South Korea targets K-Beauty expansion as Q1 cosmetics exports surge 20%

SOUTH KOREA – South Korea’s Minister of Finance, Koo Yun-cheol, has announced that the government will actively cultivate the cosmetics industry as a primary engine of export growth.

During a meeting with representatives from major beauty firms, Minister Koo emphasized that the K-beauty industry has evolved beyond traditional skincare and makeup, stating that it has expanded beyond the cosmetics sector to become a future strategic industry combining AI, data, and devices. 

This government commitment follows export figures that underscore the industry’s rapid ascent, with data from the Ministry of Food and Drug Safety showing that South Korea’s cosmetics exports reached USD 3.1 billion in the first quarter of 2026, up nearly 20% from the same period last year.

Building on this momentum, South Korea achieved shipments of USD 11.4 billion in 2025, positioning it as the second-largest cosmetics exporter globally after overtaking the United States at USD 10.8 billion, though it still trails behind France at USD 24.3 billion. 

Numerous K-beauty companies are now refining their expansion strategies to capture international market growth, with retail giant Olive Young making its US brick-and-mortar debut in Pasadena, California, where queues stretched for blocks and campers waited as early as 3 a.m. for the store to open. 

Olive Young CEO Lee Sun-jung noted that international customers previously visited Olive Young stores when travelling to Korea, but now the company is bringing Olive Young directly to customers in major global markets.

The expansion wave continues with Dr. Althea expanding across the US amid heightened demand for gentle K-beauty products, while the same enthusiasm driving US shoppers to K-beauty frenzy has reached Europe, where Korean cosmetics brands now top Amazon charts in markets like Germany, with Cosrx holding the title of best-selling beauty product for its Ultra-Light Invisible Sunscreen SPF50+. 

Minister Koo’s announcement reflects South Korea’s technological expertise, historically driven by semiconductors and electronics as its largest export category, now applied to cosmetics innovation, positioning K-beauty as a high-tech, data-driven industry to diversify the country’s export portfolio. 

The government will initiate a coordinated effort to enhance K-beauty’s global competitiveness through innovation, regulatory support, and public-private partnerships, building on late last year’s creation of South Korea’s AI Factory Alliance to advance the Manufacturing Artificial Intelligence Transformation Strategy.

With South Korea already outperforming the US in cosmetics exports, this new strategy could narrow the gap with France, even as the legacy beauty hotspot faces intensifying pressure at home due to rising Asian cosmetic imports. 

Olive Young’s Pasadena location features an 803 square meter store offering around 400 brands and 5,000 products, including personalized services like skin scans, scalp analysis, and a Beauty Lab for skincare lessons, with Dr. Althea announcing its US expansion through this location, focusing on gentle, barrier-supporting formulas and offering bestsellers like its 345 Relief Cream, which has sold over 26 million units globally. 

As K-beauty establishes itself in the US, it is also gaining ground in Europe, with Cosrx achieving the number one spot on Amazon Germany.

This lightweight sunscreen features a serum-like texture and no white cast, formulated with 66% aloe leaf water, hyaluronic acid, niacinamide, and vitamin E to meet Europe’s demand for weightless sun protection.

Meanwhile, in India, K-beauty startup KorinMi secured ₹10 crore (USD 1.045 million) in funding from Lotus Herbals’ innovation fund to expand its network of Korean beauty clinics nationwide.

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