SEOUL, KOREA- Hite Jinro and Lotte Liquor, the No. 1 and No. 2 player in Korea’s soju market respectively, are making forays into the Chinese market.As the Chinese government put a brake on the consumption of expensive high-alcohol liquor as part of its anti-corruption policy to prevent extravagance, Korea’s soju makers are launching into the Chinese market low-alcohol liquors that are relatively cheap.

Hite Jinro, for example, announced a blueprint targeting the Chinese market. With this plan, Hite Jinro aims to increase its exports and market share up to $25 million and 50 percent by 2017.
The company plans to foster China as its No. 2 foreign outlet behind Japan, aimed at increasing its overall sales by expanding its presence in China. Korea’s No. 2 soju maker Lotte Liquor also plans to expand its sales network in China, which has been limited to big cities like Beijing, Shandong, and Guangdong, toward Chongqing, Harbin and Henan.

Another factor behind their shift toward China is that their shipments to their main export outlet Japan are declining. In particular, the exports of Makgeolli, a mainstay export item to Japan, have been declining at a rapid pace along with the fading popularity of the Korean Hallyu there.