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.

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