Korea's Neighborhood Pubs Halve in 8 Years as Drinking Culture Fades

Nationwide Pubs Shrink by Half in Eight Years Liquor Shipments Decline for Second Straight Year High-Risk Drinking Rate Among Men in Their 20s Plunges 5.7 Percentage Points

Finance|
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By Kang Ji-won
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A stock photo to aid understanding of the article. Clipart Korea - Seoul Economic Daily Finance News from South Korea
A stock photo to aid understanding of the article. Clipart Korea

Neighborhood pubs across Korea are disappearing at a rapid pace. Prolonged high inflation, the decline of after-work drinking culture, and shifting drinking habits among younger generations have combined to drive a structural contraction of the pub market, with the trend now confirmed by official data.

24,000 Pubs Vanish in 8 Years; Casual Pubs Cut in Half

According to the National Tax Service's TASIS (Tax Statistics Information Service) data on the 100 major lifestyle business categories, the number of casual pubs (ganee jujeom) nationwide stood at 7,985 as of March this year. The figure represents a 10.2% decline from 8,894 in the same month a year earlier.

Over the same period, the number of hof pubs (beer houses) shrank 9.4% from 22,282 to 20,193. Combined, the total number of pubs nationwide fell by 2,998, or 9.6%, in a single year, dropping to 28,178.

The longer-term trend is even steeper. Compared with March 2018, when the relevant statistics were first compiled, casual pubs plunged 50.8% from 16,226 to 7,985, while hof pubs retreated 44.0% from 36,076 to 20,193. The total number of pubs fell from 52,302 to 28,178, meaning 24,124 establishments, or 46.1%, have vanished over eight years.

Even after the COVID-19 shock, the sector has failed to recover to its previous levels.

Liquor Shipments Slide as Drinking Patterns Among Those in Their 20s Shift

Against this backdrop, liquor shipments are also on a downward curve.

According to liquor tax filings released by the National Tax Service the same day, domestic liquor shipments totaled 3.151 million kiloliters in 2024. The figure marks a 17.3% decline over a decade from 3.808 million kiloliters in 2014. Even in recent years, shipments have declined for two consecutive years since peaking at 3,638,562 kiloliters in 2022.

Combined shipments of beer, diluted soju, and takju — three categories closely tied to neighborhood pub consumption — also fell 2.9% from 2,870,227 kiloliters in 2023 to 2,788,263 kiloliters in 2024.

Shifts in drinking behavior among younger consumers are also clearly evident. According to the Korea Disease Control and Prevention Agency's 2024 National Health and Nutrition Examination Survey, the high-risk drinking rate among men in their 20s stood at 9.7%, down 5.7 percentage points from 15.4% the previous year. The high-risk drinking rate measures the proportion of people who consume large amounts of alcohol at least twice a week, defined as seven or more drinks for men and five or more for women.

In the past, drinking was often regarded as part of a mature or sophisticated lifestyle, but the perception is shifting toward viewing it as a factor that harms health and lowers quality of life. Analysts say the decline of neighborhood pubs reflects how that shift is actually playing out at the point of consumption.

"Drinking heavily feels outdated" — Could the cup overturned by the MZ generation even change the names of apartment complexes?

Original reporting by Kang Ji-won for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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