Labeling

Korean law requires Korean language labels on imported wine. In most cases, the Korean label is attached to the bottle manually by the importer in the duty-free warehouse before official inspection. The Korean language label should contain the following information:

1. Name of the product (e.g., Robert Mondavi Cabernet Sauvignon)
2. Country of origin (e.g., U.S.A)
3. Type of the product (e.g., Fruit Wine or Red Grape Wine)
4. Importer’s name, address, and phone number
5. Business license number of the importer
6. Date of bottling (e.g., Year-Month-Day or Julian Code or Lot Number)
7. Alcohol percentage and product volume (e.g., 13.5%, 750 ml)
8. Name of ingredients by volume percentage
9. Name of place where the product can be returned or exchanged in case the product has
any defect.
10. Instructions for storage
11. Name of food additives used
12. Government health warning clause
13. Government warning clause against liquor sales to minors.
14. Name of distribution channel through which the product is destined to be sold (one of
the following two destinations should be indicated: “For Retail Store Sale (Home Use) Only”
or “For Restaurant/Bar Sale Only”).

Inspections & Food Safety Standards

Imported foods and beverages are subject to Ministry of Health and Welfare (MHW) Food Quarantine inspection. The Korea Food & Drug Administration (KFDA) under MHW is responsible for executing all inspections. There are two kinds of inspections: detailed inspection (chemical analysis test) and visual inspection (visual/document inspection).

The first commercial shipment of any new-to-market wine is always subject to a detailed food safety inspection, including chemical testing, which under Korean law should take no longer than 10 working days. But in practice, however, importers say that it could take longer. For the detailed inspection, importers are required to submit two sample bottles of each product to the inspection office along with a chemical analysis document provided by the exporter (there is a KRW 150,000 fee per test). Once the chemical inspection on the first shipment confirms no potential health concerns, subsequent shipments are only subject to visual and/or document inspection. Visual and document inspection should take no longer than 2 calendar days provided that the product of subsequent shipments is identical to the product in the first shipment with respect to label, product name, alcohol percentage,
ingredients and net volume. However, even subsequent shipments of identical products may be subject to random detailed chemical inspections.

Korean labeling regulations for alcohol percentage allows for a +/ - 0.5 percent point tolerance level for the difference between the labeled and actual alcohol content. For example, a wine labeled as 12 percent alcohol must be measured during inspection to be within 11.5 percent to 12.5 percent range. Korea’s tolerance is much tighter than the U.S. standard of 1.5 percent point tolerance level. Wine that falls outside of Korea’s tolerance level for alcohol content may fail inspection.

The Korean government is paying more attention to food additives used in imported wine. In recent years, several shipments of imported wines, including from the U.S., failed import inspection because they tested positive for Sorbic acid although the additive was not listed in the ingredient list submitted by the winery. Sorbic acid is allowed in Korea to be used in fruit wine as a preservative (residue standard: below 0.2 gram / liter), but it must be listed as an ingredient on the document provided to the inspection authority.

Ethyl Carbamate, a compound that can develop naturally in any fermented product in trace amounts including wine, presents a potential threat to the health image of wine. Although currently there is no residue standard on Ethyl Carbamate in Korea, it is advised that American wineries and exporters pay attention to this issue because the Korean food safety authority and the press are likely to keep monitoring the presence of this substance in imported wine.

Korean government has proposed new labeling standards around the issue of GMO(Genetically Modified Organism) and Organic. In short, the proposal intends that processed food and beverages, including wine, made from GMO ingredients (such as GM soybean) or GMO processing aids (such as enzymes) must be labeled as GMO food. The proposal also intends that the Korean government maintains the exclusive authority over organic certification on product sold in Korea and no foreign government’s organic certification (such as USDA organic certificate) be accepted, which means all USDA certified organic wine must be recertified by the Korean authority to carry organic on the label.

Below are some of the major safety standards set by the Korean government for fruit wine:
(1) Methanol Content: Should be below 1.0 mg/ml
(2) Food Preservatives: Preservatives other than those specified below should not be
detected in fruit wine.
- Sorbic acid and Potassium Sorbate : Below 0.2 g/Liter
- Para-oxi-butylbenzoate : Below 0.05 g/Liter
- Sulfur dioxide: 0.35g/kg
(3) Volume: Volume printed on the label should be within +/ - 6 ml from the actual volume
measured for bottles that hold 200ml or less, or within +/ - 3 percent for bottles that hold
more than 200 ml.
(4) Food Additives that can be added to fruit wine:
- Sweeteners: Sugar, Glucose, Fructose, Wheat-gluten, Molasses syrup, Maple syrup,
Oligo sugar, Honey, Aspartame, Sorbitol, Stebioside
- Acids: Lactic acid, Succinic acid, Acetic acid, Fumalic acid, Gluconic acid, Tartaric
acid, Citric acid, Malic acid, Tannic acid
- Seasonings: Amino acids, Glycerin, Dextrin, Hop, Minerals
- Flavorings: Ester compounds, Aldehyde compounds, Fusel compounds
- Colorants: Compounds allowed by the food safety law
(5) Arsenide (As2O3): Below 0.3 mg/Kg
(6) Heavy Metals: Below 10 mg/Kg
(7) Food Poisoning Pathogens should not be detected: Salmonella spp., Staphylococcus aureus, Vibrio paraphaemolyticus, Clostridium perfringens, Listeria monocytogenes, Escherichia coli O157:H7

Established importers are well aware of all inspection and labeling requirements and are the best source of up-to-date regulatory information.

Licenses

Only licensed liquor importers are allowed to import alcoholic beverages, including wine. However, any qualified candidate can obtain an import license. There are over 300 licensed liquor importers and the number is likely to increase steadily in the coming years as more people become interested in the wine business. However, only about 50 importers currently import wine on a regular basis. Moreover, only a handful of leading importers account for over 80 percent of total imports. Importers are allowed to sell directly to retailers (restaurants and liquor stores) as well as to wholesalers. However, importers are not allowed to sell directly to consumers nor can they purchase wine from other importers or wholesalers.

Established importers usually prefer to handle warehousing and product delivery with their own logistics force. Small or developing companies mainly rely on third-party logistic al service providers. A few importers also operate chains of retail wine shops under separate retail licenses in order to gain additional business volume and a direct reach to consumers.