SEOUL: Korean beauty products, once relatively unknown outside Asia, now compete with some of the biggest names from France and the United States.
South Korea’s cosmetics exports jumped 20 per cent to a record US$10.28 billion last year, according to government data. The surge was driven by the international popularity of K-pop, Korean dramas, and a global fascination with Korean skincare products.
The nation is now the third-largest exporter of beauty products worldwide and the top exporter to the US.
But this beauty boom now faces a new hurdle.
On Aug 29, the US abolished a tax exemption on small packages valued at US$800 or below entering the country under new import regulations.
The move, which means imported Korean cosmetics are now subject to a 15 per cent tariff, could hurt South Korea’s small but fast-growing indie beauty product industry.
LIMITED IMMEDIATE IMPACT
Kolmar Korea – a major manufacturer that produces cosmetics for over 1,000 brands globally, including independent labels and global giants – said the immediate impact of the tariffs on sales has been limited.
However, it warned that the pressure could escalate.
“Tariffs are something that brands themselves have been absorbing, and some are still trying to deal with it. Right now, the volume of products crossing the tariff threshold isn’t big enough to be seriously affected,” said Han Sang Keun, the company’s vice president of research and development.
“We are Korea’s number one exporter, but for tariffs to really impact us, the volume would have to be much larger,” he noted.
Source: CNA
