South Korea Launches US$27m Fund to Back K-Beauty Startups Amid Export Challenges
South Korea has launched a ₩40 billion (US$27 million) fund aimed at supporting K-beauty startups, as the sector braces for potential US tariff impacts. The post South Korea Launches US$27m Fund to Back K-Beauty Startups Amid Export Challenges appeared first on Global Cosmetics News.
THE WHAT? South Korea has launched a ₩40 billion (US$27 million) fund aimed at supporting K-beauty startups, as the sector braces for potential US tariff impacts.
THE DETAILS The Ministry of SMEs and Startups has announced the establishment of a dedicated beauty fund—the first of its kind targeting all segments of South Korea’s cosmetics supply chain. The fund is a public-private initiative, with Kolmar Korea and Cosmax Inc., two of the country’s top original development manufacturers (ODMs), serving as anchor investors. The move comes amid rising concerns over recently announced 25% reciprocal tariffs by the US, which, if implemented, could significantly affect Korean beauty exports. Cosmetics remain the top export category for South Korean SMEs, with overseas sales reaching US$6.8 billion in 2023.
THE WHY? As K-beauty continues to play a leading role in South Korea’s export economy, the newly launched fund seeks to reinforce the global competitiveness of domestic brands and manufacturers. The initiative aims to protect the industry from geopolitical and trade disruptions while capitalising on the enduring appeal of Korean innovation, quality, and cultural influence. It also reflects a broader strategy to future-proof the beauty sector through strategic investment and international expansion.
The post South Korea Launches US$27m Fund to Back K-Beauty Startups Amid Export Challenges appeared first on Global Cosmetics News.
