Gov't aims to transform S. Korea into leading cosmetics manufacturer

SEOUL, Feb. 13 (Yonhap) -- The government said Friday it will set aside a
dedicated research and development (R&D) fund and streamline administrative
guidelines to help transform South Korea into a leading cosmetics manufacturer.

The plan by the Ministry for Health, Welfare and Family Affairs calls for 4
billion won (US$2.8 million) to be allocated to R&D in 2009, with the size of the
funds to be gradually increased in the coming years.
The measures, which mark the first time Seoul has taken steps to support the
industry, could help push domestic cosmetics production up to 7.6 trillion won in
2018, with exports reaching 1.7 trillion won.
Such growth is expected to help the country rank seventh in the world in terms
industry size, up from 12th at present.
"Cosmetics is a high value-added industry that uses little energy and has a
steady market that actually grows when there is a downturn in the economy,"
Health and Welfare Minister Jeon Jae-hee said.
She added that the industry can create high-quality jobs and may be more
cost-effective in terms of generating results than the pharmaceutical sector.
For the first year, state funds are to be distributed to help build basic
research infrastructure, develop new materials and improve packaging and quality
evaluation.
The ministry also said companies that win the ISO 22716 certificate for
guidelines on good cosmetics manufacturing practices will be exempt from
redundant local administrative oversight, which has drawn complaints from
businesses.
It added that more leeway will be given to advertise the positive effects of
make-up, with the government taking a more active role in helping promote
overseas marketing operations.
South Korean cosmetics have gained ground in many Southeast Asian countries and
China.
The government, meanwhile, said importers of foreign make-up products will be
responsible for product quality control. At present, only local manufacturers are
burdened with this requirement that has been cited as a kind of reverse
discrimination.
yonngong@yna.co.kr
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