OliveYoung will invest 300 billion won in K-beauty over three years. The purpose is to foster new and small-sized cosmetics companies and establish a law-abiding and win-win management system.
OliveYoung and IBK Industrial Bank of Korea created a win-win fund worth 100 billion won. We plan to apply a reduced interest rate of around 2.39% per year to small and medium-sized partners to help facilitate smooth financing. If a company borrows the maximum limit of 1 billion won, annual interest will be reduced by 24 million won. Starting this month, Olive Young will provide support to 50 of the companies opening stores. The goal is to provide benefits to a total of 100 small and medium-sized businesses by this year.
In addition, Olive Young is working to grow K-beauty. We will invest 50 billion won over three years to help discover and develop beauty brands, overseas marketing and distribution, and research and development. We plan to open a K-beauty startup contest to lead the growth of new brands.
Next, 50 billion won was allocated for projects to save people, regions, and the environment. The Pink Box Movement, which delivers sanitary products to underprivileged female youth, will be expanded nationwide. A local win-win program linked to Olive Young’s own brand will also be established. We will increase paper packaging and cushioning materials and launch an eco-friendly campaign.
An OliveYoung official said, “Cosmetic exports stayed in the 2 to 3 trillion won range in the early and mid-2010s, but recorded about 11 trillion won last year. “The K-beauty industry has grown rapidly with small and medium-sized brands leading exports,” she said.
She continued, “I have accumulated a variety of know-how by operating a cosmetics platform for 25 years. “This is a strategy to spread the K-beauty success story by promoting competitive beauty brands to the global market.”