Modamoda Announces Entry into Over 1,000 Locations in Taiwan... Japan Faces Impact from Government Regulations

From Online Channels to Expansion... "Positive Response from Taiwan"
Entry into US Military Base PX Confirmed for First Half of This Year

Products of Modamoda. [Photo by Modamoda]

Modamoda is accelerating its overseas business expansion this year. It is scheduled to enter three major distribution channels in Taiwan by mid-month, and plans to use domestic US military bases as a testbed to step on the accelerator for local entry into the US market. However, its business in Japan has come to a sudden halt due to safety evaluation issues raised by domestic consumer groups.

According to the beauty industry on the 9th, Modamoda will place its products in about 1,000 offline stores across three distribution channels in Taiwan this month. These three distribution channels are known to have a presence similar to that of 'Olive Young' in Korea.

Regarding the US business, a kind of 'testbed' is currently underway at a domestic US military base. Modamoda expects that its entry into the PX at Pyeongtaek Humphreys Base will be confirmed within the first half of this year. Based on this, it plans to pursue a supply contract with the US Department of Defense and accelerate its business in the US market.

However, its business in Japan is currently stalled. Local home shopping companies have expressed that they will start sales only after Korea’s 'safety verification investigation' is completed.

Earlier, in January last year, the Ministry of Food and Drug Safety reviewed Modamoda’s main ingredient and designated '1, 2, 4-THB (trihydroxybenzene),' the key ingredient of the shampoo, as a prohibited substance. Modamoda requested additional verification from the Regulatory Reform Committee under the Prime Minister’s Office regarding the Ministry’s decision, and the committee recommended a re-examination to the Ministry of Food and Drug Safety. The Ministry announced that it would form a 'Safety Evaluation Verification Committee' led by consumer groups and release the re-verification results of the THB ingredient’s safety by next month, one year later. However, due to delays in forming the verification committee, discussions only began in November last year, causing all subsequent procedures to be postponed.

Accordingly, Modamoda’s plan to enter Japanese home shopping channels, which was initially expected to be possible from next month, is also delayed beyond the original schedule. A Modamoda representative said, "It seems possible around June to July, when the verification committee discussions are expected to conclude," adding, "We will rapidly expand both online and offline distribution channels to contribute to the re-advancement of ‘K-beauty’ in the Asian market."

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