High-end soju trend boosting fortunes of local producer Hwayo

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High-end soju trend boosting fortunes of local producer Hwayo

Published: 02 Dec. 2025, 17:27 Updated: 02 Dec. 2025, 17:51

WOO JI-WON
[email protected]

Audio report: written by reporters, read by AI

Transparent bottles of Hwayo soju move along the automated bottling line at the company’s plant in Yeoju. [HWAYO]

YEOJU, Gyeonggi — A line of fancy, transparent soju bottles — the kind usually spotted at stylish izakaya places or fine-dining restaurants — were undergoing final inspection at the automated bottling line inside a plant in Yeoju on Monday.

They were bottles of Hwayo, a premium distilled soju. Those familiar with recent drinking trends may recognize Hwayo from the now-popular "Hwatonic," a mix of Hwayo and tonic water.

Typically bottled at 25 percent alcohol, but also available in versions as strong as 53 percent, Hwayo can be easily turned into a cocktail by pouring it over ice and mixing it with sweet tonic to taste.

Following in the footsteps of the ubiquitous "Somaek" — the classic soju-and-beer duo — this trend has boosted interest in Hwayo, particularly among young people, helping transform the company from a small operation with only five employees that endured 12 consecutive years of losses into an enterprise that is finally turning a profit. The company posted 39.7 billion won in revenue last year, and now aims to surpass 100 billion won.

Cocktail made with Hwayo is served. [WOO JI-WON]

Hwayo CEO Lucia Cho speaks during a press conference held at Hwayo's Yeoju plant in Yeoju, Gyeonggi, on Dec.1. [HWAYO]

"We put in a lot of effort to ensure that Hwayo would take root in Korean culture, and we spent a great deal of time thinking about how to help people enjoy Hwayo in a culturally meaningful and enjoyable way," said Hwayo CEO Lucia Cho during a press conference held Monday at the company's second factory in Yeoju. "That's how we arrived at the idea of Hwatonic."

The brand's momentum is building internationally. Hwayo has earned honors at major global liquor competitions. In 2025, the company swept three of the world's top spirits contests, including the San Francisco World Spirits Competition. Today, Hwayo exports to some 30 countries — including the United States, Australia and Canada.

Still, the path ahead hasn't been without challenges. The economic downturn has dampened demand for premium soju, and the inability to sell distilled liquor online in Korea remains a significant disadvantage.

To overcome those hurdles, Hwayo is pursuing a range of innovations — from introducing automated production facilities and adopting data-analysis solutions to preparing new kinds of beverages.

Hwayo's second Yeoju plant has automated systems for fermenting and distilling soju. [HWAYO]

The company's second plant, which began operations in 2024, is a smart factory that fully automates the distilled-soju production process — from preparing rice nuruk (traditional Korean fermentation starter) and steaming grains to fermentation, distillation and aging. Each line operates with as few as one or two workers.

Hwayo's signature soft, fruity notes are attributed to vacuum distillation. With smart technology, the process lowers internal pressure so ingredients boil at reduced temperatures of about 60 degrees Celsius (140 degrees Fahrenheit) instead of 100 degrees, and alcohol vapor forms at around 40 degrees Celsius instead of 80 degrees, avoiding the burned taste that can be present in commercial soju.

Daily production data is continuously recorded, and the company believes long-term datasets can eventually be analyzed through AI to achieve the optimal quality standard for distilled soju, including stabilizing micro-organisms that react sharply to even slight temperature shifts — especially in a country with four distinct seasons.

It's also developing new beverage formats.

"We're still trying to figure out how Hwayo can adapt to the changing distribution landscape. That's why we're putting a strong focus on RTD [ready-to-drink] products," CEO Cho said. Its first RTD beverages, made with Hwayo's distilled spirits, are set to debut next year.

During the press conference, Hwayo also announced the rebranding of Gwangjuyo Group to Hwayo Group, which has ceramics brand Gwangjuyo and premium dining platform Gaon Society under the umbrella. The three companies' CEOs — all sisters and daughters of Hwayo Group Chairman Cho Tae-kwon — plan to expand Korea's culinary identity globally, with liquor at its core.

BY WOO JI-WON [[email protected]]