Chamisul, a soju brand of alcoholic beverage manufacturer HiteJinro / Courtesy of HiteJinro

Shares of alcoholic beverage companies are struggling due to declining prices, driven by weak consumer demand, which was further exacerbated by President Yoon Suk Yeol's impeachment in December.

Lotte Chilsung, a beverage unit of Lotte Group, is hovering in the 100,000 won range ($68) this week, falling further after losing 13.24 percent for the whole of 2024 and closing at 112,000 won, Dec. 30.

The company on Tuesday fell as low as 106,700 won during intra-day trading, marking a 52-week low.

Lotte Chilsung's falling stock price is attributable to fewer gatherings for the recent holiday season, an industry source said, noting that mass protests have been taking place for weeks following Yoon's impeachment over his ill-fated martial law declaration.

The source said the deadly Jeju Air crash, which also happened in December, prompted people to refrain from end-of-year gatherings as a way to express sympathy for the victims.

"Under the circumstances, the possibility remains that Lotte Chilsung may fall below 100,000 won," the source added. It noted the company has not retreated to such a level since November 2020 at the height of the COVID-19 pandemic.

HiteJinro, the country's leading beer and soju manufacturer, entered the 18,000 won range this week, sliding from 20,000 won in late December and 19,000 won last week.

Market observers deem that the outlook is less favorable for HiteJinro than Lotte Chilsung as the former concentrates solely on alcohol whereas the latter produces a range of nonalcoholic beverages.

Weak domestic consumption is expected to intensify the challenges for alcohol companies in 2025, as the country's GDP growth slows and is projected to fall below 2 percent.

Market observers note that the companies need to come up with measures to cope with the changing business environment.