[Good Job SME](18) Helping Export Paths for 'K-Beauty' to 50 Countries Worldwide

Hwang Jong-seo, CEO of Asia BNC
Started Cosmetics Distribution Business Helping Chinese Students
Launched Own Hair and Body Care Brand

Editor's NoteSmall and medium-sized enterprises (SMEs) are the backbone of the national economy. Numerically, 99% of companies in our country are SMEs. SMEs are the workplaces of the people. 81% of workers are employed by SMEs. When SMEs falter, our economy shakes and people's jobs are threatened. However, negative perceptions of SMEs persist. Low treatment and unguaranteed 'work-life balance,' and uncertain future growth potential. Despite the employment crisis, young people do not choose SMEs. There are people fighting these prejudices and creating good jobs and SMEs. They develop technologies that can compete with large corporations. They also devote efforts to building sound financial structures and corporate cultures to provide stable living bases for employees. On the ground, there is the struggle of SME owners to fulfill corporate social responsibility while nurturing companies where employees can take pride. Asia Economy visited the field and directly heard their voices.

Hwang Jong-seo, CEO of Asia BNC.

There is an SME that supplies 'K-Beauty' cosmetics to 50 countries worldwide, including the U.S., Europe, South America, China, and Japan. It is Asia BNC, a cosmetics distribution company established in 2016. Most domestic small and medium cosmetics brands popular among foreigners, such as Banila Co, Dr. Jart, and Innisfree, are all clients of Asia BNC. At one point, they handled over 200 brands. Recently, they also launched their own brands, including shampoo, hair oil, and treatments.

At the Asia BNC headquarters located in Gwangmyeong Technopark, Gwangmyeong-si, Gyeonggi Province, CEO Hwang Jong-seo said, "We collaborate with overseas local partners to quickly grasp rapidly changing local cosmetics trends," and introduced, "We act as a bridge to help Korean small and medium cosmetics brands adapt well to these market changes and export."

CEO Hwang's entry into the cosmetics distribution business is unique. After graduating from university, he worked as a chemical engineer and served as the inaugural president of the nonprofit private organization 'Chinese Language Volunteer Society.' He mainly volunteered to help Chinese international students and migrant women settle in. During this time, a Chinese international student with poor Korean asked him to purchase cosmetics on their behalf. He contacted a cosmetics company, bought 5 million won worth of cosmetics, and delivered them to the student. However, the student did not know the necessary documentation procedures to bring a considerable amount of cosmetics into their country. Eventually, CEO Hwang took on all the inventory. He researched official export routes through social networking services (SNS) and resolved the issue. CEO Hwang said, "That experience was, in a way, Asia BNC's first export," and added, "After continuing in cosmetics distribution, I found it profitable enough to quit my previous job and work full-time."

Entrance of Asia BNC headquarters located in Gwangmyeong Technopark, Gwangmyeong-si, Gyeonggi-do.

Unlike large cosmetics companies, small brands lack the budget and manpower to invest in advertising and marketing in overseas markets. They generally believe that emphasizing product excellence alone will eventually lead to sales, but this is a big misconception. CEO Hwang emphasized, "We perform cost-effective, high-efficiency promotional marketing through consistent influencer promotion and global e-commerce entry in advance," and added, "We secure influencer pools in each country and plan various promotional marketing events to enhance brand awareness and sales."

CEO Hwang also has a close relationship with Kim Tae-wook, chairman of iFamilySC, who is a singer-turned-entrepreneur and husband of actress Chae Shi-ra. When Kim launched the cosmetics brand 'Rom&nd' in 2016, Asia BNC helped export it to China, Vietnam, Japan, and other countries. At that time, Rom&nd had about five staff members, so Asia BNC almost entirely handled exports. Thanks to Asia BNC's support, Rom&nd grew into a global brand extending beyond Asia to North and South America. When iFamilySC was listed on the KOSDAQ market in 2021, half of its total sales came from exports. CEO Hwang said, "Many brand and distribution companies break up due to conflicts over margins, but we are a rare exemplary case," and added, "We still maintain a strong relationship because we grew together during difficult times."

Asia BNC, which has played a role in opening export routes for 'K-Beauty' in overseas markets, launched its own brands last year. These include the hair and body care brand 'O'Deed' and the skincare brand 'Nourish.' With accumulated know-how, they aim to leap from cosmetics distribution to a brand company. O'Deed is rapidly growing, having secured placements in Olive Young, Malaysia's Guardian, and Thailand's Eveandboy within a year of launch. CEO Hwang said, "This year, we will achieve meaningful sales growth in emerging markets such as Europe and South America," and revealed, "We are also considering a plan to share achievements with employees through a KOSDAQ listing by 2025."

Asia BNC grew from 11.2 billion won in sales in 2018 to 60 billion won in 2020. Although sales dropped to 40.7 billion won last year due to COVID-19 impacts, they have started to recover this year, expecting 70 billion won. The operating profit margin is around 10%, maintaining debt-free management.

Asia BNC's own brand 'Odid'.

This content was produced with the assistance of AI translation services.