Korea’s export-led economy has progressed through a number of stages in the constant search for new export opportunities to spur growth at home. Shipbuilding and construction were two of the earliest successes while automobiles and electronics followed these. More recently, mobile phones have been the star performer. Now, it is the turn of the cosmetics industry.
As part of the latest medium and long term economic plan, the country’s Ministry of Health and Welfare plans to encourage the development of the country’s cosmetics industry to tap into export markets on an increasing scale. The intention is that South Korea should become the world’s seventh largest producer of cosmetics worldwide, compared with the current ranking of eleventh.
Since 2007, the total value of cosmetic production in Korea has more than tripled from US$348m to $1.067bn in 2012. By 2020, total production is planned to reach at least $6bn, a figure that should be achievable at current growth rates. About 40% of the 2020 target would be exported.
The plans also include encouraging the development of global “mega brands” and developing more products based on oriental medicine so that they take roughly a 40% share of production, up from 23.6% in 2010.