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Beer Monopoly
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jack_b57



Joined: 02 Sep 2010

PostPosted: Mon May 09, 2011 9:20 pm    Post subject: Beer Monopoly Reply with quote

Someone said beer sucks in Korea because the big companies have monopolies on distribution. Apparently there is some law that limits independent breweries from selling bottles of beer. Can anyone confirm this?

Is this why korean beer sucks? Because there's no competition?
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thrylos



Joined: 10 Jun 2008

PostPosted: Mon May 09, 2011 10:39 pm    Post subject: Reply with quote

As far as I know, that's true-- beer can be botttled/canned and sold only by OB and Hite. You're allowed to make/sell beer, as long as it's consumed on the premises that makes it (hence all the brewpubs), but they cannot bottle/sell it outside their hof/pub.

As to why it's crap, I'll let you decide... Very Happy
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Swampfox10mm



Joined: 24 Mar 2011

PostPosted: Tue May 10, 2011 4:58 am    Post subject: Reply with quote

Pretty typical of everything in the chaebol-controlled culture.
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Sticks



Joined: 13 Mar 2011
Location: Seoul, Korea

PostPosted: Tue May 10, 2011 6:06 am    Post subject: Reply with quote

I'll save you the guesswork: Korean mainstream beer tastes like somebody drowned some bread into Chilsung-cider.
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nick70100



Joined: 09 Sep 2005

PostPosted: Tue May 10, 2011 8:38 am    Post subject: Reply with quote

To receive a license from the government to sell bottled beer in Korea you must be able to produce a minimum of 3,700,000 bottles per year. So while it's not a monopoly per se, it does make it extremely difficult for a start-up to break into the market.
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WadRUG'naDoo



Joined: 15 Jun 2010
Location: Shanghai

PostPosted: Tue May 10, 2011 2:42 pm    Post subject: Reply with quote

Beer Monopoly, eh? Sounds like something you could play on the subway.
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jack_b57



Joined: 02 Sep 2010

PostPosted: Tue May 10, 2011 10:52 pm    Post subject: Reply with quote

nick70100 wrote:
To receive a license from the government to sell bottled beer in Korea you must be able to produce a minimum of 3,700,000 bottles per year. So while it's not a monopoly per se, it does make it extremely difficult for a start-up to break into the market.


Hey maybe this will change in the future. I just ran across this article that says things are in flux.

With more competition, does this mean better beer is in Korea's future??!!
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Steelrails



Joined: 12 Mar 2009
Location: Earth, Solar System

PostPosted: Tue May 10, 2011 10:59 pm    Post subject: Reply with quote

WadRUG'naDoo wrote:
Beer Monopoly, eh? Sounds like something you could play on the subway.


Laughing


I thought that too from the title. I've played Drinkopoly before. We didn't even get all the properties bought up before the game had to be called. Land on a property drink according to the rent. Pay out money, drink according to the payment. Pass Go, drink. Go to jail? Chug a beer. Just visiting? Time for a toast. Stop on a railroad? Have a drink, of course while on the floor and playing Kings.
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eamo



Joined: 08 Mar 2003
Location: Shepherd's Bush, 1964.

PostPosted: Tue May 10, 2011 11:00 pm    Post subject: Reply with quote

jack_b57 wrote:
nick70100 wrote:
To receive a license from the government to sell bottled beer in Korea you must be able to produce a minimum of 3,700,000 bottles per year. So while it's not a monopoly per se, it does make it extremely difficult for a start-up to break into the market.


Hey maybe this will change in the future. I just ran across this article that says things are in flux.

With more competition, does this mean better beer is in Korea's future??!!



New regulations are likely to spur further changes. The amended alcohol tax law which took effect in January significantly lowered the barrier for potential newcomers, slashing the bottling capacity requirement for new brewers from 3.7 million 500ml bottles to 200,000.

Meanwhile, the Korea-European Union free trade agreement, which will likely go into effect in July, is expected to boost sales of foreign beers even more. The import duty will gradually be scrapped from the current 30 percent, bringing the price down.


Hurrah! There's hope for Korea's beer industry at last!
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Steelrails



Joined: 12 Mar 2009
Location: Earth, Solar System

PostPosted: Tue May 10, 2011 11:45 pm    Post subject: Reply with quote

^
Most Important News/Thread of the Year.

Now if they can only get Bell's Hop Slam! over here...
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legrande



Joined: 23 Nov 2010

PostPosted: Wed May 11, 2011 12:05 am    Post subject: Reply with quote

eamo wrote:
jack_b57 wrote:
nick70100 wrote:
To receive a license from the government to sell bottled beer in Korea you must be able to produce a minimum of 3,700,000 bottles per year. So while it's not a monopoly per se, it does make it extremely difficult for a start-up to break into the market.


Hey maybe this will change in the future. I just ran across this article that says things are in flux.

With more competition, does this mean better beer is in Korea's future??!!



New regulations are likely to spur further changes. The amended alcohol tax law which took effect in January significantly lowered the barrier for potential newcomers, slashing the bottling capacity requirement for new brewers from 3.7 million 500ml bottles to 200,000.

Meanwhile, the Korea-European Union free trade agreement, which will likely go into effect in July, is expected to boost sales of foreign beers even more. The import duty will gradually be scrapped from the current 30 percent, bringing the price down.


Hurrah! There's hope for Korea's beer industry at last!


Let's get it started, revolution through brewskies, not a bad way to do it Smile
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bucheon bum



Joined: 16 Jan 2003

PostPosted: Wed May 11, 2011 10:05 am    Post subject: Reply with quote

nick70100 wrote:
To receive a license from the government to sell bottled beer in Korea you must be able to produce a minimum of 3,700,000 bottles per year. So while it's not a monopoly per se, it does make it extremely difficult for a start-up to break into the market.


Wow, that has to be one of the most blatant anti-consumer laws I've seen. What an awful reglation.
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Jake_Kim



Joined: 27 Aug 2005
Location: Seoul

PostPosted: Thu May 12, 2011 2:52 am    Post subject: Reply with quote

bucheon bum wrote:
nick70100 wrote:
To receive a license from the government to sell bottled beer in Korea you must be able to produce a minimum of 3,700,000 bottles per year. So while it's not a monopoly per se, it does make it extremely difficult for a start-up to break into the market.


Wow, that has to be one of the most blatant anti-consumer laws I've seen. What an awful reglation.


It's quite convenient from the taxman's point of view - you just need to monitor a handful of companies for crystal clear tax revenue stream, don't need to keep track of multiple smaller players, and it's a sin tax to begin with - they can say 'we keep a tight leash for the benefit of your health.'
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NohopeSeriously



Joined: 17 Jan 2011
Location: The Christian Right-Wing Educational Republic of Korea

PostPosted: Thu May 12, 2011 3:44 am    Post subject: Reply with quote

OB and Hite should change their products to something else and let professional European companies make beer for the Korean public.
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bucheon bum



Joined: 16 Jan 2003

PostPosted: Thu May 12, 2011 5:58 am    Post subject: Reply with quote

Jake_Kim wrote:
it's a sin tax to begin with - they can say 'we keep a tight leash for the benefit of your health.'


Right, except for that fact that one can get trashed on soju for less than 5 bucks.
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