Amorepacific Corporation is establishing a production base in the United States to respond to the tariff offensive from the Donald Trump administration.
Kim Seung-hwan, the representative of Amorepacific Corporation, noted in an interview with Bloomberg TV on the 15th that they are discussing emergency measures with their U.S. clients in response to the tariffs imposed on Chinese products. He added, "We are planning to invest in logistics and modular production facilities in the United States within the next 3 to 5 years."
He emphasized that while he had considered a full-scale production facility with a 5 to 10-year outlook, he believes there is a need to act more quickly given the recent changes, stating that the company's long-term vision and investment willingness in the U.S. market remain unchanged despite short-term volatility.
Amorepacific Corporation, with production facilities concentrated in Korea and China, is expected to be affected by President Trump's reciprocal tariffs. President Trump imposed a 145% import tariff on Chinese goods. Although the reciprocal tariffs on Korean products have been postponed for 90 days, a 25% tariff is set to be applied once they come into effect.
Bloomberg assessed that President Trump's tariff policy is having a significant impact on global corporations' production strategies and supply chains.
Bloomberg reported, "This suggests that the global beauty industry is shifting its center to the United States, the world's largest cosmetics market, while also indicating a move to offset the slowdown in the Chinese market."
Bloomberg introduced that Amorepacific Corporation's acquisition of COSRX in October 2023 played a significant role in expanding its North American market. This acquisition led to Amorepacific's North American sales last year reaching 525.6 billion won, more than five times the amount in 2021.
In particular, COSRX's essence products containing snail ingredients have garnered significant attention on social media platforms like Instagram and TikTok, achieving the number one sales position in the facial serum sector on Amazon.com.
Establishing a production base in the United States is expected to help Amorepacific Corporation expand its business into the mid-range cosmetics market. Representative Kim said, "Our cosmetics are evolving into mainstream brands beyond short-term trends," adding, "While success depends on execution, we believe there is practical potential for sustained growth in the mainstream market rather than hitting a peak right now."