As this year's barley production surged 47% year-on-year, raising widespread concerns about oversupply, the government and the distilled spirits industry have stepped forward with preemptive measures.

On the 9th, the Ministry of Agriculture, Food and Rural Affairs (MAFRA) announced that it held consultations with eight distilled spirits companies — Lotte Chilsung Beverage, MH Ethanol, Jinro Fermentation, Seoan Ethanol, Seoyoung Ethanol, Ilsan Industries, Changhae Ethanol, and Poongkuk Ethanol — as well as the National Agricultural Cooperative Federation Economic Holdings, and reached an agreement to specially purchase 25,000 tons of 2026-harvest barley for use in distilled spirits.

Additional Purchase on Top of Existing 40,000 Tons Under Contract Farming This year's barley production was tallied at 135,881 tons, with the cultivated area also expanding significantly to 37,250 hectares. This special purchase was secured in addition to the existing 40,000 tons under contract farming. Distilled spirits are high-purity alcohol made by fermenting and distilling raw materials containing starch or sugar, and are primarily used in the production of soju.

Participating in Mutual Cooperation Amid Declining Demand Although demand for distilled spirits has been decreasing due to a recent decline in alcohol consumption, the distilled spirits industry agreed to participate in the special purchase to help stabilize the domestic barley supply and demand. MAFRA expects that this measure will absorb the surplus volume, mitigate declines in farm-gate prices, and have a positive impact on farm management.

MAFRA plans to continue monitoring the supply and demand situation of key agricultural products, including barley, and implement measures tailored to market conditions.

MAFRA Food Policy Director General Jeong Hye-ryeon stated, "Barley is a key food crop, and a stable production base must be maintained," adding, "The contract farming and special purchases by the eight distilled spirits companies will serve as a model of mutual cooperation between businesses and agriculture."