FOR IMMEDIATE RELEASE                    
April 11, 2025                                    
                                              
MSS Holds K-Beauty Fund Launch Ceremony

SEJONG – On April 10, the Ministry of SMEs and Startups (MSS) held the K-Beauty Fund Launch Ceremony and Global Insight Conference at the Westin Chosun Hotel in Seoul, with over 400 beauty SMEs and startups in attendance.

The K-Beauty Fund was first announced in July 2024 as part of the government’s Measures to Enhance the Global Competitiveness of K-Beauty SMEs and Startups. This initiative aims to strengthen the global standing of Korean cosmetics, which represent the leading export item among SMEs.

The launch event marked the official establishment of the K-Beauty Fund, with key figures such as CHOI Hyun-kyu, CEO of Kolmar Korea, and SHIN Yoon-seo, Vice President of COSMAX, in attendance.

The K-Beauty Fund is the first beauty-focused venture fund created through a public-private partnership. It is co-invested by COSMAX, Kolmar Korea, and the government-backed fund of funds. The fund, totaling KRW 40 billion by 2025, will prioritize investments in K-Beauty brands and beauty tech startups across the entire cosmetics value chain.

Minister Oh Youngju stated, “Korean cosmetics boast world-class manufacturing and production capabilities. In 2024, exports reached USD 6.8 billion, making cosmetics the first single export item for SMEs to exceed USD 6 billion.” She continued, “With leading manufacturers like COSMAX and Kolmar Korea participating directly in the fund, we expect the K-Beauty Fund to foster open innovation between manufacturers and beauty SMEs and startups.”

CEO Choi Hyun-kyu noted, “This fund will serve as a vital stepping stone to strengthen the global presence of K-Beauty.” He added, “We will support innovative products and brands in entering and expanding within global markets, contributing to both the qualitative growth and sustainable development of the K-Beauty ecosystem.”

Vice President SHIN Yoon-seo mentioned, “Through the K-Beauty Fund, we will invest across the entire beauty value chain, including client companies, marketing and distribution partners, and raw material suppliers.” He added, “As a global leader in ODM, we aim to help Korea reach the top in global cosmetics exports through strategic collaboration with our clients and partners.”

Following the launch ceremony, the Global Insight Conference featured industry experts from Olive Young, Kolmar Korea, and Hwahae, who discussed strategies to enhance the global competitiveness of K-Beauty. In response to growing concerns over mutual tariffs imposed by the U.S., a special session on K-Beauty Export Guidance was added, addressing customs issues and response measures.

Minister OH stated, “SMEs are increasingly concerned about the recent U.S. tariff measures.” She assured, “Despite these challenging circumstances, we will actively implement policies that reflect on-site needs, such as expanding public-private partnership programs, introducing K-Beauty loans to support production, hosting international trade fairs, and increasing support for K-Beauty’s entry into duty-free markets, all in parallel with the formation of the K-Beauty Fund to boost the global market reach of K-Beauty SMEs and startups.”

She added, “As cosmetics continue to be the top export item for our SMEs and exports to the U.S. grow, we will closely monitor developments on the ground and respond proactively to challenges such as the U.S. tariff measures.”