Despite negative growth in the second quarter in private spending, purchases of makeup and skincare products accounted for 0.7 percent of last year's per capita gross domestic product. That amounts to US$130 per person.

The figure is similar to that of Japan and France -- countries known for their high consumption of cosmetics.

The main reason is the ever-rising standard of beauty in Korea, especially for females. This is apparent from the rising number of people having plastic surgery while more high-end cosmetic lines are available than ever.

According to the Health Insurance Review and Assessment Service, the number of hospitals conducting plastic surgery doubled over three years between 2004 and 2007 to about 1,000 clinics nationwide.

Another reason is higher income. When a country's per capita GDP is near or at $20,000, such as Korea's, people tend to show off their newfound wealth.

One way of doing that is by purchasing things they could not afford before. This also explains how brands get away with price hikes.

Experts forecast the rising demand for cosmetics will continue, as factors boosting demand are expected to remain constant.

Arirang News.