K-Beauty: Breaking Tariff Barriers for Global Reach

In the face of the new challenge of America's tariff barriers, K-beauty embarks on a new voyage. K-beauty exports, which recorded $6.8 billion last year and $1.84 billion in the first quarter of this year, showing a 20% growth, are facing a crisis of declining price competitiveness due to the U.S.'s 10% basic tariff and the announced 25% reciprocal tariff imposition after 90 days. This is a higher level than that of France and Italy. In response, the Ministry of SMEs and Startups announced the "Measures to Secure Sustainability for Global Expansion of K-beauty SMEs and Startups," expressing its determination to turn the crisis into an opportunity. **The main strategies are as follows:** * **Market Diversification and Discovery of Promising Companies**: Through the 'K-beauty Creator Challenge,' in collaboration with Amazon, Cosmax, and Kolmar Korea, market territory will be expanded beyond the U.S. to Southeast Asia, Japan, and other regions. * **Strengthening Financial Support**: A 'Global K-beauty Fund' will be established within the year, and an 'M&A Revitalization Fund' will be operated starting next year to provide momentum for corporate growth. * **Talent Development and Innovation Promotion**: A 'K-beauty Global Track' will be newly established at the Youth Startup Academy, and in cooperation with Olive Young, Amazon, etc., support will be provided for new product development and global marketing. * **Global Marketing and Sales Channel Expansion**: By hosting 'Cosmobeauty Seoul × K-beauty Festa,' the invitation of overseas buyers will be expanded, and a 'K-beauty Online Marketing Program' utilizing local influencers will be operated. Furthermore, a 'K-beauty Luxury Delegation' will be dispatched to Cosmoprof Las Vegas, and a 'K-beauty Exclusive Zone' will be set up at LA K-CON to maximize Hallyu synergy. * **Regulatory Response and Efficiency Improvement**: The support limit for overseas certifications will be increased to 50 million won (40% increase), and a fast-track system will be introduced to shorten the process by 1.5 months. Through the 'K-beauty Smart Factory Partnership,' support will be provided for the digitalization of manufacturing sites and CGMP certification to strengthen global competitiveness. The industry proposed systematic support for U.S. tariff measures and strengthened regulations, support for brands' long-term success, easing of foreign recruitment standards, and activation of R&D personnel matching systems. In response, the Ministry of SMEs and Startups pledged to hold international K-beauty expos, dispatch luxury delegations, set up K-beauty pavilions at overseas exhibitions, and expand the K-Export Enterprise Academy, promising consultations with relevant ministries. Minister Oh Young-joo emphasized, "While recent trade barriers may be a red flag, if the accumulated know-how and competitiveness are combined with public and private sector efforts, it will become an opportunity to be number one in the global market." K-beauty will not stop its voyage towards global beauty, overcoming America's tariff barriers.