Koreans Turn to Budget-Friendly Wines as Demand Surges

Low-cost wines are gaining ground in South Korea as price-conscious consumers turn to directly sourced bottles priced under 10,000 won (US$7.06). Retailers are capitalizing on this demand, offering budget-friendly options that highlight the growing polarization in the market.

Kim’s Club, a retailer under the E-Land Group, launched the Everybody’s Wine Plus series in October, featuring four Portuguese wines priced at 9,999 won. Among them, the Confidential Reserva, rated 4.0 on Vivino, sold out its initial batch in just seven days and has moved more than 4,000 bottles within a month. Building on this success, Kim’s Club introduced two Italian sparkling wines in November, also priced at 9,990 won.

Sales of directly sourced wines at Kim’s Club surged 20.6% year-over-year between Oct. 2 and Nov. 20, according to E-Land Group. The retailer’s success underscores the growing appeal of affordable wines in a market where price sensitivity is a defining characteristic.

Retailers Race to Meet Demand

Other retailers are following suit. Shinsegae L&B, Korea’s biggest wine importer owned by conglomerate Shinsegae Group and one of Asia’s Top 50 Wine Importers, offered the Chilean wine G7 created in partnership with Chilean winery Vigna del Pedregal for just 4,470 won (US$3.16) during the company’s “Squeak Day” promotion. Even at its regular price of 7,900 won, G7 remains one of the most accessible wines on the market. Since its debut five years ago, the wine has sold over 2 million bottles.

The trend mirrors developments in neighboring China, where directly sourced wines have become a retail phenomenon. Sam’s Club, a major player in China’s wine market, sold about 5 million bottles in 2023, generating over 800 million yuan ($109.5 million) in revenue, as we have reported before. 

Market Polarization Intensifies

South Korea’s wine market grew rapidly during the pandemic, doubling its import value from US$259 million in 2019 to US$580 million in 2022, according to customs data. However, imports fell 12% in 2023 due to oversupply of wines. Industry insiders say the market has become more polarized, with demand split between premium wines and budget-friendly options.

“Young South Korean consumers, with their higher alcohol tolerance, are particularly price-sensitive. Wines priced above €2.5 often struggle to sell,” said Yu Hongjie, founder of Sparkling World, China’s biggest sparkling wine importer by volume based in Qingdao. Yu has been exporting wines to South Korea for more than five years.

“During the pandemic, expensive fine wines dominated sales. Now, the market has matured, with one segment still seeking premium wines and another gravitating toward affordable, high-alcohol red wines,” Yu said. “Our focus is on wines from Italy’s Puglia region, known for their high alcohol content, sweet flavors, and competitive pricing.”

As retailers like Kim’s Club and Shinsegae L&B continue to thrive with low-priced offerings, South Korea’s wine market exemplifies the delicate balance between value and luxury.