THE WHAT? South Korean President Lee Jae-myung has called for accelerated trade negotiations with Brazil to reduce the 25 percent tariff on Korean cosmetics imports, seeking to strengthen the competitiveness of K-Beauty brands in one of Latin America’s largest cosmetics markets.
THE DETAILS Speaking at a Cabinet meeting, President Lee urged Foreign Minister Cho Hyun to prioritise negotiations with Brazil following discussions with Brazilian President Luiz Inácio Lula da Silva. Lee highlighted the commercial challenges created by the 25 percent import tariff, explaining that relocating manufacturing to Brazil was not a viable alternative because local consumers strongly associate Korean cosmetics with products manufactured in South Korea. Cho indicated that the political environment could support further negotiations. Lee also called for stronger international promotion of the K-brand, including government-backed initiatives to increase the global visibility of Korean products and businesses.
THE WHY? The negotiations highlight the growing importance of trade policy in supporting South Korea’s cosmetics exports and international market expansion. Reducing Brazil’s import tariff could improve pricing competitiveness, strengthen distribution opportunities and support Korean manufacturers seeking to expand across Latin America. The emphasis on Korean-made products also demonstrates the commercial value of country-of-origin branding, making tariff reductions particularly important for companies seeking to maintain domestic production while increasing overseas sales.
Source: Seoul Economic Daily
