A glass of draft beer (123rf) South Korea will end the temporary 20 percent tax break on draft beer at the end of this year, as announced in the 2026 tax reform package.Starting next year, draft beer will be taxed at the full rate, increasing costs for bars and restaurants and likely resulting in higher prices for consumers.South Korea now taxes beer based on volume instead of price. Standard beer is taxed at 885,700 won ($600) per kiloliter, while draft beer has received a 20 percent discount since 2020, reducing its tax to 708,560 won per kiloliter.With education and value-added taxes included, the total tax at shipment will rise by over 200,000 won per kiloliter.This increase amounts to approximately 5,000 won in additional tax for a standard 20-liter keg, or about 130 won for a 500-milliliter glass of draft beer.In 2020, draft beer, which had benefited from the previous value-based tax system due to its lower factory price, faced a sharper tax increase. The 2020 reform sought to resolve tax imbalances between domestic and imported tipple. To prevent draft beer taxes from rising disproportionately compared to bottled and canned beer, officials implemented a temporary reduction to support the transition.The government stated that the measure had fulfilled its purpose and will be allowed to expire.