Supporting the Entire Process from Technology Development to Export... Announcement of the K-Beauty Innovation Comprehensive Strategy

Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Chunhee Lee] The government has decided to expand customized support across the entire cycle?from technology development to infrastructure construction, regulatory improvement, and export?to create new growth engines for 'K-Beauty.'

On the 27th, the Ministry of Health and Welfare held an Innovation Growth Strategy Meeting and jointly prepared and announced the 'K-Beauty Innovation Comprehensive Strategy' with related ministries.

The domestic cosmetics industry has grown into the world's 4th largest cosmetics exporter, recording its highest annual export performance of $7.5 billion (approximately 8.292 trillion KRW) last year despite the COVID-19 pandemic. However, the industry structure, which still consists mostly of small and micro enterprises, a lack of basic materials and core technologies, and exports mainly focused on the Greater China region, have been pointed out as limiting factors for sustainable growth.

Accordingly, the government aims to have seven domestic beauty companies enter the world's top 100 companies and create about 90,000 new jobs by 2024. It plans to support large-scale research and development investments and industrial infrastructure construction, which are difficult for individual companies to attempt. Four major innovation tasks tailored to the industry cycle were also presented: ▲Development of sustainable K-Beauty innovative technologies ▲Creation of a K-Beauty industrial ecosystem ▲Enhancement of corporate activities through regulatory improvements ▲Strategic support for overseas expansion.

In the sustainable innovative technology development phase, a 'Skin-Genome Platform' will be established to collect, analyze, and utilize skin characteristics and genomic information by country and ethnicity to target the global market. A pilot project is currently underway with 200 participants in Vietnam, and the target will be expanded to 8,200 people across nine countries by 2025.

Support will also be provided for mid- to long-term R&D projects to localize basic and universal cosmetic materials such as emulsifiers and sunscreens, develop eco-friendly cosmetic raw materials using domestic biological resources like yuzu seeds and camellia seeds, and develop cosmetic container materials that can replace plastic containers or improve recycling levels.

Regarding the creation of an industrial ecosystem, the 'International K-Beauty School' will be established to provide professional beauty service education to about 8,400 students annually, including overseas trainees. Additionally, comprehensive consulting on research and development, overseas permits and approvals, and export procedures will be provided to companies, and the enactment of the Cosmetics Industry Promotion Act will also be pursued.

For regulatory improvements, rationalization measures such as simplification of reporting procedures and flexible application of labeling and notation requirements will be implemented. To activate the newly established 'Customized Cosmetics Sales Business' from last year, which allows mixing and subdividing cosmetics tailored to individual skin conditions and preferences, the temporary store reporting procedure will be simplified, and if the business operator obtains a compounding manager qualification, concurrent employment as a compounding manager will be permitted.

Furthermore, labeling and notation requirements for cosmetics will be flexibly applied, such as relaxing the primary packaging labeling obligations for products like solid soap that are unpackaged and reused repeatedly.

To support overseas expansion, customized strategies will be provided for each export target country. In promising export countries, efforts will be made to strengthen presence through local promotional spaces, sales venue connections, and online events, while activities in the International Cooperation on Cosmetics Regulation (ICCR) will aim to have Korea's cosmetic standards and systems adopted as international standards.

Starting this September, 'K-Beauty Experience and Promotion Centers' will be established in popular tourist areas such as Myeongdong and Hongdae, creating spaces where consumers can directly experience 3,000 products from about 600 small and medium beauty companies.

Minister of Health and Welfare Kwon Deok-cheol said, "If the government's support is added to the private sector's capabilities such as innovative inspiration, the K-Beauty industry can establish itself as a new growth engine for Korea," and added, "Based on this comprehensive innovation strategy, we will actively support the sustainable growth of the K-Beauty industry through active cooperation with related ministries."

This content was produced with the assistance of AI translation services.