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Cosmax headquarters. (Photo courtesy of Cosmax) |
[Alpha Biz= Kim Jisun] Seoul, August 27, 2025 — Cosmax USA, the American subsidiary of Korean cosmetics ODM (Original Design Manufacturer) Cosmax, has repaid millions of dollars to the U.S. government after filing errors were discovered in applications for federal support programs. The company said the incident was the result of an administrative mistake.
According to industry sources on August 27, Cosmax USA and its affiliate New World Corporation failed to meet eligibility requirements for U.S. federal aid due to misstatements in their filings. The companies returned $3 million (approx. KRW 4.2 billion) in improperly obtained funds, plus additional related costs, bringing the total repayment to $6 million (approx. KRW 8.3 billion).
The amount represents roughly 25% of the total aid Cosmax USA had received.
Documents published by the U.S. Attorney’s Office for the Northern District of Ohio in May revealed that Cosmax USA and New World applied for the federal Paycheck Protection Program (PPP) in 2020 and 2021, despite not meeting the employee headcount requirements for eligibility.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
