Minister of Agriculture, Food and Rural Affairs Song Mi-ryeong speaks during a press conference in Sejong, Wednesday. Courtesy of Ministry of Agriculture, Food and Rural Affairs

The government will encourage private brewers and distillers to develop new beverages using domestic rice to boost rice consumption, which has been declining for years, the minister of agriculture, food and rural affairs said Wednesday.

The initiative, unveiled by Minister Song Mi-ryeong in a press conference in Sejong, follows a decline in rice consumption that has driven down rice prices and put pressure on local farms, prompting the government to find ways to boost demand. A recent change to the country's tax law is also expected to aid traditional alcohol companies in supporting the ministry's latest efforts.

Describing rice-based alcoholic beverages as one of the most "effective" ways to consume rice, Song pointed to the ongoing trend of younger people increasingly drinking makgeolli, or unrefined rice wine, and other traditional rice-based alcoholic beverages. Referencing Japanese rice wines, better known as sake, she mentioned their diversity across different regions as a model for the ministry's initiative.

The minister also cited the recently revised Liquor Tax Act in which variations of rice-based alcoholic beverages — those with added color or flavor — now fall under the country's "takju" category, which includes traditional cloudy alcoholic beverages like makgeolli, and are entitled for a greater tax deduction benefit than non-takju drinks.

Trot singer Youngtak models for Yecheon Brewery's Yeongtak Makgeolli in this undated photo. Courtesy of Yecheon Brewery

"Our rice-based alcohols aren't as diverse as Japanese sakes. But our young liquor consumers and the revised Liquor Tax Act will fuel the country's rice consumption greatly," Song said.

"We'll meet the country's traditional rice-based alcohol makers, share their views and implement them into boosting our new rice alcoholic drink market."

The country has been experiencing reduced market demand for domestic rice, largely because of changes in dietary habits that have moved away from rice. This year's rice yield is expected to be 3.7 million tons, similar to last year's, but consumption is not keeping pace, which is likely to result in an increase in stock, according to Song.

"We saw 95,000 tons in stock by the end of last year," Song said. "This year, the government and the National Agricultural Cooperative Federation (NongHyup) have altogether mass-purchased 300,000 tons from local rice farmers. But that wasn't enough to reduce the mounting stock."

To avoid excess stock, Song advised rice farmers to reduce production and focus on growing higher-quality rice. Given the declining demand, she emphasized that it would be beneficial for local farms to scale back production while the country seeks ways to increase and accelerate rice consumption.

"I went to a local restaurant recently, and they gave me a bowl of rice that looked like just a third of the amount it used to be," Song said. "We need to eat (or consume) more rice."