Prime Minister Kim Min-seok (center) on Nov. 27 delivers an opening speech at a meeting on government policy coordination at the headquarters of the cosmetics company Cosmecca Korea in Eumseong-gun County, Chungcheongbuk-do Province. (Office for Government Policy Coordination)

By Jeon Misun

A comprehensive strategy for export support seeks to further raise the global competitiveness of the domestic beauty and cosmetics industry.

The Ministry of SMEs and Startups and the Ministry of Health and Welfare on Nov. 27 announced a plan to improve and expand the export performance of "K-beauty" at a meeting on government policy coordination chaired by Prime Minister Kim Min-seok.

From 2023 through the first half of this year, cosmetics remained the top export among small and medium enterprises, ranking No. 3 globally and topping the U.S. market in import share. Yet factors such as intensifying trade protectionism, non-tariff barriers and competition from other nations were cited as obstacles to sustained growth.

Thus the strategy is to turn 300 young brand creators and 500 small business teams into export-oriented companies under four key strategies; global entry, expansion, growth and foundation building.

Four more "K-beauty entry points" will be set up at diplomatic missions in key markets abroad, while the number of flagship stores will rise to eight and that of pop-up booths to 10 mainly in emerging markets. Other measures include marketing initiatives linked to K-pop and K-dramas, formation of "K-beauty clusters" and launch of an "offline first export package."

In addition, the American business and financial news network CNBC on Nov. 27 said Korean cosmetics are rapidly expanding to major U.S. retailers driven by social media buzz. Market research company NielsenIQ also projected sales of Korean beauty and cosmetic products in America this year at USD 2 billion (KRW 2.9 trillion), a 37% jump from last year.

Therese-Ann D'Ambrosia, vice president of beauty and personal care at NielsenIQ, told CNBC, "The growth has been remarkable," adding, "When you compare that to the broader beauty market, which is growing at single digits, K-beauty is clearly operating in a different gear right now."

msjeon22@korea.kr