Agencies’ dispute over online shopping of wine

Wine may soon be available online as Cheong Wa Dae hinted that it is in favor of such sales.

High-level officials from the presidential office said that they tentatively agreed on allowing online sale of imported wines, according to reports, after a lengthy meeting on Wednesday with officials from the National Tax Service and the Fair Trade Commission.

The FTC has been pushing to allow online wine sales since earlier this year, saying it will bring down the price of imported wines. The tax authorities, however, strongly opposed the FTC, asserting that online sales would result in tax evasion, juvenile drinking problems, health problems and controversies about evenhandedness.

The two organizations remained poles apart despite numerous meetings during the past months so the presidential office stepped in, officials said.

The NTS, however, said that the decision was not final, and will continue to discuss the matter with other governmental organizations. In order for the decision to be finalized, the NTS has to make an announcement about the range of businesses to be allowed online, how the websites will adopt the adult certification systems and the purchase quantity limits. Industry insiders see that the success of the online sales will depend on the NTS’ measures on the factors.

It will not be the first time liquor has been sold online in Korea; traditional liquor has been available since April 2010. The regulations related to online wine sales are expected to follow that of traditional liquor sales.

Online sales of traditional liquor, however, have not been so successful so far due to the complicated adult certification system and the limited number of available purchase per day: 50 bottles.

The government also announced on Wednesday plans to revitalize the sales by accepting digital identity certificates for banks as well as universal application for certificates and allowing 100 bottles a day instead of 50. The fixed regulations will come in effect by the end of the year.

Insiders expect that accepting digital identity certificates for banks, which are commonly used, will expand the customer base of online liquor sale from businesses and groups to individuals. Another expectation is that the price of wines will be about 10 to 30 percent lower than those sold at local marts or department stores.

“It would depend on products but wines could be about 20 to 30 percent cheaper online,” said an official from a wine importer who wished not to reveal the company’s name.

By Park Min-young  (claire@heraldcorp.com)