This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:21 p.m. on Jul. 20, 2026.
LG H&H and Amorepacific, once counted as the two domestic powerhouses in cosmetics, have moved to shed non-beauty asset. They aim to secure firepower to revive their core cosmetics business by selling noncore businesses and assets such as beverages and health functional foods, and Amorepacific has even put the Anseong plant sale on the table.
According to the investment banking (IB) industry on the 20th, Amorepacific(090430) recently decided to sell its health functional food plant in Anseong, Gyeonggi Province, and began the process of selecting an advisor. It is understood to have sent requests for proposals (RFPs) to major advisors, including accounting firms and real estate services companies, via a competitive bidding process.
As part of efforts to streamline inefficient asset, Amorepacific earlier stepped up sales of regional office buildings located in Busan, Daegu, Daejeon and Gwangju late last year. In addition, early this year it ended operations of "Tonework," a personalized makeup brand for facial color diagnosis launched in May 2023.
The Anseong plant was first completed in 1989 as a pharmaceuticals plant of AESTURA (formerly Taepyeongyang Pharmaceutical). In 2021, when Amorepacific absorbed AESTURA, it was incorporated as a healthcare site. The company used the Anseong plant to manufacture its health functional food brand products, but it has struggled with fixed costs.
In fact, the average utilization rate at Amorepacific's Anseong plant last year stayed at 46%. Annual production results also fell by more than 7%, from 184.4 billion won in 2024 to 171.2 billion won in 2025. Production in the first quarter this year was 31.2 billion won, not even half of the quarterly capacity of 67.8 billion won.
Analysts say Amorepacific has moved to strengthen the efficiency of resource allocation. Amorepacific is expected to consolidate at the Osan plant the health functional food volume previously produced at Anseong, while using the sale proceeds to expand K-beauty businesses targeting global markets such as North America and to bolster online operations.
LG H&H(051900) has also accelerated the streamlining of low-yield asset and the strengthening of its core cosmetics business. It is currently pushing to sell its beverage subsidiary Haitai htb. Last year it already selected Samjong KPMG as the sale advisor. The plan is to receive letters of intent (LOIs) and hold a preliminary bid this month.
Haitai htb traces back to Haitai Beverage, famous for "Crushed Pear," "Cocopalm," and "Guronsan," and was acquired by LG H&H in 2011 to expand its beverage business that began with the acquisition of Korea Coca-Cola Beverage. LG H&H later changed the company name to the current Haitai htb and expanded the business into health functional foods.
That LG H&H, which has grown the company for 15 years, is moving to sell Haitai htb is seen as a step to raise funds to strengthen competitiveness in cosmetics. Though once called a domestic cosmetics powerhouse, it has been shunned as it lost ground to indie cosmetics brands such as APR and Goodai Global, which lead with planning prowess.
Speculation is growing that Amorepacific and LG H&H will use the cash secured from selling noncore asset to acquire indie cosmetics brands. Weakness has continued in China, which they had designated as a key market, and flagship brands such as The History of Whoo and O HUI have even lost influence among younger consumers.
LG H&H has already shifted toward acquiring new K-beauty brands and even proceeded with a deal. It selected the skincare brand Torriden, which has shown steep topline growth with annual sales exceeding 270 billion won, as a candidate and pursued an acquisition, but talks were halted after failing to narrow differences over valuation and other terms.
A source in the IB industry said, "Even though K-beauty is in an all-time boom, Amorepacific and LG H&H have completely ceded the lead to APR and Goodai Global and are standing off to the side of the boom," adding, "This asset restructuring is closer to a do-or-die move to regain the lost lead."