CJ OLIVE YOUNG has developed a comprehensive shared-growth initiative to support emerging and small and medium-sized beauty companies at every stage of their journey toward becoming global brands, while further strengthening its compliance management framework. OLIVE YOUNG announced that it would invest approximately KRW 300 billion over the next three years in shared-growth initiatives and measures to strengthen compliance management, with implementation beginning in phases in January. The initiative aims to build a sustainable and healthy K-beauty industry ecosystem. As part of its shared-growth efforts, OLIVE YOUNG has established a KRW 100 billion fund in partnership with IBK Industrial Bank of Korea to ease the financial burden on business partners, particularly the challenge of securing funding. The fund provides interest support that enables small and medium-sized partners to access loans at reduced rates. The fund offers an annual interest rate reduction of 2.39 percentage points, cutting borrowing costs by up to half. A company borrowing the maximum KRW 1 billion can save approximately KRW 24 million in annual interest payments. Fifty partner companies that applied in the first round will begin receiving benefits in January. OLIVE YOUNG plans to expand the program to cover 100 companies annually by the end of 2024. OLIVE YOUNG will also extend its accelerated payment terms to all business partners. Previously introduced in 2021 for companies supplying products through direct purchasing, the policy shortens payment terms from 60 days to 30 days. The company also plans to strengthen its compliance management framework across its business operations as part of its broader commitment to ESG management. Key measures include establishing an internal Compliance Management Committee, appointing external committee members, and pursuing ISO certification for compliance management. In addition, OLIVE YOUNG will expand its investment in the broader K-beauty industry ecosystem to KRW 50 billion over the next three years. The company aims to continuously identify and nurture new brands and products entering the beauty market, then help them expand internationally. Its support will span the entire business process, from planning and research and development (R&D) to sales and marketing. At the market-entry stage, OLIVE YOUNG plans to encourage aspiring entrepreneurs to bring their ideas to life through initiatives such as a K-beauty startup competition and investments in emerging brands, including support for initial operating costs and entry into OLIVE YOUNG’s online store. As brands grow, the company will provide further assistance through R&D funding, participation in overseas beauty conventions, and export concierge services tailored to the needs of small and medium-sized beauty businesses. OLIVE YOUNG expects these initiatives to further accelerate the growth of the K-beauty industry, which has recently regained momentum in global markets. “Drawing on 25 years of experience operating a retail platform built around small and medium-sized cosmetics brands, a model that did not previously exist, we aim to serve as a bridge that helps create more success stories for these companies on the global stage,” an OLIVE YOUNG spokesperson said. South Korea’s cosmetics exports, which stood at around KRW 2 trillion to KRW 3 trillion annually in the early to mid-2010s, surged to approximately KRW 11 trillion (US$8.47 billion) last year. This growth reflects the acceleration of K-beauty brands as an ecosystem has developed in which a diverse range of smaller brands can establish themselves and thrive. With purchasing data from its 13 million membership customers, OLIVE YOUNG has played a leading role in identifying and shaping market trends and has become an important gateway to global markets for K-beauty brands. Many brands that first gained recognition among consumers in Korea and overseas through OLIVE YOUNG have subsequently built international awareness through K-pop star content and social media. Notable examples include iFamilySC, which achieved rapid growth after its color cosmetics brand rom&nd entered OLIVE YOUNG in 2018 and has since become a publicly listed company, and ma:nyo (Manyo Factory), which expanded internationally and broadened its product portfolio on the strength of its bestselling cleansing oil before going public last year. Other brands, including CLIO, known for its cushions and other makeup products, and VT Cosmetics, recognized for its at-home skincare products such as essences, have also gained recognition among international consumers as must-have finds at OLIVE YOUNG. Their overseas sales now account for 30% to 60% of total revenue. Alongside its efforts to nurture the K-beauty industry, OLIVE YOUNG will allocate approximately KRW 50 billion over the next three years to initiatives supporting underserved communities, revitalizing local economies, and promoting environmental sustainability. As part of these efforts, the company plans to expand its Pink Box Sharing Campaign, which provides essential hygiene products to adolescent girls from underserved communities, from its existing focus on Seoul to a nationwide program in the first half of the year. OLIVE YOUNG is also developing local community support programs linked to the marketing of its private-label products. Other initiatives will include expanding the use of paper-based packaging and cushioning materials and launching environmental campaigns to encourage more sustainable consumption. “We will work alongside OLIVE YOUNG, a homegrown beauty platform, to expand successful models of brands thriving in overseas markets and help establish cosmetics as one of South Korea’s leading export categories,” said Sun Jung Lee, CEO of OLIVE YOUNG. "Through these efforts, we aim to play a catalytic role in ushering in a new era of global growth for the K-beauty industry."