Lotte Liquor struggles with 'Japanese firm' rumor

Lotte Liquor is scrambling to cope with the rumor that it is a Japanese company amid a national boycott movement against Japanese products sparked by a bitter trade dispute.

The rumor has been spreading over various websites that Lotte Liquor is a Japanese firm whose major shareholder is Japan's Asahi Group Holdings.

Responding to this, Lotte Liquor asserted that Lotte Liquor is a separate company from Lotte Asahi Liquor, which offers a diverse range of imported beers from Japan including Asahi Super Dry.

The liquor unit of Lotte Chilsung Beverage said its soju brand Chum-churum and beers Kloud and Fitz Super Clear are Korean brands, manufactured and sold in the country.

Its shares are owned by Lotte Holdings (27 percent), the National Pension Service (9 percent), Lotte Aluminum (9 percent), Lotte Scholarship Foundation (6percent) and other private investors.

The company added it will seek legal action against anyone spreading rumors.

"Lotte Liquor is a Korean company, which operates seven production plants in Korea. We also have about 2,500 employees here," Lotte Liquor said in a statement in response to recent accusations.

"We will use strong measures to dismiss rumors and restore our tarnished brand image."

Korea's beer imports from Japan plunged 99.9 percent in September after Tokyo curbed exports on high-tech materials to Korea in July.

According to preliminary data released by Korea Customs Service on Thursday, Korea imported $6,000 worth of Japanese beer in September, down a whopping 99.9 percent from $6.74 million in the same month the year before.

The sharp decline in imports of Japanese beer ― which had accounted for the lion's share of beer imports over the past 10 years ― has pushed down Japan's rank in the imported beer market to 28th in September.

Apart from Lotte Liquor, Coupang, Daiso and Coca-Cola Company Korea have been embroiled in controversy over "Japanese firm" rumors. They all denied the accusations.