Shares of Korean cosmetics firms that produce sunscreen products and materials approved by the United States health regulator soared in May, coupled with returning investor sentiment in the K-beauty industry, according to industry sources, Thursday. "Recently, there were dramatic increases in the stock prices of Korean cosmetic firms that make sun protection products with US Food and Drug Administration approvals, as the US government is expected to soon impose stricter rules on sunscreen products sold in the US," an official from a local cosmetics firm said. The US government plans to implement new guidance for the industry, launch new systems for submission of information and enforce new requirements that are part of the Modernization of Cosmetics Regulation Act of 2022, which overhauls the FDA framework for the regulation of cosmetics.
"Korean companies' exports of sunscreen products to the US could be damaged if they do not meet the FDA requirements,” the official added. "The companies that have already satisfied the FDA requirements seem to have attracted relatively more investments as their sales are expected to remain unharmed." According to a report from market intelligence firm FnGuide, the stock price of Sunjin Beauty Science jumped some 112 percent in May.
Established in 1988, Sunjin Beauty Science produces raw materials for sunscreen products, which accounted for 43 percent of the firm's total sales in the first quarter this year. Their raw materials have report.