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Korean Beauty Trends & Industry News: 23-08-03

Pabby cosmetic logo with a makeup woman poster

1. TBS Fined for Broadcasting Banned Cosmetic Advertisements


Last October, TBS faced an investigation by the Broadcasting and Telecommunications Commission for allegedly violating commercial advertising regulations. Fines and penalties of KRW 23.03 million were imposed for broadcasting prohibited advertisements for the cosmetics brand 'Gahi' and advertisements for 'Dong-A Expo.' The violation was deemed a breach of the Broadcasting Act.

The issue has created a divide in opinions regarding the legitimacy of the punishment. Discussions continue about the possibility of applying the Media Arbitration Act and the level of sanctions for commercial advertisements. Challenges facing TBS include funding support withdrawal and rumors of key host departures. These problems may have significant impacts on various TBS programs. 

(Note that TBS is a public broadcasting station in Seoul, South Korea, initially known as "Seoul Traffic Broadcasting," and primarily serves the city and surrounding metropolitan area.)


2. Daiso: Becoming the 'Cost-Performance Hotspot' for the MZ Generation


Daiso, a chain of stores operated by Aseung Daiso, has secured a position as a 'cost-performance hotspot' among Millennials and Generation Z. The store's popularity began with cosmetics, offering quality products at reasonable prices.
  • Cosmetics Success Story: Collaboration with leading cosmetics companies led to a 70% sales increase in the first half of the year. (Such as Nature Republic, Cosmax, Kolmar, Amore Pacific, LG)
  • Connecting with MZ Generation: Daiso resonates with young consumers through affordability, accessibility, and various pricing strategies.

Daiso's quick response to market trends and consumer demands, especially in cosmetics, is key to its popularity and continued success.


3. Legislation Proposed to Mandate Expiry Date Labeling on Cosmetics


Kim Min-seok, a member of the Democratic Party, introduced a bill to require the labeling of cosmetics' expiration or usage period on both primary and secondary packaging. The amendment aims to enhance consumer convenience and safety by mandating labels on both levels of packaging. Expectations are high for improvements in consumer benefits and safety.


4. Hwahae Launches 'Clinical Trial Matching Beta Service' to Support Small Beauty Brands


Mobile beauty platform Hwahae has launched a 'clinical trial matching' beta service to connect small and emerging brands with clinical testing agencies. This service is designed to increase competitiveness and growth by validating product efficacy.

Hwahae’s service provides quick and easy access to suitable clinical trial quotes and offers customized trial designs and data-driven consulting. Discounts and mileage points are available for brands that apply in August of 2023. The service aims to solve information asymmetry in clinical testing and support efficient product launches. Details are on Hwahae's official business blog.



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