"Due to COVID-19, Makeup Usage Decreased" Busan Cosmetics Factory Usage Fee Reduced... Supporting Production Cost Savings

Busan City Extends Fee Reductions Including Processing Fees for Cosmetic Companies

Exemption Period Initially Until End of June Extended to Year-End

15 Companies Used 30 Cases in First Half, Saving 12 Million Won

Busan Cosmetics Factory.

[Asia Economy Yeongnam Reporting Headquarters, Reporter Kim Yong-woo] The usage fees for the 'Busan Cosmetics Factory' operated by cosmetics companies in the Busan area will be waived until the end of this year.

The Busan Metropolitan City (Mayor Park Hyung-joon) has decided to extend the temporary waiver of usage fees, including contract manufacturing fees at the Busan Cosmetics Factory, which was initially implemented until the end of June as a support measure for cosmetics companies affected by sales declines due to COVID-19, until the end of this year.

The waiver of usage fees such as contract manufacturing fees is a policy to support local cosmetics companies facing significant difficulties due to decreased sales. Since March 2020, reductions in contract manufacturing fees and facility equipment usage fees for cosmetics production have been implemented.

Starting with a 20% reduction, the waiver has been 50% from April 2020 to the present. Although the waiver period was extended last year until June of this year, it has been decided to extend it once more until the end of the year due to the ongoing COVID-19 situation, including the spread of variant viruses.

The waiver applies a 50% discount on all contract manufacturing fees such as manufacturing, filling, and packaging, as well as equipment usage fees for devices like homogenizer fillers and packaging machines, for companies requesting cosmetics production or individual equipment use at the Busan Cosmetics Factory, thereby reducing production cost burdens. However, material costs and formulation development fees are excluded from the waiver.

This year, 15 cosmetics companies have requested 30 production orders and received usage fee waivers totaling over 12 million KRW, and it is expected that an additional waiver of approximately 16 million KRW will be granted by the end of the year.

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