MOHW Consolidates Cosmetics Support into KHIDI
South Korea's Ministry of Health and Welfare reduced its agencies from 47 to 39, integrating cosmetics and regenerative medicine support into KHIDI.
South Korea Streamlines Health Agencies
South Korea's Ministry of Health and Welfare announced a restructuring plan that reduces the number of public agencies it oversees from 47 to 39. This initiative, part of a broader government reform plan revealed on September 3, 2026, aims to streamline operations and enhance institutional expertise.
A key component of this plan involves the Korea Health Industry Development Institute (KHIDI) absorbing two entities that previously supported the cosmetics and regenerative medicine sectors, creating a more integrated support system for the nation's biohealth industry.
The ministry stated the consolidation will improve coordination across various policy areas and eliminate overlapping functions.
KHIDI Expands Cosmetics Sector Support
Under the new structure, KHIDI will integrate the Korea Institute of Dermatological Sciences and the Foundation for Regenerative Medicine. Previously, the Korea Institute of Dermatological Sciences focused on the cosmetics sector, while the Foundation for Regenerative Medicine handled advanced regenerative medicine policy and technology development.
The ministry noted that this fragmented approach made it difficult to provide consistent support throughout the entire product development process, from early research and development to commercialization and global expansion.
By bringing these functions under KHIDI, the government expects to offer more sustained and comprehensive assistance to biohealth companies, including those in cosmetics.
Medical Innovation Foundations Consolidate
The restructuring also includes the merger of the Osong Medical Innovation Foundation and the Daegu-Gyeongbuk Medical Innovation Foundation. These two organizations will combine into a single entity, tentatively named the Korea Advanced Medical Industry Promotion Foundation.
This new foundation will expand its mandate to support biohealth clusters across the country, moving beyond the previous focus on specific advanced medical complexes in Osong and Daegu-Gyeongbuk.
The ministry indicated this merger aligns with the fifth comprehensive plan for advanced medical complexes for 2025–2029, adopted in October 2025, which promotes biohealth clusters as a national growth industry. This move also seeks to reduce administrative costs and strengthen the foundation's public role.
Implications for Korean Beauty Brands
Korean cosmetics companies can expect a more unified and efficient support framework from the government. The integration of the Korea Institute of Dermatological Sciences into KHIDI means that research and development, product creation, and market entry support for the cosmetics sector will now be managed under a single, broader biohealth industry umbrella.
This shift aims to enhance the global competitiveness of Korean biohealth companies by providing seamless assistance from initial R&D through regulatory approval and overseas market expansion.
Businesses in the sector should monitor how the legislative changes needed to implement these reforms progress, as well as any new guidelines or programs emerging from the consolidated KHIDI.
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