Soju and Beer Prices for Dining Continue to Decline

Amid the rapidly rising prices, a phenomenon called 'soju-beer deflation' is occurring, where the dining prices of soju and beer are consecutively decreasing.

According to the Consumer Price Trend report released by the Statistics Korea on March 6, the dining price of soju decreased by 1.3% compared to the same period last year. This marks the continuation of a downward trend for seven consecutive months since September of last year (-0.6%).

Similarly, the price fluctuation rate of beer sold in general restaurants has also shown a downward trend, recording a decline for four consecutive months since December of last year (-0.5%).

In fact, since January 2000, there has only been one instance where the dining price of soju compared to the same period last year fell, which occurred in July 2005 (-0.8%). Additionally, the decline in the price of dining beer is the first in about 26 years since July to November 1999.

A representative from Statistics Korea explained the downward trend by stating, "The price reflects the self-discounts that establishments have implemented."

There is an analysis suggesting that an increasing number of establishments are lowering the prices of soju and beer, which generally have higher profit margins, in order to attract customers.

Self-employed individuals, who previously made profits from liquor sales, are resorting to substantial discounts to retain consumers who are reducing their dining out.

Consequently, there are concerns that low alcohol prices being emphasized as "marketing points" by budget-friendly bars are placing surrounding restaurants in a "prisoner's dilemma."

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