Korean Beauty Trends & Industry News: 24-01-05

Renumedi Fined $7.5 Million for Exceeding Commission Limits

Renumedi, a multi-level marketing (MLM) cosmetics company in South Korea, has been fined approximately $7.5 million (8.99 billion KRW) by the Korea Fair Trade Commission for paying commissions to salespeople beyond the legal limit.

The company violated door-to-door sales laws from 2019 to 2021 by paying commissions exceeding 35% of the total product price supplied to salespeople, with rates of 47.93% in 2019, 45.55% in 2020, and 39.55% in 2021. Such high commissions can promote speculative behavior and harm consumers.

The Fair Trade Commission has decided to take this stringent action considering the duration and seriousness of Renumedi's violations. Registered in Seoul since 2017, Renumedi sells cosmetics and health supplements and, as of 2022, ranks 50th in sales with over 31,586 salespeople.

Former Intercos Korea Executive Sentenced for Cosmetic Technology Theft

A former executive of Intercos Korea, identified as Mr. A, has been sentenced to 10 months in prison for stealing and using the company's cosmetic manufacturing technologies.

From 2017 to 2020, Mr. A leaked technologies for products like sunscreens, masks, and lipsticks, which were then utilized in Intercos Korea's product development. The Supreme Court of South Korea upheld the lower court's sentence, citing the act was committed for personal gain.

However, the court overturned a fine imposed on Intercos Korea, as the company did not use the stolen information, and Mr. A's actions were considered an attempted but uncompleted offense. This case highlights the need for strict enforcement of laws protecting corporate trade secrets and technology in the beauty industry.

Jeju Huanggeun Successfully Commercialized as Advanced Cosmetic Ingredient

Huanggeun, a native plant of Jeju Island, South Korea, has been successfully developed and commercialized as an advanced cosmetic ingredient. This breakthrough was achieved through joint research by Jeju Technopark (JejuTP) and UCEL Co., Ltd., transforming the once-endangered Huanggeun into a valuable skin health component.

The project, "Development of Dermacosmetic Products Using Jeju Natural Resources and Alternative Animal Testing Methods," was completed in 2022, leading to a joint patent filing and inclusion of Huanggeun cell culture in the International Cosmetic Ingredient Dictionary (ICID). The research involved a two-stage cultivation process, enhancing biomass and active ingredients, including a significant increase in hyaluronic acid in the skin. JejuTP emphasizes the potential for commercialization and added value from this development.

Since 2020, JejuTP has been building a cell culture bank for Jeju's unique and rare plants, supporting the sustainable growth of the biotech industry and showcasing the harmony between Jeju's pristine environment and the beauty industry.

Comments

Modamoda's Dye Shampoo: Banned but Eyeing Market Return

Defining Modamoda Shampoo Modamoda Shampoo, launched in Korea in 2021, was designed to naturally dye your hair through regular washing. The product's creator, Modamoda's CEO, was inspired by how bananas darken over time. The shampoo promised to avoid harmful dye ingredients such as PPDA, 5-diamine, and toluene sulfate. Instead, it was marketed as a 'self-coloring' shampoo, offering a fresh approach to hair color. Modamoda's Success Story In just five months, Modamoda generated domestic sales of 32 billion won and international sales of 28 billion won, becoming a sensation. The product's popularity even prompted criticism from rival companies, who accused Modamoda of exaggerated advertising. In March 2022, the company made an agreement with Target to sell their product in about 1900 stores across the U.S. Their success was further confirmed when they topped the Cosmoprof North America Awards 2022, standing out amongst 1,170 hair brands. The Hurdle: THB Ingredie...

The Modamoda Journey: From Safety Controversies to Reinvention

The Meteoric Rise and Subsequent Setback of Modamoda Launched in Korea in 2021, Modamoda Shampoo revolutionized the haircare market with its "self-coloring" formula, achieving billions in both domestic and international sales. But its rapid ascent was interrupted by safety concerns over 1-2-4-THB (1-2-4-trihydroxybenzene), an ingredient restricted by the European Union and scrutinized by food and drug administrations in both Korea and the U.S. due to its potential genotoxic effects. Emerging from the THB Controversy: A Reformulated Approach To navigate the murky waters of regulation, Modamoda returned to the lab. The company designed a new formula excluding THB, focusing on safer ingredients like 'Black Change Complex EX' and 'Polyphenols.' This new formula went through stringent safety verification and even secured an 'Excellent' rating from the German Dermatest. Yet, the new formula has ignited fresh debates, as it includes 'Black 401,' a sy...

Helena Rubinstein: Unveiling the Life and Legacy of a Cosmetics Pioneer

Helena Rubinstein (1872-1965) was more than just a name in the world of beauty; she was a trailblazer who revolutionized the cosmetics industry. From her modest beginnings in Poland to her reign as a global beauty titan, Rubinstein's journey remains an inspiration. Through her brand, Rubinstein pushed boundaries, championing the idea that beauty could be a powerful tool for women's empowerment. From Humble Beginnings to the Cosmetics Throne Helena Rubinstein was born in 1872 in Krakow, Poland. Leaving her homeland at a young age, she initially moved to Australia, where her career in the cosmetics industry began. Rubinstein noticed the harsh effects of the Australian sun on the skin and developed a cream to protect and moisturize it. This innovation led to the launch of Helena Rubinstein's first product, Valaze, a face cream formulated with herbs from the Carpathian Mountains. The success of Valaze was pivotal in Rubinstein's career, propelling her into the global cosme...

Pabby Cosmetics

Search This Blog