Korea sees surge of Japanese whiskey, sake imports

[Courtesy of GS25]

Imports of Japanese sake, propelled by a historic depreciation of the yen, is rapidly increasing in South Korea. Traditionally favored by the middle-aged demographic, the drink’s popularity has expanded to younger consumers thanks to the increasing consumption of highball cocktails that combine various distilled spirits. There is also an uptick in imports of premium Japanese whiskeys like Yamazaki and Hibiki, as well as live fish, due to the weak yen.

According to the Korea Customs Service on Thursday, sake imports from Japan totaled 1,262 tons in the first quarter of 2024. Although slightly lower than the previous year, the import volume is rapidly approaching the levels seen in 2018 when sake imports surged due to the yen’s depreciation. Despite concerns arising from Japan’s discharge of contaminated water from the Fukushima nuclear power plant since August 2023, sake imports have shown a clear recovery trajectory. Korea’s sake imports for 2023 are at their highest level in five years, totaling 4,298 tons, from 2018’s peak of 5,444 tons.

The increase in sake imports in Korea is largely due to an increase in the amount of sake consumed in restaurants and other food service establishments but is also attributable to the growing demand for sake-based highballs among young people.

Unlike wine and whiskey, whose import prices have risen due to the strengthening of the euro and pound against the won, sake remains relatively affordable due to the super-cheap yen, thus assisting local liquor companies in securing profitability.

Korean convenience stores are expanding their sake product lineups. GS25, in particular, has seen a seven-fold increase in sake sales in the first quarter of 2024 compared to the same period during the previous year. It also recently launched a line of bite-sized snacks that can be enjoyed with sake, expanding the number of sake products on offer to 120 from 2021’s 20.

It is not just affordable sake driving the trend. Imports of Japanese whiskey surged by a remarkable 68.5 percent on-year to 897 tons in 2023. Brands like Yamazaki, Hibiki, and Hakushu, produced by Japanese distiller Suntory, have gained immense popularity, particularly among younger consumers, and Japanese whiskey imports totaled 396 tons in the first quarter of 2024 alone. Although imports of British whiskey dropped by 34.6 percent in the same period and the whisky trend has cooled slightly, the sustained popularity of Japanese whiskey indicates its steady appeal.

Imports of Japanese live fish are also increasing as bilateral relations improve, with Korean imports of Japanese live fish in the first quarter of 2024 at 2,787 tons, up 22.3 percent increase from a year ago.