Sunscreen Panic, Innisfree’s Downfall & a Legal Win for Beauty of Joseon

The Korean beauty industry is buzzing with major developments - from government-backed investments to consumer panic over sunscreen. In this week’s K-Beauty news roundup, we’re covering the biggest stories shaping the future of Korean skincare.

Whether you're a beauty entrepreneur, skincare lover, or K-Beauty fan, let's take a look at what's shaking in Korean beauty. 

K-Beauty News: Korea Launches ₩40 Billion Fund to Safeguard K-Beauty’s Global Future

The South Korean government has unveiled a ₩40 billion fund (approximately USD $27 million) in partnership with leading beauty manufacturers including Cosmax and Kolmar Korea. This strategic initiative aims to shield the K-Beauty industry from global economic uncertainty and shifting trade dynamics.

The fund will focus on:

• Advancing beauty tech (AI-based formulation tools, skin analysis devices)
• Enhancing local ingredient and raw material development
• Offering financial support for K-Beauty startups expanding overseas
• Promoting Korean skincare brands at global trade shows

Why it matters: Smaller indie brands - those without conglomerate backing - are most vulnerable to tariff hikes and disrupted supply chains. This fund signals a commitment to innovation, self-reliance, and sustained international growth for Korean cosmetics.

Sources: Ministry of SMEs 

K-Beauty News: Americans Are Panic Buying Korean Sunscreen (Again)

With talks of 25% import tariffs looming, US consumers are hoarding Korean sunscreens - some purchasing 10+ tubes of their favorite SPFs. Reddit, TikTok, and Amazon reviews are filled with concerns about rising prices and potential shortages.

So, why the obsession with Korean sunscreens?

• Lightweight, breathable formulas
• No white cast
• High-performance ingredients like niacinamide, centella asiatica, and hyaluronic acid
• Innovative textures developed by world-leading manufacturers such as Kolmar and Cosmax

With tariffs possibly affecting prices, many shoppers are building a stockpile of their holy grail K-Beauty SPF. It’s another sign of how strongly Korean sun care has resonated with global consumers.

Source: Washington Post, Cosmetics Design

K-Beauty News:  Cosmax Sparks Controversy With Launch of Own Beauty Brand

ODM giant Cosmax, known for manufacturing products for hundreds of beauty brands, launched its own direct-to-consumer label 3WAAU back in 2023. It's starting to become a problem for some in the industry. 

Why it’s controversial:

• Cosmax has access to proprietary data, product timelines, and formulas from client brands
• Industry insiders worry about potential conflicts of interest and ethical boundaries
• Brands working with Cosmax may now find themselves competing against their own manufacturer

Some argue vertical integration is the future of beauty manufacturing. Others believe it blurs lines of trust between ODMs and their brand partners. Either way, it marks a bold shift in the K-Beauty business model. 

Source: "네가 화장품까지 파는 건...좀 아니지 않니?" 코스맥스의 행보

K-Beauty News: Innisfree’s Downfall

Once a leader in the global K-Beauty boom, Innisfree has seen a sharp 84.15% drop in operating profit. Following a major rebrand in 2023 - trading its signature earthy identity linked to Jeju Island for a modern green aesthetic - the brand is struggling to regain traction.

What went wrong? Well, according to customers a lot. The main complaints seem to be: 

• Loss of brand identity tied to Jeju Island ingredients; 
• Rising product prices without clear value improvement; 
• Packaging that no longer resonates with loyal fans; 
• Increased competition from indie brands like Beauty of Joseon, Isntree, and Round Lab

Consumers are shifting toward clean, high-performance skincare with strong brand storytelling. Without its original charm and value-based focus, Innisfree risks becoming irrelevant.

Source: 서울경제 TV 

K-Beauty News: Beauty of Joseon Wins Trademark Dispute in India

In positive news for indie Korean skincare brands, Beauty of Joseon successfully defended its trademark in India. After discovering a third-party had preemptively registered a near-identical trademark without real usage, the brand filed a rectification petition.

The court ruled in favor of Beauty of Joseon, officially cancelling the fraudulent registration.

