South Korea government backs K-beauty as export priority

South Korea’s Minister of Finance has announced that the country’s government will actively foster the cosmetics industry as an export growth engine. The move aims to capitalize on the surging global demand for K-beauty products, as the sector breaks another export record. 

During a meeting with representatives from major beauty firms, Finance Minister Koo Yun-cheol emphasized that the K-beauty industry has evolved beyond traditional skin care and makeup.

“The K-beauty industry has expanded beyond the cosmetics sector to become a future strategic industry combining AI, data, and devices,” Koo said. 

The government’s commitment comes on the heels of export figures that underscore the industry’s ascent. According to data from the Ministry of Food and Drug Safety, South Korea’s cosmetics exports reached US$3.1 billion in the first quarter of 2026. The figure marks a nearly 20% increase from the same period last year.

Building on the momentum, South Korea boasts shipments of US$11.4 billion, now ranking it the second-largest cosmetics exporter in 2025. It overtook the US at US$10.8 billion and trails behind France at US$24.3 billion. While France appears to be in the lead by a long run, the K-beauty sector’s track record indicates that it might not take too long before South Korea catches up. 

A slew of K-beauty companies are honing in on their expansion strategies to capture international market growth. Retailer Olive Young has made its US brick-and-mortar debut and was met with queues spanning blocks around Pasadena, US. Korean reporting notes that the California location attracted campers waiting for the store to open from as early as 3 a.m.

“International customers used to visit Olive Young stores when they came to Korea,” CEO Lee Sun-jung says, “now we are bringing Olive Young directly to customers in major global markets.”

Dr. Althea is expanding across the US amid heightened demand for gentle K-beauty products.The same enthusiasm that drives US shoppers to line up in a K-beauty frenzy has reached Europe. Korean cosmetics brands are now topping the Amazon charts in markets like Germany. Cosrx holds the title of “best-selling beauty product” on the country’s e-commerce site for its Ultra-Light Invisible Sunscreen SPF50+.

Partnering tech and regulation

For years, South Korea’s economy has been driven heavily by technology, with semiconductors and electronics standing as its single largest export category. With that technological expertise now applied to cosmetics innovation, the South Korean Finance Minister rightly positions K-beauty as a high-tech, data-driven industry. The government hopes this strategy will diversify the country’s export portfolio.

Koo’s announcement indicates that the government will initiate a coordinated effort to enhance the global competitiveness of K-beauty through innovation, regulatory support, and public-private partnerships. 

The announcement is not the first the Korean government has made to bolster its cosmetics sector. 

Late last year, the government created South Korea’s AI Factory Alliance to work toward the country’s Manufacturing Artificial Intelligence Transformation Strategy. The initiative aimed to shift multiple sectors from automated production to “smart” production by giving factories AI-powered brains. By doing so, the country hopes to increase its production output, enhance the end-deliverables’ quality, and also speed up time-to-market.

With South Korea already outperforming the US in cosmetics exports, the new strategy could narrow the gap with France. Despite being in the lead, the legacy beauty hot-spot is feeling pressure intensify at home due to rises in Asian cosmetic imports.

The Beauty Lab zone at Olive Young’s Pasadena location hosts skin analysis services.K-beauty expands 

South Korea’s top beauty retailer, Olive Young’s US debut flaunts an 803 square meter store that offers around 400 brands and 5,000 products. The location offers personalized services such as skin scans, scalp analysis, and a “Beauty Lab” for skin care lessons. 

Of the brands stocked, Dr. Althea announced that it would make its US expansion through the Olive Young location. The brand focuses on gentle, barrier-supporting formulas, and will offer bestsellers like its 345 Relief Cream, which it says has sold over 26 million units globally. 

“Our expansion into Olive Young in the Los Angeles area is an exciting step for Dr. Althea as we continue to grow our presence in the US market,” says Evelyn Lee, founder of Dr. Althea.

As K-beauty makes itself at home in the US, across the pond, the cosmetics are also gaining ground in Europe. Cosrx says it achieved the number one spot on Amazon in Germany for its lightweight sunscreen, which boasts a serum-like texture and no white cast. The formula is built on 66% aloe leaf water and contains hyaluronic acid, niacinamide, and vitamin E, reflecting Europe’s demand for weightless sun protection, particularly with summer on the radar. 

Meanwhile, in India, K-beauty start-up KorinMi has secured ₹10 crore (US$$1.045 million) in funding from Lotus Herbals’ innovation fund, to expand its network of Korean beauty clinics across the country. 

Personal Care Insights previously spoke with Innova Market Insights’ project lead for Beauty Personal Care & Household division about K-beauty’s growing presence in India.

“India offers a high-growth potential for K-beauty expansion,” she said, as geopolitical instability in the SWANA region diverts business strategies elsewhere. “With the changing scenario, K-beauty brands are looking into more viable options regionally.”

Whether K-beauty will aim for France’s title or quietly conquer markets across Europe to South Asia remains to be seen, but it won’t lack firepower. “The government and the private sector will open a new era for K-beauty created by South Korea that leads the world,” Koo concludes.