S.Korean boycott hits Japanese beer imports (updated)

Monami

07/08/2019 08:01

* Korea's imports of Japanese beer fall 45% from June
    * S.Korea buys 61% of Japan's beer exports 
    * Imported beer sales likely to have peaked - official

 (Adds market share data for imported beer, comments)
    By Sangmi Cha and Hyunjoo Jin
    SEOUL, Aug 7 (Reuters) - South Korean imports of Japanese
beer slumped 45% in July from the previous month in the wake of
a consumer boycott sparked by an escalating political and
economic dispute between the two Asian neighbours, data showed. 
    The plunge is good news for rival importers and South Korean
brewers but is a worrying sign for Japanese exporters like Asahi
Group Holdings  2502.T , which said last week the boycott was
affecting sales and lowered its profit guidance.  urn:newsml:reuters.com:*:nL4N24X2DC
    Japan shipped $4.3 million worth of beer to South Korea in
July, down from $6.6 million a year earlier and $7.9 million in
June, according to preliminary customs office data provided by
lawmaker Kim Jung-woo to Reuters.
    Japan tightened export controls last month for materials
used to make chips, South Korea's top export item, intensifying
a row over wartime forced labour and sparking a consumer
backlash in Korea.  
    Many Korean supermarkets and convenience stores have removed
Japanese items such as beer from their stands and stopped new
orders.
    South Korea buys 61% of Japan’s beer exports, spending 7.9
billion yen ($73 million) in 2018 on the shipments, according to
Japan's finance ministry.
    Korea's imports of Japanese beer declined 11% in the first
half from a year earlier, after nearly quadrupling over the past
three years in 2018, according to customs data. 
    Overall, imported beers such as Asahi and Heineken have
eroded the dominance of domestic beers in recent years, but they
are likely to fall from their peak due to the boycott of
Japanese products, an official at a South Korean brewer said. 
    "Both domestic and other imported beers are expected to
share the benefits from the boycott campaign," he said on
condition of anonymity because of the sensitivity of the matter.
    Japanese automakers such as Toyota  7203.T  and Honda
 7267.T  are bracing for further sales drops in South Korea in
the coming months, after they posted sharp sales declines last
month.  urn:newsml:reuters.com:*:nL4N2510ED 
    A slew of South Korean airlines are also suspending flights
to Japan as they brace for a dwindling number of tourists. 

 (Reporting by Sangmi Cha and Hyunjoo Jin; Additional reporting
by Joori Roh in SEOUL and Kaori Kaneko in TOKYO; Editing by
Muralikumar Anantharaman and Stephen Coates)
 ((Sangmi.Cha@thomsonreuters.com; +82 2 3704 5646; Reuters
Messaging: sangmi.cha.thomsonreuters.com@reuters.net))