K-Beauty Exports Surpass $10 Billion, Dedicated Cosmetics Industry Law Formalizes Initiative
The Korean cosmetics industry, now the third-largest exporter globally, needs systematic national support. With new legislation proposed, industry-wide growth and institutional adjustments are being implemented simultaneously.
Cosmetics Emerge as an Industrial Core, Yet Institutional Framework Stagnates
Korea's cosmetics industry has recently established itself as one of the top global export powerhouses. In 2023, exports reached approximately $10 billion, equivalent to about 14.46 trillion won, receiving recognition as "the leading export item among SMEs, highlighting the rapid elevation of the industry’s status."
Conversely, the legal foundation supporting this is still rooted in regulation. The existing 'Cosmetics Act' focuses on distribution and quality management, but it has been long criticized for its limitations in encapsulating the industry's growth and segmented support measures.
In response, Representative Lee Su-jin from the National Assembly's Health and Welfare Committee has proposed the ‘Act on the Promotion and Support of the Cosmetics Industry,’ based on the recognition that a comprehensive industry fostering strategy is needed beyond mere regulation.
“The current legal system is centered on management and supervision, failing to swiftly respond to technological changes and global demands.”
This bill outlines growth strategies encompassing the entire industrial process from manufacturing to distribution, focusing particularly on helping export-oriented SMEs secure a systematic and stable industry base.
Introduction of Innovative Cosmetics Company Certification…Building a National Support System
A key component of the proposed legislation is the ‘Innovative Cosmetics Company Certification.’ Companies demonstrating achievements in R&D investment and export performance will receive concentrated governmental support.
Moreover, comprehensive infrastructure will be established, including the setup of a ‘Comprehensive Support Center for the Cosmetics Industry,’ operation of a ‘Unified Information System,’ and ‘Specialized Workforce Training Programs.’ The central focus is on national infrastructural development across the entire supply chain of the industry.
“We will establish an integrated industry development foundation encompassing everything from the supply system of cosmetics raw materials to distribution and packaging.”
This is expected to enable domestic beauty startups and small and medium-sized enterprises to improve productivity and advance globally, despite an unstable market environment. The government is shifting to a structure that organizes the organic flow of the industry while handling various administrative supports.
Industry Structure Centered on SMEs, Aligning with National Brand Value
A standout feature of Korea’s cosmetics industry is its heavy reliance on SMEs. Even now, numerous beauty brands and manufacturers operate in the global market in the form of small startups, many of them steadily building export performance through SNS, live-commerce platforms, and cross-border shopping platforms.
However, reality remains challenging. The lack of technical manpower, financial difficulties, irregular demand, and access to markets continue to pose barriers. The existing system lacked viable pathways to overcome these challenges, so this bill is anticipated to be an essential step in filling those gaps.
“The cosmetics industry has evolved beyond a simple manufacturing sector and now symbolizes both the national brand and the imagery of the citizen economy.”
Regardless of the bill's passage, it has already been adopted as a government agenda by the Prime Minister's Office and related ministries, indicating a high likelihood of practical implementation within the policy cycle.
Industry at a Turning Point…Real-World Effectiveness Essential in Parliamentary Discussions
Of course, a simple legislative procedure cannot materialize the bill. Industry opinions must be sufficiently reflected, and detailed simulations to ensure applicability in real business scenarios must be conducted. Detailed institutional designs, such as R&D tax credits, export certification support, and post-entry management, are also crucial.
Therefore, even during the bill's progression through the National Assembly, thorough review beyond policy proposals is necessary. To secure legislative effectiveness, policy objectives must transcend declarative levels and ensure practical budget execution and policy connectivity.
“Only by passing the cosmetics industry bill can a sustainable industrial ecosystem be established, leading to the international competitiveness of Korea's beauty industry.”
Cooperation with experts and related organizations is indispensable, and the government must prepare effective follow-up policies in parallel.
Empowering the Potential of 'K-BEAUTY' in the Global Market
This legislation not only supports the industry but also serves as the institutional backbone that underpins the rising trend of the ‘K-Beauty’ brand, which encapsulates Korea’s cultural content, technical prowess, and global influence.
Having catered to global demand through multi-layered innovations like Korean skincare, low-irritation clean beauty, and functional cosmetics, there's a growing call for the nation to create a corresponding industry ecosystem responsibility.
“The name K-Beauty is no longer just an appendix to the Korean Wave but is a field that symbolizes the nation’s economy and identity.”
Considering non-tariff barriers derived from global certification systems, advanced product technical standards, and trade barriers in key markets like China and the US, the structure has reached a point where SMEs cannot sustain themselves alone.
provides practical and reliable solutions for the advancement of the cosmetics industry. We are always committed to enhancing the competitiveness of domestic SMEs in the global market.
