Health Ministry to Promote Support Measures for Cosmetics Companies in Response to Changes in U.S. Trade Policy

Government to Actively Seek Support Measures for Cosmetics Exporters
Park Minsu: "Will Minimize Damages from U.S. Trade Policy Changes"
Industry Voices Concerns Over Tariffs, Requests Support for Market Diversification

The government is seeking support measures to prevent domestic cosmetics companies from suffering losses due to changes in external trade policies.

Yonhap News

On May 15, Park Minsu, the Second Vice Minister of Health and Welfare, stated at a cosmetics industry roundtable held at the Amorepacific headquarters in Yongsan-gu, Seoul, "The government will actively review and promote support measures at the national level to minimize corporate damages resulting from changes in U.S. trade policy."

The roundtable was organized to both commend the efforts of the cosmetics industry for achieving record-high export performance and to listen to the challenges faced by companies due to U.S.-imposed tariff measures, as well as to explore possible government support. Attendees included the Korea Cosmetic Association, Korea Health Industry Development Institute, Korea Cosmetic Industry Institute, Amorepacific, Cosmax, Gudai Global, APR, F&Co, Liman Korea, and Arencia.

According to the Ministry of Health and Welfare, Korea's cosmetics exports surpassed $1 billion in 2012 and, for the first time in 12 years, exceeded $10 billion last year. The industry has achieved export diversification by expanding its markets beyond China to countries such as the United States. Last year, Korean cosmetics ranked third overall among imported cosmetics in the U.S., and for basic cosmetic products, Korea overtook France to claim the top spot in the U.S. market.

However, there are growing concerns that export competitiveness may weaken due to the recent push by the U.S. government for reciprocal tariffs. In response, cosmetics companies, expressing concerns about weakened export competitiveness, requested government support for entering the U.S. market and diversifying export destinations.

Vice Minister Park stated, "I would like to thank the cosmetics companies for their efforts in achieving $10 billion in exports despite challenging conditions," and added, "We will work together with relevant ministries and private companies to maintain the strong export momentum."