SEOUL, KOREA - With the signing of the China-Korea free trade agreement, Korea's cosmetics suppliers are likely to enjoy huge benefits. Already, Korean-made cosmetic items are widely popular among Chinese women due to a Korean Wave in fashion and beauty.
China is by far the largest market for Korean beauty items. For the first eight months of this year, the Korean exports of cosmetics to China were US$290.63 million, up almost 70 percent from the same period last year. The share of Chinese exports in total is as high as 28 percent. Including other markets within the Greater Chinese Region such as Taiwan and Hong Kong, the share rises to 55 percent.
The current tariff duties assessed in China on Korea-originated cosmetic items are about 6.5-10.0 percent. Once the tariff is gone, it will be of great help to the suppliers for their bottom line. It will also increase the total export volume to China.
An official with AmorePacific, Korea's largest cosmetic purveyor, said, "As most Korean cosmetics companies focus on mid- to high-priced items in China, I don't think the tariff-cutting effect to help a lot in increasing sales in China. But it will certainly be a positive factor in the long run."
Article provided by The Korea Economic Daily
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