FTAs uncorking big changes in Korea’s wine market
Chosun Ilbo | 28 June 2007
FTAs Uncorking Big Changes in Korea’s Wine Market
The Korean wine industry expects the Korea-EU free trade agreement will cause a third seismic shift in Korea’s imported wine market.
The first wave of change came with the 2004 Korea-Chile FTA. In 2003, Chile was the fifth largest supplier of wine to Korea with a 6.2 percent share, but the Korea-Chile FTA pulled that share to 13.3 percent, helping the Southern American country become Korea’s number two wine supplier.
Chile captured a 17.3 percent share here last year. Chile’s benefits came at the expense of France, as the market share of French wine in Korea slipped from 53.2 percent to 38.3 percent.
The second wave of change is expected to splash down with the recently concluded Korea-U.S. FTA, which will throw the door open for American wines.
Eyeing an opportunity to win exclusive rights to sell some U.S. wines here, importers of American wine have already drawn up wine lists to satisfy Korean drinkers even though the trade agreement hasn’t been ratified yet.
The wine industry believes that the imported wine market will undergo another drastic change once all three trade pacts are in effect.
According to industry insiders, France should maintain its lead, holding a 40 percent market share with high-end, expensive bottles. Exporters of cheaper wines from Italy and Spain are predicted to snare shares of 15 percent and eight percent, respectively.
In total, countries from the Olde Continent would hold a combined market share of more than 60 percent of the market. The U.S. and Chile from the New Continent would likely in second and third.
