Ministry Expands K-Beauty Loan Eligibility... "Now Possible Without Recommendation Letter"

Funding Applications Now Possible with Only a Manufacturer's Purchase Order

On October 31, the Ministry of SMEs and Startups announced the implementation of a revised notice for the 'K-Beauty Loan,' which supports funding for the production of new products by outstanding cosmetics brand companies.

The K-Beauty Loan is a policy fund designed to help small and medium-sized brand companies that face difficulties in securing production funds enter the market smoothly. It takes into account the entire cosmetics industry ecosystem, which consists of small and medium-sized brand companies and manufacturers. Support is provided based on purchase orders, with recommendations from manufacturing companies (contractors).

With this revised notice, the Ministry has expanded the scope of participation so that more small and medium-sized brand companies and manufacturers can have growth opportunities.

Previously, a collaborative track with the Korea Cosmetic Association was operated to ease the administrative burden during the recommendation process by manufacturers. However, with this revision, a new track has been established that allows promising small and medium-sized brand companies to apply based on purchase order documentation without a letter of recommendation. In this case, a policy priority evaluation will be conducted instead of a recommendation letter.

Detailed information can be found on the Ministry of SMEs and Startups website or the Korea SMEs and Startups Agency website. Applications can be submitted at the digital branch of the Korea SMEs and Startups Agency.

Lee Soonbae, Director of Global Growth Policy at the Ministry of SMEs and Startups, stated, "We will continue to reflect feedback from the field and further strengthen the system."

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