○ Gyeonggi Province to provide up to KRW 2 million in product registration support in response to U.S. cosmetics regulation (MoCRA)
○ Currently recruiting 50 SME cosmetics exporters based in Gyeonggi Province

Gyeonggi Province is offering financial support of up to KRW 2 million per company to small and mid-sized cosmetic exporters in the province to assist with product registration costs under the U.S. Modernization of Cosmetics Regulation Act (MoCRA).

On July 24, Gyeonggi Province announced plans to expand the “2025 Gyeonggi Non-Tariff Barrier Response – MoCRA Registration Support Program” to hone local SMEs’ competitiveness in exports to the U.S.

This program was established in response to the growing protectionist trade stance of the United States and the full implementation of MoCRA in July 2024. MoCRA mandates the registration of all cosmetics distributed in the U.S., along with their manufacturing facilities, with the U.S. Food and Drug Administration (FDA), as well as proof of product safety. Due to its complexity and associated costs, the regulation presents a substantial barrier to market entry for Korean SMEs.

To help businesses strengthen their ability to navigate such non-tariff barriers, Gyeonggi launched the program earlier this year through the Gyeonggi FTA Global Business Center (Gyeonggi FTA Center) and has since supported five companies. The province has now expanded the number of beneficiaries to 50 through a supplementary budget.

Eligible companies must be SMEs in the cosmetics sector with a business site or factory located in Gyeonggi-do, with export earnings of USD 20 million or less in 2024. Up to KRW 2 million will be provided per company to cover MoCRA registration-related expenses, with a total of 50 companies to be selected. The subsidy program will be available until the allocated budget is exhausted.

Interested companies can apply or find detailed information via the Gyeonggi Enterprise Portal (www.egbiz.or.kr) or the Gyeonggi FTA Center website (www.ggfta.or.kr). Inquiries may be directed to the Gyeonggi Northwest FTA Center at +82-31-995-7490.

Gyeonggi Province International Trade Director Park Kyung-seo stated, “We are offering support for MoCRA registration to help local businesses maintain export stability amid trade uncertainty stemming from the United States… Building on this support, we will continue to empower companies based in Gyeonggi to proactively respond to regulatory shifts in various countries, as well as the U.S., ultimately enhancing their global competitiveness.”