The Korea Trade-Investment Promotion Agency (KOTRA), an agency under South Korea’s Ministry of Trade, Industry and Energy, is proactively taking the lead in expanding export channels for Korean small and medium-sized enterprises (SMEs). The agency does this via its 129 trade offices worldwide that maintain a mid- to long-term cooperation system with one or more local distribution networks to help SMEs expand their overseas presence.

According to sources from the export industry on Tuesday, Korean cosmetics manufacturer The Goodskn Company successfully established itself in the Ghanian market with KOTRA’s help. The company, founded in 2021, focuses on research for diverse skin tones.

KOTRA’s Trade Office in Accra, Ghana’s capital city, recognized the potential of the local cosmetics market in the West African country where 57 percent of the population is under 25 years old, indicating significant growth potential. The specialized products of The Goodskn for diverse skin tones were considered competitive in the Ghanaian cosmetics market, which is dominated by U.S. and U.K. companies.

Leveraging the popularity of the Korean Wave in Africa, the Korean company established specialty stores for cosmetics and collaborated with skincare stores to build a local distribution network. The Goodskn Company saw its exports to Ghana increase 124 times from $1,500 in 2021 to $183,500 in 2023 thanks to these localization efforts.

In the U.S. consumer goods market, KOTRA’s cooperation with a Korean food company bore fruit. KKOKDAM, founded in 2016, produces tea bags using domestically grown flowers and focuses on exporting to countries with high consumption of high-quality herbal teas.

The company saw its export revenue to the United States increase sevenfold from $63,500 in 2021 to $433,800 in 2023, thanks to KOTRA’s support in placement and promotions on global online platforms.

KOTRA plans to continue assisting SMEs in directly exporting via major online platforms, including Amazon.com., Qoo10 Japan, and Shopee, without relying on distributors in 2024. The goal is to maximize results by providing tailored support based on each company’s export capabilities.

“K-consumer goods have great potential to increase exports moving forward, and we will continue to create growth opportunities for Korean companies via events such as export consultation meetings organized by our organization and the industry ministry,” Jung Oi-young, head of KOTRA’s Innovative Growth Division, said.

By Kim Hee-su and Yoon Yeon-hae

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]