The cosmetic industry in Korea is now faced with up and coming opportunities from overseas whilst struggling with a sharp reduction in sales mainly caused by the current domestic economic crisis. Exports of cosmetic products are growing at a higher rate than imports, mostly thanks to the increase of exports to China, Japan, Hong Kong and other Asian countries. Although the CAGR growth between 2008 and 2012 was 10.8%, domestic sales are showing a significant reduction this year. ‘Hanbang’ cosmetics produced based on Korean traditional medicinal herbal recipes and wisdom have recorded a 15.7% CAGR growth between 2009-2011 and enjoyed a 23.8% market share in 2011. Further details on the Korean market and research trends will also be presented.