The government, in collaboration with private sector partners, plans to implement strategies focusing on discovering and nurturing promising K-Beauty companies, systematically addressing export regulations, and elevating the K-Beauty ecosystem. (Image courtesy of Pixabay/CCL)
SEOUL, Jul. 25 (Korea Bizwire) – The South Korean government has joined forces with the cosmetics industry to nurture small and medium-sized enterprises (SMEs) in the K-Beauty sector, a move that aims to solidify the country’s position in the global beauty market.
Korean cosmetics, already a top export item for SMEs, have gained worldwide popularity. On July 24, the Ministry of SMEs and Startups (MSS) and the Ministry of Food and Drug Safety (MFDS) unveiled a joint strategy to enhance the global competitiveness of K-Beauty SMEs at the CJ Olive Young headquarters in Yongsan, Seoul.
The government, in collaboration with private sector partners, plans to implement strategies focusing on discovering and nurturing promising K-Beauty companies, systematically addressing export regulations, and elevating the K-Beauty ecosystem.
Oh Young-ju, Minister of SMEs and Startups, emphasized the government’s commitment to helping Korean SME cosmetics brands secure a global premium status resilient to environmental changes. (Image courtesy of Yonhap)
The ambitious plan aims to double SME cosmetics exports from $5.3 billion in 2023 to $10 billion by 2027, while increasing the number of exporting SMEs from 8,360 to 10,000 in the same period.
Key initiatives include the K-Beauty Creator Challenge, a program to identify and cultivate export-ready companies in partnership with private platforms and manufacturers such as CJ Olive Young, Amazon, Cosmax, and Kolmar.
Selected companies will receive marketing support, export strategy consulting, and policy assistance from the government.
A Global K-Beauty Dedicated Fund will be established in conjunction with Kolmar, Cosmax, and the Korea Venture Investment Corp.’s fund of funds to invest in cosmetics manufacturing companies expanding overseas.
To address export regulations, the government will update manuals for major markets and create new ones for emerging markets. The Global Cosmetic Regulation Harmonization Center will expand regulatory information support for emerging markets like Russia and the Middle East.
The South Korean government has joined forces with the cosmetics industry to nurture small and medium-sized enterprises (SMEs) in the K-Beauty sector. (Image courtesy of Yonhap)
The plan also includes strengthening safety management support systems and introducing safety assessment systems to enhance long-term responsiveness to export regulations.
To facilitate rapid development and production of innovative products, the government will bolster support through policy funds, smart factories, and R&D. A new K-Beauty Network Loan will be introduced to supply policy funds based on order contracts between brand companies and manufacturers.
Oh Young-ju, Minister of SMEs and Startups, emphasized the government’s commitment to helping Korean SME cosmetics brands secure a global premium status resilient to environmental changes, while Oh Yu-kyoung, Minister of Food and Drug Safety, pledged continued support through proactive regulatory diplomacy and rational regulatory improvements to further establish K-Beauty products in the global market.
Lina Jang (linajang@koreabizwire.com)
