South Korean cosmetics companies expand in Mexico despite tariffs — Korea Herald
South Korean cosmetics companies Amorepacific and LG Household & Health Care are expanding their presence in Mexico, viewing the country as a strategic market for further entry into Latin America. At the same time, their expansion is complicated by import tariffs on cosmetics, Korea Herald reports.
The development of the Korean cosmetics industry in Mexico was discussed at the 2026 K-Expo Mexico exhibition in Mexico City, which President of South Korea Lee Jae-myung visited during a state visit. At the Amorepacific booth, he tested an artificial intelligence-based skin diagnostic device, while at the LG Household & Health Care booth, he tried an anti-hair-loss product.
Market and company plans
Mexico is the second-largest cosmetics market in Latin America after Brazil. According to Mordor Intelligence, its size is expected to grow from $17.64 billion this year to $22.36 billion in 2031.
Amorepacific CEO Kim Seung-hwan said the company expects to grow more than tenfold in Mexico over five years. LG Household & Health Care called Mexico a key hub for its Latin American business and said it intends to use the experience gained there to expand into other major markets, including Brazil.
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The LG Household & Health Care booth at the exhibition was visited by around 5,000 people each day. The company’s sales in North America reached 205.8 billion won, or $151.6 million, in the second quarter, up 47% year-on-year and exceeding its sales in China, 176 billion won, for the first time. The company also plans to strengthen its presence on Mercado Libre.
Tariff barrier
According to the Korea Customs Service, exports of Korean cosmetics to Latin America exceeded $200 million for the first time last year, while they totaled $168.06 million in the first half of this year.
At the same time, Mexico raised tariffs this year on goods from countries with which it does not have a free trade agreement, including South Korea. The rate for cosmetics is about 25%, and Kim Seung-hwan said tariffs had risen by approximately 10 percentage points. The companies are not yet considering price increases, but describe the additional costs as a common problem for the industry.
During a business forum in Mexico, Lee Jae-myung said a trade agreement between the two countries could deepen economic cooperation. The sides agreed to launch a joint study into the feasibility of such an agreement, which is to serve as a basis for future negotiations.
