It is a derivative of 4-pyrone that functions in nature as a chelation agent produced by several species of fungi, especially Aspergillus oryzae, which has the Japanese common name koji.

[2] It is a mild inhibitor of the formation of pigment in plant and animal tissues, and is used in food and cosmetics to preserve or change colors of substances.

[2] Kojic acid may be used on cut fruits to prevent oxidative browning, in seafood to preserve pink and red colors, and in cosmetics to lighten skin.

This kind of reaction may be the basis of the biological function of kojic acid, that is, to solubilize ferric iron.

It is not believed to reach carcinogenic thresholds in human skin, and is demonstrably safe at the level used in cosmetics.