Cosmetics are displayed at the Olive Young Central Myeongdong Town store in central Seoul on July 17. Korea’s cosmetics exports topped 10 trillion won ($7 billion) in the first half of the year for the first time, according to the Ministry of Food and Drug Safety.NEWS1
Hyosung is building a K-beauty value chain that stretches from cosmetic ingredients to shoppers’ doorsteps.
Hyosung Ventures, the group’s investment arm, recently acquired a stake in istyle, a Japanese beauty and media company that also operates @cosme, Japan’s largest beauty platform, according to beauty industry sources on Sept. 7.
Japan’s @cosme has grown into an influential platform built around consumer product reviews and cosmetic ingredient information. Its Best Cosmetics Awards, which rank products based on reviews twice a year, are considered a key barometer of Japan’s cosmetics market. The platform has also become an important distribution and marketing channel for beauty companies seeking to enter the Japanese market.
The investment is Hyosung’s fourth in a beauty company this year.
In February, the Korean group acquired a 6 percent stake in Pion-Tech, which uses nanobiotechnology to develop functional cosmetic ingredients and products. Pion-Tech has drawn attention for its Cellfuller line, which uses nanobubble technology. More than 100,000 units are sold each month in Taiwan, and the company has expanded into Hong Kong, Singapore and Malaysia.
Hyosung followed in May with an investment in beauty solutions developer AAC Holdings. The company specializes in antiaging technology and is developing an AI-powered skin data platform and solutions targeting various skin concerns.
In August, Hyosung invested 30 billion won ($22.3 million) in Egongegong, a K-beauty commerce company focused on North America, by purchasing convertible bonds. The company helps Korean cosmetics brands sell their products through global e-commerce platforms such as Amazon in the United States and provides distribution and marketing services.
A tourist shops for K-beauty products in a supermarket in Seoul on July 12.YONHAP
Add Colosseum, an AI-powered logistics company in which Hyosung made a follow-up investment of around 27 billion won last year after first investing in 2024, and the pieces begin to form an end-to-end beauty value chain spanning ingredients, production, sales and delivery.
The push may seem like an unlikely turn for a group traditionally associated with heavy industry, but K-beauty is enjoying a record boom.
Korea’s cosmetics industry was once largely constrained by the size of its domestic market, but its rapid expansion overseas has transformed its growth prospects. Korean cosmetics exports reached a record $11.43 billion last year, overtaking the United States and making Korea the world’s second-largest cosmetics exporter after France, according to the Ministry of Food and Drug Safety.
The overseas focus is also reflected in Hyosung’s investments: Egongegong primarily targets the United States, while istyle is centered on Japan.
Beauty also has a relatively low barrier to entry. Unlike heavy industries, cosmetics businesses generally do not require massive upfront capital investment and can offer relatively high margins compared to production costs.
Hyosung's headquarters in SeoulHYOSUNG TNC
There may also be synergies with Hyosung TNC, the group’s chemical and materials affiliate.
Bio-based BDO, or butanediol, which Hyosung TNC is investing heavily in, is used not only as a raw material for spandex but also as a key ingredient in cosmetic moisturizers. The company amended its articles of incorporation at its annual shareholder meeting in March to add cosmetics manufacturing and sales, distribution and wholesale and retail operations, as well as e-commerce, to its stated business purposes.
“We are investing in several companies to better understand the market and explore potential partnerships as we review beauty as a new business,” a Hyosung source said.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
