South Korea's K-Beauty Industry Sees Growth Amid Challenges with Authenticity
K-beauty exports from South Korea reached $10.3 billion last year, with 2024 exports 20% higher than in 2023, underscoring significant growth in the sector. South Korea remains a leading cosmetic exporter globally, ranking after France and the United States.
The K-beauty market has attracted various companies, including non-Korean brands that have launched K-beauty ranges. Some of these products are manufactured outside Korea but still marketed as K-beauty, creating ambiguity due to the lack of an official definition or protected designation of origin for K-beauty. The K-beauty Industry Association governs membership and standards, requiring members to be registered in South Korea and to have their products tested and approved by the Korea Food & Drug Administration (KFDA).
Examples of diverse brand approaches include Seoul Ceuticals, a US-based firm that manufactures in the US but sources ingredients from Korea and markets itself as a K-beauty brand, aiming for over $14 million in revenue by 2025. Another brand, Hwarangpoom, is based in Finland with a Korean-origin team, makes products in South Korea, and emphasizes a Korean perspective in its branding.
However, there is no consensus on what constitutes authentic K-beauty, as some brands made abroad connect to Korea in various ways while some products made in Korea may not be labeled Korean. This has contributed to significant issues with counterfeit products. Research by MarqVision found that 26 of 29 test purchases for a major Korean beauty brand were fake. Furthermore, $280 million worth of fake K-beauty was identified in the US in 2024.
Gracie Tullio, founder of PureSeoul, highlights that online shoppers frequently encounter counterfeit products. Her shop specializes in selling authentic products sourced directly from Korean manufacturers, emphasizing trust and authenticity within the market.
