S. Korea to deregulate traditional liquor market

SEOUL, Jan. 15 (Yonhap) -- The government said Friday it will revamp
liquor-related rules to fuel growth in the traditional Korean alcoholic beverage
market.

The deregulatory step will take effect next month and eases or scraps
requirements on the size of brewer fermentation tanks, land use and storage, the
finance ministry said.
The revision comes as market demand for products like "makgeolli," a milky brew
made from rice, and "yakju," a clear rice-based wine, has gained both at home and
abroad.
Greater consumer interest has driven calls for lower barriers to entry into the
market. Currently, brewers are required to have a fermentation tank that is 6
kiloliters or larger, and have a manufacturing facility built on over 500 square
meters land. Sales outlets for such products must be equipped with a storage
space exceeding 300 square meters.
Starting in February, the minimum size requirement for tanks will be halved and
rules on facilities and storage will be abolished.
Separately, the ministry said it may also relax tax rules on so-called "health
food" products that have an alcohol by volume content of above 1 percent. It was
unclear what kinds of products this change would affect.
"In the past the government considered all products that had an ABV exceeding one
degree to be an alcoholic beverage, but this standard may be relaxed," an
official said.
yonngong@yna.co.kr
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