Foreign Brands Claim 'K-Beauty' Status Amid Global Boom, Raising Brand Concerns

First-Half Exports Near $7 Billion Foreign Brands Rush to Emphasize 'Made in Korea'

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By Kim Yeon-ha (Commentary)
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Chat GPT - Seoul Economic Daily Finance News from South Korea
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As K-beauty's global standing rises, with Korean cosmetics exports hitting another record high in the first half of this year, the number of brands overseas claiming to be "K-beauty" is growing rapidly. These brands emphasize that their products are manufactured in Korea, or highlight Korean founders and Korean skincare philosophy, using K-beauty as a core marketing element. The beauty industry views this as a positive signal that K-beauty's influence has expanded, but also worries that the K-beauty label is being consumed indiscriminately, potentially damaging brand value.

According to the Korea International Trade Association on the 26th, Korean cosmetics exports in the first half of this year reached $6,979,139,000, up 26.9% from a year earlier, a record high.

As K-beauty's global growth accelerates, cases of brands overseas prominently featuring K-beauty while actively highlighting their connection to Korea are following one after another. A representative example is "Rini," a children's cosmetics brand launched last year by American actress Shay Mitchell. The brand takes its name from the Korean word for "children," and its homepage opens with the phrase "Introducing the world of rini-consciously crafted in Korea." The brand introduction section also emphasizes "Combining Korean innovation." Being manufactured in Korea is used as a key differentiating factor.

In addition, Germany's "Yepoda" borrows Korean words for its very brand name and emphasizes collaboration with Korean companies and domestic production, while the Finnish brand "Hwarang" also presents Korean manufacturing and K-beauty heritage as its brand identity.

One official in the cosmetics ODM industry said, "In the past, foreign brands tried not to reveal that their products were produced in Korea, but now they actively promote that they were made in Korea." The official added, "This change shows how much K-beauty's standing has changed." The official continued, "Recently, one foreign beauty brand that participated in a global beauty expo went so far as to aggressively promote that its products were produced in Korea."

However, voices of concern are also emerging that K-beauty is being consumed as merely a "formula for success." A representative example is "HIKU," announced by Harper Beckham, daughter of David Beckham. Harper Beckham unveiled a plan to launch a cosmetics brand inspired by K-beauty, but the brand name itself, which evoked Japanese, became embroiled in controversy. The fact that it purported to be K-beauty while it was unclear whether the country of manufacture was Korea also became a point of contention. However, Harper Beckham reportedly changed the brand name to "Harlo By Harper" due to trademark issues.

The same applies to the American cosmetics brand "Seoul Ceuticals." Although the company manufactures all its products in the United States, it actively utilizes K-beauty from its company name to its marketing. The company emphasizes that while it is true it does not produce in Korea, it sources key raw materials from Korean suppliers, draws inspiration from Korean skincare, and collaborates with a figure who has lived in Korea.

Some are raising concerns about brand damage as K-beauty is thus used as a mere marketing tool. The argument is that it causes consumer confusion and could, in the long term, undermine the credibility of K-beauty brands. One official at an intellectual property agency pointed out, "I have actually witnessed cases where a brand is promoted as a K-beauty brand simply because the CEO's family is of Korean descent, even though it is a foreign brand produced overseas." The official added, "Some view this as an expansion of K-beauty's reach, but it is also true that concerns are emerging over whether K-beauty's brand value is declining."

The beauty industry is calling for the government's role. One industry official said, "Currently, the government focuses only on blocking counterfeits that imitate existing brands or products." The official added, "Beyond simply cracking down on counterfeit goods, there is a need to protect the very name 'K-beauty.'" Another official stressed, "Just as France or Italy manages the names of their 'champagne' or 'extra virgin olive oil,' K-beauty should also be protected as a core brand asset." The official emphasized, "Now is the time to establish a definition of what K-beauty is and to consider how to protect the name itself."

"Kim Yeon-ha's Killing Issue" delivers in-depth coverage of major issues and trends in the food, fashion, and beauty industries, as well as corporate strategies and market changes. It provides useful insights not only for industry professionals but also for interested readers. Subscribe to receive the latest news quickly.

Original reporting by Kim Yeon-ha (Commentary) for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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