Next-generation beauty leaders are gaining attention in the K-beauty market. The stars include Kim Byeong-hoon (36), representative of APR, who ranked first in market capitalization in the beauty industry, Cheon Joo-hyuk (37), representative of Goodai Global, who ranked third in industry revenue last year, and Ban Seong-yeon (43), representative of d'Alba Global, who captivated the hearts of women worldwide with the 'flight attendant mist.'
All of them are male CEOs born in the 1980s, and they share the commonality of capturing the global female market through online channels.
◇ Kim Byeong-hoon, who founded APR at the age of 26... No. 1 in domestic beauty market capitalization with beauty tech
According to related industries on the 8th, Kim Byeong-hoon, born in 1988 and CEO of APR, founded the cosmetics brand April Skin in 2014 while studying business administration at Yonsei University, with an initial capital of 50 million won along with former co-CEO Lee Ju-gwang. During his time as an exchange student in the U.S., he recognized the potential of the e-commerce market for selling cosmetics online and entered the business.
April Skin established its presence in the market through a marketing strategy utilizing the then-novel social media. An employee with skin issues appeared in videos demonstrating the cosmetics, and influencers with high recognition among teenagers and young adults were hired as models. As a result, the 'Magic Snow Cushion' sold over 3.5 million units within a year of its release.
The company changed its name to APR and transitioned to a sole CEO system in 2019, and it rapidly accelerated its growth by launching the beauty device 'Medikube Age-R' in 2021. Last year's revenue was 722.8 billion won, increasing more than threefold in four years.
The key to APR's success lies in selling beauty devices and cosmetics simultaneously, which increases the average selling price and encourages repeat purchases. About 78% of total revenue comes from overseas, with the revenue share from the U.S. (29%) higher than that from Korea (22%).
APR, which was listed on the KOSDAQ last February, surpassed the market capitalization of LG H&H in June of this year, and in August it exceeded 8 trillion won in market capitalization, overtaking Amorepacific, the industry leader. The value of the equity held by CEO Kim, who owns 31%, has also risen to 2.5 trillion won. The growth trend continues this year, with securities analysts projecting that revenue will exceed 1.03 trillion won.
The journey for CEO Kim to earn the title of 'billionaire' was not smooth. Before entering the cosmetics business, he ventured into virtual fitting services applications, dating apps, and social commerce but faced failures. APR also initially started as a social media marketing and advertising agency. In a past YouTube channel interview, Kim remarked, "Only after experiencing failure was I able to look at the products I created through the eyes of consumers with a clear perspective."
◇ 'I aim to be the Kiel of Korea'... Ban Seong-yeon of d'Alba Global targets 1 trillion won in annual revenue
Ban Seong-yeon (43), who became the CEO of d'Alba Global, which was listed on the KOSDAQ last May, was born in 1981 and founded the company in 2016. Graduating from Seoul National University with a degree in industrial engineering, he worked on mobile service development at Naver (then NHN) before discovering the beauty startup sector while working as a management consultant at global strategy consulting firms A.T. Kearney and A.D. Little Korea. He believed that by adding premium ingredients and branding to Korea's manufacturing infrastructure, global success could be achieved.
Ban is creating the premium vegan beauty brand d'Alba using white truffles from Alba, Italy, which are relatively unknown in Korea. The flagship product, 'White Truffle Spray Serum,' has undergone several renewals since its release in 2016. This product gained popularity as a mist frequently used by flight attendants, selling over 50 million units. The company's revenue, which was 69 billion won in 2021, surged to 309.1 billion won last year. Revenue in the first half of this year increased by 73% compared to the previous year, with 63% of sales coming from overseas, mainly in Japan, Russia, and North America.
Ban plans to grow d'Alba into a brand like Kiehl's or Aesop, which both have annual revenues in the 2 trillion won range. During a press conference prior to its IPO in April, he expressed his ambition: "By 2028, we will achieve annual revenue of 1 trillion won and cumulative sales of 1 trillion won for mist serums, growing into a global super brand."
◇ Cheon Joo-hyuk of Goodai Global dreams of being 'the L'Oréal of Korea' with relentless M&A
Goodai Global, known for 'Beauty of Joseon,' was founded in 2016 by Cheon Joo-hyuk (37), born in 1987. He double-majored in Chinese language and literature and international trade at Soongsil University, and using his fluency in Chinese and English, he started a cosmetics distribution business in China. His connection with Beauty of Joseon began when he became its distributor in China. After the Hallyu limit (Korean wave restriction) led to the sale of Beauty of Joseon in 2019, he acquired it and intensified the cosmetics brand business.
Beauty of Joseon is a cosmetics brand that uses traditional herbal ingredients. Unusually, it found success first in the North American market before being re-exported back to Korea. The flagship product, 'Clear Rice Sunscreen,' released in November 2021, ranked first in the sunscreen category during the Amazon Black Friday in 2022. Revenue from Beauty of Joseon, which was only 10 million won in 2020, soared to 323.7 billion won last year, with over 90% coming from overseas.
Cheon is regarded as a bold businessman. While APR and d'Alba Global focus on growing their own brands, Goodai Global aims to enhance its size by acquiring well-known beauty brands overseas. This strategy is dubbed the 'L'Oréal of Korea' approach.
Last year alone, Goodai Global acquired three beauty companies: Tirtir, Laka, and Crayver (Skin Angel). Revenue, which was about 130 billion won in 2023, surged to 900 billion won last year. This achievement surpassed that of Aekyung Industrial (679.1 billion won), the third-largest beauty company in Korea. This year, it is set to acquire Seorin Company (Round Lab) and Skin Food for 600 billion won and 150 billion won, respectively.
The company is also swift in divestitures. Goodai Global made a profit of about 10 billion won when it sold Laka just over a year after acquiring it.
Recently, Goodai Global was valued at over 4 trillion won and secured 800 billion won from private equity fund (PEF) operators, with the condition of going public (IPO) within three years. Cheon holds about 97% equity in Goodai Global.