Including Cosmetics and Beauty in the Fostering of 500 Export Star Companies
Ministry of Trade, Industry, and Energy Launches 'K-Export Star 500' Project... Annual Support of up to 560 Million Won for up to 3 Years
The K-Beauty industry has achieved a remarkable milestone by surpassing 10 billion dollars in exports for two consecutive years. Amidst this trend, the government’s strong support and concrete plans are evident everywhere. Notably, the Ministry of Trade, Industry, and Energy's newly introduced 'K-Export Star 500' project this year is anticipated to establish a new growth platform for small and medium-sized cosmetics export companies.
Overview of the K-Export Star 500 Project
The Ministry of Trade, Industry, and Energy recently announced the recruitment of participants for the 'K-Export Star 500' project, which will focus on nurturing 500 export star companies with annual exports exceeding 10 million dollars, becoming a robust backbone of our country’s exports. The project primarily aims to rectify the inequitable export structure where approximately 84% of total exports are dominated by the top 1% of firms while small export companies account for around 8%, and to strengthen the country's export framework.
Export Structure Polarization and the Necessity of the Project
Recently, South Korea’s exports reached a record high of 700 billion dollars for the first time, achieving quantitative growth. However, this success is predominantly concentrated among a few large enterprises, highlighting a distinct polarization. The core goal of the project is to resolve such structural issues and establish a foundation that allows more small enterprises to play pivotal roles in the global market. The intention to significantly enhance the export capabilities of small companies and to establish them as steady pillars of national exports is noteworthy.
Export Potential of the Cosmetics Industry
The cosmetics industry is recognized as one of the key beneficiary areas of the 'K-Export Star 500' project. Last year, there were 72 companies awarded export achievements between 5 to 10 million dollars. This is an increase of 5 companies compared to the previous year (2024), specifically encompassing 32 companies in the 5 million dollar range, 18 in the 7 million dollar range, and 22 in the 10 million dollar range. These statistics show that there are many promising companies with significant growth potential within the cosmetics industry, and they are anticipated to gain a critical opportunity to elevate to global star companies through the 'K-Export Star 500' project.
Key Support Programs
The 'K-Export Star 500' project targets 100 promising export companies across three major sectors—consumer goods (beauty, food, etc.), advanced industries (AI, semiconductors, etc.), and core industries (automobiles, machinery, etc.). Selected companies can receive annual financial support of up to 560 million won for up to three years, with an overall annual budget of approximately 40.2 billion won allocated.
Target Companies and Scale of Support
The program focuses on selecting promising companies with exports between 5 to 10 million dollars annually, fostering them into export star companies with exports exceeding 10 million dollars per year. This provides substantial opportunities for small and medium-sized enterprises to evolve into globally competitive export powerhouse companies, actively promoting their sustainable growth.
Customized Mentoring and One-stop Services
Selected companies will receive constant one-on-one consulting from a dedicated and function-specific mentor group of 15 'Export Star Mentors'. This mentor group supports the formulation of tailored export plans that closely reflect each company's export goals and strategies. Additionally, four major areas of one-stop support services provided by domestic export specialist institutions are offered, including marketing, certification/patent, export finance, and R&D consulting. Local special support opportunities are also available through 20 local export star partner trade centers.
Cooperation System of Professional Institutions
To provide comprehensive support, five professional institutions, including KOTRA, KCL, KIAT, KEIT, and the Korea Trade Insurance Corporation, signed a Memorandum of Understanding (MOU) on January 16. These institutions are responsible for support and cooperation in four major fields: premium marketing (KOTRA), certification/patent (KCL), export finance (Korea Trade Insurance Corporation), and R&D consulting (KIAT). They plan to play a 'Export Star Maker' role, dedicated to nurturing promising companies. This organic cooperation among institutions will greatly assist in effectively addressing various challenges enterprises may encounter during the export process.
Conclusion
The 'K-Export Star 500' project will significantly contribute to the qualitative growth of South Korea's exports and serve as an important turning point for promising small cosmetics companies to firmly establish their position in the global market. With systematic support, expert mentoring, and organic cooperation among professional institutions, the project is expected to substantially enhance the stature of K-Beauty.
We support promising K-Beauty companies in achieving outstanding results in the global market through K-Export Star 500. will practically assist their successful global expansion with professional blog marketing capabilities.
