‘Emerging powerhouse’: Gen Z and millennial insights key to Amorepacific taking 38.4% stake in COSRX

By Amanda Lim

- Last updated on GMT

Amorepacific has taken a 38.4% stake in cult K-beauty brand COSRX as it looks to expand its own footprint overseas. [COSRX]
Amorepacific has taken a 38.4% stake in cult K-beauty brand COSRX as it looks to expand its own footprint overseas. [COSRX]

Related tags Amorepacific Gen Z millennials Korea K-Beauty Skin care

Knowledge of the Gen Z and millennial consumer combined with a burgeoning global reputation are two of the reasons Korean major Amorepacific has taken a 38.4% stake in cult K-beauty brand COSRX, as it looks to expand its own footprint overseas.

Founded in 2013 by Jeon Sanghoon, COSRX is best known for sensitive skin products like its Low pH Good Morning Gel Cleanser, BHA Blackhead Power Liquid, and Acne Pimple Master Patch.

Amorepacific announced that it had decided to acquire a significant minority stake for KRW180bn (U$153m) in the “emerging powerhouse” ​as part of its Vision 2025 strategy to enter new markets overseas.

“We have been looking for a partner to share the value of New Beauty as stated in our ‘Vision 2025’, which we declared this year as part of the celebration of our 76th anniversary,”​ said Lee Jinpyo, head of Amorepacific group strategy division.

The deal has made Amorepacific the second-largest shareholder of COSRX. The transaction is expected to close by the end of October.

Amorepacific also has a call option to purchase the remaining 57.6% of CosRX's treasury stock from 2024 to 2025.

“We will continue to examine our synergy with COSRX, as well as growth potential to decide on further investment options,”​ said Lee.

This follows Amorepacific’s minority acquisition of Aussie brand Rationale​ last year, securing an advisory role and voting rights on its board of directors.

Raising the K-beauty status

With this deal, Amorepacific plans to use the deal as a springboard to expand its global presence.

COSRX is one of the most highly recognised niche Korean beauty brands globally. Today, the brand is available in over 40 markets, including the US, China, Germany, Japan, and Singapore. According to the firm, its overseas business account for 80% of its total sales.

Amorepacific aims to glean insights from COSRX so it can gain a competitive edge in markets like North America, where COSRX has cultivated strong foothold.

“Based on our outstanding marketing and digital business capabilities, we plan to grow together by raising K-beauty’s status in the global market through partnership with COSRX, which is loved by the global MZ generation,” ​said Amorepacific CEO Ahn Se-hong.

Additionally, Amorepacific plans to tap into COSRX's understanding of the millennial and Gen Z (MZ) demographics.

“We saw the innovation that COSRX has brought into the market, how it communicated with millennials and Generation Zs, and its presence in the global market, and confirmed COSRX to be a good partner as we work to achieve the value of New Beauty.”

Meanwhile, Amorepacific will share its R&D and production experiences and capabilities will give momentum to COSRX as it continues to grow into a global brand.

“We believe that our supply chain management and R&D infrastructure will be one of the most helpful things we can provide to COSRX. We are considering sharing our 76 years of experience and knowledge in R&D and manufacturing,”​ said Lee.

He added that the brands will explore opportunities that will allow COSRX to utilise its research and production facilities.

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