Guinness Atkinson Launches K-Beauty ETF as Korean Cosmetics Exports Hit $12.6 Billion

K-Beauty's $12.6 Billion Export Boom

The launch comes during a record-breaking year for South Korea's cosmetics industry.

Exports reached approximately $12.6 billion in the first 10 months of 2026, already surpassing the country's full-year 2025 record of $11.4 billion, based on figures from the Ministry of Food and Drug Safety and the Ministry of Trade, Industry and Resources.

October alone saw exports surge 57.5% year over year to $1.44 billion, setting a new record for the month.

South Korea had already become the world's second-largest cosmetics exporter in 2025, overtaking the United States, according to its Ministry of Food and Drug Safety.

The expansion is also becoming increasingly global, with South Korea reporting growing demand across the United States, China and the European Union.

Beyond traditional skincare and makeup, the industry's growth opportunities are expanding into haircare, bodycare and medical aesthetics, broadening the range of businesses positioned to benefit from K-beauty's international success.opportunity is increasingly spread across different products, markets and businesses.

Inside KBTY: What Does the ETF Actually Own?

Rather than betting exclusively on the next viral skincare brand, KBTY seeks to capture companies operating throughout South Korea's beauty value chain.

The ETF follows the Indxx K-Beauty Index, targeting businesses involved in cosmetics, skincare, manufacturing, packaging, distribution and medical aesthetics.

As of November 12, 2026, KBTY reported 26 holdings, with its largest positions illustrating the breadth of the strategy.

Its biggest holding is Amorepacific (8.64%), one of South Korea's leading cosmetics groups, followed by PharmaResearch (7.52%), a specialist in medical aesthetics and regenerative treatments.

Manufacturing is another major component. Kolmar Korea (6.76%), a prominent cosmetics contract manufacturer, is the fund's third-largest position, while Cosmax (4.87%) also ranks among its top 10 holdings.

The portfolio also includes APR (6.19%), known for its skincare brands and beauty devices, and Pum-Tech Korea (5.95%), which supplies packaging to the cosmetics industry.

Medical aesthetics companies feature prominently as well, including Dongkook Pharmaceutical (5.44%), Hugel (5.15%), Medy-Tox (4.35%) and U.S.-listed Evolus (4.19%).

Together, the 10 largest positions account for approximately 59% of the portfolio, highlighting both the fund's concentration and its exposure to different parts of the beauty industry.

A skincare brand's success may depend on individual products remaining popular, while manufacturers, packaging suppliers and medical aesthetics businesses can benefit from broader industry demand.

KBTY effectively gives investors access to both the consumer-facing brands and the companies operating behind the scenes.

Why Korea's Manufacturing Advantage Matters

One of the biggest advantages behind K-beauty's international success is the speed at which Korean companies can develop and launch new products.

South Korea has built a specialized contract manufacturing ecosystem that allows brands to move from product concept to store shelves in as little as three to six months, according to Guinness Atkinson.

That speed has become particularly valuable in an industry where consumer preferences can change almost overnight, often driven by social media, influencers and emerging skincare ingredients.

Instead of investing heavily in their own factories, beauty brands can work with original design manufacturers, or ODMs, that handle product development, formulation and production.

This allows smaller brands to introduce new products quickly and compete internationally without the manufacturing infrastructure traditionally required by major cosmetics companies.

It also creates investment opportunities beyond the brands themselves.

Manufacturers such as Cosmax and Kolmar Korea can benefit from increased production demand, while packaging specialists like Pum-Tech Korea participate in the industry's expansion regardless of which individual brands become the next global success.

Can KBTY Turn a Beauty Trend Into an Investment Opportunity?

The launch gives U.S. investors a more targeted way to access South Korea's beauty industry, which typically represents only a small portion of broader Korean equity or emerging market ETFs.

And the industry's growth story increasingly extends beyond cosmetics.

Medical aesthetics, dermatological treatments and at-home beauty devices are becoming important areas of expansion, while Korean companies continue to develop new products for international consumers.

Analysts are also anticipating further earnings growth.

According to Yuanta Securities estimates reported by Health Chosun, the combined operating profit of nine major South Korean cosmetics companies could reach 3.64 trillion won in 2027, representing a 28% increase from the brokerage's 2026 estimate.

Still, strong export growth does not automatically translate into higher stock prices.

KBTY is a concentrated thematic investment exposed to changing consumer preferences, competition, Korean equity valuations, currency fluctuations and potential trade disruptions.

Its appeal lies in offering investors a dedicated vehicle to participate in an industry whose international expansion is increasingly supported by manufacturing capabilities, distribution networks and product innovation.

“For thirty years, Korea has been quietly laying the foundation for an export titan by backing its cultural boom with unmatched manufacturing speed, regulatory efficacy, and digital-first innovation,” said Jim Atkinson, CEO, Guinness Atkinson Asset Management. “What looks like an overnight sensation on social media is actually a structural shift in global consumer behavior. With KBTY, we are excited to give investors a dedicated vehicle to participate directly in the rapid global expansion of K-beauty.”

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.