The Ministry of SMEs and Startups and the Ministery of Food and Drug Safety visited cosmetics manufacturer Outin Futures on the 13th and held a roundtable with small and medium-sized corporations related to K-beauty.
The K-beauty industry has continued its growth in the global market in recent years, breaking export records every year. However, as external uncertainties expand, including the prolonged war in the Middle East, difficulties are mounting across the industry. Accordingly, the government needs a thorough review of the situation and practical support measures.
Han Seong-sook, Minister of the Ministry of SMEs and Startups (MSS), who presided over the roundtable, thanked businesspeople who have contributed to K-beauty's growth despite major shocks from the Middle East following the United States' tariff policy. She then listened to the damage status and challenges on the corporate frontlines.
Attending corporations said that disruptions in the supply of raw and packaging materials due to the aftermath of the Middle East war, and the resulting rise in unit costs, are their biggest burdens. Raw material and container manufacturing corporations are experiencing production disruptions, and cosmetics ODM corporations also said they are struggling to meet delivery deadlines due to delays in container supply.
Logistics issues were also cited as a major challenge. Corporations explained that rising logistics costs and transport delays are negatively affecting the import of raw and subsidiary materials and the export of products. In particular, concerns were raised that if the situation is prolonged, K-beauty's global competitiveness could weaken.
Minister Han Seong-sook said, "To resolve these issues, the government is mobilizing all available policy tools, including designating naphtha as a crisis item, checking whether increases in raw and subsidiary material prices are reflected in supply payments, and extending maturities for policy funds and corporate tax payment deadlines," adding, "As the supplementary budget, including 100 billion won in export vouchers and 250 billion won in emergency business stabilization funds, has passed the National Assembly, we will execute it swiftly to help small and medium-sized corporations overcome the crisis."
Oh Yu-Kyoung, head of the Ministery of Food and Drug Safety, said, "In consideration of difficulties in securing packaging materials, we have temporarily allowed, for six months, the attachment of stickers for labeling when using alternative packaging materials," and added, "By providing information on domestic and overseas licensing and raw material regulations and offering country-specific regulatory training, we will continue to expand various support policies by listening to the voices of the K-beauty industry."
At the site, an agreement was also signed to strengthen support for small and medium-sized corporations' global expansion. In addition to the Ministry of SMEs and Startups (MSS) and the Ministery of Food and Drug Safety, The Export-Import Bank of Korea and Korea Technology Finance Corporation (KOTEC) participated, and these institutions agreed to jointly promote financial support and increased investment for exporting corporations and to resolve challenges.
Meanwhile, the export volume of cosmetics by small and medium-sized corporations increased from $4.47 billion (about 6.67 trillion won) in 2022 to $5.32 billion in 2023, $6.85 billion in 2024, and $8.32 billion (about 12.43 trillion won) in 2025, maintaining an average annual growth rate of nearly 23%. This year as well, as of on Feb. 2, exports are about $1.4 billion, already surpassing the same period last year.