Yet Some Alcohol Is Available
Interestingly, South Korea does not allow online purchases of alcohol. To buy whiskey, wine, beer, or other spirits, one must visit an offline store. This restriction is due to the “Liquor Tax Law.”
However, traditional Korean alcohols are an exception and can be bought online. Not all traditional drinks qualify, though. Only those produced by Intangible Cultural Property holders, local farmers, or those using agricultural products as the main ingredient are permitted. Examples include Andong Soju and Makgeolli.
Reasons for Prohibiting Online Alcohol Sales
The government’s stance is based on concerns that allowing online alcohol sales would make it easier for minors to access alcohol and increase overall alcohol consumption, potentially harming public health. Additionally, there are complex interests at play. Current alcohol retailers, wholesalers, and the traditional alcohol sector, which is the only one allowed to sell online, argue that they would suffer if online alcohol sales were fully permitted.
Strategies of Korean Retailers
Korean hypermarkets use alcohol to drive customers to their physical stores. Since they can’t sell alcohol online directly, they allow customers to reserve their desired alcohol via mobile apps and then pick it up in-store. They often run promotions in conjunction with this strategy. Additionally, sales of non-alcoholic beer and wine have increased in online markets.
How Other Countries Handle This
The ban on online alcohol sales is contrary to global trends. Among OECD member countries, South Korea and Poland are the only ones that prohibit online alcohol sales. In the United States, regulations vary by state, but all states except Alabama and Utah allow online wine sales. Japan permits online sales of imported alcoholic beverages and those with a taxable volume under 3,000 KL. China has no such restrictions.
Emergence of Alcohol Platforms
New mobile apps are emerging that allow customers to purchase alcohol reasonably and conveniently pick it up at their preferred local store. While direct delivery of alcohol is not possible, these apps provide a wealth of content related to alcohol, including purchase information, real reviews, and ratings, satisfying users’ needs for information and recommendations. Additionally, considering that traditional alcohols can be delivered, subscription services have sprung up. For a monthly fee of $25, these services deliver traditional Korean alcohol directly to subscribers’ doors.
