South Korea plans to end a temporary 20% liquor tax reduction on draft beer from next year under the Ministry of Economy and Finance's 2026 tax reform proposal, lifting the tax burden on keg beer sold through dispensing systems to the same level as regular beer if the National Assembly approves it. The change would raise draft beer liquor tax by 177,200 won per kiloliter, and by more than 200,000 won per kiloliter at the shipment stage once education tax and value-added tax are included. That translates to roughly 5,000 won for a 20-liter keg, or about 127 to 130 won per 500 ml glass. Industry participants say the effect on drinkers could be much larger because wholesale margins, delivery charges, rent and labor costs are layered onto the tax increase, potentially pushing menu prices up by around 500 to 1,000 won per glass. The pressure is expected to fall hardest on small restaurants, beer bars, casual pubs and other self-employed operators that depend heavily on draft beer sales and have less room than larger chains to absorb higher costs. The government said the support measure, first introduced in 2020 when beer taxation shifted from a value-based system to a volume-based system, has served its purpose. A key uncertainty is now the National Assembly, where People Power Party Rep. Kim Eun-hye has introduced a bill to remove the sunset clause and make the reduced tax rate permanent, leaving the final outcome to this year's tax law deliberations.