Is this the last big surge in Korean cosmetic exports?

Statistics from the Korea International Trade Association (KITA) show that exports of cosmetics and personal care goods rose by a staggering 38.5% in the six month period from January to June 2016, to reach a total of US$1.81 billion.

The sales are mainly being driven by huge demand from consumers in China, where Korean-made products are continuing to enjoy a wave of popularity known as ‘hallyu’, a Korean word that refers to the country’s pop culture and its continued success overseas.

Korean beauty exports rely on China​

Last year China was by far the biggest importer of Korean cosmetics, with more than 40% of the country’s total cosmetic and personal care exports ending up in the hands of Chinese consumers.

Korean food and fashion have also proved to be a big hit with international consumer, and again it is China that has proved to be the biggest importer.

KITA confirmed that overall exports of cosmetics, personal care, food and fashion products during the period January to June of this year were up by 15.2% to reach US$6.79bn.

Will new regulations change all of this?​

However, as Cosmetics Design reported earlier this month​, changes in both the political climate and regulations make beauty trade between the two countries more challenging in the future.

Those challenges will include the Korean government’s plan to implement duty free limits on the purchase of Korean beauty products at duty free shops in an effort to limit the number of products being re-sold on the gray market in China.

Likewise, in an unrelated move, China has also threatened to make business visa more difficult for Koreans to secure as a means of retaliation over the deployment of a Terminal High Altitude Area Defence (THAAD) battery, which it views as a threat to national security.