[Press Release, Jun 17, 2020 / unofficial translation] Korea's trade surplus in cosmetic products hit an all-time high of 6 trillion won - Persistent trade surpluses since 2012, 12.4% increase in trade balance compared to the same period of the previous year - Last year's exports reach about $6.5 billion (7.6 trillion won), grow by annual average of 26 percent over the past five years - Increase in exports to northern countries such as the Russian Federation and Ukraine, diversification of export markets □ The Ministry of Food and Drug Safety (Minister Lee Eui-Kyung) said that last year's cosmetics trade surplus stood at 6,150.3 billion won, up 12.4 percent from 5,469.8 billion won in 2018. Cosmetics trade recorded surplus in 2012 for the first time, and Korea has consistently run trade surpluses ever since. ○ Last year’s cosmetics exports rose 4.2 percent year-on-year to $6,524.79 million (7,608.6 billion won), recording an annual average of 26.0 percent growth over the past five years. ○ Last year's cosmetics production reached 16.2633 trillion won, up 4.9 percent from 15.502.8 trillion won in 2018, showing steady growth. □ Last year's cosmetics market was characterized by ▲trade surplus for eight years in a row ▲increase in exports to northern countries including the Russian Federation ▲solidified Korea’s position as the world's fourth largest exporter ▲a steady increase in production. ■ Trade surplus reaches 6 trillion won; 8 consecutive years of surplus ○ Korea has consistently run trade surpluses in the last 8 years, surpassing 1 trillion won in 2015, 5 trillion won in 2018 and 6 trillion won in 2019. - Last year’s cosmetics exports increased 4.2 percent to $6,524.79 million (7,608.6 billion won) from $6,260.19 million (6,889.8 billion won) in 2018, with the average annual growth rate for the past five years (2015~2019) recording a steep 26.0 percent. ※ The value of cosmetics exported from Korea : (2015) $2,587.80 million → (2016) $4,178.42 million → (2017) $4,944.64 million → (2018) $6,260.19 million → (2019) $6,524.79 million - Imports dropped 3.1 percent to $1,250.58 million (1,458.3 billion won) last year from $1,290.26 million dollars (1,420.0 billion won) in 2018. ※ The value of cosmetics imported to Korea : (2015) $1,087.70 million → (2016) $1,080.20 million → (2017) $1,176.23 million → (2018) $1,290.26 million → (2019) $1,250.58 million ■ Increase in exports to northern countries such as Russia and diversification of export destinations ○ The export performance of Korean cosmetics by country showed that shipments to China topped the list following 2018 with $3,060.15 million (3,568.5 billion won), followed by Hong Kong, the United States, and Japan. ※ Export share by country: China (46.9%) > Hong Kong (14.2%) > the United States (8.1%) > Japan (6.2%) ○ In particular, exports to the northern region increased remarkably; shipments to Russia increased 34.1% compared to 2018, and exports to Ukraine and Kyrgyzstan increased 117.3% and 111.3%, respectively. - In addition, Korea diversified export markets not only in the great China region but also in Australia and Europe; Exports to Japan, Vietnam, the United Kingdom, and Australia increased by 32.7%, 32.7%, 8.5%, and 22.9%, respectively compared to 2018. ○ Meanwhile, France was the top cosmetics exporter to Korea with $376.36 million (438.9 billion won) last year, followed by the United States, Japan, Thailand and Germany. ■ Solidify position as the world's fourth largest exporter and cosmetics powerhouse ○ Comparing the value of cosmetics exports by country, Korea's exports reached $6,524.79 million last year, ranking fourth in the world after France, the United States and Germany. ※ Export performance by country : France ($17.12493 billion) > the United States ($10.36045 billion) > Germany (8.37304 billion) > Korea ($6.52479 billion) ○ These figures show that Korea has become a top exporter for the three consecutive years since it emerged as the world's fourth largest exporter by exporting $4,94.64 million in 2017, surpassing Italy, China, Spain and Japan. ■ Steady growth of production performance ○ Last year's cosmetics production amounted to 16.2633 trillion won, up 4.9% from 15.5028 trillion won in 2018. ※ Production: 2015 (19.7%, 1,0.7328 trillion won) → 2016 (21.6%, 13.0514 trillion won) → 2017 (3.6%, 13.5155 trillion won) → 2018 (14.7%, 15.5028 trillion won) → 2019 (4.9%, 16.2633 trillion won) ○ By categories, skin care products accounted for the largest amount of 9.8123 trillion won (60.33%), followed by Make-up products (2.1338 trillion won, 13.12%), hair care products (1.8800 trillion won, 11.56%), and body cleansing products (1.5786 trillion won, 9.71%). ○ By company, LG Household & Health Care Co., Ltd. topped the list with 4.9603 trillion won (30.50%), followed by Amore Pacific Co., Ltd. With 4.9154 trillion won (30.22 %), Aekyung Industrial Co., Ltd. with 375.1 billion won (2.31%), Coreana Cosmetics Co., Ltd. with 233.2 billion won (1.43 %), and Carver Korea with 216.2 billion won (1.33%). ■ Steady growth of functional cosmetics ○ Production of functional cosmetics reached 5,344.8 billion won last year, 2 7.3 percent from 2018 (4,980.3 billion won), and the average growth rate of functional cosmetics from 2015 to 2019 stood at 8.5 percent. ※ Production of functional cosmetics: (2015) 3.8559 trillion won → (2016) 4.4439 trillion won → (2017) 4.8556 trillion won → (2018) 4.9803 trillion won → (2019) 5.3448 trillion won ○ The production of products that have only one of the functions such as whitening, wrinkles, and UV protection increased by 15.2% to 3.1022 trillion won, compared to 2.6930 trillion won in 2018, while the production of products with two or more functions decreased by 2.0% compared to the previous year. □ The Minister of Food and Drug Safety Lee Eui-Kyung said, "The continued growth of the cosmetics industry is the result of the government's regulatory reform and support on top of the industry's continuous technological development." ○ "The Ministry of Food and Drug Safety will continue to do its best to achieve globalization of K-Beauty by expanding institutional support to foster the future cosmetics industry, including customized cosmetics, operating “supporting center for cosmetics regulatory harmonization” to strengthen cosmetic industry capabilities and strengthening regulatory cooperation with foreign countries to reduce trade barriers," she said.