Cosmetics Trade Deficit Grows as Imports Surge

Exports of cosmetics jumped to an all-time high in the first half of this year, but imports skyrocketed at the same time, keeping the trade balance in the red.

According to Statistics Korea on Monday, the Korean cosmetics industry posted record high exports of US$236.17 million in the first six months, up 38.7 percent from a year ago.

The number of importing countries climbed to an all-time high of 119, and the industry is on-track to achieve annual exports of over $400 million for the first time this year.

Korean cosmetic goods were mostly exported to Asia, with the top five destinations China, Japan, Hong Kong, Taiwan and the U.S.

But due to the economic recovery in the first half, imports also increased dramatically, causing the trade deficit to increase 26 percent on-year to $140 million.