South Korea’s Ministry of SMEs and Startups (MSS) has officially launched the K-Beauty Fund, a public-private initiative aimed at accelerating the global expansion of Korean beauty brands and tech startups. The launch event, held at the Westin Chosun Hotel in Seoul, drew over 400 representatives from cosmetics SMEs and startups.
First announced in July 2024, the K-Beauty Fund is the country’s first beauty-focused venture fund created through a public-private partnership. Backed by leading manufacturers COSMAX and Kolmar Korea alongside a government fund of funds, the initiative is targeting a total of 40 billion won (approximately $27 million) by 2025.
The fund will invest across the full cosmetics value chain—from K-beauty brands and beauty tech startups to distribution platforms and raw material suppliers. Its goal is to drive open innovation and strengthen Korea’s global competitiveness in the beauty sector.
“Korean cosmetics boast world-class manufacturing and production capabilities,” said Minister Oh Youngju at the launch. “In 2024, exports reached $6.8 billion, making cosmetics the first single export item from Korean SMEs to surpass the $6 billion mark. With leading manufacturers directly involved in the fund, we expect deeper collaboration between startups and manufacturers.”
