K-cosmetics industry sees rising closures amid global success

Despite the global popularity of Korean beauty products, many cosmetic firms in Korea are, by contrast, going out of business, mainly due to a lack of sustained market competitiveness, which requires technological breakthroughs and stable revenue. According to the Ministry of Food and Drug Safety, 8,831 registered beauty product sellers closed their businesses last year — the highest number recorded in the past six years. In 2019, only 707 closed, but the figure has steadily increased since, surpassing 1,000 in 2021 and jumping to 3,258 in 2023. In the past six years, the largest number of shutdowns occurred between 2023 and 2024. This period coincides with the time when Korean beauty products began gaining global buzz for their quality and affordability. Last year, the number of registered beauty businesses nearly doubled from 15,700 in 2019 to 27,900. Experts note that, compared to other industries, cosmetics require relatively low manufacturing costs, making it easier for new businesses to enter the market with modest capital. On average, the cost breakdown per product includes 10Weiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times