We have seen more interest from major wine producers in the Korean market and we expect to see a few of the major players in the market enter the market soon.
The Korea Times notes that:
Korea’s wine boom peaked in 2008 when $166.5 million worth was imported. However, since the economic downturn, the country’s imports fell by 32.5 percent the following year to $112.45 million. Imports improved moderately last year to $132 million.The complete Korea Times article may be found at: France, Chile, U.S. Wage Wine War in Korea.
Industry people here believe that the wine market is ripe for a rebound. The Italians, however, could prove to be the casualties of the renewed wine wars. Korea’s wine market has been dominated by products from France, Chile and Italy, but the United States could threaten to overtake Italy for third place in the sales hierarchy, market sources say.
“The strength of Italian wines has been based on sweet wines like Moscatos, but the popularity of Italian table wines in the 20,000-60,000 won price range has been poor. This lack of diversity is beginning to hurt Italian wines here,” said an official from one of the importers.
“The so-called new world wines from countries such as the United States, Chile and Australia continue to challenge old world wines made in Europe. France’s top spot continues to be undisputed and Chilean wines have been building a reputation for providing high quality at moderate prices, but it remains to be seen how American wines attack this status quo.”
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SeanHayes@ipglegal.com
I don't agree that importing has become easier. If we consider the increased chemcial analysis fee (550,000won) for wine, and approved exporter origin protocol number and paperwork procedures introduced in 2011 as a condition of tarrif exemption, then we can conclude importing wine into Korea is now more complex.
ReplyDeleteMore producers in Spain, Greece, France, USA and Italy are travelling to Korea motivated by the opportunity the FTA gives them ie. more consumer interest in their country's wine.
Selling wine online is not yet allowed and the direct to consumer sales regulation change has now been delayed. The NTS will strongly oppose online sales but we live in hope.
Ultimately the only real way to lower wine prices are:
1. Change the way taxes are leived.
2. The wine market size increases from it's current 0.6% of the alcohol market. (2010 NTS figures)
Joshua Hall
Yonhap News Wine Columnist