Cosmax and Kolmar Korea Join as Investors
"Enhancing Competitiveness of the Top Export Item for SMEs"
On the 10th, the Ministry of SMEs and Startups held the 'K-Beauty Fund Launch Ceremony and Global Insight Conference' at the Westin Chosun Hotel in Jung-gu, Seoul, with around 400 small and venture beauty companies in attendance.
Last July, the government announced the establishment of the public-private joint 'K-Beauty Fund' as a key policy task to elevate the cosmetics sector, the top export item for small businesses, to a world-class level through the 'K-Beauty Small and Venture Companies Global Competitiveness Enhancement Plan.'
The 'K-Beauty Fund' is the first beauty-dedicated venture fund created jointly by the public and private sectors. It is co-invested by Cosmax, Kolmar Korea, and the Korea Fund of Funds, focusing on investing in K-Beauty brand companies and beauty tech startups. This year, the fund is established with a total scale of 40 billion KRW and plans to focus investments across the entire value chain of the cosmetics sector.
Minister Oh Young-joo of the Ministry of SMEs and Startups stated, "With domestic cosmetics manufacturers Cosmax and Kolmar Korea, known for their world-class technology, directly participating in the fund formation, we expect the 'K-Beauty Fund' to actively promote open innovation between manufacturers and small and venture beauty companies."
Choi Hyun-gyu, CEO of Kolmar Korea, said, "We will support the global market entry and expansion of innovative products and brands, contributing not only to the qualitative growth of the K-Beauty ecosystem but also to its continuous development." Shin Yun-seo, Vice President of Cosmax, emphasized, "Through the K-Beauty Fund, we will invest across the entire beauty value chain, including client companies, marketing and distribution firms, and raw material suppliers. We aim to be the foundation for South Korea to achieve the number one position in cosmetics exports through strategic collaboration with our clients and partners."
Meanwhile, the event also featured the 'Global Insight Conference,' where industry experts from Olive Young, Kolmar Korea, Hwahae, and others discussed ways to enhance the global competitiveness of K-Beauty. Considering the recent market uncertainties due to the U.S.'s imposition of reciprocal tariffs, a session on the 'K-Beauty Export Guide,' including tariff response measures, was added for discussion.
Minister Oh said, "Concerns among small businesses have increased due to the recent U.S. tariff measures. Despite the challenging environment, we will promote various policies demanded on the ground, such as expanding public-private cooperation support programs alongside the fund establishment, launching the K-Beauty Loan to support production funds, hosting international exhibitions, and expanding support for K-Beauty duty-free store entries to activate the global market entry of K-Beauty small and venture companies."
He added, "As cosmetics are our top export item for small businesses and exports to the U.S. are also expanding, we will closely monitor the field situation regarding difficulties caused by the U.S. tariff measures and seek additional response measures."
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