The Ministry of SMEs and Startups (MSS) and the Ministry of Health and Welfare on the 27th announced a plan to boost and expand K-beauty export performance at a National Policy Coordination Meeting chaired by Prime Minister Kim Min-seok.
Since 2023 through the first half of this year, K-beauty has ranked No. 1 among export items by small and medium-sized enterprises, achieving notable results in the global market. In particular, Korea is receiving worldwide recognition, ranking No. 3 in cosmetics exports globally and No. 1 in market share of imported cosmetics in the United States.
K-beauty's success factors are analyzed as stemming from highly specialized division of labor among corporations, world-class manufacturing capabilities, and a strong overseas marketing strategy combined with the Korean Wave. A flexible system that can bring products to market in a short period and rapid response capabilities from planning to production have enhanced competitiveness.
However, the recent rise of global protectionism, non-tariff export restrictions, and the pursuit by competitor countries are acting as threats to K-beauty's continued growth. In response, the government has prepared new measures to further solidify K-beauty's global standing.
◇ Accelerating K-beauty's global expansion
To accelerate K-beauty's global expansion, the government will strengthen the discovery of young beauty creators and support for small business exporters. In particular, by 2026 it plans to discover 300 young beauty brand creators and select 500 small business teams to support their global expansion. To that end, it will strengthen tailored support for local entry through programs such as export vouchers and consortia.
It will also focus on pioneering new markets that connect online and offline. To help K-beauty products that have proven marketability online enter offline channels, it will introduce an "offline first export one-click package" to provide one-stop services from productization to marketing.
To diversify K-beauty exports, the government will strengthen marketing strategies linked with K-culture. It will promote K-beauty brands locally by leveraging global content such as K-pop and drama, and will concentrate support for promotion through social media and broadcast media by collaborating with prominent influencers and local agencies. It will also build K-beauty export hubs in regional bases in cooperation with local governments, support exhibition and experience spaces for K-beauty startup corporations, and promote exports of small business products such as perfumes and air fresheners.
In cooperation with overseas missions, the government will expand K-beauty entry bases from four to five or more by 2026. In emerging markets, it will install 10 popup booths and open new large cosmetics retail outlets to actively support K-beauty exports.
◇ Applying AI technology and strengthening clean beauty
It will also build infrastructure for eco-friendly and clean beauty development. In Namwon, North Jeolla, it will establish a natural cosmetics testing and inspection center, and in Osong, North Chungcheong, it will create infrastructure for clean cosmetics technology support covering the entire process from raw materials to production, supporting the production of high value-added cosmetics aligned with global trends. It will also develop an AI-based personalized cosmetics recommendation system and strengthen product quality and productivity through smart manufacturing processes.
Minister Han Seong-sook of the Ministry of SMEs and Startups (MSS) said, "K-beauty has established itself as a global beauty powerhouse thanks to innovative manufacturing capacity, the agility of small and medium brands, and the global influence of K-culture," adding, "so that K-beauty can firmly establish itself as a global premium brand, the Ministry of Health and Welfare and relevant ministries will join forces to actively support the private sector's export capabilities."
Minister Jung Eun-kyeong of the Ministry of Health and Welfare said, "So that creative ideas and innovative challenges by our corporations across all areas—raw materials and containers, manufacturing (ODM), and exports—can further strengthen global competitiveness, the government will pool efforts to support digital marketing, acquisition of overseas licenses and permits, manufacturing innovation, and strengthening brand power, enabling a leap to become the No. 2 powerhouse in cosmetics exports."