Cheers! Soju and Beer Prices at Restaurants Start to Climb Again

After months of decline, consumer price indexes for soju and beer at South Korean restaurants and bars are on the rise again.

Data released Tuesday by Statistics Korea shows the consumer price index for soju served at restaurants increased 0.1 percent in June compared to last year, reaching 115.75. This marks the first uptick in 10 months. The index, based on 2020 prices, indicates price increases when it exceeds 100.

Similarly, the index for beer served at restaurants climbed 0.5 percent in June, reversing a seven-month downward trend that began last December.

Retail alcohol prices followed suit.

The consumer price index for bottled soju, which had fallen for 16 consecutive months, rose 0.2 percent in May and 0.1 percent in June. The retail beer index jumped 3.1 percent in June, the largest increase since last October’s 4.3 percent rise.

This recent upturn signals the end of an unusual period of price stagnation in South Korea’s alcohol market.

Statistics Korea attributed the earlier price declines to weak consumer spending.

Many small businesses had slashed drink prices or offered complimentary alcohol to attract customers, contributing to the overall index decline.

“Restaurants typically offer promotional discounts lasting a month or two,” a Statistics Korea official explained. “However, this discount period has been unusually prolonged.”

With indexes now creeping upward, industry experts believe these temporary price-cutting measures have reached their limit.

For nearly two decades, alcohol price indexes at restaurants and bars had been on a steady climb.

The soju index rose consistently for over 19 years, from August 2005 to August 2024. Beer prices followed a similar trajectory, with the index increasing for 25 straight years, from December 1999 to November 2024.