In a strategic move aimed at bolstering the export competitiveness of K-Beauty, Kolmar Co., Ltd., the only cosmetics manufacturer to participate in the government-led export finance support program, has collaborated with the Korea Export Insurance Corporation and Woori Bank.

This initiative aims to alleviate the financial burdens on small and medium-sized enterprises (SMEs) and partners, enhancing the overall stability of export supply chains.

On October 14, 2023, in a signing ceremony held at the headquarters of the Korea Export Insurance Corporation in Jongno, Seoul, key stakeholders including Kim Jung-kwan, Minister of Trade, Industry and Energy; Jang Young-jin, President of the Korea Export Insurance Corporation; Choi Hyun-kyu, CEO of Kolmar; and Jeong Jin-wan, CEO of Woori Bank, convened to formalize their commitment.

Under the terms of this memorandum of understanding (MOU), Kolmar Group’s three subsidiaries—Kolmar Co., Ltd., Kolmar BNH Co., Ltd., and Yeonwoo Co., Ltd.—will collectively contribute 10 billion KRW (approximately USD 7.58 million).

This initiative will provide a total of 174 billion KRW (around USD 131 million) in financial benefits to over 160 partner SMEs.

Selected companies will receive various forms of financial support, including guarantee fee subsidies, expanded guarantee limits, and preferential guarantee periods of up to three years, thereby reducing collateral burdens while ensuring operational funds critical for exports are more accessible.

This partnership is part of the Export Supply Chain Enhancement Guarantee Program introduced by the Korea Export Insurance Corporation, designed specifically to strengthen the export supply chains of SMEs.

By leveraging combined resources from major domestic corporations and financial institutions, the program aims to provide preferential guarantees to participating SMEs, supported further by loans from affiliated banks.

Notably, Kolmar holds the unique position as the sole participating entity in the K-Consumer Goods sector for beauty and healthcare among cosmetics manufacturers.

The continued involvement of Kolmar’s subsidiaries not only reinforces their financial commitment but also broadens the scope of support available to partner SMEs across health supplements, packaging, and more.

Given the growing uncertainties in the global market stemming from geopolitical conflicts and evolving U.

S. tariff policies, the need for secure funding and stable supply chains for SMEs has become increasingly crucial.

Eligible companies will be nominated based on applications from customers and partners, with final selections made following evaluations by the Korea Export Insurance Corporation.

A representative from Kolmar remarked, "We are honored to participate in this significant program aligning with government export support initiatives.

Leveraging our experience in fostering collaborative growth with SMEs, we aim to equip promising enterprises with the competitive edge necessary to thrive in the global market. "

This initiative represents not just a financial relief effort but also a strategic alliance aimed at enhancing the global standing of K-Beauty, further solidifying South Korea's position in the international cosmetics arena.