soju price by 6.95%

The price of soju is set to rise following a recent increase in beer prices. A bottle of soju will now typically cost around 6,000 Korean won, up by 500 to 1,000 won from the previous range of 5,000 to 6,000 won per bottle.

HiteJinro, the leader in the soju market, has revealed plans to raise the factory prices of its flagship products, Chamisul Fresh and Chamisul Original, by 6.95% from next Thursday. This price adjustment applies to 360ml glass bottles and plastic bottles under 1.8L.

The factory price for a 360ml Chamisul glass bottle will rise to 1,247 won, an increase of 81 won compared to the current 1,166 won. HiteJinro sources attribute this price hike to a 10% increase in alcohol extraction costs and a 22% increase in bottle prices over the past year, which have driven up overall production expenses. Notably, prices for soju used in homemade liquors and premium soju will remain unchanged.

Until now, a 70 to 80 won increase in soju's factory price resulted in a 500 to 1,000 won increase per bottle for restaurant owners due to escalating food ingredient costs and labor expenses. In 2022, the 7.9% increase in Chamisul Fresh factory prices pushed restaurant soju prices to a range of 5,000 to 6,000 won, up from the previous 4,000 to 5,000 won. Recent increases in beer prices to 7,000 to 8,000 won per bottle in restaurants have also affected the cost of 'so-maek' (a combination of soju and beer), making it approximately 13,000 to 14,000 won.

There is growing concern that other soju companies may also raise their prices. Lotte Chilsung, which sells soju brands Chum-Churum and Saero, has mentioned a potential increase, but no decision has been made. HiteJinro, on the other hand, announced factory prices increase for its beer brands Terra and Kelly by an average of 6.8% on the same day.


jino@donga.com