This article was published on the ChosunBiz MoneyMove (MM) site at 4:13 p.m. Jan. 14, 2026.
Domestic private equity firm Affirma Capital is resuming efforts to sell control of Hwasung Cosmetics, an original design manufacturer (ODM) specializing in color cosmetics.
According to the investment banking industry on the 14th, Affirma Capital is internally coordinating the timing of the sale of Hwasung Cosmetics' controlling stake. The sale target is the 70% equity held by Affirma Capital through special purpose company Atherion Holdings. A full-scale sale process is expected to begin after March, when last year's results are released. Samsung Securities, which had a contract in the past, is likely to act as the lead manager for the sale.
Affirma Capital attempted to sell Hwasung Cosmetics in 2024 but halted the process after failing to narrow the price gap with potential buyers. After securing time through refinancing acquisition financing, Affirma Capital postponed the sale as expectations for results grew amid a continued K-beauty boom.
Hwasung Cosmetics has recorded explosive growth since the COVID-19 pandemic. Its performance, which was about 71.3 billion won in sales and 9.6 billion won in operating profit in 2023, surged to 91.4 billion won in sales and 16.2 billion won in operating profit last year. Compared with 2019, when Affirma Capital acquired the company, these figures are roughly double. Earnings before interest, taxes, depreciation and amortization (EBITDA) also reached 20 billion won in 2024.
This is analyzed to be the result of Affirma Capital's aggressive global expansion strategy. After acquiring Hwasung Cosmetics, Affirma Capital focused on diversifying its client base toward global brands. Currently, the proportion of overseas cosmetics brands among Hwasung Cosmetics' clients reaches 70%. In 2022, it acquired NOWCOS, an ODM specialist for basic cosmetics, as a bolt-on, integrating the cosmetics production value chain from raw materials to production and container packaging.
The external market environment is also favorable. Last year, South Korea's cosmetics exports surpassed the United States to become the world's second largest, behind France. According to the Ministry of Trade, Industry and Resources, cosmetics exports last year totaled $11.4 billion, a record high. The number of client companies for domestic cosmetics ODM firms has also exceeded 10,000, showing rapid growth in the industry itself.
An industry official said, "There is no set specific timing for the sale of Hwasung Cosmetics at present," noting, "Discussions are expected to proceed starting in March, when audited results are finalized."