SMEs ministry opens K-Brand Challenge to fashion and life sectors

The SMEs ministry said Monday it has opened applications for the 2026 K-Brand Challenge, expanding the program beyond beauty to include fashion and life sectors in response to high overseas interest in Korean consumer goods.

The ministry will select nine companies, three from each category. Applicants must own their brands and be either domestic-focused firms or export beginners with less than $5 million in sales last year. Companies that simply distribute other brands are excluded.

Selected participants will undergo a three-stage evaluation covering basic capabilities, product quality and design, and global competitiveness. Winners will receive opportunities to join pop-up stores domestically and abroad, along with export and investment consultations with overseas buyers.

Additional support includes online marketing assistance, priority selection for export voucher programs and help obtaining overseas standard certifications. Startup winners will also receive preferential treatment in initial startup package projects.

"Consumer interest and enthusiasm for K-brands, which started with beauty, is now spreading across all consumer goods including fashion and life," Shim Jae-yoon, the ministry's director general for global growth policy, said. "We will increase policy support so that excellent products from promising SMEs can advance further into the global market and lead SME exports."

The expansion follows record performance in the beauty sector. Small and medium-sized cosmetic exports reached $5.07 billion in the first half of 2026, a 30.7 percent increase from the previous year. Exports to Europe and North America rose 62.4 percent and 36.8 percent respectively.

Online cosmetic exports by smaller firms jumped 85.3 percent to $520 million, accounting for 74.1 percent of total online export volume. In the newly added fashion sector, clothing exports to China grew 45.1 percent to $340 million in the first half of the year.

Applications are being accepted until Aug. 7, with detailed information available on the Korea SMEs and Startups Agency website.