As Korea continues clampdown on alcohol ads, brands likely to move to digital

The Korea Times reported that the city government has held discussions with bus companies and ad agencies on this issue since July and these parties have agreed to cease alcohol advertising starting in September when the contracts for most of the existing ads expire. 

“We believe alcoholic beverage ads at public places are partly to blame for causing excessive drinking and encouraging juveniles to begin drinking at early ages," a Seoul city official told The Korea Times. 

This move follows a recently proposed bill to ban young (under 25) athletes and entertainers from appearing in alcohol ads.

For several years, Korean authorities have also banned ads for liquor of more than 17 proof, as well as TV commercials outside the hours of 10 pm to 7 am. In July, Korea's largest alcohol brand, Hite-Jinro, started to introduce warning labels on its products to deter Korean drinkers from committing acts of violence while under the influence. 

Over the past three years, Korea's alcohol consumption has increased dramatically. On the World Health Organisation's list of countries by alcohol consumption, the country has climbed from No. 50 in 2009 to No. 14 today in terms of recorded levels of pure ethyl alcohol consumption per capita by persons 15 years of age or older. According to the list, Koreans now consume 11.8 litres of pure alcohol per capita in a year. 

The propensity of Koreans to drink until they pass out has become a cultural stereotype and online meme thanks to the popular online blog, Black Out Korea, which displays images of Koreans who have reportedly blacked out from drinking.  

Adam O’Neill, general manager of GroupM Korea, believes the ban on OOH transport advertising will be a blow to alcohol brands in Korea in light of the number of advertising restrictions they already face. "Other OOH (advertising for alcohol brands) is still allowed but is likely to come under further scrutiny," said O'Neill. "Perhaps this will lead to more digital advertising."

Korean brands have already had some success with the online medium. Cass Beer and Cheil Worldwide leveraged online viral videos to promote the beer as a popular 'beer bomb' mixer in clubs. 

A spokesperson for Cheil Worldwide clarified that the agency provides creative executions for Cass beer, but nor for its outdoor campaigns. The agency also does creative work for soju client Bohae, specifically creative executions on bus stops, which are scheduled to run until mid-August. "Since the law only takes effect from Septemper, it has no impact on Cheil either," said the spokesperson. 

"However, in a long-term perspective, we cannot do any OOH targeting bus and metro commuters, so we need to be more creative when it comes to media strategies," she added.