NEWS
HITEJINRO TO PERMANENTLY CLOSE IKSAN SOJU PLANT
By Staff Reporter
15-9-2026
Source: HiteJinro
South Korea’s largest spirits maker HiteJinro has announced the permanent shutdown of its historic Iksan soju manufacturing plant, marking a major production base restructuring for the country’s dominant soju producer.
The board approved ceasing all operations at the Iksan facility on 16 October 2026, ending 69 years of continuous production. First opened in 1957 as the former Bobae Soju factory, the plant has been a key domestic manufacturing site for HiteJinro’s soju portfolio, including its market leading Chamisul line.
HiteJinro cited two core drivers for the closure: ageing production infrastructure and shifting urban surroundings.
What was once a rural peripheral site has been surrounded by dense residential housing in recent decades, generating persistent noise related public complaints and raising the cost of required facility upgrades and storage expansions.
Rather than making heavy capital investment to modernise the ageing plant, the company will fully transfer Iksan’s production volumes to its existing Jeonju manufacturing complex in North Jeolla Province.
In 2025, goods produced at the Iksan plant generated WON42.1 billion (around USD35.5 million) in sales, accounting for 1.68 percent of HiteJinro’s total consolidated revenue for the year.
Production equipment and selected staff will be relocated to Jeonju in phases. HiteJinro stressed consumers will see no supply disruption for its soju brands, as Jeonju’s existing infrastructure can absorb the transferred output without delay.
“This is not a short term operational tweak, but a medium‑to‑long‑term restructuring of our manufacturing network to improve investment efficiency and overall competitiveness,” a HiteJinro spokesperson stated.
“We will maximise utilisation of our existing production assets instead of duplicating capital expenditure across multiple sites.”
The move comes against a backdrop of long‑term decline in overall domestic alcohol consumption across South Korea, even as premium‑priced spirits and gift packaged liquor maintain resilient demand, especially around major national holidays such as Chuseok.
Industry observers note the consolidation reflects wider pressure on local beverage manufacturers to streamline factory footprints amid tightening cost conditions.
HiteJinro confirmed no restart is planned for the Iksan site following the October shutdown.
(the writer can be contacted at: info@thewinechronicle.com)
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