Seoul will fuel the global beauty and fashion industry through a $ 168 million project

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SEOUL – Seoul will implement its five-year plan to secure a foothold in the global fashion and beauty market through a 204 billion won ($ 167.9 million) project. More beauty and fashion related jobs and businesses will be created and various business benefits will be provided including tax breaks, loans and incentives.

Seoul is home to four world-class beauty product manufacturers: LG Household, Amore Pacific, Able C&C, and Clio Cosmetics. The capital also has cosmetics startups targeting the North American market and China. In 2018, South Korea’s famous online beauty and fashion mall called “Stylenanda” was acquired by L’Oreal, the largest cosmetics company in the world. Stylenanda 3CE makeup brand is one of the most popular brands among Chinese tourists.

K-beauty colorful makeup, including eye shadows and lipsticks, is sold all over the world. Despite a global freeze caused by a coronavirus pandemic, South Korean cosmetics exports hit a record $ 9.2 billion in 2021, up 21.5% from a year ago. Data released by the South Korean Department of Commerce showed that cosmetics exports to the United States increased by 14.9% compared to a year ago. In 2020, the United States imported K-beauty products worth approximately $ 536 million. Vietnam’s K-beauty market stood at $ 273 million in 2020, up 17.6% year-on-year. However, Seoul said that most of the beauty companies are small in size and that overseas beauty markets such as China are increasing as competitors.

Seoul said in an April 5 statement that funds worth more than 100 billion won will be invested in small and medium-sized businesses and startups in the fashion and beauty sector starting in 2023. Through a government agency, Seoul will feed 50 influencers every year to promote K-beauty products and about 200 experts including brand managers. Seoul will also provide various benefits, including tax benefits to Dongdaemun District, South Korea’s fashion and tourism hub. Dongdaemun is the largest clothing wholesale market in the country with around 30,000 shops visited by around 150,000 people each. day. Although the district has many historic sites and old buildings, Seoul will ease building regulations for fashion brand operators. A special development zone will be established in Dongdaemun for the beauty and fashion convergence project.

The number of unlisted unicorn companies in the beauty and fashion industry is expected to reach 12 by 2025 from the current number of 8. A unicorn refers to a company or startup with a business value between 100 billion and 1 trillion won. The number of related jobs will increase from around 60,000 in 2021 to around 100,000 in 2025.

“We will improve Seoul’s beauty and fashion ecosystem and establish a virtuous cycle system with other fields by converting it into tourism resources,” said Seoul Mayor Oh Se-hoon.

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