Powered by E-commerce: How South Korea’s Beauty & Personal Care MSMEs Are Scaling Global Exports

Scaling South Korea’s beauty & personal care sector through e-commerce

South Korea has established itself as a global leader in the beauty & personal care sector. Built on decades of coordinated industrial policy, advanced manufacturing, and robust research and development (R&D), the country now stands as the world’s second-largest exporter in the category.¹ While the Korean Wave (Hallyu) has already made Korean beauty & personal care products a household name, a structural shift is underway. E-commerce is no longer a secondary channel, but the next frontier for South Korea’s export success.

The MSME opportunity and its barriers

For micro, small, and medium enterprises (MSMEs), the digital landscape offers a significant opportunity to scale internationally. However, the path to global expansion is complex. Many Korean MSMEs must navigate evolving regulations in export destinations while managing rising logistics costs. Beyond these operational hurdles, a persistent knowledge gap remains–without the necessary digital capabilities, even the most innovative brands struggle to compete on a global stage.

Addressing the analytical gap

While digital trade continues to reshape global commerce, empirical data regarding the specific trajectory of South Korea’s beauty & personal care e-commerce exports has remained limited. This latest report addresses that critical gap. By quantifying the true scale of the e-commerce export opportunity and providing a qualitative analysis of the challenges facing MSMEs, the study offers a comprehensive view of the current landscape.

Through a rigorous benchmarking of South Korea’s policy framework against international best practices, the report offers a strategic outlook and key considerations for policymakers and industry stakeholders to sustain the country’s global competitive advantage.

Full report in English

한국어로 된 전체 보고서

[1] Sources include: Beauty & personal care products refer to cosmetics, skincare, haircare, personal hygiene items, and grooming tools used for both functional and cosmetic purposes. The Straits Times (2025), “South Korea overtakes US in cosmetics exports, trailing only France”. Available at: https://www.straitstimes.com/life/south-korea-overtakes-us-in-cosmetics-exports-trailing-only-france; Brookings Institution (2024), “Korea’s product diversification model: Insights for developing East Asia”. Available at: https://www.brookings.edu/articles/koreas-product-diversification-model-insights-developing-east-asia/; Macquarie Group (2025), “From K-pop to the KOSPI: Trends shaping South Korea’s economy”. Available at: https://www.macquarie.com/us/en/insights/from-k-pop-to-the-kospi-trends-shaping-south-koreas-economy.html