SEOUL, Nov. 22 (Korea Bizwire) — One of New York’s popular hand-crafted beer franchises has revealed its intention to open up shop in South Korea if the country changes its liquor taxation policy from ad valorem duties to unit taxation.
“The Jeju Beer Company will begin production of Brooklyn Brewery beers as soon as unit taxation replaces current taxation practices for liquor,” said Jeju Beer Company, Brooklyn Brewery’s South Korean partner, on Wednesday.
“Under current practices, importing beer from overseas instead of producing it in South Korea allows us to be more competitive in terms of pricing, but things are different when unit taxation is implemented.”
“The news that unit taxation is being considered as an alternative is encouraging popular overseas beer brands to manufacture their products in South Korea,” the company added.
Once a unit taxation policy is implemented and imported beer franchises set up their assembly lines in South Korea, it may trigger an increase of up to 650 billion won (US$575 million) in production capacity.
“While the South Korean beer market is as large as 4 trillion won, it is facing the dangers of deindustrialization due to reverse discrimination of taxation against imported beers,” said Jeju Beer.
“Implementing unit taxation is expected to create 7,500 jobs.”
Lina Jang (firstname.lastname@example.org)