CreatripTeam

Korea's outdated liquor tax law, called '종가세' (a value-based taxation system), imposes a 72% tax rate on distilled spirits based on their release price. This system leads to high consumer prices and has prompted a trend of overseas whiskey shopping among Koreans, often resulting in illegal resale for profit due to price differences. The article argues for a tax reform to a '종량세' (a volume-based tax system), which is more aligned with international standards and could lower prices, reduce illegal trade, and boost the domestic spirits industry while aligning with social costs of alcohol consumption.