Research Reports
Policy Issues for the Promotion of Farm-made & Traditional Korean Liquor Industry

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AuthorLee, Dongphill
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Publication Date2007.11.01
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Original
The objectives of this study are to identify current situations and problems of the farm-made and traditional Korean liquor (FTKL) industry, and to figure out promotional strategies of the industry. The development of the FTKL industry has various meanings such as saving foreign currency through substitution with Korean liquor, helping the stability of the food supply and demand, and increasing farm-household income by facilitating the domestic consumption of agricultural products. Furthermore, the FTKL industry helps enhancing people’s health with traditional food made of various domestic raw materials such as rice, fruit, medicinal herbs, etc. It also provides opportunities to succeed and develop traditional culture through this procedure.
According to the research results, the following policy directions are recommended: (1) deregulation and policy reform in the fields of standardization and manufacturing methods, etc., for facilitating the market and vitalization of the private sector, (2) the development of the FTKL industry should be based on Korean agricultural products and traditional recipe, (3) tax reform is necessary; for example, the tax rate for low alcohol contained liquor and small businesses should be decreased for the purpose of people’s health and promotion of the small FTKL industry, (4) law and administration system should be improved to coordinate various issues and tasks accomplished by related institutions.
Based on the policy directions, the followings are recommended as revitalization schemes for the FTKL industry in Korea: (1) reform the Liquor Tax Law for the purpose of relaxing regulations on the entry and operation of the farmer’s liquor and traditional folk liquor industry(A tax reduction scheme, in particular, was suggested for the promotion of the FTKL industry.), (2) provide integrated programs including research & development, advertisement, etc. to support the FTKL industry, (3) enact a Law for the Promotion of the FTKL industry, and (4) reform the administrative system of nomination and management for the FTKL business.
Researcher: Lee, Dong-Phil
Research period: 2007. 1∼2007. 10.
E-mail address: ldphil@krei.re.kr
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