19 months on from its IPO on the Korea New Exchange, the brewer has been delisted, pending appeal
South Korean craft brewer Seven Brau Co is facing delisting from the Korea New Exchange (KONEX) just 19 months following its listing, underlining rising pressures within the nation’s craft-beer industry. The Konex Market Listing Disclosure Committee expelled the company on 21 August, unless it lodges a successful appeal by 11 September.
Founded in 2011 in Gangwon Province, Seven Brau emerged as a pioneer in South Korea’s craft-beer boom, winning consumer approval with its Daepyo wheat beer and the Gompyo brand it released in partnership with Daehan Flour Mills in 2020. Although the collaboration sold approximately 60 million cans, production ended in 2023 when Daehan shifted its partnership to Jeju Beer, igniting a dispute over the recipe with Daehan.
The termination of the Gompyo arrangement with Daehan, coupled with sagging marketing demand, has taken a heavy toll on Seven Brau. The brewery also entered into court-supervised rehabilitation, reporting 2023 sales of KRW8.5 billion (US$6.1 million), down 31.6% year-on-year, with an operating loss of KRW9.1 billion.
The grim scenario reflects broader challenges across South Korea’s alcoholic beverage sector. With consumers cutting back on leisure spending, bars are increasingly deemed a luxury. Moreover, cultural shifts are resulting in younger South Koreans opting out of the traditional hard-drinking culture, such as after-work rounds, and becoming more health-conscious in their attitudes, according to a Reuters report in December 2024.
Seven Brau’s position is not unique. Other craft brewers are also struggling. Amazing Brewing Co, founded in 2016, entered corporate rehabilitation last month following a 2023 operating loss of KRW2 billion. Meanwhile, Jeju Beer Co, which debuted on the stock market in 2021, still remains unprofitable, reporting a KRW26.8 billion operating loss in 2023, before changing hands twice in 2024 before coming under the ownership of Hanul & Jeju.
