"Cosmetics Like Semiconductors"... Ministry Ramps Up Full Support for K-Beauty Exports (Comprehensive)

Announcement of Comprehensive Customized Measures Including Response to US Tariffs
Launch of Tariff Advisory Group, Simplification of Certification, and Expansion of Sales Channels
"Need for Unified Packaging Regulations and Support for Small Markets"

The Ministry of SMEs and Startups has announced a comprehensive plan to support K-beauty small and medium-sized enterprises (SMEs) in expanding into global markets. As cosmetics, the number one export item for SMEs, face trade risks such as the imposition of tariffs by the United States, the ministry is launching multifaceted support measures to minimize damage and broaden export opportunities.

On May 2, the Ministry held a meeting with cosmetics export SMEs at CJ Olive Young’s innovation store, Olive YoungN, in Seongsu, Seongdong-gu, Seoul, and announced the "K-Beauty SME and Venture Company Global Sustainability Plan."

Oh Youngjoo, Minister of SMEs and Startups, is giving the opening remarks at the 'K-Beauty Export Small Business On-site Meeting' held on the 2nd at Olive Young N Seongsu in Seongdong-gu, Seoul. Ministry of SMEs and Startups

This plan includes: establishing a specialized support system to address trade issues; strengthening three core capabilities for entry into new markets; and enhancing projects to discover and nurture promising companies. In particular, to prepare for the possible imposition of a 25% reciprocal tariff by the United States, a "Cosmetics Tariff Response Advisory Group" will be established. The ministry will also actively promote overseas certification and the expansion of both online and offline sales channels.

Companies in attendance shared their practical difficulties and requested customized government support.

Joinje Cho, CEO of the vegan skincare brand Highnature, said, "Different countries have different regulations, so even for the same product, we have to create different packaging text. It would be helpful if the government could support us in exporting with a single package worldwide." Highnature generates 99% of its total sales from overseas markets.

There were also comments regarding the concentration of support in specific countries. Yongseon Yoo, CEO of STU, which sells skincare products, said, "Currently, government support is often focused on large markets such as the United States and Japan. There is a need for customized programs that can be applied to smaller countries as well."

Requests were also made for comprehensive support for both online and offline sales channels. Changju Lee, CEO of The Founders, which operates Anua, said, "Quick decision-making in line with market trends is important, and securing offline contracts based on online brand recognition has been effective. If the government supports both online and offline channels simultaneously, it will enable more effective market entry."

Minister Oh Youngjoo of the Ministry of SMEs and Startups visited Olive YoungN Seongsu in Seongdong-gu, Seoul on the 2nd and toured the store. Ministry of SMEs and Startups

The government stated that it will continue to refine its policies based on the feedback received at this meeting.

Oh Youngjoo, Minister of SMEs and Startups, said, "K-beauty already has a robust industrial ecosystem, and the government will provide additional support to make cosmetics the 'semiconductors' of SMEs. We will turn trade risks into opportunities for K-beauty and enhance its competitiveness in the global market."