South Korea: Craft beer industry on the brink of a wave of bankruptcies
Korea's craft beer industry is on the brink of a wave of bankruptcies due to management woes. As alcohol consumption trends have shifted in recent years and demand for craft beer has decreased, collaborations with conglomerates and convenience stores and low-price competition have overlapped, adding to the expense burden, Chosunbiz reported on January 28.
According to the industry on the 28th, Amazing Brewing Company, once one of the leading breweries in Korea's craft beer market, is expected to go through bankruptcy proceedings. The company entered rehabilitation proceedings in Aug. last year but failed to find a suitable buyer and ultimately did not submit a rehabilitation plan within the deadline.
Earlier, on the 14th of last month, Amazing Brewing Company ended operations at its Seongsu-dong location, which served as both a brewery and a pub. Opened in 2016 as Amazing Brewing Company's first brewpub, the Seongsu location was called an "urban brewery" and was regarded as a symbolic space among craft beer enthusiasts.
Riding the craft beer boom, Amazing Brewing Company expanded its scale and even pursued an initial public offering (IPO), but as growth slowed, it eventually scrapped the plan. The company posted losses for two consecutive years starting in 2023. Its net loss widened from about 2.2 billion won in 2023 to 2.9 billion won in 2024.
Demand for craft beer, which surged during the COVID-19 pandemic, has steadily declined for several years. The consumption trend of Millennials and Gen Z who had shown interest in craft beer has shifted to whiskey, wine and highballs, and a preference for low-alcohol or nonalcoholic drinks has also spread.
Excessive competition in collaborations with conglomerates and convenience stores is also cited as a reason for the weakening competitiveness of craft beer. Breweries expanded facility investments for mass production, but changes in internal and external conditions increased the expense burden of costs such as raw materials, logistics and distribution. Some also say that bundled or discounted sales damaged craft beer's distinct image.
7brдu, considered a first-generation craft beer company, must submit its rehabilitation plan by the 6th of next month. After starting rehabilitation proceedings in June last year following deteriorating results, 7brдu has repeatedly delayed the submission deadline. In Oct. last year, it was delisted from the KONEX market.
7brдu launched in 2011 as Korea's first craft beer corporations after becoming the first small and midsize company to obtain a general manufacturing license. It led the craft beer boom by collaborating with Daehan Flour Mills and convenience store CU to release "Gompyo Wheat Beer," but management woes worsened after its trademark contract expired in 2023. The company posted net losses of 9.1 billion won in 2023 and about 17.4 billion won in 2024.
This year, Y Brewery, which operated the craft beer franchise Bronx, filed to begin rehabilitation proceedings. Y Brewery had more than 100 locations across downtown Seoul and the greater metropolitan area, but only four remain, including the Yangjae and Gwangalli locations. It had also expanded its business with private-label products in collaboration with convenience stores such as 7-Eleven.
HanWool & Jeju (formerly Jeju Beer), the first among craft beer companies to list on KOSDAQ, has changed owners several times due to worsening management. After the company was sold to Double HM in 2024, HanWool Semiconductor, a semiconductor inspection equipment corporations, became the largest shareholder in Dec. of the same year.
In Nov. last year, the largest shareholder position shifted to K Partners No. 1 Investment Association, but friction arose over a real estate transfer, and HanWool Semiconductor ultimately took the company back. During this process, the Korea Exchange (KRX) warned it would designate the company as an unfaithful disclosure entity.
Still, even amid a slump in the craft beer sector, some companies are aiming for an IPO. Daily Beer, which operates the craft beer franchise "Saenghwal Makju," is accelerating restructuring with the goal of listing on KOSDAQ next year. "Kabrew," a first-generation craft beer company acquired by Jinju Ham, is also preparing for a KOSDAQ listing.
28 January, 2026
