The price reduction follows the government's plans to lower taxes for domestically produced alcoholic beverages.

The country's largest liquor company, Jinro, has announced a 10.6% reduction in wholesale prices for soju brands such as its Chamisul and Jinro, effective 1 Jan 2024. Fruit-flavoured liquors are expected to see a 10.1% price cut.

Lotte Chilsung Beverage, the second-biggest soju maker in Korea, will also lower wholesale prices of soju products starting next year.

The decision is a result of the government's introduction of the standard sales ratio, a form of tax discount. The National Tax Service set the ratio for soju at 22% and domestically produced whiskey at 23.9%.

The cut in wholesale prices will likely impact retail prices, with price reductions for restaurants and bars less certain.