This win underscores the importance of global trademark protection for Korean beauty brands expanding into markets like India. For indie labels, it's a reminder to register trademarks early when scaling internationally.

Source: JP Associates

Listener Q&A: Best Moisturizers for a Damaged Skin Barrier

This week, a listener reached out after reacting to a product that compromised her skin barrier. She was using Illiyoon Ato Ceramide Moisturiser, but found it lacked sufficient hydration.

Here are some K-Beauty moisturizers I recommended for dry, sensitive or damaged skin:

• Jelly Ko Bubble Tea Steam Cream – deeply hydrating, barrier-supporting, and lightweight

• Zeroid Intensive Cream MD – a dermatologist-favorite from Korea’s medical skincare category

• Atopalm MLE Cream – ideal for kids or extra-sensitive skin

• Avene Cicalfate (as a sealant over your usual moisturiser, not on its own)

K-Beauty Product Recommendations: One Must, One Meh, One Miss

Here’s my latest product breakdown:

One Must: COSRX The Vitamin C 23 Serum

• Potent, brightening, and very surprisingly given my skin type and skin issues (including rosacea!) non-irritating
• No odd scent, absorbs quickly
• Great value for 23% ascorbic acid

One Meh: Beauty of Joseon Red Bean Pore Mask

• Decent but not exceptional results - it definitely didn't clear as many blackheads as other pore masks.
• Thankfully no irritation or breakouts after using it 
• However, the two big things letting it down in my opinion are:
  • Packaging feels cheap, the plastic spatula they include with it is ineffective - it's completely useless for actually spreading the mask on your face. Just another piece of junk that ends up in the trash. 
  • Messy rinse-off experience that leaves your sink covered in little red bits. A pet peeve of mine with clay masks. 

One Miss: Dr. Althea Pure Grinding Cleansing Balm

• This product angered me - honestly it is just too small. I didn't even get a month of nightly uses out of it.
• It has  bulky, wasteful packaging and no refill option
• In terms of its cleansing abilities I thought it had a mediocre performance given all the hype around this product on TikTok. 

Jelly Ko Behind the Scenes: The Best & Worst of 2024 (So Far)

The worst?

• We lost thousands in damaged inventory because our US warehouse moved premises without telling us! Our products got delivered to their "old address" and were never able to be recovered. 
• When we asked them to take responsibility for this they kicked us out! 
• As a result of that, we were forced to relocate warehouses, which cost us dearly in terms of time, money and stress
  
• Supply delays pushed back our timelines

The best?

• We’re finally launching Jelly Ko in the UAE after 18 months of preparation
• We've got local fulfillment and exciting new partnerships on the way

We can’t wait to connect with our customers across the UAE and GCC and share our fun but functional approach to K-Beauty.

Work With Us: Scale Your Beauty Brand the Korean Way

Beyond running Jelly Ko, I also lead a K-Beauty consultancy through my first business, STYLE STORY. If you're a founder, spa owner, retailer, or beauty entrepreneur wanting to tap into Korean skincare, we can help.

Our services include:

• Brand strategy sessions
• Skincare product development
• Sourcing and lab introductions
• One-on-one consulting

Whether you're building a brand or scaling one globally, we offer guidance rooted in real industry experience. We'e saved our clients tens of thousands of dollars and expensive mistakes with our valuable insights. Learn more here. 

Final Thoughts - Sunscreen Panic, Innisfree's Downfall & a Legal Win for Beauty of Joseon

From government funding and sunscreen hoarding to industry shake-ups and brand missteps, K-Beauty is evolving fast. But the core of its global appeal—innovation, ingredient-first formulas, and sensorial experiences—remains stronger than ever.

Your turn:

• Are you stocking up on Korean SPF?
• Do you still use OG brands like Innisfree?
• What’s your take on ODMs like Cosmax launching their own brands?

Join the conversation in our Facebook group The Korean Beauty Show Podcast Chat or DM me on Instagram @lauren_kbeauty.

Until next time, stay curious, stay hydrated, and keep your SPF within reach!

STYLE STORY - Your Go-To for Kbeauty Since 2014