Not only in Myeong-dong, the famous shopping district in downtown Seoul, but also in duty free shops in the city, tourists and beauty fans are flocking to makeup shops to buy Korean cosmetics. The advertisements decorating these shops feature famous Korean actresses and K-pop singers, looking into the camera's eye to attract customers.

Reflecting such popularity, the export volume of Korean cosmetics recently outperformed imports for the first time. The Korea Customs Service (KCS) announced earlier this month that the export volume of Korean cosmetics recorded USD 1.45 billion last year, exceeding imports of USD 0.99 billion.

According to the central customs authority, this is the first time cosmetic exports exceeded USD 1 billion. Ten years ago, the export volume of cosmetics and related makeup remained at USD 0.17 billion, while imports were at USD 0.42 billion. Since then, however, export volumes have gradually increased, reaching USD 0.76 billion in 2010 and 0.8 billion in 2012. The number of export destination nations last year was 129, higher than the 95 countries from which Korea imported makeup.


Basic skin care products, such as toners, moisturizers and essences, took the largest proportion of cosmetic exports, which accounted for more than 49 percent of total exports. Exports of skin care products remained at USD 65.4 million in 2004. Ten years later, however, it showed a 7.8 fold increase, recording USD 513 million in exports in 2013. Some of the best sellers in the skin care category were Amorepacific's Water Sleeping Pack of Laneige and First Care Activating Serum of Sulwhasoo and Bichup Ja Saeng Essence, a product made by the History of Whoo, part of LG Household & Health Care.


Eye and skin makeup products also played a key role in lifting the overall amount of cosmetics exports. Exports of eye makeup, such as eye shadow, were only USD 17.71 million in 2004, but jumped to USD 50.2 million in 2013, showing a 2.8 fold increase. Exports of skin products were at USD 13.8 million in 2004, but grew to 120.8 million in 2013, recording an 8.7 fold increase.

KCS statistics showed that China, Hong Kong, Japan, the U.S. and Southeast Asian countries are the key export destinations. China is Korea’s largest export destination for its cosmetics. Korea’s cosmetics exports to China alone hit USD 261.3 million in 2013. Other Asian countries, Japan, Singapore, Thailand and elsewhere, excluding the U.S., made up the rest of the top ten export destinations list.


The recent rise in exports is attributed to the rising popularity of Korean pop culture, commonly known as the "Korean Wave," or hallyu. According to the analysis of the central customs authority, Korean soap operas, movies and pop music are quite popular in many markets and the fans hook on to the newest fashions or styles of their Korean stars, boosting sales of Korean cosmetics and other products across the region. One Amorepacific staff said that hallyu fans overseas are really interested in what kind of makeup their favorite Korean actresses are wearing on TV, which in turn raises the popularity of Korean cosmetic brands in those countries. In fact, overseas customers have repeatedly shown a strong interest in the flawless makeup know-how, and even the skin tone, of their favorite Korean actresses, which increases sales of skin cosmetics like BB or CC creams ("blemish balm" and "color control" creams) and so-called "cushion foundation."

Backed by such booming popularity, Korean cosmetic brands have been actively penetrating overseas markets. Popular Korean cosmetic brands include luxury brands such as Amorepacific's HERA, Sulwhasoo and LG's The History of Whoo, as well as brands that focus on other segments of the market, such as ETUDE, Innisfree, Face Shop and Missha.

These brands have all opened retail outlets in China, Hong Kong, Taiwan, Singapore and other Asian countries. They continue to expand their reach into North America, Europe and Russia, to meet the needs of international customers who have a desire for beauty.


By Yoon Sojung
Korea.net Staff Writer
arete@korea.kr